. /.RESTRICTEDWORLD TRADE
ORGANIZATIONG/SG/Q2/EGY/5
29 April 1999
(99-1725)
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 TURKEY1
Regarding the Notification of EGYPT2
The following communication, dated 23 April 1999, has been received from the Permanent
Mission of Egypt.
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Introduction
In replying to the questions by the Turkish delegation on the safeguard case on safety matches
in boxes, the Egyptian delegation wishes to observe that the Turkish Government was invited toconsult during the inquiry, was invited to make submissions at the inquiry following the circulation of
the Essential Facts and Conclusions Report.  The reports and notices were sent to the Turkish
Government.  The Turkish Government did not respond to any of these invitations, and did not
participate in the inquiry.
Q1. Is there a special provision for imposing safeguard measures on products imported from
developing country Members in the context of Article 9 of the Agreement on Safeguards?
Reply
Yes, Egyptian Law has the provisions of Article 9 as a part of it.  In the matches case, there
was no requirement to make any special provision, as the imports did not meet the specific
requirements on share of imports of developing countries (Regulation Article 91 refers also).
Q2. In its notification of finding a serious injury caused by increased imports, Egypt
indicated several difficulties that the domestic industry has faced other than increased imports
such as over-employment, ineffective sales and marketing systems, inefficiency and cost
ineffectiveness led by the administrative reas ons before the privatization.  Old machinery
resulted in low production capacity, packaging problems arose from the lack of new packaging
machines and the inability to get acquainted with new technology.
                                                     
1 G/SG/Q2/EGY/4
2 G/SG/N/8/EGY/1-G/SG/N/10/EGY/1.G/SG/Q2/EGY/5
Page 2
Could Egypt please explain why these factors were not considered as "… factors other
than increased imports causing injury to the do mestic industry …" mentioned in Article 4.2(b)
of the Agreement on Safeguards?
Reply
In reply to question 2 regarding other causes of injury, these other causes of injury were
considered by the authorities in this inquiry.  These factors were considered along with all relevant
factors of an objective and quantifiable nature, which were presented during the inquiry.  The results
were noted in the essential facts and conclusions and the final report.
The "Conclusions on Serious Injury" in the reports set out the relative impact concluded as a
result of the inquiry, and confirm that these factors were considered in terms of Article 4.2(a) of the
WTO Agreement on Safeguards.  Other factor s under Article 4.2(b) were also considered.
Q3. In its notification, Egypt pr ovided the information about its decision on imposing an
additional duty on the imports of safety matches as a safeguard measure.  Could Egypt pleaseexplain why an additional duty is preferred instead of  a tariff increase and if it is consistent with
the Agreement on Safeguards.
Reply
A safeguard measure in Egypt is not a tariff.  It is a special measure to meet special
circumstances within a certain case.  In this case, a surtax was imposed rather than quantitative
restrictions because it was found that this measure was most suitable to achieve the objectives of
preventing or remedying serious injury and facilitating industry adjustment.  (Please refer to Article 5
of the Agreement on Safeguards).
Q4. Could Egypt give a further explanation about the procedure fo r setting the level of
surtax levied on imports as a safeguard measure.
Reply
The procedure is given in the Essential Facts and Conclusions Report and the Final Report.
(These were circulated to the Turkish Government.)
Q5. Turkey would like to know if Egyptian sa fety match producers incurred any financial
losses in 1995-1998.
Reply
Yes.  This is given in the Essential Facts and Conclusions Report and the Final Report.
Q6. Could Egypt please provide comments on  whether the safeguard measure in question
was imposed to allow Egyptian producers to mainta in their extremely high market shares in the
1995-1998 period.
Reply
No.  The safeguard measures were imposed to allow the industry a temporary period of
adjustment to improve its competitiveness.
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