G/SG/N/8/UKR/10  
G/SG/N/10/UKR/10  
G/SG/N/11/UKR/8  
15 January  2021 
(21-0512) Page: 1/4 
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  
UKRAINE  
fresh cut roses  
The following communication, dated 14 January  2021, is being circulated at the request of the 
Delegation of Ukraine.  
 
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Pursuant to Article 12.1(b) of the Agreement on Safegu ards, Ukraine notifies on finding a serious 
injury or threat thereof to the domestic industry producing fresh cut roses and on proposed 
safeguard measures . This notification contains all pertinent information relating to the proposed 
safeguard measures 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 22 May 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 fresh cut roses regardless of country of origin and exp ort" 
No. SP-449/2020/4411 -03 (G/SG/N/6/UKR/18 of 1 2 June 2020). On 2 8 May 2020 the 
abovementioned decision was published in the official newspaper "Uryadovyi Courier" No. 100. 
The investigation had been initiated pursuant to the application of the domestic  industry in particular 
by LLC "Askania -Flora" (hereinafter referred as the A pplicant).  
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 : 2017, 2018, 2019, 1 July 2019 – 30 June 2020. 
The results of the analysis of the A pplicant's economic situation show that during the investigation 
period:  
‒ production volumes decreased by 26.32 %; 
‒ the sales of the product  on the domestic marke t decreased by 25.34 %; 
‒ the loss  from the sale of the product on the domestic market increased 3 times;  
‒ sales prices of the Applicant 's of the product  on the domestic market increased by 14.86 %; G/SG/N/8/UKR/10 • G/SG/N/10/UKR/10 • G/SG/N/11/UKR/8  
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  ‒ profitability from the sale of the product on the domestic mar ket is negative  and had increased 
2.5 times ; 
‒ the level of labor productivity  decreased by 24.96 %. 
‒ the cost of the produ ct increased by 23.05 %; 
‒ stocks at the end of the period decreased by 0.71 %; 
‒ liquidity conditions  decreased  by 57.89 %; 
‒ the investments decreased  in the last period by 22.38 %; 
‒ the employment decreased  by 1.75 %. 
Taking into account the peculiarities of statistical observation of production volumes in Ukraine that 
are carried out on the basis of annual reports, the analysis  of the Applicant's share in consumption 
of goods in Ukraine was conducted for calendar periods (1st, 2nd, 3rd periods).  
In the third annual period compared to the first annual period, the Applicant's share in consumption 
decreased by 26.40 % with an increase  in apparent consumption of goods in Ukraine by 40.11 %. 
The cumulative assessment of the above factors led to the finding s of the material injury to the 
national producer.  
2  PROVIDE INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE IN IMPORTS 
OR AN INCREA SE IN IMPORTS RELATIVE TO DOMESTIC PRODUCTION  
According to the results of the analysis , it was found that during the investigation, imports of goods 
into Ukraine in absolute terms increased by 71.37 %. 
Taking into account the peculiarities of statistical mo nitoring of production volumes in Ukraine that 
are carried out on the basis of annual reports, the analysis  of consumption in Ukraine, as well as the 
share of imports in production and consumption in Ukraine was conducted for calendar periods (1st, 
2nd and 3rd  periods ). 
In the third annual period, compared to the first annual period, the share of imports in rel ation to 
production increased by 72.33 %, and in consumption by 40.11 %. 
The major exporting countries of imports of the product involved  
Countries of imports  1st period  2nd period  3rd period  4th period  
fresh cut roses imports,  thousand  units 
Ecuador  18 276  22 506  30 877  31 140 
Kenya  2 758  4 087  5 460  6 509  
Colombia  4 626  6 077  7 750  8 890  
Netherlands  7 041 8 058  11 146 9 757  
Based on the above -mentioned, it was found that during the investigation period there was a 
significant increase in volume of the import 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 volume of the import of goods, which 
caused significant injury to the domestic industry producing the like product.  
