G/SG/N/8/AUS/3  
 
30 September 2013  
(13-5215)  Page: 1/3  
Committee on Safeguards  Original: English  
 
 NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON 
SAFEGUARDS ON FINDING SERIOUS INJURY OR THREAT 
THEREOF CAUSED BY INCREASED IMPORTS 
AUSTRALIA  
(Canned Tomatoes) 
The following communication, dated 26 September 2013, is being circulated at the request of the 
Delegation of Australia. 
 
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Pursuant to Article 12.1(b) of the WTO Agreement on  Safeguards, Australia provides notification of 
a preliminary determination on whether serious in jury or threat thereof has been caused by 
increased imports of canned tomatoes. 
 Further to Australia’s notification of 28 June 2013 (G/SG/N/6/AUS/3) on a reference to the 
Productivity Commission (the Commission) to initiate a safeguard investigation, and specifically to 
examine whether provisional measures may be justified, the Productivity Commission provided its accelerated report to the Government on 18 September 2013.    
The report was released by the Government on 26 September 2013 and can be accessed 
electronically at the Commission’s website: http://www.pc.gov.au /projects/inquiry/tomato-
safeguards. 
 
The Commission’s accelerated report (dated 18 September 2013) indicates that provisional safeguard measures are not warranted for imports of canned tomatoes.   
 1  EVIDENCE OF SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED IMPORTS 
The Commission found that the domestic industry producing products ‘like or directly competitive’ 
with imported products is suffering serious injury.   
 On the basis of evidence received to date, the Commission was satisfied that there was sufficient 
cumulative evidence of actual or threatened seri ous injury to the domestic industry. The evidence 
examined included a fall in sales volume which led to reduced economies of scale and higher costs of manufacturing; decreased value in retail sales; decreased profitability; continued loss of market 
share; and decreasing capacity utilisation. 
 The Commission found that the injury to the domestic industry has been caused by a combination of long-term industry and market trends and recent acute events including extreme weather 
events, such as floods, and the appreciation of the Australian dollar. The Commission identified 
that the floods in 2011 reduced the supply of proce ssing tomatoes by two thirds and significantly 
decreased the production of processed tomatoes. Decreased domestic supply and the appreciation 
of the Australian dollar caused retailers to source private label products from imports. 
 The Commission found that developments in supermarket private label strategies, decreased 
exports and ongoing competition from imports, cont ributed to the injury to the domestic tomato 
processing industry. G/SG/N/8/AUS/3 
 
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  The Commission found that sourcing decisions by supermarkets on pricing strategies and product 
sourcing of private label products were made dome stically and not by changes in the world market 
for processed tomato products.    
2  INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE IN IMPORTS OR AN 
INCREASE IN IMPORTS RELATIVE TO DOMESTIC PRODUCTION 
 
The report found that the market has been char acterised by a continuous moderate growth in 
import volumes and the proactive sourcing by supermarkets of private label products. Total 
domestic consumption has been relatively flat over the past five years.    
Sales of imported products increased from late 2009 and have flattened off or slightly decreased 
since then.  
The trend in imports over the most recent five year  period led to the conclusion that the absolute 
volume of imports has not increased in a way that satisfies the WTO requirement of being sudden, sharp or significant. The Commission found that there have been persistent high levels of imports, 
rather than recently surging imports.   
 There was preliminary evidence of an increase in imports relative to domestic production, but this appeared to be a symptom of the injury rather than the cause.   
 
The Commission found that there was not clear evidence that increased imports have caused or are threatening to cause serious injury to the domestic industry.   
 
The report notes that the Commission has not rece ived compelling evidence of the existence of 
critical circumstances sufficient to justify the application of immediate provisional safeguard 
measures.   
 3  PRECISE DESCRIPTION OF THE PRODUCT INVOLVED 
Tomatoes, whole or in pieces, prepared or preserved otherwise by vinegar or acetic acid, in packs 
not exceeding 1.14L, falling within tariff subheading 2002.10.00.60 of the Australian Customs 
Tariff.  
4  IF THE FINAL MEASURE REPLACES A PROVISIONAL MEASURE 
Not applicable. 
 
5  PRECISE DESCRIPTION OF THE PROPOSED MEASURE 
Not applicable. 
 6  PROPOSED DATE OF INTRODUCTION OF THE MEASURE 
Not applicable. 
 7  EXPECTED DURATION OF THE MEASURE 
Not applicable. 
 8  FOR A MEASURE WITH A DURATION OF MORE THAN THREE YEARS, THE PROPOSED 
DATE FOR THE REVIEW (UNDER ARTICLE 7.4)  TO BE HELD NOT LATER THAN THE MID-
TERM OF THE MEASURE, IF SUCH A DATE FOR THE REVIEW HAS ALREADY BEEN SCHEDULED 
Not applicable. 
 G/SG/N/8/AUS/3 
 
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  9  IF THE EXPECTED DURATION IS OVER ONE YEAR, EXPECTED TIMETABLE FOR 
PROGRESSIVE LIBERALIZATION OF THE MEASURE 
Not applicable. 
 
10  IF THE NOTIFICATION RELATES ONLY TO A FINDING OF SERIOUS INJURY OR 
THREAT THEREOF, AND DOES NOT RELATE TO A DECISION TO APPLY TO EXTEND A 
SAFEGUARD MEASURE: 
(I) DEADLINES FOR INTERESTED PARTIES TO COMMENT OR ANY OTHER PROCEDURES 
RELEVANT TO THE DECISION TO  APPLY THE MEASURES, AND  
 (II) INFORMATION REGARDING PROCEDUR ES FOR PRIOR CONSULTATION WITH 
THOSE MEMBERS HAVING A SUBSTANTIAL INTEREST AS EXPORTERS OF THE PRODUCT 
CONCERNED.  
The final report by the Productivity Commission is to be provided to the Government by 
20 December 2013 on whether safeguard measures are justified.  
The Commission seeks comment from interested parties on its views on all aspects of the 
accelerated report, including further data on recent import trends, private label strategies and causation.  Submissions are due by 25 October 2013.  
T h e  C o m m i s s i o n  w i l l  h o l d  f u r t h e r  p u b l i c  h e a r i n g s  t o  a l l o w  t h o s e  r e s p o n s e s  t o  b e  h e a r d .  I t  w i l l  
notify on its website its proposed scheduling and location of further public hearings.  
11  IF THE MEASURE IS BEING EXTENDED, ETC 
Not applicable. 
 
12  IF THE NOTIFICATION RELATES TO A DE CISION TO APPLY OR EXTEND A SAFEGUARD 
MEASURE 
Not applicable. 
 
13  PUBLICLY AVAILABLE DOCUMENT(S) CONTAINING THE RELEVANT DECISION(S) 
MADE BY THE COMPETENT AUTHORITY. 
The Commission’s accelerated report can be accessed electronically at its website: 
http://www.pc.gov.au/projects /inquiry/tomato-safeguards . 
 
 
 
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