G/SG/N/8/UKR/9  
G/SG/N/10/UKR/9  
G/SG/N/11/UKR/7/Suppl.1  
5 November  2020 
(20-7895) Page: 1/5 
Committee on Safeguards  Original:  English  
 
  
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS  
NOTIFICATION OF A PROPOSAL TO IMPOSE A MEASURE  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
Polymeric materials  
UKRAINE  
The following communication, dated 5 November 2020, is being circulated at the request of the 
delegation of Ukraine .* 
 
_______________  
 
 
Pursuant to Articles 12.1(b) of the Agreement on Safeguards, Ukraine notifies on finding a serious 
injury or threat thereof to the domestic industry producing polymeric materials and on proposed 
safeguard measures. This notification contains all pertinent information relating to the proposed 
safeguard me asures in accordance with Article 12.2 of the Agreement on Safeguards and an offer 
for consultations pursuant to Article 12.3 of the Agreement on Safeguards.  
On 21 February 2020 the Interdepartmental Commission on International Trade (hereinafter referred 
as the Commission) took the decision "On initiation and conduction of safeguard investigation on 
imports to Ukraine of polymeric materials regardless of country of origin and export" 
No. SP-440/2020/4411 -03 (G/SG/N/6/UKR/17 of 28 February 2020). On 25 February  2020 the 
abovementioned decision was published in the official newspaper "Uryadovyi Courier" No. 36.  
The investigation had been initiated pursuant to the application of the domestic industry in particular 
by LLC "KARPATNAFTOKHIM" (hereinafter refe rred as the Applicant).  
On 22 May 2020 the Commission took the decision "On application of provisional safeguard measures 
on import to Ukraine of polymeric materials regardless of country of origin and export 
No. SP-445/2020/4411 -03" (G/SG/N/7/UKR/2  - G/SG /N/11/UKR/7 ). 
1  PROVIDE EVIDENCE, CITING RELEVANT DATA AND THE APPLICABLE PERIOD OF 
INVESTIGATION OF SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED 
IMPORTS  
The period of investigation: 2018, 2019, 1 March 2019 – 29 February 2020.  
The results of the ana lysis of the applicant's economic situation show that during the investigation 
period:  
 
