G/SG/N/6/AUS/3  
 
28 June 2013  
(13-3385)  Page: 1/3  
Committees on Safeguards  Original: English  
 
 NOTIFICATION UNDER ARTICLE 12.1(A) OF THE 
AGREEMENT ON SAFEGUARDS ON INITIATION OF  
AN INVESTIGATION AND THE REASONS FOR IT 
AUSTRALIA  
(Canned Tomatoes) 
The following communication, dated 27 June 2013, is being circulated at the request of the 
Delegation of Australia.* 
 
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Pursuant to Article 12.1(a) of the WTO Agreement on Safeguards, Australia notifies that a safeguards investigation has been initiated as follows. 
 
 Specify the date when the investigation was initiated 
The reference to the Productivity Commission, which is the investigating authority, was made on 
21 June 2013.  (Australia’s safeguard procedures were notified in document G/SG/N/1/AUS/2 
dated 2 July 1998 and G/SG/N/1/AUS/2/Suppl.1 dated 16 December 2005.)  The Press Release attaching the Terms of Reference of the inquiry is at Attachment A. The major 
suppliers to the Australian market were  advised by letter on 21 June 2013.   
 The final report by the Productivity Commission is to be provided to the Government within six 
months of the referral.   
  Specify the product subject to the investigation 
Tomatoes, whole or in pieces, prepared or preserved otherwise than by vinegar or acetic acid in 
packs not exceeding 1.14L, falling within tari ff subheading 2002.10.00.60 of the Australian 
Customs Tariff.  
 Provide the reasons for the initiation of investigation 
(i) The investigation was initiated pursuant to a petition from the domestic industry. 
 
(ii) Evidence on the basis of which the investigation was initiated. 
 The following provides information on the increase in imports which form the basis for the initiation 
of the investigation. 
 The level of imports of 2002.10.00.60 from countries other than New Zealand and Singapore is provided in the table below. 
                                               
* A copy of the Press Release and Terms of Refe rence to the Productivity Commission has been 
submitted electronically. To consult this document, please cont act Ms Hilary Budd ( hilary.budd@wto.org ) or 
Ms Delphine Naville ( delphine.naville@wto.org ) of the Rules Division. G/SG/N/6/AUS/3 
 
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2007-2008 2008-2009 2009-2010 2010-2011 2011-2012 
Total Volume (kg) 40,602,633 40,111,911 40,031,441 41,023,158 46,006,962 
Percentage change 
from previous 
financial year1  -1.21 -0.20 2.48 12.15 
 Source: ABS.2 
 
New Zealand and Singapore are excluded from sa feguard action under the Australia New Zealand 
Closer Economic Relations Trade Agreement (ANZ CERTA) and the Singapore Australia Free Trade 
Agreement (SAFTA). Imports are primarily sourced from Italy, Argentina, Germany, Turkey and 
the United States.  
Imports have continued at high levels even after the return to normal seasonal conditions 
following the end of the 2008 drought and the 20 11 floods. There has been a trend upwards in 
canned tomato imports over the period 2007-2008FY to 2011-2012FY. There was a marked 
increase in imports in the 2011-2012FY. Most significantly, imports have continued at the very 
high levels experienced in 2010-2011FY even though seasonal conditions had normalised.    
There has also been a substantial rise in the penetration of imports into the Australian market in 
terms of its share of domestic consumption. Impo rts of all processed tomato products as a share 
of domestic consumption (in raw equivalent tonnes) rose from 30% 2001-2002FY and is currently estimated at more than 70%.   
 
Australian production trends of processed tomatoes, including canned tomatoes, have declined from 271,000 tonnes in 2008-2009FY to 87,000 tonnes in 2010-2011FY.
3 Grower numbers which 
had been reasonably stable (around 30) have also declined since ar ound 2008, falling to 22 
in 2010-2011FY and an estimated 16 in 2011-12FY. 
 
Operating profits for canned tomato products have continued to be under downward pressure from 
the impact of imports and fallen below sustainable levels.    Forecasts for production of processed tomato products in Italy (the dominant supplier of imports 
into Australia) are forecast to remain high in 2012-2013FY according to the US Department of 
Agriculture.
4 Given this continuation of import pressure, earnings will deteriorate further. This will 
have flow on impacts to both the canning industry and suppliers, undermining canned tomatoes 
production in Australia. 
 (iii) Evidence, if any, of critical circumstances where delay would cause damage which it would 
be difficult to repair. 
 The Productivity Commission has also been asked to provide an accelerated report within three months regarding the application of provisional sa feguard measures. In particular, the Productivity 
Commission will examine whether critical circumstances exist where delay in applying measures 
would cause damage which it would be difficult to repair and consequently, whether provisional 
measures may be justified due to the presence of clear evidence that increased imports have 
caused or are threatening to cause serious injury.  
  Provide a point of contact for the in vestigation and preferred means of 
communication 
The first circular/issues paper by the Productivity Commission will provide information on how 
interested parties can participate in the investigation. The paper will include the dates for submissions by interested and will be distribu ted and made available on the Productivity 
Commission’s website. Interested parties are invited to make submissions and register an interest 
in the inquiry on the Productivity Commission’s website: www.pc.gov.au.  
                                               
1 Australia’s Financial Year is 1 July to 30 June. 
2 Australian Bureau of Statistics, Internat ional Trade, Australia, cat. no. 5368.0.   
3 Horticulture Australia Limited, The Australian Horticulture Statistics Handbook 2012 .  
4 USDA, FAS GAIN Report, Italy Tomatoes and Products Report 2011 , page 2. G/SG/N/6/AUS/3 
 
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   Provide the deadlines and procedures for im porters, exporters and other interested 
parties to present evidence and views, including (i) deadlines and procedures for Members and exporters to identify themselves as interested parties, if so required, to 
participate in the investigation and (ii) th e date of an intended public hearing as 
provided for in Article 3.1 
The timing and location of public hearings has not yet been determined by the Productivity 
Commission. The Commission will make this information available through its website.   
 
Attachments 
 A.  Press Release and Terms of Refere nce to the Productivity Commission. 
 
  
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