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World Trade
Organization
G/SG/N/8/EEC/3/Suppl.1
G/SG/N/10/EEC/3/Suppl.1
G/SG/N/11/EEC/3/Suppl.2
14 February 2005
(05-0583)
Committee on Safeguards / Original: English

NOTIFICATION UNDER ARTICLE 12.1(B) OF THE

AGREEMENT ON SAFEGUARDS ON FINDING

A SERIOUS INJURY OR THREAT THEREOF

CAUSED BY INCREASED IMPORTS

notification pursuant to article 12.1(c)

OF THE AGREEMENT ON SAFEGUARDS

NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2

OF THE AGREEMENT ON SAFEGUARDS

EUROPEAN COMMUNITIES

Supplement

(Farmed (other than wild) Salmon, whether

or not fresh, chilled or frozen)

The following communication, dated 10February2005, is being circulated at the request of the Delegation of the European Communities.

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Pursuant to Articles 12.1(b), 12.1(c) and 9, footnote 2 of the Agreement on Safeguards, the European Communities hereby submits supplemental notifications on finding serious injury or threat thereof caused by increased imports, on taking a decision to apply safeguard measures, and on taking a decision not to apply those measures to products originating in developing countries. The relevant EC Regulation (Commission Regulation (EC) No 206/2005) can be found at the following internet address:

I.NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED IMPORTS

II.NOTIFICATION PURSUANT TO ARTICLE 12.1(C) OF THE AGREEMENT ON SAFEGUARDS

In light of the agreed format for notifications (G/SG/W/1, 23 February 1995), the EuropeanCommunities provides supplemental notification to the Committee on Safeguards of findings of serious injury or threat thereof caused by increased imports and notification of safeguard measures applied concerning farmed (other than wild) salmon (whether fresh, chilled or frozen).

On 6 March 2004, the Commission initiated an investigation relating to serious injury or threat thereof to the Community producers of the product like or directly competitive with the imported product. Following a preliminary investigation, the European Communities imposed provisional safeguard measures against imports of the product concerned under Regulation (EC) No1447/2004of 13 August 2004, which subsequently lapsed on 6 December 2004.

The initiation of the investigation, the imposition of provisional measures as well as the decision not to apply those provisional measures to certain products originating in developing countries have been notified to the Committee on Safeguards (see WTO documents G/SG/N/6/EEC/3, G/SG/N/7/EEC/3, G/SG/N/11/EEC/3).

Consistent with Article 12.2 of the Agreement on Safeguards, the European Communities notified on 6 January 2005 (G/SG/N/8/EEC/3, G/SG/N/10/EEC/3, G/SG/N/11/EEC/3/Suppl.1) information relating to the product on which it proposed to apply definitive safeguard measures.

By Commission Regulation (EC) No 206/2005, the European Communities imposed definitive safeguard measures on imports of the products referred to above[1]. The present notification confirms the findings and proposed measures notified on 6 January 2005.

1.Provide evidence of serious injury or threat thereof caused by increased imports

Notification G/SG/N/8/EEC/3, G/SG/N/10/EEC/3, G/SG/N/11/EEC/3/Suppl.1 (6January2005) includes information on evidence of serious injury caused by increased imports found during the investigation. More detailed information can be found in Commission Regulation (EC) No 206/2005.

2.Provide information on whether there is an absolute increase in imports or an increase in imports relative to domestic production

Notification G/SG/N/8/EEC/3, G/SG/N/10/EEC/3, G/SG/N/11/EEC/3/Suppl.1 (6January2005) includes information on absolute increase in imports and increase in imports relative to domestic production for the products covered by safeguard measures. More detailed information can be found in Commission Regulation (EC) No 206/2005.

3.Provide precise description of the product involved

Notification G/SG/N/8/EEC/3, G/SG/N/10/EEC/3, G/SG/N/11/EEC/3/Suppl.1 (6January2005) contains a complete description of the products covered by the EuropeanCommunities’ affirmative determinations. More detailed information can be found in Commission Regulation (EC) No 206/2005.

4.Provide precise description of the proposed measure

Commission Regulation (EC) No 206/2005 contains a precise description of the measures. A summary is provided below.