* A copy of the final finding has been submitted electronically. To consult this document please contact 
Ms. Richards (anne.richards@wto.org) or Ms. Naville (delphine.naville@wto.org) of the Rules Division.  G/SG/N/8/UKR/9 • G/SG/N/10/UKR/9 • G/SG/N/11/UKR/7/Suppl.1  
- 2 - 
  − production volumes increased by 15.7%;  
− the sales of the product on the domestic market increased by 2.9%;  
− the applicant's share in consumption decreased by 9.0% while th e consumption 
increased by 13.3%;  
− stocks in warehouses at the end of the period decreased by 52.8%;  
− employment rate  increased by 1.2%;  
− the loss of the company decreased by 53.4%, but the activity of the Applicant remains 
unprofitable;  
− profitability from th e sale of the product on the domestic market is negative, but this 
indicator has improved by 48.7%;  
− liquidity conditions  increased by 152.0%;  
− investments in production of the product decreased by 429.8%.  
The cumulative assessment of the above factors led t o the finding of the material injury to the 
national producer.  
2  PROVIDE INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE IN IMPORTS 
OR AN INCREASE IN IMPORTS RELATIVE TO DOMESTIC PRODUCTION  
According to the customs statistics of the State Customs Servic e (based on a sample of product 
descriptions) during the investigation period:  
Polymeric materials : 
• import volumes of polymeric materials increased by 26% in absolute terms;  
• import volumes relative to production of the product in Ukraine increased by 8.9% and by 
11.6% relative to consumption;  
• Polyethylene : 
• import volumes of polyethylene increased by 32.3% in absolute terms;  
• import volumes of polyethylene relative to production of the product in Ukraine increased by 
35.4% and by 25.6% relative to consumption of goods;  
PVC: 
• import volumes of PVC increased by 19.4% in absolute terms;  
• import volumes of PVC relative to production of the product in Ukraine decreased by 3. 2% 
and by 0.6% relative to consumption of goods;  
Based on the above -mentioned, it was found that during the investigation period there was a 
significant increase in the volume of imports of goods to Ukraine.  
In accordance with Article XIX: 1 of the GATT 1994 , the investigating authority has considered 
unforeseen developments  that led to a significant increase in the volume of import of goods, which 
caused significant injury to the domestic industry producing the like product.  
According to the Market Report of  the Company, unused production capacity of polyethylene in the 
main exporting countries during 2018 -2019 was significant, 4.1 million tons per year, which is 
30 times higher than the total consumption in Ukraine. The total volume of production of 
polyethy lene in these countries amounted to 42.0 -42.2 million tons per year. In addition, it should 
be noted that the Turkish company Sasa Polyester Sanayi launched a new polyethylene plant in the 
city of Adana in September 2020. The capacity at the initial stage was 500 tons per day. In general, 
the production capacity will be 365 thousand tons of polyethylene per year, which is more than G/SG/N/8/UKR/9 • G/SG/N/10/UKR/9 • G/SG/N/11/UKR/7/Suppl.1  
- 3 - 
  2 times of the volume of consumption in Ukraine. At the same time, on July 27, 2020, the 
Internal  Market Protection Department of the Eurasian Economic Commission launched an 
anti-dumping investigation on low -pressure polyethylene (HDPE) from Uzbekistan imported to the 
Eurasian Economic Union, which could lead to anti -dumping duties. As a result, Uzbek producers will 
be forced to look for new markets for their products. Given the effect of the free trade area between 
Ukraine and Uzbekistan and given the logistics component, it is likely that these products will target 
the Ukrainian market.  
Also, pursuant to Market Report of the Com pany, there was an increase in stocks of polyethylene in 
the warehouses of the largest polyethylene producer in China. In view of the above, it can be 
concluded that there is significant spare production capacity in the immediate vicinity of Ukraine 
(Adana , Turkey), significant stocks in Chinese warehouses, as well as a free trade area with 
Uzbekistan and the EEC's anti -dumping investigation on imports of Uzbek products.  
These facts indicate a high probability of increasing imports of polyethylene to Ukrain e from 
mentioned countries and as a consequence it would continue to cause significant harm to the 
domestic industry in the future.  
During 2018 -2019, unused PVC production capacity in the main supplier countries amounted to 
3 million tons per year, which i s almost 30 times higher than the total consumption in Ukraine. In 
total, PVC production in these countries amounted to 14.3  - 14.4 million tons per year.  
In addition, it should be noted that in the summer of 2020, Qingdao Haiwan Group launched a new 
plant for the production of polyvinyl chloride (PVC) in China in Shandong Province.  
The capacity of the new line included in the vinyl complex of the company No  2 is 400 thousand tons 
of PVC per year, which exceeds the total production of the Applicant (300 thousand tons per year) 
and consumption in Ukraine is almost 4 times.  
Given the above, there is free production capacity, which gives grounds to argue about t he high 
probability of increasing imports of polymers into Ukraine and as a consequence it would continuing 
to cause significant harm to the domestic industry in the future.  
Considering the above, the investigating authority concluded that these factors le d to an 
unpredictable recent increase in imports into Ukraine and, as a consequence, cause serious injury 
to domestic producers and an imbalance in favor to foreign producers -suppliers of goods.  
The major exporting countries of imports of the product invol ved 
