WORLD TRADE  
ORGANIZATION  G/SG/N/16/IND/3/Suppl.1 
21 April 2009 
 (09-1882) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION OF APPLICATION OF TRANSITIONAL PRODUCT-SPECIFIC 
SAFEGUARD MEASURE PURSUANT TO SECTION 16.7 OF PART I  
OF THE PROTOCOL ON THE ACCESSION OF  
THE PEOPLE'S REPUBLIC OF CHINA 
 
INDIA 
 
(Soda Ash)
 
 
Supplement  
 
  The following communication, dated 17 April 2009,  is being circulated at the request of the 
Delegation of India.    
_______________ 
 
  We enclose a notification on making a preliminary finding of "market disruption" or threat thereof caused by increased import of Soda Ash fro m People's Republic of China and a notification 
before taking a provisional safeguards measure fo r import of Soda Ash from People's Republic of 
China into India.   
   G/SG/N/16/IND/3/Suppl.1 
Page 2  
 
  A. NOTIFICATION
 ON MAKING  A FINDING  OF MARKET  DISRUPTION  OR 
THREAT  THEREOF  CAUSED  BY INCREASED  IMPORT  OF SODA  ASH  FROM  
PEOPLE'S  REPUBLIC  OF CHINA  INTO  INDIA 
1. Provide evidence of serious injury or  threat thereof caused by increased imports 
a) An analysis of the Data given in the table- 1 below shows that there is significant increase in 
imports in absolute term from People's Republic of  China during the period October-December 2008.  
There has also been significant increase in share of imports in domestic market during October-
December 2008 after gradual increase in the share of imports during earlier period.    
Table-1 
 
Period Volume (MT) Monthly Average 
2004-05 2,120 177 
2005-06 9,016 751 
2006-07 44,892 3,741 
2007-08 45,771 3,814 
Apr-Jun08 10,249 3,416 
Jul-Sep08 16,562 5,521 
Oct-Dec08 49,018 16,339 
 
 It is also seen from the table-2 given below that   the share of imports from China in relation to 
domestic production has increased from 0.44 per cent in 2005-2006 to 2.59 per cent April-
September 2008.  Thereafter the share of imports fro m China (PR) has increased  sharply to 10.13 per 
cent.   
 
Table-2 
 
Imports from China and other Countri es vis-à-vis domestic production 
 
 2005-06 2006-07 2007-08 Apr-Sep 08 Oct-Dec 08 
Imports from China 0.44 2.16 2.16 2.59 10.13
Imports from other 
than China 6.92 10.35 14.57 11.16 6.67
Sales by Domestic 
Industry (total) 92.64 87.49 83.27 86.25 83.20
 
b) Threat of Market Disruption 
 
i) Share of domestic market :  As apparent from the Table 2, the domestic industry is losing 
their market shares to imports from China.  In the year 2005-06 domestic manufacturers commanded 
92.64 per cent of the market against mere 0.44 pe r cent of market share by Chinese imports.  The 
share of Chinese imports went upto 10.13 per cen t during the period October-December 2008 and the 
share of domestic producers fell to 83.20 per cent during the same period.    ii) Sales :  From Table-3 it can be seen that the average weekly sales volume fell to 36745 MT 
during the period 2005-2006, to 33207 MT in Apri l-December 2008.  The sales have further fallen 
to 20881 in 1
st week of January 2009.    G/SG/N/16/IND/3/Suppl.1 
 Page 3 
 
 
  Table-3 
    
 
    
 
    
 
     
iii) Production :  A perusal of table-4 shows that average weekly production was increasing till 
November 2008 and declined thereafter sharply until last week of December.  Moreover the decline 
was even more pronounced in January 2009.   
 
