WORLD TRADE G/SG/10
13January 1997
ORGANIZATION(97-0069)
Original: English Committee onSafeguards
SAFEGUARD PROCEEDINGS INITIATED BYKOREA
ONCERTAIN DAIRY PRODUCTS
Request forConsultations from Australia
under Article 12.3oftheAgreement onSafeguards
Thefollowing communication, dated 23December 1996, hasbeenreceived fromthePermanent
Mission ofAustralia.
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Background
On28May1996, theKorean Trade Commission (KTC) initiated safeguard proceedings in
respectofcertaindairyproductsbasedonmilkpowder(KoreanCNcodes0404.90.000and1901.90.000)
andnotified suchinitiation totheCommittee onSafeguards on11June1996 (G/SG/N/6/KOR/2 of
1July1996).
On2December 1996, theRepublic ofKorea notified theCommittee onSafeguards thatthe
KTC hadmade afinding ofserious injury tothedomestic industry caused bytheincreased imports
ofdairy products (G/SG/N/8/KOR/1 of6December 1996).
This matter wasraised intheCommittee onSafeguards atitsregular meeting on
25October 1996, aswellasinbilateral contacts between theGovernment ofAustralia andthe
Government oftheRepublic ofKorea, inwhich Australia expressed serious concern attheproceedings.
Injury determination bytheKorean Trade Commission
Thenotification bytheRepublic ofKorea oftheinitiation ofsafeguard proceedings
(G/SG/N/6/KOR/2) contained onlydataonanalleged absolute increase inimports. Itwasnotclear
from thenotification whether thedataprovided bytheRepublic ofKorea relating toalleged injury
referred totheproducts subject tothecomplaint ortoawider range ofdairy products. Norwasany
information supplied inrespect ofanyother factors relevant todetermination ofserious injury, orto
anycausal linkbetween thelevelofimports andanyalleged injury.
Onthebasis ofinformation provided bytheRepublic ofKorea inG/SG/N/8/KOR/1, there
isnoevidence thattheKorean authorities haveestablished either serious injury orthreat thereof to
theKorean industry producing thelikeordirectly competitive product fromtheimport oftheproducts
subject toinvestigation. Thenotification doesnotindicate whatisregarded asbeing the"domestic
industry" being seriously injured byimports ofthespecified goods. Norisanysubstantial evidence
provided inthenotification astoanycausal linkbetween imports ofmilkpowder blends andsome
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unspecified domestic industry. Inaddition, thenotification doesnotprovide anysubstantial evidence
thatallrelevant factors having abearing onthesituation oftheindustry concerned havebeenevaluated
inanobjective andquantifiable manner.
Noadditional substantive information hasbeenprovided bytheKorean authorities inthecourse
ofbilateral consultations onthisissue.
Request forconsultations
TheAustralian Government considers thatthere isnojustification fortheimposition bythe
Republic ofKorea ofsafeguard measures onthebasis oftheKTC findings asnotified in
G/SG/N/8/KOR/1.
Accordingly, Australia requests consultations withtheRepublic ofKorea under Article 12.3
oftheWTO Agreement onSafeguards. Australia seeks these consultations inconjunction withthe
request forconsultations bytheEuropean Community.