A price element was established for all imports of farmed salmon to the Community. It was found that the import price level should be established at EUR 2 850 per tonne for fresh salmon and at EUR 2 736 for frozen salmon. The price element will be phased-in over a period of time, i.e. from the date of entry into force of definitive safeguard measures until 15 April 2005, during which period a minimum import price of EUR 2 700 per tonne for fresh salmon and EUR 2 592 for frozen salmon should apply.

The price element takes the form of a variable duty. If imports are undertaken at a CIF Community border price equal to or above the import price established, no duty would be payable. If imports are undertaken at a lower price, the difference between the actual price and the import price established would become payable. This minimum price element shall be applicable at all times, both within the tariff quota as set out below, and when the threshold of the tariff quota is reached.

Tariff quotas are also established which reflect traditional levels of imports. Beyond those quotas, an additional duty is payable on imports.

The tariff quota was divided amongst those countries/regions having a substantial interest in supplying the product concerned, and a part was reserved to other countries. After consultation with Norway, Chile and the Faeroes which have such a substantial interest and represent substantial import shares, a specific tariff quota was assigned to each of these countries. In principle, the tariff quota should be divided up based on the proportions of the total quantity of the product supplied by that country during the three year period 2001 to 2003. However, it was noted that imports from Chile fell substantially (to below 3percent of imports to the Community) in the second semester 2003 due to technical reasons concerning border controls, which is approximately half of their normal share of imports to the Community. For this reason imports from Chile in 2003 are not representative and the country specific quota for Chile was instead based on average imports in 2001, 2002 and an adjusted figure for 2003 (based on 2002 plus average import growth rates in 2003 excluding Chile) so as not to distort traditional flows of trade. In order to take account of the market growth, the tariff quotas (based on average imports in 2001 to 2003) were increased by 10percent. As the salmon market is seasonal, with higher imports and sales in the second semester than the first, the tariff quotas were seasonally adjusted. The quotas were calculated on a whole fish equivalent basis (WFE) and conversion ratios to fillets and non-fillets actually imported are 1:0,65 and 1:0,9 respectively.

The additional duty payable is EUR 330 euro per tonne (WFE), which, based on the conversion ratios shown above, is equivalent to EUR 366 per tonne for other than fillets and EUR 508 per tonne for fillets.

A summary table of the measures (other than the price element) can be found in Annex.

5.Provide proposed date of introduction of the measure

The measures entered into force on 6 February 2005.

6.Provide expected duration of the measure

The measures are expected to apply until 13 August 2008.

7.For a measure with a duration of more than three years, provide the proposed date for the review (under Article 7.4) to be held not later than the midterm of the measure, if such a date for the review has already been scheduled

A mid-term review of the measures will be carried out by August 2006.

8.If the expected duration is over one year, provide expected timetable for progressive liberalisation of the measure

The measures will be subject to liberalisation on a regular basis following their imposition. Liberalisation will commence one year after the imposition of provisional measures, and be undertaken annually thereafter. Liberalisation will take the form of an increase in the tariff quota together with a decrease in the level of the additional duty payable beyond the level of the tariff quota. On each occasion the tariff quota will be increased by 10percent and the additional duty decreased by 5percent.

9.Provide information relating to the extension of a safeguard measure

Not applicable.

G/SG/N/8/EEC/3/Suppl.1
G/SG/N/10/EEC/3/Suppl.1
G/SG/N/11/EEC/3/Suppl.2

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Annex

CN code / TARIC code / Group / Origin (for groups 1 and 2) / Tariff quotas and additional duties
06/02/2005 to 13/08/2005 / 14/08/2005 to 13/08/2006 / 14/08/2006 to 13/08/2007 / 14/08/2007 to 13/08/2008
Tariff quota (tonnes WFE) / Additional duty €/tonne Group1 (fresh and frozen) / Additional duty €/tonne Group2 (fresh and frozen) / Tariff quota (tonnes WFE) / Additional duty €/tonne Group1 (fresh and frozen) / Additional duty €/tonne Group2 (fresh and frozen) / Tariff quota (tonnes WFE) / Additional duty €/tonne Group1 (fresh and frozen) / Additional duty €/tonne Group2 (fresh and frozen) / Tariff quota (tonnes WFE) / Additional duty €/tonne Group1 (fresh and frozen) / Additional duty €/tonne Group2 (fresh and frozen)
ex 0302 12 00 / 0302 12 00 19 / 1 / Norway / 163649 / 369041 / 405945 / 446539
0302 12 00 38 / 1 / Faeroes / 20173 / 366 / 508 / 47921 / 348 / 483 / 52713 / 330 / 458 / 57984 / 314 / 436
0302 12 00 98 / 1 / Chile / 16033 / 36146 / 39760 / 43736
Other / 14150 / 39053 / 42959 / 47254
ex 0303 11 00 / 0303 11 00 18 / 1
0303 11 00 98 / 1
ex 0303 19 00 / 0303 19 00 18 / 1
0303 19 00 98 / 1
ex 0303 22 00 / 0303 22 00 19 / 1
0303 22 00 88 / 1
ex 0304 10 13 / 0304 10 13 19 / 2
0304 10 13 98 / 2
ex 0304 20 13 / 0304 20 13 19 / 2
0304 20 13 98 / 2

