G/SG/120  
 
2 July 2013  
(13-3451)  Page: 1/2  
Committee on Safeguards  Original: English  
 
IMPOSITION BY SOUTH AFRICA OF A PROVISIONAL SAFEGUARD MEASURE 
ON IMPORTS OF FROZEN POTATO CHIPS 
REQUEST FOR CONSULTATIONS UNDER ARTICLE 12.4 
OF THE AGREEMENT ON SAFEGUARDS 
EUROPEAN UNION 
The following communication, dated 1 July 2013, is being circulated at the request of the 
Delegation of the European Union. 
 
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1. On 12 March 2013 South Africa notified the WTO Committee on Safeguards under 
Article 12.1(a) of the Agreement on Safeguards that a safeguard investigation on imports of frozen 
potato chips had been initiated on 8 March 2013 (WTO document G/SG/N/6/ZAF/3, dated 
13 March 2013).  
2. On 14 June 2013 South Africa notified the WTO Committee on Safeguards under Article 12.4 
of the Agreement on Safeguards before taking provisional safeguard measures. The measures are proposed to enter into force on 1 July 2013 (WTO document G/SG/N/7/ZAF/2, dated 21 June 2013). In the same document South Africa  offered consultations under Article 12.4 of the 
Agreement on Safeguards. 
 3. Having a substantial interest as an exporter in this case the European Union requests 
consultations with South Africa under paragraph 4 of Article 12 of the Agreement on Safeguards.  
 4. The European Union suggests holding the consultations in Pretoria, in the week starting with 
15 July 2013 with the participation of representatives of the investigating authorities.  
 5. In order to provide elements for the consultations, the European Union submits a list of 
question in the Annex to this request. This list is not exhaustive, further questions might be raised 
during the consultation. 
 6. The European Union reserves all its rights under the Agreement Establishing the World Trade 
Organization and its Annexes including the Agreement on Safeguards. 
  
 G/SG/120 
 
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  ANNEX 
Increase of imports – Article 2 and GATT Article XIX paragraph 1. 
1. Please indicate to what extent the Investigating Authorities have examined the conditions of 
imports (e.g. import prices, consumption) and where the relevant evidence is available. 
 
2. Explain how the significant drop in imports between 2008 and 2009 was taken into account 
during the investigation.  
 
3. GATT XIX paragraph 1 requires the demonstration that the increase of imports is the result 
of unforeseen developments. South Africa listed some items as unforeseen developments under point 5.b of document G/SG/N/7/ZAF/2, however it is not explained how these were identified and 
substantiated. Could South Africa explain how th is issue has been addressed and indicate where 
the relevant evidence can be found?  
Determination of serious injury – Article 4  
4. The investigating authorities should provide reasoning for their injury determinations. 
However, the above mentioned document does no t give any details about the injury analysis 
(e.g. no analysis on the change of sales volume s and market shares). Furthermore, the indexes 
provided in the non-confidential application are no t convincing. Please explain how the existence of 
serious injury was concluded.  
5. Please also explain why the timeframe taken for the analysis of the injury indicators (2008-
2012) is different than the one used for analysing the import trends (2009-2012).  
6. Please explain how the South African authorities made sure that the injury analysis is indeed 
carried out on SACU-wide basis.  
Application of safeguard measures – Article 5 and Article 6  
7. The South African authorities did not disclose how the level of the provisional measures was 
calculated. Could South Africa explain how it has been ensured that the measures are limited to the extent necessary to prevent serious injury  (in compliance with Article 5.1 of the WTO 
Agreement on Safeguards)? 
 8. Could South Africa explain how the SACU-wide implementation of the measures is carried 
out?  
 Notification and Consultation – Articl e 12.2 of the Agreement on Safeguards 
9. Explain whether the Investigating Authority provided the Committee on Safeguards with all 
pertinent information, including evidence of serious injury or threat thereof caused by increased imports and the possible influence of the prod ucts imported by the complainant itself. 
 
 
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