Throughout the investigation period, there was a significant, sudden, recent and sharp increase in 
import that could not have been foreseen by the domestic producer . In the 4th period compared to 
the 1st the import of  the product increased by 71.37 %; compar ed to the 2nd period – by 24.90 %; 
compared to the 3rd period – by 35.06 %. Thus, it can be s tated that the growth of import  was recent 
and sharp to comply with the provisions of WTO agreements.  G/SG/N/8/UKR/10 • G/SG/N/10/UKR/10 • G/SG/N/11/UKR/8  
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  The import  volumes  increased due to unforeseen circumstances such as call for the introduction of 
quarantine measures by the Russian Federation (hereinafter referred as Russia) regardin g the import  
of flowers from the countries of the European Union (here  in after referred as the EU).  
During  2015-2019, the volume of export of fresh  cut roses from the EU to Russia has halved both 
in quantity (from 186  million  units to 89  million  units) an d in terms of value (from 61 ,404 thousand  
euros to 34,017  thousand  euros).  
In the same period of time, the consumption of the product in European c ountries decreased from 
4 to 16 % due to stagnation in the economy and due to rising other costs (food, utilit ies, etc.).  
As a result of a combination of factors, foreign producers began to reorient their markets that directly 
affecte d the volume of import of the product  to Ukraine.  
Thus, there is a reason to believe that there are facts about probable unpredictab le, recent, su dden 
and sharp growth of import s, and, as a consequence, causing significant harm to domestic producers 
and the development of imbalances in favor of fore ign producers -suppliers of the product  to Ukraine.  
3  PROVIDE PRECISE DESCRIPTION OF THE PRODUCT INVOLVED  
Fresh roses, suitable  for bouquets or for ornamental purposes that can be classified under to the 
UKTZED code 0603 11 00.  
4  PROVIDE PRECISE DESCRIPTION OF THE PROPOSED MEASURE  
Safeguard duty of 1 39.7%. 
5  PROVIDE PROPOSED DAT E OF INTRODUCTION OF THE MEASURE  
February  2020. 
6  PROVIDE EXPECTED DURATION OF THE MEASURE  
Safeguard measures are planned to be imposed  for a period of three  years.  
7  PROVIDE FOR A MEASURE WITH A DURATION OF MORE THAN THREE YEARS THE 
PROPOSED DATE FOR THE REVI EW (UNDER ARTICLE 7.4) TO BE HELD NOT LATER THAN 
THE MID -TERM OF THE MEASURE, IF SUCH A DATE FOR THE REVIEW HAS ALREADY BEEN 
SCHEDULED  
Not applicable.  
8  IF THE EXPECTED DURATION IS OVER ONE YEAR, TO PROVIDE EXPECTED TIMETABLE 
FOR PROGRESSIVE LIBERALIZATION O F THE MEASURE  
The level of the duty should be decreased by 5% annually during measures validity.  
1st year (from the date of application) – 139,7%. 
2nd year (12 months from the date of application) – 132,7 %; 
3rd year (24 months from the date of application)  – 126,1%. 
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 and Ukraine dated 
24.06.2010, Free Trade Agreement between the Government of Ukraine an d the Government of G/SG/N/8/UKR/10 • G/SG/N/10/UKR/10 • G/SG/N/11/UKR/8  
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  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 desc ribed in paragraph 3 of this notification to Ukraine 
originating from the following countries should be excluded from the application of the definitive 
measures : the Republic of Iceland, the Principality of Liechtenstein, the Kingdom of Norway, the 
Swiss C onfederation, the Republic of Montenegro, the Republic of Azerbaijan, the Republic of 
Armenia, the Republic of Belarus, the Republic of Kazakhstan, the Republic of Kyrgyzstan, the 
Republic of Moldova,  the Republic of Uzbekistan,  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 Afric an 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, the 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 Republic 
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, the Republic of 
Togo, Tuvalu, the Republic of Uganda, the United Republic of Tanzania,  Vanuat u, 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 
MEMBERS 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 writings 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 meconomy@me.gov.ua  (for 
official regist ration) and to the email  addresses of the responsible for the investigation persons 
demchik@me.gov.ua  and suhanov@me.gov.ua  or request videoconference to be hold till 
21.01.2 021. 
 
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