. /.   WORLD TRADE  
ORGANIZATION  G/SG/N/6/UKR/4 
4 September 2009 
 (09-4170) 
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 
 
UKRAINE 
 
(Sheet glass thermally polished (float glass) unreinforced, transparent,
 
colorless, with thickness more th an 3.5 mm but not exceeding 4.5 mm ) 
  
 The following communication, dated 1 September 2009, is being circulated at the request of 
the Delegation of Ukraine.  
_______________ 
 
 
 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), Ukraine he reby gives notification of the initiation of a 
safeguards investigatory process, as follows:    
1. Investigation initiation date  
 
 On 27 August 2009, the investigation pro cess was initiated in accordance with Decision #SP 
– 211/2009/4402-27 of 25.08.09 of the Interdepartmental Commission of Foreign Trade.  
2.  Product subject to investigation  
  Sheet glass thermally polished (float-glass) unreinforced, transparent, colorless, with 
thickness more than 3.5 mm but not exceeding 4. 5 mm, classified under the classified under 
UKTZED codes 7005 29 35 00.
1 
 
3.  Reasons for the initiation of investigation 
 
 (i)  The investigation has been initiated pur suant to the petition of the CSC Lysychanskyy 
glass factory "Proletariy". 
  (ii)  The decision of the Commission wa s based on the evidences submitted for the 
following periods: 
   1
st period: second half year of 2006 – first half year of 2007; 
  2nd period: second half year of 2007 – first half year of 2008; 
  3rd period: second half year of 2008 – first half year of 2009. 
                                                      
1 UKTZED is the Ukrainian Fore ign Economic Activity Commodity Classification, based on 
Harmonized System 2002. G/SG/N/6/UKR/4 
Page 2  
 
   (1) Increase of import of the Product to Ukraine,  particularly, the rate of growth in the 3
rd 
period in comparison with 1st period is 907.75 per cent, and in comparison with 2nd period – 
151.27 per cent.   (2) Serious injury to domestic producer, particularly, 
 
• Volume of production of the Product in the 3
rd period increased in comparison with the 1st 
period but decreased in comparison with the 2nd period. 
• Volume of sales of the Product on the domestic market in the 3rd period increased in 
comparison with the 1st period but decreased in comparison with the 2nd period. 
• Use of producing capacities for production of the Product in the 3rd period was permanent in 
comparison with the 1st period but was reduced in comparison with the 2nd period. 
• Left over stock of the Product in the 3rd period was increased in comparison with the 1st and 
the 2nd periods. 
• Productive efficiency in the 3rd period was reduced in comparison with the 1st and the 2nd 
periods. 
• Factual employment in the production and sales of the Product in the 3rd period  increased in 
comparison with the 1st period  but reduced in comparison with the 2nd period. 
• Production costs in the 3rd period increased in comparison with the 1st period by 319.22 per 
cent and in comparison with the 2nd period – by 1408.17 per cent. 
 
(3) Information was submitted concerning deterioration of the Producer's economic 
activity sequent to increased import of the Product to Ukraine, in particularly: 
 
• During the 1st, the 2nd and the 3rd periods unexpected and substantial growth of import of the 
Product has taken place by constantly reducing prices. 
• Import of the Product to Ukraine on such c onditions and volumes started to force out 
domestic product from domestic market.  Thus  import share in consumption in the 3rd period 
in comparison with the 1st period increased by 267.84 per cent and in comparison with the 2nd 
period – by 77.06 per cent. The domestic Pr oducer's share in consumption in the 3rd period 
was reduced by 48.58 per cent in comparison with the 1st period and by 36.11 per cent in 
comparison with the 2nd period. 
• In order to keep sales of the Product on the domestic market the domestic producer had to 
reduce prices to the unprofitable level. 
 
 
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