G/SG/N/6/EGY/12
G/SG/N/7/EGY/10
G/SG/N/11/EGY/9
16 April 2015
(15-2045)  Page: 1/5
Committee on Safeguards  Original: English
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT  
ON SAFEGUARDS ON INITIATI ON OF AN INVESTIGATION  
AND THE REASONS FOR IT 
 
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT  
ON SAFEGUARDS BEFORE TAKING A PROVISIONAL  SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS 
E
GYPT 
(White Sugar) 
The following communication, dated 15 April 2015, is being circulated at the request of the 
Delegation of Egypt. 
_______________ 
  
The Arab Republic of Egypt hereby wishes to no tify the Committee on Safeguards pursuant to 
Article 12.1(a) of the Agreement on Safeguards on initiation of a safeguard investigation on 
imports of White Sugar, Article 12.4 of the Agreem ent on Safeguards before taking a provisional 
safeguard measure, and footnote 2 of Arti cle 9 of the Agreement on Safeguards.  
 A. NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON SAFEGUARDS ON 
INITIATION OF AN INVESTIGATION AND THE REASONS FOR IT 
 1. The date when the investigation was initiated  
The investigation was initiated further to an approval of the Minister of Industry, Trade and Small 
& Medium Enterprises dated 16 April 2015.  
2. Product subject to the Investigation 
 The product subject to investigation is white suga r. The product concerned is currently classified 
under HS tariff item number: 17 01 99 90 within the Egyptian Customs Tariff Schedule. 
 3. The Reasons for Initiation of Investigation  
A preliminary investigation by the Egyptian Investigating Authority on the basis of information, 
analytical materials and official statistics available to the Egyptian Ministry of Industry, Trade and Small & Medium Enterprises, showed that the si gnificant increase in imports of the product 
concerned has threatened to cause serious injury to the domestic sugar producers of the 
concerned or directly competitive product.  
When examining the injury factors, the Investigating Authority found a significant decline in some 
of the economic indicators of the domestic industry (sales, market share, and profitability) and increase in inventory coincided with the increase in imports volume.  G/SG/N/6/EGY/12 • G/SG/N/7/EGY/10 • G/SG/N/11/EGY/9 
 
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  Accordingly, it was established that there was sufficient evidence to justify the initiation of the 
investigation in order to determine whether the increase of imports has threatened to cause serious injury to the domestic industry.  
4. Further Information 
 Interested parties must make themselves known to the Investigating Authority within a period of 
30 days after the initiation of the investigation.   
 Any information, which the interested parties may wish to submit to the Investigating Authority, should be submitted in writing; and any request for a hearing should be submitted within 30 days 
following the initiation of this investigation. 
 B. NOTIFICATION UNDER ARTICLE 12. 4 BEFORE TAKING A PROVISIONAL 
SAFEGUARD MEASURE 
 1. The product subject to the prop osed provisional safeguard measure 
 
The product subject to the proposed provisional safeguard measure is white sugar. The product 
concerned is currently classified under the HS tariff item number 1701.9990 within the Egyptian Customs Tariff Schedule.  
 
2. The proposed provisional safeguard measure  
It is proposed to impose a provisional safeguard me asure in the form of additional duty 20% of the 
CIF value with a minimum 700 Egyptian Pounds per ton.  
3. Entry into force of the proposed provisional safeguard measure 
 The provisional safeguard measure is proposed to enter into force, with the publication of the decree of the Minister of Industry, Trade and Small & Medium Enterprises in the Egyptian Official 
Gazette. 
 4. The Expected Duration of th e Provisional Safeguard Measure 
 
The provisional safeguard measure will be applie d for a period of 200 days from the date of 
publication in the Official Gazette.  
 
