WORLD TRADE
ORGANIZATIONG/SG/N/8/EGY/3
G/SG/N/10/EGY/3
28 February 2001
(01-0987)
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
EXTENSION OF AN EXISTING MEASURE
EGYPT
The following communication, dated 26 February 2001, has been received from the
Permanent Mission of Egypt.
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With regard to the Egyptian document circ ulated as no. G/SG/N/6/EGY/2/Suppl.1 dated
7 February 2001, regarding the notice of initiation of a safeguards investigation concerning the
extension of an existing measure on imports of "common fluorescent lamps", and pursuant to the
above-referenced provisions of the Agreement on Safeguards, and in the light of the agreed format for
notifications (G/SG/1, July 1996), the Arab Republic of Egypt hereby notifies its intention to extendthe safeguard measure concerning fluorescent lamp s applied under Article 12.1(b) and 12.1(c) of the
Agreement on Safeguards.
1. Evidence that the safeguard measure contin ues to be necessary to prevent or remedy
serious injury or threat thereof caused by increased imports
The following is a summary of the conclusions reached during the investigation concerning
the extension of an existing measure on imports of "common fluorescent lamps".
(a) The rate of the absolute and relative increase in imports is still significant when
measured against the base period.  The import volume decline did not reach the
expected volume decline, and the volume still represents more than the base period in
absolute terms, and three times more in relative terms.
(b) The increase of the domestic production is less than expected and is still significantly
less than the production volume in the base period.
(c) The increase of the sales volume is less than expected and still significantly less than
sales volume in the base period.G/SG/N/8/EGY/3
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(d) The effect of the imposition of the measure was offset by the reduction of the import
prices, despite the fact that the exchange rate of the Egyptian pound decreased on
average by 11 per cent in the period following the measure.
(e) The decline in the import prices resulted in a decline in the industry's selling prices.
The company continued to realize great losses in spite of the imposition of the
measure.
(f) The industry is still realizing losses despite the imposition of the measure and is still
experiencing substantial losses when compared to the base period.
(g) The market share of the domestic industry has not improved to the extent that would
have been expected following the imposition of the measure.  It is also worth noting
that for the period since the imposition of the safeguard measure, the market share of
the imports is still significantly higher than in the base period and still well above the
improved current market share of the domestic industry.
(h) The inventory volumes still represent more  than twice as much as those recorded in
the base period.
(i) The capacity utilization is still significantly less than the rate in the base period.(j) The investigation authority considered all other possible causes of injury to the
domestic industry since the imposition of the measure.  The investigating authority
found no evidence that there had been factors other than the increased imports that
had prevented the domestic industry from performing to the level that it was expectedto perform at, after the imposition of the measure.  Despite the fact that the company
is implementing the adjustment plans prov ided during the original investigation, the
investigating authority considers that the i ndustry still requires more time to complete
adjusting, to be able to compete with the imports.
(k) The investigating authority concludes that the increase of imports of common
fluorescent lamps is still causing serious injury, and that this has prevented thecompany from achieving tangible improvement towards the same results achieved in
the base period.
2. Information on whether there is an absolu te increase in imports or an increase in
imports relative to domestic production
There was an increase in imports that reached 120 per cent in absolute terms as well as an
increase in relative terms to domestic production that reached 192 per cent, along with a slight
improvement in production, sales in the domestic market, sales revenue, and capacity utilization.
Moreover, there was a fall in imports in value terms.  But in spite of that, the domestic production isless than expected and is still significantly less than the production volume in the base period.
3. Description of the product concerned
Common fluorescent lamps from 18 to 40 watts.  These are classified under H.S. Tariff
Heading No. 85 39 31 10.G/SG/N/8/EGY/3
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4. Description of the proposed measure
25 per cent of c.i.f. value surcharge over one year.
5. Proposed date of introduction of the measure
27 February 2001.
6. For a measure with a duration of more than three years, provide the proposed date for
this review (under Article 7.4) to hold not late r than mid-term of the measure if such a
date for review was already scheduled
Not applicable.
7. If the expected duration is over one year, provide the expected timetable for progressive
liberalization of the measure
Not applicable.
8. Evidence that the industry concerned is adjusting and that the safeguards measure
continues to be necessary to prevent or remedy serious injury
The industry provided the adjustment plan to  the investigating authority during the initial
procedures of investigation.  The investigating authority examined these plans and has concluded that
the company had made the following adjustments:
- Programme for Reducing Production Costs
- Quality Improvement Programme
- Marketing Programme
- Training Programme for Labour
The investigating authority found that the industry had implemented part of its adjustment
plans.  However, there is a need for additional time to implement the rest of the plans.
9. Reference to the WTO document that notified the initial application of the measure
G/SG/N/8/EGY/2- G/SG/N/10/EGY/ 2 and Suppl.1.
10. Duration of the measure from its initial appl ication to the date when it will be extended
One year.
11. Precise description of the measure in place prior to the date of extension (in this context,
please note the last sentence of Article 7.4 stated that:  "a measure extended under
paragraph 2 shall not be more restrictive that it was at the end of the initial period, and
should continue to be liberalized")
One year from 27 February 2000 for 30 per cent c.i.f. value.
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