G/SG/Q2/UKR/2  
 
29 April 2015  
(15-2327)  Page: 1/3  
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 UNDER ARTICLE 12.1(C) OF THE AGREEMENT 
ON SAFEGUARDS ON TAKING A DECISION 
TO APPLY A SAFEGUARD MEASURE 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
REPLIES TO QUESTIONS POSED BY EGYPT1  
REGARDING THE NOTIFICATION OF UKRAINE2 
(Tableware and kitchenware of porcelain) 
The following communication, dated 24 April 2015, is being circulated at the request of the 
Delegation of Ukraine. 
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  Question 1 
 
Would Ukraine please explain on what basi s did Ukrainian IA consider Egypt as a 
developed country taking into account the Un ited Nations Countries Classification and 
Preferential Treatment granted by other WTO Members in considering Egypt as a 
developing country and also WTO self-desig nation methodology to determine the WTO 
level of development which violated the prov isions of Article 9.1 of the Agreement on 
Safeguards. Consequently, the Articles 3-1 and 4-2 of the safeguard Agreement? 
 Reply 
 
There are no WTO definitions of "developed" or "developing" countries. Developing countries in the 
WTO are designated on the basis of self-selection although this is not necessarily automatically accepted in all WTO bodies or by other Members. Also there is no established convention for the 
designation of "developed" and "developing" countries  or areas in the United Nations system. It is 
stated that countries classification has been adopted solely for the purposes of statistical or analytical convenience and does not necessarily imply any judgement concerning the stage of 
development of a particular country or area. 
 Besides, there are few classifications of developing  countries exist, but they have differences in 
their methodologies in order to achieve different goals of international organizations. Hereby, the 
same country could fall under "developing" or "developed" according to different classifications at 
the same time.  
                                               
1 G/SG/Q2/UKR/1.   
2 G/SG/N/8/UKR/4/Suppl.1–G/SG/N/10/UKR/4/Suppl.1–G/SG/N/11/UKR/2.   G/SG/Q2/UKR/2 
 
- 2 - 
 
  Ukraine is ready to consider requests from the Arab Republic of Egypt in order to achieve mutual 
understanding on this issue.  Question 2 
 
Would Ukraine please explain how the IA cond ucted their analysis of imports evolution 
and serious injury according to Articles 2-1 and 4-2? 
 
Reply 
 As the results of the investigation, the investigation authority has found that during the 
investigation period there has been the growth of  imports of goods regardless of their country of 
origin both in absolute terms and relative to domestic production.  
The terms of imports to Ukraine of goods, what is object of investigation, led to the displacement 
from the internal market and reducing of the sh are of domestic industry in consumption on the 
market of Ukraine, reduction of production volumes,  reduction of capacity utilization; increase of 
total amount of stock of goods; reduction of sales of goods on the domestic market, reduction of 
the number of employees in enterprises of domestic  industry, reduction of the liquidity index etc. 
 Question 3 
 
Would the Ukrainian IA explain the reasons for absences of the unforeseen development 
requirement in all notifications issued by  Ukraine that violates Article XIX and 
consequently Articles 1, 3-1 of WTO Safeguard Agreement? 
 Reply 
 Ukraine would like to state that a way in which the unforeseen developments resulted in imports of a tableware and kitchenware of porcelain into Ukra ine to increase in such quantities and under 
such conditions as to cause serious injury to domestic producers was reflected in notification 
(G/SG/N/8/UKR/4; G/SG/N/10/UKR/4) dated 26/03/2014. 
 
"At the same time, during the last year of investigation period and by the decision of 
the European Commission of 14.11.2012 № 1072/2012 the provisional anti-dumping 
measures were applied from 16.11.2012 on import to the European Union, including crockery and cutlery kitchenware of porcelain, on the level of 17.6% - 58.8%. The use 
of provisional anti-dumping measures is unforeseen circumstance that could have lead 
to a reorientation of foreign producers to new export markets, including Ukraine. 
Beside this, from 03.09.2012 the Customs Union (Order of the Department of 
protection of the domestic market of the Eurasian Economic Commission of 
30.08.2012 №7) initiated the special safeguard investigation on import of porcelain 
tableware to the common customs territory of the Customs Union. The fact of initiation of special investigation and, cons equently, the likely use of special safeguard 
measures, is unforeseen circumstances and could encourage foreign producers to seek 
other export markets in case of the introduction of safeguard measures to protect the domestic market of the Customs Union. 
In addition, by information on the results of the hearings, other contingency, effected 
increase of imports to Ukraine of porcelain products is the expansion of distribution 
networks with foreign investment during the investigation period. These networks provide centralized control and trade cycl e, beginning from the order, giving 
preferences to foreign producer, and finalizing with sells to final consumer". 
Question 4 
 
Would Ukraine explain why the Ukrainian IA did not demonstrate the adjustment plane 
of domestic industry according to Article 7-4? And in which basis the IA liberalize 
measure in absences of stru ctural adjustment plane? G/SG/Q2/UKR/2 
 
- 3 - 
 
  Reply 
 
Ukraine made notifications to the WTO Members in accordance with the format approved by the Committee on Safeguards for information to be provided under Articles 12.1(a), 12.1(b) 
and 12.1(c) of the WTO Safeguard Agreement. 
 According to the Article 7.4 of the Agreement the Member applying the measure shall 
progressively liberalize it at regular intervals during the period of application.  
 In order to comply with its obligations Ukrain e liberalized safeguard measure on imports of 
tableware and kitchenware of porcelain during regular interval (one year). Schedule of 
the liberalization was illustrated in notification (G/SG/N/8/UKR/4; G/SG/N/10/UKR/4) 
dated 26/03/2014.  
In the Notice on application of the safeguard me asure is stated: "The application of safeguard 
measure on imports of the good in Ukraine will have a positive impact on growth in production and sales of national producer's like goods, will save  and create new jobs, will provide an opportunity 
for domestic industry to modernize and technically reequip its manufacturing for production of 
more competitive products and implementation of other measures to reduce its costs".  Proceeding from the above Ukraine states that it acted in full accordance with provisions of the 
Articles 7 and 12 of the Agreement. 
  
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