5. The Basis for making a preliminary determ ination, as provided for in Article 6 of 
the Agreement on Safeguards is based upon  the fact that increased imports have 
caused or are threatening to cause serious injury as follows:    
 
EVOLUTION OF IMPORTS VOLUME  ABSOLUTE AND RELATIVE INCREASE IN IMPORTS 
 
A preliminary analysis on the increase of imports volume and its impact on the domestic industry indicators 
 Volume/thousand tons 
(year/year percentage) 2012 2013 2014 Jan-
March 
2014 Jan-
March 
2015 
Imports Volume/Ton 105 20 68 34 45 
Change  %  (81) 240  32 
Imports as % of domestic 
production Change %  (83) 300  --- 
 
The above table shows that imports of the prod uct concerned decreased by 81% in 2013 when 
compared to 2012 and increased significantly by 240% in 2014 when compared to 2013. In the 
first quarter of 2015, imports increased by 32% compared to the same period of 2014.  G/SG/N/6/EGY/12 • G/SG/N/7/EGY/10 • G/SG/N/11/EGY/9 
 
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  The information further indicates also that the change of imports as a percentage of domestic 
production decreased by 83% in 2013 when compared  to 2012, then it increased significantly by 
300% in 2014 when compared to 2013 and stable in the first quarter of 2015 when compared to the same period in 2014.  
 
The above table shows that there has been a big increase in the imports volume of the product 
concerned in absolute terms and relative to domestic production. 
 
ECONOMIC IMPACTS  Market Share 
 Volume/ thousand tons 
(year/year percentage) 2012 2013 2014 Jan-
March 
2014 Jan-
March 
2015 
Market Share of the Domestic Industry change %  27 (9)  (4) 
Market Share of Imports  (50) 100  75 
 
The market share of the domestic industry was increased by 27% in 2013 when compared 
to 2012. In 2014, the market share of domestic sales decreased by 9 percent when compared 
to 2013 and in the first quarter of 2015 the market share of domestic sales decreased by 4% when compared to the same period in 2014. At the same time, the market share of imports decreased by 50% in 2013 when compared to 2012. In 2014,  the market share of imports increased 
significantly by 100% when compared to 2013 due to the significant increase of imports in this 
year, and in the first quarter of 2015 the mark et share of imports increased by 75% when 
compared to the same period in 2014 due to the si gnificant increase of imports in this period. 
 
Production and Capacity Utilization 
 Volume/ thousand tons 
(year/year percentage) 2012 2013 2014 Jan-
March 
2014 Jan-
March 
2015 
Change in Production  change %  (14) 15  10 
Capacity Utilization  
change %  (14) 14  11 
 
The Production decreased by 14% in 2013 when comp ared to 2012, and then it increased by 15% 
in 2014 when compared to 2013, and in the  first quarter of 2015 increased by 10% when 
compared to the same period in 2014.    
The Capacity utilization decreased by 14% in 2013 when compared to 2012, and then it increased 
by 14% in 2014 when compared to 2013, and in th e first quarter of 2015 increased by 11% when 
compared to the same period in 2014.   
 
Profit and Loss 
 Value/thousand Pounds 
(year/year percentage) 2012 2013 2014 Jan-
March 
2014 Jan-
March 
2015 
Profit & Loss  change %   2 (2)  (98) 
 
The Domestic industry's profit increased by 2% in 2013 when compared to 2012, then the profit 
decreased by 2% in 2014 when compared to 2013 and in the first quarter of 2015 sharply 
decreased by 98% when compared to the same period in 2014.  
 G/SG/N/6/EGY/12 • G/SG/N/7/EGY/10 • G/SG/N/11/EGY/9 
 
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  Domestic Sales 
 Volume/ thousand tons 
(year/year percentage) 2012 2013 2014 Jan-Mar 
2014 Jan-Mar 
2015 
Sales Volume  change %  (10) (4)  (34) 
 
The domestic industry's sales decreased by 10 % in 2013 when compared to 2012. In 2014, the 
domestic industry’s sales decreased by 4% wh en compared to 2013 and in the first quarter 
of 2015 sharply decreased by 34% when compared to the same period in 2014.  
 
