WORLD TRADE
ORGANIZATIONG/SG/34
13 June 2001
(01-2935)
Committee on Safeguards Original:  English
PROVISIONAL SAFEGUARD MEASURES IMPOSED
BY EGYPT ON POWDERED MILK
Request for Consultations under Article 12.3
of the Agreement on Safeguards
The following communication, dated 8 June 2001, has been received from the Permanent
Delegation of Poland.
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On 26 September 2000, Egypt notified the WTO in document G/SG/N/6/EGY/3 of the
initiation of the safeguard investigation as regards imports of powdered milk.  On 30 March 2001,
Egypt  notified to the WTO Committee on Safeguards the final findings in this investigation.  These
notifications, G/SG/N/8/EGY/4 and G/SG/N/1 0/EGY/4, circulated to WTO Members on
3 April 2001.
Poland is seriously concerned about the consistency of this measure with Article XIX
GATT 1994 and the Agreement on Safeguards especially requirements for the adoption of a definitive
safeguard measure.
Poland considers that it is not proved that imports are the cause of the problems of the
domestic industry.  It seems that there exists no direct competition between imported milk powder and
Egyptian fresh milk.  Moreover, imports of powdered milk have decreased and world prices have
increased in 2000.  Consequently, the existence of a causal link between imports and injury was not
adequately proved.
Poland formally requests the holding of consultations according to Article 12.3 with a view
of reviewing the information available, exchanging views on the measure with the aim to achieve the
objective set out in paragraph 1 of Article 8 of the Agreement on Safeguards.
In its above-mentioned notification Egypt informed that the consultations will be held in
Cairo in the period between 6 and 10 April and should be requested before 5 April 2001.
Taking into account that this information was available to WTO Members only two days
before, on 3 April 2001, Poland is of the view that it is not in accordance with Article 12.3 of the
WTO Agreement on Safeguards, which stipulates that a member should provide an "adequateopportunity for prior consultations".  Accordingly, Poland proposes that consultations be held
forthwith at a mutually agreed date and place.
Poland reserves all its rights under the Agreement on Safeguards, in particular Article 14, as
well as under the Dispute Settlement Understanding.
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