WORLD TRADE  
ORGANIZATION  G/SG/N/6/MDA/3 
27 August 2007 
 (07-3599) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT  
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION  
AND THE REASONS FOR IT 
 
REPUBLIC OF MOLDOVA 
 
(Cane or Beet Sugar
) 
   The following communication, dated 16 August 2007,  is being circulated at the request of the 
Delegation of Moldova. 
 
_______________ 
 
 Pursuant to Article 12.1(a) of the Agreemen t on Safeguards and using the format adopted by 
the Committee on Safeguards (G/SG/N/6), the Republic of Moldova hereby gives notification of the 
initiation of a safeguards investigatory process, as follows:   
 
1. Date investigation was initiated 
 
 On 27 July 2007, the Investigation Authority of the Republic of Moldova decided to initiate 
an investigation process relating to import of sugar.   
 
2. Products subject to investigation  
 
• Cane or beet sugar and chemically pure sucrose, in solid form – tariff lines: 
 
 
• Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form – 
tariff lines:  1702 90 790 
      1702 90 990 
 
3. Reasons for initiation of the investigation  
 
 The investigation was initiated by the Investig ation Authority of the Republic of Moldova on 
the basis of a petition submitted by the Union of  Sugar Producers from Moldova representing the 
interests of all Moldovan sugar producers and beet growers.     The Investigation Authority was requested to no tice attention to the threat of vast flow of 
sugar imports after the date of 15 February 2008 when the Law nr.8-XV from 05.02.2004 concerning 
the application for safeguard measure will lose its force.  Thus, will damage the investment 
programme of the industry, which is in process of resuscitation from injury caused in the period 
before February 2004. 1701 11 100 1701 12 100 1701 91 000 
1701 11 900 1701 12 900 1701 99 100 
  1701 99 900 G/SG/N/6/MDA/3 
Page 2  
 
   
 Safeguard measures adopted through the Law nr. 8-XV from 5 February 2004 as a special 
duty at the sugar import will expire on 15 February  2008.  During the 4 years of implementation of 
this measure, the industry succeeds to register progresses on the efficiency development and on 
competitiveness.  The situation of agricultural fa rms was improved through the implementation of 
advanced technologies of beet sugar cultivation.  Thus, the harvest of beet of 2006 year reached 
32.5 tonnes/ha comparing to 17 tones/ha in 2003 .  The created conditions resulted from safeguards 
application permitted to sugar producers to invest more then 200 mil. MDL (€12 mil.) that have as 
result the reduction of energy consumption with 24 per cent and production loses with 18 per cent. 
  
 The sugar industry during fifteen years before the safeguard measure did not benefit of any 
investments and of development conditions and the caused injury was to o significant for being 
eliminated in just four years period of safeguards.   The branch investment programme for the ne xt 5-8 years requires a financial effort of 
€75 mil.  The mentioned programme foresees investme nt both in the industrial sector and agricultural 
one.  The purpose of the investments is to impr ove the beet processing efficiency, the reduction of 
ecological risks and the implementation of advanced technologies in the agriculture.        After further examination of the petition, the Investigation Authority has decided to initiate 
the safeguard investigation.   
 
 
Statistical data
 
  
  2002 2003 2004 2005 2006 2007  
Internal Production 1000 tons 114 83 111 133 148 123  
Import 1000 tons 72 74 0 8 0 0  
Export 1000 tons 38 26 5 13 32 60  
Incl.           
 Romania   5 27 5 9 14   
 Russia   12 0 0 4 18   
 Others   21 - - - -   
Sales on internal market 1000 tons 150 105 101 114 86 90  
Sugar stocks at the end 
of the year 1000 tons 63 73 71 83 111 84  
         
         
         
  2002 2003 2004 2005 2006 2007 
est. 2006 as 
to 2003 
Area under beet cultivation (1000 ha) 52 39 38 32 33 31 -15.4%
Harvest (t beets/ha) 21.9 17.0 24.9 30.8 32.5 29.0 91.2%
Sugar content at the 
reception (%) 13.90% 16 .50% 15.40% 16.80% 17.00% 16 .90% 3.0%
Harvest per hectare (t sugar/ha) 3.0 2.8 3.8 5.2 5.5 4.9 96.4%
                
Beets collected 1000 tons 1 141 662 944 986 1 074 899 62.2%
Beets processed 1000 tons 1 123 650 927 975 1 062 890 63.4% G/SG/N/6/MDA/3 
 Page 3 
 
 
    2002 2003 2004 2005 2006 2007 
est. 2006 as 
to 2003 
Losses at the reception % -1.62% -1.90% -1.8 0% -1.10% -1.10% -1.00% -42.1%
                
Sugar extraction % 10.14% 12.76% 11.95% 13.66% 13.98% 13.80% 9.6%
Productions losses % 3.76% 3.71% 3.45% 3.10% 3.02% 3.10% -18.6%
                
Energy consumption kWatt / t sugar   3 674 3 404 2 942 2 785 2 550 -24.2%
Productivity t 
Sugar/employee 31 28 39 52 63 56 125.0%
                
Daily processing 
capacity t beets/day 21 000 21 000 21 000 18 000 18 000 18 000 -14.3%
Capacity utilization % 59% 34% 49% 60% 66% 55%  
 
  
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