WORLD TRADE
ORGANIZATIONG/SG/N/6/JOR/2
G/SG/N/7/JOR/1
29 January 2002
(02-0405)
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
AND
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT
ON SAFEGUARDS BEFORE TAKING A PROVISIONAL
SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6
JORDAN
The following communication, dated 24 January 2002, has been received from the Permanent
Mission of the Hashemite Kingdom of Jordan.
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NOTIFICATION UNDER ARTICLE 12.1(A)
In accordance with Article 12.1(a) of the Agreement on Safeguards, and in light of the agreed
format set by the respective Safeguards Committee in WTO document G/SG/N/6, Jordan herebynotifies the Committee that the National Protection Production Directorate (NPPD) has initiated its
safeguards investigation regarding the increase in imports of other prepared unrecorded media
(magnetic tapes) for sound recording or similar recording of other phenomena of a width not
exceeding 4 mm.
1. Specify the date when the investigation was initiated
The investigation was initiated on 24 January 2002.
2. Specify the product subject to investigation
The product subject to investigation is other prepared unrecorded media (magnetic tapes) for
sound recording or similar recording of other phenom ena of a width not exceeding 4 mm provided for
in the Jordanian tariff sy stem under tariff heading 8523.119.
3. Provide the reasons for the initiation of investigation
The investigation was initiated following an examination of a safeguards petition filed with
NPPD by domestic producer Petra Tapes Manufa cturing Co. Ltd., which represents the whole
domestic industry of the subject product.G/SG/N/6/JOR/2
G/SG/N/7/JOR/1
Page 2
Data concerning the evolution of imports shows that it has consecutively increased since 1997
by 2,037 per cent in 1998, 2,412 per cent in 1999, 1,918 per cent in 2000, and by 1,341 per cent
during the first six months of the year 2001.
As a result of imports growth during the examined period, the domestic Jordanian industry
suffered gross losses and recorded significant declines in production, productivity, capacity
utilization, market share, and labour.
The purpose of the safeguards investigation is to determine whether a safeguards measure is
needed to remedy domestic industry from serious injury.
NOTIFICATION UNDER ARTICLE 12.4
In accordance with Article 12.4 of the Agreement on Safeguards, and in light of the agreed
format set by the respective Safeguards Committee in WTO document G/SG/1, Jordan hereby notifiesthat the Minister of Industry and Trade has deci ded to recommend the application of a provisional
safeguard measure on imports of "other prepared unrecorded media (magnetic tapes) for sound
recording or similar recording of other phenomena, of a width not exceeding 4 mm".
1. Specification of the product subject to the proposed provisional safeguard measure
Other prepared unrecorded media (magnetic tapes) for sound recording or similar recording
of other phenomena of a width not exceeding 4 mm provided for in the Jordanian tariff system under
tariff heading 8523.119.
2. Specification of the proposed provisional safeguard measure
The proposed provisional safeguard measure is in the form of a specific tariff surcharge of
JD 98 fills, to be applied on the subject imported products on (per cassette) unit basis.
3. Date for introduction of the proposed provisional safeguard measure
It is expected that the proposed provisional measure be introduced - if approved by the
Council of Ministers - within two weeks after th e date of initiation of the investigation.  The
Committee will be notified of the exact application date once the proposed provisional measure has
been approved by the Council of Ministers.
4. Expected duration of the proposed  provisional safeguards measure
The proposed provisional safeguards measure is to be effective for 200 days, during which the
investigation will go further.
5. Basis for the preliminary determination, as  provided for in Article 6, that increased
imports have caused or threaten to cause serious injury
Imports of the subject product have increased significantly during the period examined as
follows:G/SG/N/6/JOR/2
G/SG/N/7/JOR/1
Page 3
Year Increase percentage
1998 2,037%
1999 2,412%
2000 1,918%
2001*  (January-June) - period of
information examined1,341%
* Preliminary data based on declarations by the Directory of General Statistics.
Imports of the subject product have significantly increased by 67 per cent in the period
(January-June) of 2001 compared to the same period of 2000, from which it is evident that theincrease is massively continuous.
As for the situation in the industry, signific ant and gradual declines have been recorded
through the period 1997 until the first six months of 2001, as domestic production fell by 50 per cent,
productivity fell by 51 per cent, market share fell from 95 per cent in 1997 to 24 per cent in 2001,capacity utilization fell from 44 per cent in 1997 to 20 per cent in 2001.  Additionally, domestic
industry recorded gross losses and a decrease in labour.
Upon examining the causal link factors of coincidence, conditions of competition, and non-
attribution of other injury factors, between the sharp recent increase and the gradual declines in thedomestic industry, it has been preliminarily determined that the substantial increase of subject imports
and its continuity thereof, have caused and is threatening to widen the scope of serious injury existent
in the domestic industry of such product.
6. Basis for determining that there are critical circumstances where delay would cause
damage which it would be difficult to repair
Based on the examination of the safeguards petition and the evidence therein, it has been
determined that the situation where the subject product is being imported into Jordan in such
increased quantities that it is threatening to wide n the scope of serious injury existent in domestic
Jordanian industry constitutes critical circumstances as provided for in Article 6 of the Agreement on
Safeguards.
The situation is so critical that it demands immediate action in the form of provisional
safeguard measures.
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