. /.   WORLD TRADE  
ORGANIZATION  G/SG/N/6/UKR/5 
12 February 2010 
 (10-0796) 
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 
 
(Mineral fertilisers containing nitrogen, phosphorus and potassium 
 
with a nitrogen content exceeding 10 per cent)  
  
 The following communication, dated 9 February 20 10, 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/Rev.1), Ukraine hereby gives notification of the initiation of 
the safeguards investigatory process, as follows:    
1. Investigation initiation date 
 
 According to the Decision N° SP – 225/2010/4403-33 of the Interdepartmental Commission on Foreign Trade "On the initiation of special inv estigation on imports into Ukraine of mineral 
fertilizers containing three nutrient elements:  n itrogen, phosphorus and potassium with a nitrogen 
content exceeding 10 per cent, regardless of country of origin or export" on 3 February 2009, there 
was initiated the investigation process.   
 
2. Description of the product involved 
 
 Mineral or chemical fertilisers containing three nutrient elements:  nitrogen, phosphorus 
and potassium with a nitrogen content ex ceeding 10 per cent classified under UKTZED 
code 3105 201000.
1   
 
3. Reasons for the initiation of investigation 
 
(i) The investigation has been initiated pursuant to the petition of the Union of Chemists of 
Ukraine acting on behalf of "SumyKhimProm" and "D niprean plant of mineral fertilisers" companies, 
whose share in total production on the domestic ma rket is 100 per cent.  Thus, the investigation 
initiated by the domestic industry.    
                                                     
 
1 UKTZED is the Ukrainian Fore ign Economic Activity Commodity Classification, based on 
Harmonized System 2002.   G/SG/N/6/UKR/5 
Page 2  
 
  (ii) Based on the petition, the Commission found that it contained enough information for making 
conclusion that during the second half of 2008 - fi rst half of 2009 the product concerned has been 
imported to Ukraine in such quantities and under such  conditions, that might have caused injury to 
domestic industry, in particular:    
- The volume of import in absolute terms incr eased by 12.5 per cent;  relative to domestic 
production – by 124 per cent;  in comparis on with the consumption of product on the 
domestic market – by 5.3 per cent.   
- Under such conditions of import to Ukrain e, output of domestic production decreased by 
49.6 per cent;  productive capacity usage declin ed by 49.6 per cent, domestic product sales 
decreased by 34.7 per cent;  there increased the losses from sale of domestic industry product 
on the domestic market, the liquidity ratio of  domestic production decreased by 47.21 per 
cent, the domestic industry productivity decreased by 48.7 per cent:  domestic industry employment in the manufacture and sales decreased by 1.9 per cent.   
- In the first half of 2009 compared to 2008, the import prices for the products concerned 
decreased by 55 per cent and were lower than the selling price of domestic product on 
domestic market and lower than its cost.  U nder these conditions, the domestic industry wasn't 
able to raise selling prices on the domestic market of Ukraine to a positive level of 
profitability.   
 
 The described above terms of import to Uk raine of product involved could affect the 
displacement of domestic producer from the market  and reduce its share in domestic consumption 
from 12 per cent in the second half of 2008 to 7.3 per cent in first half of 2009.   
 
4. А point of contact for the investigatio n and preferred means for corresponding 
  The Ministry of Economy of Ukraine 
01008, Kyiv, Grushevskogo str., 12/2,  
 tel. (+38044) 272-50-00, fax (+38044) 226-31-81,   e-mail:  a-dump@me.gov.ua.   
5. Deadlines and procedures for importers, ex porters and other interested parties to 
present evidence 
 
Within 30 days from the effective date (3 February 2010) of the decision of the Commission 
on initiation of investigation, the Ministry of Econom y of Ukraine carries out registration of interested 
parties and considers the requireme nts for conducting of hearings.   
 
Within 40 days from the effective date of  the decision of Commission on initiation of 
investigation, the Ministry of Economy of Ukrain e considers the written comments on the initiation of 
investigation.     
 
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