Countries of imports  1st period  2nd period  3rd period  
Polymeric materials imports, tons  
The Federal Republic of Germany  21 790  22 847  24 643  
The Republic of Poland  1 200  1 432  1 756  
The United States of America  11 166  17 653  20 964  
The Kingdom of Thailand  1 444  2 832  2 302  
The Republic of Hungary  7 605 6 991  7 305 
The Republic of Uzbekistan  3 034  3 455  3 950 
The French Republic  729 453 439 
The Czech Republic  2 725  2 274  2 288  
The United Arab Emirates  2 740  4 230  3 620  
The Republic of Korea  3 706  2 209 2 382  
The Kingdom of Saudi Arabia  9 093  16 200  17 280  
The Netherlands  1 740  2 358  2 590  
3  PROVIDE PRECISE DESCRIPTION OF THE PRODUCT INVOLVED  
PVC suspension, with K -value within the range from 59 to 72 (K -value determined in certification 
documents  - K 59-72), which can be classified under UKTZED code 3904 10 00 00, except for 
emulsion and micro -suspension PVC;  and polyethylene in white granules with a size of 2 -5 mm with 
a specific gravity of 0.940 g/cm3  or more and at the same time a melt flow rate (MFR) of 
5-17 grams/10 minutes at a load of 21.6 kgf, or a melt flow rate (MFR) of 
0,34-0.37 grams/10  minutes at a load of 5.0 kgf or melt flow rate (MFR) G/SG/N/8/UKR/9 • G/SG/N/10/UKR/9 • G/SG/N/11/UKR/7/Suppl.1  
- 4 - 
  0.06-0.08 grams/10  minutes at a load of 2.16 kgf,  which can be classified under 
UKTZED  code 3901 20 90 00.  
4  PROVIDE PRECISE DESCRIPTION OF THE PROPOSED MEASURE  
Safeguard duty of 18.19%.  
5  PROVIDE PROPOSED DATE OF INTRODUCTION OF THE MEASURE  
November 2020.  
6  PROVIDE EXPECTED DURATION OF THE MEASURE  
Safeguard m easures are planned to be imposed for a period of 3 years.  
7  PROVIDE FOR A MEASURE WITH A DURATION OF MORE THAN THREE YEARS THE 
PROPOSED DATE FOR THE REVIEW (UNDER ARTICLE 7.4) TO BE HELD NOT LATER THAN 
THE MID -TERM OF THE MEASURE, IF SUCH A DATE FOR THE REV IEW HAS ALREADY BEEN 
SCHEDULED  
Not applicable . 
8  IF THE EXPECTED DURATION IS OVER ONE YEAR, TO PROVIDE EXPECTED TIMETABLE 
FOR PROGRESSIVE LIBERALIZATION OF THE MEASURE  
The level of the duty should be decreased by 5% annually during measures validity.  
1st year (from the date of application ) – 18.19 %; 
2nd year (12 months from the date of application ) – 17,28% ; 
3rd year 24 months from the date of application – 16,42% . 
9  TO PROVIDE INFORMATION RELATING TO THE EXTENSION OF A SAFEGUARD MEASURE  
Not applicable . 
10  EXCLUSION OF CERTAIN COUNTRIES FROM THE SCOPE OF THE DEFINITIVE MEASURES  
According to the Article 9.1 of the Agreements on Safeguards (List of the Least Developed Countries 
of the United Nations), Free Trade Agreement between the EFTA States an d Ukraine dated 
24.06.2010, Free Trade Agreement between the Government of Ukraine and the Government of 
Montenegro dated 18.11.2011, Free Trade Agreement of the Commonwealth of Independent States, 
dated 18.10.2011 and taking into account Chapter 8 of the Article XXIV of the General Agreement 
on Tariffs and Trade 1994 imports of goods described in paragraph 3 of this notification to Ukraine 
originating from the following countries should be excluded from the application of the definitive 
measures: the Repub lic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, 
the Swiss  Confederation, the Republic of Montenegro, the Republic of Azerbaijan,  
the Republic  of Armenia, the Republic of Belarus,  the Republic of Kazakhstan, 
the Republic  of Kyrgyzs tan, the Republic of Moldova, the Republic of Tajikistan, Turkmenistan,  
the Islamic  Republic  of Afghanistan, the Republic of  Angola, the People 's Republic of Bangladesh, 
the Republic of  Benin, the Kingdom of Bhutan, the Republic of  Burkina Faso, the Republic of  Burundi, 
the Kingdom of Cambodia, the Central African Republic, the Republic of  Chad, 
the Union  of the Comoros, the Democratic Republic of the Congo, the Republic of  Djibouti, 
the State  of Eritrea, the Federal Democratic Republic of Ethiopia, t he Islamic Republic of  Gambia, 
the Republic of  Guinea, the Republic of  Guinea -Bissau, the Republic of  Haiti, the Republic of  Kiribati, 
the Lao People's Democratic Republic, the Kingdom of Lesotho, the Republic of  Liberia, 
the Republic  of Madagascar, the Re public of  Malawi, the Republic of  Mali, 
the Islamic  Republic  of Mauritania, the Republic of  Mozambique, the  Republic  of the Union 
of Myanmar, the Federal Democratic Republic of  Nepal, the Republic of  Niger, 
the Republic  of Rwanda, the Democratic Republic of Sao Tome and Principe, the Republic of Senegal, 
the Republic of  Sierra Leone, Solomon Islands, the Federal Republic of Somalia, 
the Republic  of South Sudan, the Republic of  the Sudan, the Democratic Republic of Timor -Leste, G/SG/N/8/UKR/9 • G/SG/N/10/UKR/9 • G/SG/N/11/UKR/7/Suppl.1  
- 5 - 
  the Republic of  Togo, Tuvalu, the Republic of  Uganda, the United Republic of Tanzania, 
the Republic  of Yemen, the Republic of  Zambia.  
11  PROCEDURES RELEVANT TO THE DECISION ON APPLICATION OF THE MEASURES AND 
INFORMATION REGARDING PROCEDURES FOR PRIOR CONSULTATIONS WITH THOSE 
MEM BERS HAVING A SUBSTANTIAL INTEREST AS EXPORTERS OF THE PRODUCT 
CONCERNED  
As a measure to prevent the extension of COVID -19, Ukraine proposes, if necessary, to held the 
consultations in the form of an exchange of views by providing the information in writin gs or by 
means of videoconference.  
Members having a substantial interest as exporters of the product subject to the investigation that 
would like to consult with Ukraine shall send their position papers to the meco nomy@me.gov.ua  (for 
official registration) and to the e -mail addresses of the responsible for the investigation persons 
dtsimbalenko@me.gov.ua  and suhanov@me.gov.ua  before 16.11.2020 or request videoconference 
to be hold till 16.11.2020 . 
 
__________