Commercial Information Circulars

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Ref : CR EIC 230/2/1/1/1

29 March 2012

Dear Sirs,

Commercial Information Circular No. 238/2012

Egypt : Imposition of Safeguard Measures on Cotton Yarn and Cotton Textile and Mixed Cotton Textile

According to recent communications circulated by the World Trade Organization (WTO), Egypt has imposed two provisional safeguard measures on the imports of cotton yarn and cotton textile and mixed cotton textile irrespective of country of origin. The communications (with document symbol G/SG/N/11/EGY/2 and G/SG/N/11/EGY/3) can be obtained from the WTO's website through the following link: http://docsonline.wto.org/gen_search.asp?language=1.

DETAILS

2. Salient points of Egypt's safeguard measures are set out below -

BACKGROUND

3. The Egyptian authorities notified to the WTO that their provisional safeguard measures against imports of (i) cotton yarn and (ii) cotton textile and mixed cotton textile were initiated on 29 December 2011 and 29 February 2012 respectively. After examining the petitions filed by Egyptian companies, the Egyptian authorities came to a preliminary conclusion that there was a correlation between the significant increase in imports of the subject products and serious injury suffered by the domestic industry producing similar products. The domestic industry will suffer damage, which will be difficult to repair, in the absence of provisional safeguard measures in para.2 above. The provisional safeguard measures were therefore applied for 200 days from the respective effective dates. Imports from developing country members of the WTO shall not be subject to the provisional safeguard measures as long as each member's imports do not exceed three per cent of total imports into Egypt and the share of the members with less than three per cent import share do not collectively account for more than nine per cent of total imports into Egypt.

ENQUIRIES

4.For enquiries concerning the contents of this circular, please contact Ms Ann Leung/Mr. Derek Wong at telephone number 3403 6352 or the undersigned at 2398 5427.

Yours faithfully,

(Miss Anna CHEUNG)
for Director-General of Trade and Industry