Table-4 
 
  Total production Average weekly 
production 
2005-06 2,224,601 42,781 
2006-07 2,037,255 39,178 
2007-08 2,125,684 40,879 
Apr.-Dec., 2008 1,556,654 39,914 
1/11 to 7/11/08 - 42,329 
8/11 to 14/11/08 - 41,516 
15/11 to 21/11/08 - 41,432 
22/11 to 30/11/08 - 52,285 
1/12 to 7/12/08 - 40,105 
8/12 to 14/12/08 - 42,607 
15/12 to 21/11/08 - 43,936 
22/12 to 31/12/08 - 55,971 
1/1 to 7/1/09 - 38,219 
8/1 to 14/1/09 - 37,967 
 2. Provide information on whether there is an  absolute increase in imports or an increase 
in imports relative to domestic production 
 
 As shown in the tables given above, there ha s been a significant increase in imports in 
absolute terms as well as relative to domestic products.     Total domestic sales Average weekly 
domestic sales 
2005-06 1,910,722 36,745 
2006-07 1,821,823 35,035 
2007-08 1,765,426 33,951 
Apr.-Dec., 2008 1,295,063 33,207 
1/11 to 7/11/08 - 31,883 
8/11 to 14/11/08 - 30,970 
15/11 to 21/11/08 - 29,819 
22/11 to 30/11/08 - 36,539 
1/12 to 7/12/08 - 27,645 
8/12 to 14/12/08 - 26,603 
15/12 to 21/11/08 - 28,931 
22/12 to 31/12/08 - 39,101 
1/1 to 7/1/09 - 20,881 
8/1 to 14/1/09 - 29,963 G/SG/N/16/IND/3/Suppl.1 
Page 4  
 
  3. Provide precise description of the product involved 
 
 Soda Ash covered under HS Code-283620.   
 
4.  Provide precise description of the proposed measure 
  The DG, Safeguards has recommended for im position of provisional safeguard duty in 
preliminary findings dated 30 January 2009.    
5. Provide proposed date of introduction of the measure 
  The measure will be introduced from the date of notification to be made by the Ministry of 
Finance.    
6. Provide expected duration of the measure 
 
 200 days from the date of notification.   
 
7. For a measure with a duration of more three years, provide 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.   
 
8. If the expected duration is over one year , provide expected timetable for progressive 
liberalization of the measure 
  Not applicable.   
 
9. If the measure is being extended, also provide: 
  (i) Evidence that the industry concerne d is adjusting and that the safeguard 
measure continues to be necessary to prevent or remedy serious injury;   
 (ii) Reference to the WTO document that  notified the initial application of the 
measure;  Duration of the measure from initia l application till the date at which it will 
be extended;  and , 
 (iii) Precise description of the measure in pl ace prior to the date of extension (in this 
context, please note that the last sentence of Article 7.4 states that:  "A measure 
extended under paragraph 2 shall not be more r estrictive than it was at the end of the 
initial period, and should continue to be liberalized") 
 
 Not applicable.   
 
B. NOTIFICATION BEFORE TAKING PROVISIONAL SAFEGUARD MEASURES 
 
1. Specify the product subject to the proposed provisional safeguard measure 
 
 Soda Ash covered under HS Code-283620.   
 
2. Specify the proposed safeguard measure 
 
 A provisional safeguard duty at the rate of 20 per cent ad valorem is proposed to be imposed 
on import of Soda Ash into India from People's Republic of China.    G/SG/N/16/IND/3/Suppl.1 
 Page 5 
 
 
  3. Specify the proposed date of introduction of the provisional safeguard measure 
 
 From the date of issue of notification by the Ministry of Finance.    
4. Specify the expected duration of the provisional safeguard measure, if any decision on 
the duration of the measure has been made 
 
 Two hundred (200) days from the date of issue of notification by the Ministry of Finance, Department of Revenue.    5. Provide the basis for Making a preliminary determination, as provided for in Article 6, 
that increased imports have caused or are threatening to cause serious injury;  and 
determining that there are critical circu mstances where delay would cause damage 
which it would be difficult to repair 
  The Directorate General of Safeguards, the co mpetent authority has conducted investigation 
in response to the application submitted by the domes tic industry in order to determine whether there 
was market disruption to the domestic industry, w ithin the meaning of the Agreement on Safeguards, 
in connection with the product defined in point 1 of this notification.  The results of the analysis 
conducted during the investigation are recorded in the Notification dated 30 January 2009 and 
published in the Official Gazette of India on the same day.   
 
 The analysis shows that the application contains  sufficient evidence of market disruption to 
the domestic industry caused by imports, thereby m eeting the conditions laid down by the rules in 
force to implement possible provisional safeguard measures.    C. OFFER OF CONSULTATION  
 The Government of India offers consultations  to the People's Republic of China on the 
provisional safeguard measures.     
 
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