G/SG/Q2/KGZ/5  
 
11 May 2016  
(16-2596)  Page: 1/3  
Committee 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 
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT 
ON SAFEGUARDS ON FINDING OF SERIOUS INJURY OR 
THREAT THEREOF CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2, 
OF THE AGREEMENT ON SAFEGUARDS 
REPLIES TO QUESTIONS1 POSED BY THE UNITED STATES REGARDING 
THE NOTIFICATIONS OF THE KYRGYZ REPUBLIC2 
The following communication, dated 10 May 2016, is  being circulated at the request of the 
Delegation of the Kyrgyz Republic. 
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The Kyrgyz Republic thanks the United States for the questions in connection with the notifications 
regarding the safeguard measure on harvesters and modules thereof.  
Question 1 
 Article 2 of the WTO Agreement on Safeguards  states that a safeguard measure may be 
applied by a Member if the Member has dete rmined that a product "is being imported 
into the territory in such increased quanti ties, absolute or relative to domestic 
production, and under such conditions as to ca use or threaten to cause serious injury to 
the domestic industry that produces like or directly competitive products". Given that 
the domestic industry of the Kyrgyz Republic was not taken into account when the 
original determination of serious injury wa s made and the measure on harvesters and 
modules thereof was put into place, what ty pe of process does the Eurasian Economic 
Union envision will take place to do a re-ass essment of serious inju ry to the "domestic" 
industry to take the addition of the Kyrgyz Republic into account?
3 W h a t  w i l l  b e  t h e  
timing of such a process? 
Question 2 
 Article 5.1 of the WTO Agreement on Safegu ards states that a Member shall apply 
safeguard measures "only to the extent nece ssary to prevent or remedy serious injury 
                                               
1 G/SG/Q2/KGZ/4. 
2 G/SG/N/6/KGZ/5-G/SG/N/8/KGZ/3-G/SG/N/10/KG Z/3-G/SG/N/11/KGZ/1 (dated 7 January 2016). 
3 See Article 2 footnote 1 ("When a customs union a pplies a safeguard measure as a single unit, all the 
requirements for the determination of serious injury or threat thereof unde r this Agreement shall be based on 
the conditions existing in the customs union as a whole. When a safeguard measure is applied on behalf of a 
member State, all the requirements for the determination of serious injury or threat  thereof shall be based on 
the conditions existing in that member State and th e measure shall be limited to that member State"). G/SG/Q2/KGZ/5 
 
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  and to facilitate adjustment". Please explai n how the measure, as extended to include 
the Kyrgyz Republic, meets the requirements of Article 5.1. 
Reply: 
 
Footnote 1 to Article 2.1 of the Agreement on Safeguards provides that "[w]hen a customs union 
applies a safeguard measure as a single unit, all the requirements for the determination of serious injury or threat thereof under this Agreement sh all be based on the conditions existing in the 
customs union as a whole". 
 Based upon the provisions of footnote 1 to Article 2.1 the Eurasian Economic Union applies safeguard measures with respect to third countries as a single unit. Upon the accession of the 
Kyrgyz Republic to the Eurasian Economic Union its national legislation on application of trade 
remedies ceased to apply. The measures applie d by the Kyrgyz Republic automatically lapsed.
4 
Upon the accession of the Kyrgyz Republic, all anti-dumping and safeguard measures applied in 
the Eurasian Economic Union were extended to  the territory of the Kyrgyz Republic. Such 
automatic extension is provided for in the Treaty  o f  A c c e s s i o n  o f  t h e  K y r g y z  R e p u b l i c  t o  t h e  
Eurasian Economic Union of 23 December 2014 (hereinafter referred to as "Treaty on Accession"). 
 
The commitment of the investigating authority (i.e. the Eurasian Economic Commission) to re-assess, inter alia , serious injury to taking into account the data of the Kyrgyz Republic is 
envisaged in paragraph 49 of Section VI to Annex No. 1 to the "Protocol on Conditions and 
Transitional Clauses Pertaining to Application by the Kyrgyz Republic of the Treaty on the Eurasian 
Economic Union of 29 May 2014, Certain International Treaties Forming Part of the Law of the Eurasian Economic Union and Legal Acts of the Bodies of the Eurasian Economic Union Following 
the Accession of the Kyrgyz Republic to the Tr eaty on the Eurasian Economic Union of 29 May 
2014" (hereinafter referred to as "Protocol on Conditions and Transitional Clauses").   
Therefore, in order to address concerns of the interested parties the Eurasian Economic 
Commission is committed to initiate review of  the extended measures upon request of an 
interested party. The Protocol on Conditions and Transitional Clauses specifies conditions for initiation of such a review. Specifically, paragraph 49 stipulates as follows: 
 
