RESTRICTEDWORLD TRADE
ORGANIZATIONG/SG/Q2/EGY/7
2 May 2000
(00-1757)
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 PURSUANT TO ARTICLE 12.1(C)
OF THE AGREEMENT ON SAFEGUARDS
Replies to Questions Posed by HUNGARY1
Regarding the Notification of EGYPT2
The following communication, dated 26 April 2000, has been received from the Permanent
Mission of Egypt.
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INTRODUCTION
On 13 April 2000, the Permanent Mission of Hungary to the WTO sent a questionnaire to the
Permanent Mission of Egypt in Geneva, concerning the Egyptian notification of imposing a definitive
safeguard measure upon imports of Common Fluorescent Lamps.
It should be noted that on 3 January 2000, the Egyptian competent department circulated a
non-confidential summary of the findings and propose d measures to the Government of Hungary as it
has a substantial trade interest, through its embassy in Cairo, providing an opportunity for
consultations to be held on 13 January 2000, but no request for consultation was received by the
department.  This approach for consultations was forwarded pursuant to Article 12.3 of the WTOAgreement on Safeguards and Article 89 on the Internal Regulation.
Q1. What were the unforeseen developments in th e sense of Article XIX:1(a) that led to the
increase in imports?
Reply
The unforeseen developments that led to the increase of imports were:
The effect of the change in structure of the industry, andThe consequent switch from marketing the loca l product to marketing imported alternatives in
greatly increased volumes.
                                                     
1 G/SG/Q2/EGY/6
2 G/SG/N/8/EGY/2G/SG/N10/EGY/2 & Suppl.1G/SG/Q2/EGY/7
Page 2
Q2. How did the Egyptian authorities establish that there was a causal relationship between
the increase in imports and the decline in the relevant injury factors and that their parallel
inverse movement was not coincidental?
Reply
The following is a summary of the conclusions reached during the investigation concerning
the causal relationship between the increase in imports and the decline in the relevant injury factors:
• Imports have increased significantly since 1997/98, both in absolute terms and in relation to
production, and the rate of increase is accelerating from one year to another.
• There has been a significant decline in both production and sales during 1998/99.
• The market share of the domestic industry declined significantly in 1998/99.
• Inventory increased significantly since 1997/98 and continued to increase in 1998/99 until it
exceeded sales in 5 months.
• Although profits were achieved during 1996/97 and 1997/98 there were losses in 1998/99.
All the above-mentioned serious injury effects were detected at the same time that the sudden increase
in imports occurred.  The imports were not only the cause of serious injury but it was the main cause
determined.
Q3. Please provide us with the yearly import figures for the period 1996-99.
Reply
The following table shows the yearly import figures:
The volume of imports
(unit:  000 lamps)
Year 96/97 97/98 98/99
Imports 5,014.8 12,312 15,980.4
Q4. Could you include a breakdown of the impo rt figures according to the different types of
lamps subject to the safeguard measure?
Reply
Please see the above-mentioned table.  The table covers all lamps, which are like or directly
competitive with those produced by the domestic industry.
Q5. Please provide yearly data concerning th e share of imports relative to domestic
production during the above-mentioned period?
Reply
The total domestic production figure for Egypt is confidential information.  Please note that
only one company is involved in the enquiry (as it is the only producer of the concerned product), so
release of this data would give valuable commercial information to a competitor.G/SG/Q2/EGY/7
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However, the following table shows an increase in imports relative to domestic production
with confidential information deleted:
Relative increase of imports
(Unit:  000 lamps)
Year 96/97 97/98 98/99
Imports 5,014.8 12,312 15,980.4
Domestic production
Imports relative to
domestic production(%)
Index 100% 255% 452%
Q6. Could you please supplement the overview of the situation of the domestic industry
during the above-mentioned period with more detailed information and illustrate it with
statistics on a yearly basis, with particular regard to the inventories?
Reply
The question is not clear.  Would the Hungarian Representatives kindly advise in detail what
is being requested.
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