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III.SUPPLEMENTAL NOTIFICATION UNDER ARTICLE 9 FOOTNOTE 2 OF THE AGREEMENT ON SAFEGUARDS

1.Specify the measure

See point II.4 above in the notification under Article 12.1 (b) and 12.1 (c).

2.Specify the product subject to the measure

The measures apply to the products described in the notification under Article 12.1 (b) and 12.1 (c) above.

3.Specify developing countries to which the measure is not applied under Article 9.1 of the Agreement on Safeguards and the imports shares of these countries individually and collectively

United Arab Emirates, Afghanistan, Antigua and Barbuda, Angola, Argentina, American Samoa, Anguilla, Antarctica, Aruba, Barbados, Bangladesh, Burkina Faso, Bahrain, Burundi, Benin, Brunei Darussalam, Bolivia, Brazil, Bahamas, Bhutan, Botswana, Belize, Bermuda, Bouvet Island, BritishVirgin Islands, British Indian Ocean Territory, Democratic Republic of Congo, CentralAfrican Republic, Congo, Côte d'Ivoire, Cameroon, Chad, Colombia, Costa Rica, Cuba, CapeVerde, Cayman Islands, Christmas Island, Cocos Islands (or Keeling Islands), Cook Islands, Djibouti, Dominica, Dominican Republic, Algeria, Ecuador, Egypt, Eritrea, Ethiopia, Fiji, FederatedStates of Micronesia, Falkland Islands, French Polynesia, French Southern Territories, Gabon, Grenada, Ghana, Gambia, Guinea, Equatorial Guinea, Guatemala, Guinea-Bissau, Guyana, Gibraltar, Guam, Honduras, Hong Kong, Haiti, Heard Island and McDonald Islands, Indonesia, India, Iraq, Iran (Islamic Republic of), Jamaica, Jordan, Kenya, Cambodia, Kiribati, Comoros, StKittsandNevis, Kuwait, Lao People's Democratic Republic, Lebanon, St Lucia, Sri Lanka, Liberia, Lesotho, Libyan Arab Jamahiriya, Morocco, Madagascar, Marshall Islands, Mali, Myanmar, Mongolia, Mauritania, Mauritius, Maldives, Malawi, Mexico, Malaysia, Mozambique, Macao,China, Mayotte, Montserrat, Namibia, Niger, Nigeria, Nicaragua, Nepal, Nauru, Netherlands Antilles, NewCaledonia and dependencies, Niue Island, Norfolk Island, Northern Mariana Islands, Oman, Panama, Peru, Papua New Guinea, People’s Republic of China, Philippines, Pakistan, Palau, Paraguay, Pitcairn, Qatar, Rwanda, Samoa, Saudi Arabia, Solomon Islands, Seychelles, Sudan, SierraLeone, Senegal, Somalia, Suriname, Sao Tomé and Principe, El Salvador, SyrianArabRepublic, Swaziland, South Georgia and South Sandwich Islands, StHelenaanddependencies, St Pierre and Miquelon, Togo, Tunisia, Tonga, East Timor, Trinidad and Tobago, Tuvalu, Tanzania (United Republic of), Chinese Taipei, Tokelau, Turks and Caicos Islands, UnitedStates Minor outlying islands, Uganda, Uruguay, St Vincent and the Northern Grenadines, Venezuela, VietNam, Vanuatu, Virgin Islands of USA, Wallis and Futuna Islands, Yemen, SouthAfrica, Zambia, and Zimbabwe.

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[1] Official Journal of the European Union, L33 of 5 February 2005, page 8 – available at