G/SG/Q2/UKR/4  
 
26 October  2016 
(16-5857) Page: 1/2 
Committee on Safeguards  Original: English  
 
 NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT  
ON SAFEGUARDS ON FIN DING A SERIOUS INJUR Y OR  
THREAT THEREOF CAUSE D BY INCREASED IMPOR TS 
 
NOTIFICATION UNDER A RTICLE 12.1(С) OF TH E  
AGREEMENT ON SAFEGUA RDS  
 
NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
REPLIES TO QUESTIONS POSED BY T HE UNITED STATES1 REGARDING  
THE NOTIFICATION OF UKRAINE2 
(Flexible porous plates, blocks and sheets of polyurethane foams)  
The following communication, dated 24 October  2016, is being ci rculate d at the request of the 
Delegation of Ukraine . 
 
_______________  
 
 
Question 1  
It appears from the notification that there are three petitioning firms and that those 
firms constitute a major proportion ( e.g., more than 50% , as per the notification) of 
total domestic production. Please clarify whether there are other Ukrainian producers. If 
so, did Ukraine gather data from them and include the data in the industry data that 
formed the basis for the determination.  
Reply  
The investigation has been initiated pur suant to the application of four petitioning firms: the 
Interform Manufacturing Ltd, Interform -Dnipro LLC, Interform -West LLC and Interform -M 
(hereafter - the Applicant). Also applicant cooperated with the competent authorities of Ukraine 
during the invest igation. Besides the applicant in Ukraine there are also other Ukrainian producers. 
During the investigation the competent authorities carried out all possible actions to obtain 
information from other Ukrainian producers. However, they refused to cooperate . In this regard, 
competent authorities examined data in the industry based on available official information from 
State Fiscal Service of Ukraine and State Statistics service of Ukraine.  
 
Question 2  
Looking at the various data elements in the notificatio n, it appears that Ukraine made a 
present ( i.e., May 2016) serious injury finding based primarily on data from 2012 -14. 
Did the competent authorities gather data for 2015? If not, please explain why not, 
particularly given the inclusion of partial year 201 5 and 2016 import pricing data.  
                                                
1 G/SG/Q2/UKR/3.  
2 G/SG/N/8/UKR/5 -G/SG/N/ 10/UKR/5 -G/SG/N/ 11/UKR/5 (dated 10 Jun e 2016).  G/SG/Q2/UKR/4  
 
- 2 - 
 
  Reply  
For the purposes of the investigation the competent authorities of Ukraine set a period of 
investigation of three years - 2012, 2013 and 2014. All main conclusions including the serious 
injury were based on the period of investigation. At the same time, recent trends (2015 -2016) 
confirmed all findings reached based on data for the POI.  
 
Question 3  
Article 9.1 of the WTO Agreement on Safeguards  ("Agreement") provides for special 
treatment for a developing country if its market share is less than 3 % and where the 
developing countries' aggregate share is less than 9 %. Footnote 2 to Article 9.1 
provides that "[a] Member shall immediately notify an action taken under paragraph 1 
of Article 9 to the Committee on Safeguards." M ost Members comply with the footnote 2 
obligation by providing a list of the developing countries excluded from a measure, and 
developing countries generally see this as a vital transparency step, as notifications are 
often the best method to know whether a measure will be applied to them.  
Ukraine's notification provides a list of least developed countries as determined by the 
United Nations. Please explain why Ukraine limited its list only to least  developed 
countries, and did not include all developing co untries that are Members of the WTO, as 
provided for in Article 9.1. Also,  the list of least developed countries from the United 
Nations3 includes Yemen; however, Ukraine did not list Yemen in its notification. Please 
explain this omission.  
Reply  
Normativ e legal acts of Ukraine do not establish a list of developing countries for the purposes of 
the application of safeguard measures. In this regard, Ukraine considers UN list of least developing 
countries as a basis for LDCs definition for the purpose of Art . 9.1 of t he WTO Agreement on 
Safeguards.  
 
Question 4  
Ukraine's notification states that "[a]ccording to the List of Least Developed Countries 
of [the] United Nations 'special safeguards measures'  do not apply ... " (emphasis 
added). Please explain the rele vance of the term "special safeguards measures" in 
relation to the safeguard measures covered under the Agreement.  
Reply  
The investigation is conducted under the provisions of the "Agreement on Safeguards " and the Law 
of Ukraine "On the application of safe guard measures on imports of Ukraine " № 332 -XIV of 
22 December 1998. The term "special " is a feature of the national law and fully complies to the 
safeguard measur es covered under the Agreement.  
 
Question 5  
Related to the responses to questions 3 and 4 abo ve, please indicate when Ukraine will 
submit a corrected or revised notification.  
Reply  
Ukraine has submitted a revised notification in accordance with question 3.  
 
 
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3 http://www.un.org/en/development/desa/policy/cdp/ldc/ldc_list.pdf .