. /.  WORLD TRADE  
ORGANIZATION   
G/SG/W/224 
23 May 2012 
 (12-2719) 
Committee on Safeguards Original:   English 
  
 
STATEMENT BY THE DELEGATION OF JAPAN 
 
(Regarding the Safeguard Investigation Conducted by  
Ukraine on Motor Cars) 
 
 
 The following statement made by the delegati on of Japan at the regular meeting held on 
27 April 2012 under "Other Business" is being ci rculated at the request of that delegation. 
 
_______________ 
 
 
I. BACKGROUND 
 On 2 July 2011, Ukraine initiated a safeguard  investigation on motor cars and other motor 
vehicles (hereafter referred to as 'motor cars') (G/S G/N/6/UKR/9).  Since then, the Government of 
Japan has kept a close eye on this investigation process, especially from the point of view of its 
consistency with WTO Agreements.  
  On 11 April 2012, the Ministry of Economic De velopment and Trade of Ukraine informed the 
Embassy of Japan in Ukraine that the results of the investigation gave grounds for the Ministry to 
recommend the Interdepartmental Commission of Fore ign Trade to apply safeguard measures against 
imports of motor cars to Ukraine.  
  The Ukraine Government held consultations to  discuss the results of the investigation on 
19 April 2012, during which little was explained or an swered.  Japan regards this consultation as far 
short of Ukraine meeting its obligation unde r Article 12.3 of the Safeguard Agreement. 
 
 On that occasion, the Ukraine Government i ndicated that the Commission would make a final 
decision by the end of May.  
II. FACTS  
 According to the information provided by th e Japanese auto industry, the total imports of 
motor cars to Ukraine decreased significantly from 2008 to 2010.  The relevant data indicate that the 
imports of motor cars from all over the world to Ukraine totaled 376,000 vehicles in 2008, but decreased to 107,000 in 2010, which means the imports decreased by 71.5 % from 2008 to 2010.  
A trend of significant decrease of imports  during the investigation is apparent. 
 
 With regard to imports from Japan, the figure for 2008 was 51,561 which dropped sharply 
to 9,008 in 2010.  It means that the imports  from Japan decreased by 82.5% from 2008 to 2010, a 
larger decrease compared to the percentage from th e rest of the world and there was no increase of 
imports from Japan in either relative or absolu te terms during the period of investigation. 
 G/SG/W/224 
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  III. CONCLUSIONS 
 Japan emphasizes its serious concerns regardi ng Ukraine's safeguard investigation on motor 
cars.  The application of safeguard measures is only justified "as a result of unforeseen developments".  It is also required that "the in crease in imports must have been recent enough, sudden 
enough, sharp enough, and significant enough,  both quantitatively and qualitatively"
1 and that injury 
caused by other factors "shall not be attributed to  increased imports.".  Japan has serious doubts if 
such requirements have all been met in this case.   Japan also notes that there is an obligation for a member applying a safeguard measure to 
maintain substantially equivalent  levels of concessions and othe r obligations between it and the 
exporting members which would be affected by a safeguard measure. 
  Japan requests that Ukraine terminate any un justifiable investigation as soon as possible. 
 
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1 Appellate Body Reports on Argentina − Footwear (EC) .