Employment and Productivity 
 Volume/ thousand tons 
(year/year percentage) 2012 2013 2014 Jan-Mar 
2014 Jan-Mar 
2015 
In employees  change %  --- ---  1 
Productivity  
change %  (15) 14  7 
 
The Employees were stable in 2013 and 2014 when  compared to 2012, and in the first quarter 
of 2015 increased by1% when compared to the same period in 2014.   
 The Employees' productivity decreased by 15% in 2013 when compared to 2012, then increased 
by 14 % in 2014 when compared to 2013, and in the first quarter of 2015 increased by7% when 
compared to the same period in 2014.   
6. Inventory 
 Volume/ thousand tons 
(year/year percentage) 2012 2013 2014 Jan-Mar 
2014 Jan-Mar 
2015 
Inventory Change %   (18) 303  120 
 
The inventory decreased by 18% in 2013 when co mpared to 2012,then it sharply increased by 
303% in 2014 when compared to 2013, and in th e first quarter of 2015 it sharply increased by 
120% when compared to the same period in 2014. 
 
Causation  In the light of the above, it shows that there ha s been a significant increase in imports of the 
product concerned in 2014 and in the first quarte r of 2015 in absolute terms and significant 
increase in 2014 in relative terms. Such significan t increase has led to a deterioration of the some 
indicators of the domestic industry that are re presented in sharp decline in the profit, sales, 
decline in the market share of the domestic industry, sharp increase in inventory and a threat of 
imminent injury in other indicators of the domestic industry.  
Therefore, the Investigating Authority found that there is a sufficient preliminary conclusion that 
there is a correlation between the significant increase in imports and threat of serious injury suffered by the domestic industry.  
Determining the existence of critical circ umstances where delay would cause Damage, 
which will be difficult to repair  
A preliminary determination has been made that critical circumstances exist in which delay would 
cause damage that would be difficult to white sugar    
As indicated above, the threat of serious injury  suffered by the domestic industry has worsened 
during 2014 and in first quarter of 2015 with the ever-continuing increase in the volume of imports. Given the rate of increase of imports and the situation of the domestic industry, it is considered that the delay would cause damage, which will be difficult to repair in the absence of a 
provisional safeguard measure.   
  G/SG/N/6/EGY/12 • G/SG/N/7/EGY/10 • G/SG/N/11/EGY/9 
 
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  Therefore, bearing in mind that a sudden and significant increase in the imports of the product 
concerned in 2014 and in the first quarter of 2015 co uld negatively affect the domestic industry; 
the provisional safeguard measure is proposed to eliminate uncertainty that could come out with the ongoing investigation. To achieve this objective, the provisional measure shall be collected as a 
security. 
 7. Offer of consultations under Article 12.4 
 
Consistent with Article 12.4 of the Agreement on Safeguards, Egypt is prepared to consult on the provisional safeguard measure with those Members having a substantial interest as exporters of the subject products. 
 
C. NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 UPON TAKING A DECISION NOT 
TO APPLY THE PROVISIONAL SAFEGUAR D MEASURE TO CERTAIN PRODUCTS 
ORIGINATING IN DEVE LOPING COUNTRIES 
 Developing Countries Exempted from the Safeguard Measure 
 
Imports from Developing Country Members shall not be subject to the proposed provisional safeguard measure as long as each Member's impo rts individually do not exceed three percent of 
total imports into Egypt and the share of the Members with less than three percent import share 
do not collectively account for more than nine per cent of total imports into Egypt.   
 The Address of the Competent Authority for correspondence is:   
 
Ministry of Industry, Trade and Small and Medium Enterprises Trade Agreements Sector 
Central Department for International Trade Policies  
(Anti-dumping, Subsidy and Safeguard Department) Head of the Central Department for International Trade Policies "Ibrahim El Sginy" Ramses Extension St., Nasr City, Al-Maleya Towers 
Tower 6 – Floor 9 
Tel:  00 202 - 23422479 Fax: 00 202 - 23420784 
e-mail: Tas@ tas.gov.eg 
 
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