./.WORLD TRADE
ORGANIZATIONG/SG/N/6/CZE/7
11 March 2002
(02-1214)
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
CZECH REPUBLIC
The following communication, dated 7 March 2002, has been received from the Permanent
Mission of the Czech Republic.
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Pursuant to Article 12.1(a) of the Agreement on Safeguards and using the format adopted by
the Committee on Safeguards (G/SG/N/6), the Czech Republic hereby notifies that its competent
authorities have initiated a safeguard proceeding, as follows:
1. Date investigation was initiated
6 March 2002.
2. Product subject to investigation
Certain welded tubes and pipes, of iron or non- alloy steel, of circular or non-circular cross-
section (falling within CN codes 7306 30 21, 7306 30 29, 7306 30 59, 7306 30 71, 7306 30 78, 7306
60 31 and 7306 60 39).
3. Reasons for initiating the investigation
The investigation was initiated by the Ministry of Industry and Trade having sufficient
evidence of the substantially increased imports of the product in question, absolute or relative to
domestic production, and under such conditions as to cause or threaten to cause serious injury to the
domestic industry concerned.
Imports of the product in question increased to 144,757 tons in 2001, which represents an
increase of 147.5 per cent, compared to three years average of 1998-2000 when the imports amounted
to 98,111 tons.  Average import prices fell from CZK 22.4/kg. in 1998 to CZK 18.4/kg. in 2001.  As a
result of increased imports and conditions of those imports, the production of domestic industry,which amounted to 84,193 tons in 2001 fell by 47.6 per cent, and the employment in domestic
industry fell by 35 per cent, when data for the same period of time are compared.  Domestic capacity
utilization fell to 34 per cent in 2001.
The Ministry of Industry and Trade found the evidence of substantial increase in imports of
the product in question causing or threatening to cause serious injury to the domestic industry
sufficient and accordingly decided to initiate the investigation.G/SG/N/6/CZE/7
Page 2
A notice of the initiation of the investigation was published in the Commercial Bulletin dated
6 March 2002.
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