A decision to launch such a review may be taken only in case when there is sufficient evidence that taking into account of the data  on the market of the Kyrgyz Republic for 
the purposes of an investigation, which resulted in a decision to apply safeguard, 
anti-dumping, or countervailing measure, would result in a significant change in the grounds for imposition of the respective measure. 
Hence, a review of any extended measure may be initiated should any interested party lodge such 
request and submit sufficient evidence that the grounds for imposition of an original measure would have been significantly affected by the data of the Kyrgyz Republic.   
The reviews are to be conducted in accordance with paragraphs 33 and 110 of Annex No. 8 to the 
Treaty on the Eurasian Economic Union of 29 Ma y 2014 (Protocol on Application of Safeguard, 
Anti-Dumping and Countervailing Measures with re spect to Third Countries) and shall be exempt 
from the provisions of minimum period after which an application can be launched. The timing for 
such reviews shall not exceed 12 months, as specified in paragraph 110 of Annex No.8.   
None of the interested parties submitted a requ est for review of safeguard measure on combine 
harvesters and modules thereof.5  
                                               
4 Specifically, upon the accession of the Kyrgyz Republic to the Eurasian Economic Union the safeguard 
measure on wheat flour ceased to apply. See G/SG/N/10/KGZ/2/Suppl.2. 
5 We would like to note that given the relatively small share of the Kyrgyz Republic (about 1.5% in 
2015) in trade turnover in the EAEU, the results of the analysis of the indicators for serious injury taking into account data pertaining to the Kyrgyz Republic would no t significantly differ from the original determination.  G/SG/Q2/KGZ/5 
 
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  Question 3 
 Article 12 of the WTO Agreement on Safegu ards imposes certain notification and 
consultation requirements, including with resp ect to initiating an investigatory process 
relating to serious injury, making a finding of serious injury, and taking a decision to 
apply or extend a measure. It also requires that a Member proposing to apply or extend 
a safeguard measure provide the Committ ee on Safeguards "with all pertinent 
information, which shall include evidence of serious injury or threat thereof caused by 
increased imports" and so forth. It also requ ires that a Member proposing to apply or 
extend a safeguard measure "shall provide ad equate opportunity for prior consultations 
with those Members having a substantial interest as exporters of the product 
concerned". Please explain how those requ irements were met with respect to the 
decision to include the Kyrgyz Repu blic in the safeguards measure. 
Reply: 
All pertinent information regarding the extension of the safeguards measure on combine 
harvesters and modules thereof in the meaning of  Article 12 of the Agreement on Safeguards was 
notified in the respective notification of the Kyrgyz Republic.6  
 
The measure at issue was applied in the Eurasian Economic Union prior to accession of the 
Kyrgyz Republic to the Eurasian Economic Union. The notification of the Kyrgyz Republic concerned 
the issue of extension of existing safeguard measure applied in the Eurasian Economic Union to the territory of the Kyrgyz Republic. This notification contains all references to initiation of an 
investigatory process relating to serious injury, making a finding of serious injury, and taking a 
decision to apply safeguard measure.  
As regards the adequate opportunity for consultations, the notification states that both the 
Kyrgyz Republic and the Eurasian Economic Commission are prepared to hold consultations with Members having a substantial interest as exporter s of the product concerned. However, there were 
no requests for such consultations. 
 For the purposes of transparency the Kyrgyz Re public notified the developments of its trade 
remedy system following its accession to the Eurasian Economic, namely relevant laws and 
regulations and information concerning the a pplication of safeguard, anti-dumping and 
countervailing measures upon accession to the Eurasian Economic Union.
7 
 
In addition, we would like to note that the Tr eaty on Accession of 23 December 2014 and the 
Protocol on Conditions and Transitional Clauses of 8 May 2015 were published in advance on the 
official website of the Eurasian Economic Union be fore their entry into force. The Decision of the 
Board of the Eurasian Economic Commission No. 69 dated 30 June 2015 that established a level of 
quota of the Kyrgyz Republic for imports of  combine harvesters and modules thereof was 
published on the 1 July 2015 and entered into force on 12 August 2015. 
 
Therefore, all parties were informed about the de velopments in the trade remedy system of the 
Eurasian Economic Union upon the accession of the Kyrgyz Republic and had an adequate opportunity for consultations. 
 
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6 See G/SG/N/6/KGZ/5, G/SG/N/8/KGZ/3, G/SG/N/10/KGZ/3, G/SG/N/11/KGZ/1. 
7 See G/ADP/N/1/KGZ/2, G/SCM/N/1/KGZ/2, G/SG/N/1/KGZ/2.