WORLD TRADE
ORGANIZATIONG/SG/N/8/EEC/1
G/SG/N/10/EEC/1
11 September 2002
(02-4780)
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
EUROPEAN COMMUNITIES
The following communication, dated 2 September 2002, has been received from the
Permanent Delegation of the European Commission.
______________
The following notification is attached pursuant to Article 12.1(b) and 12.1(c) of the
Agreement on Safeguards , on finding serious injury or threat thereof caused by increased imports and
on taking a decision to apply safeguard measures.
The European Communities offers consultations on the proposed safeguard measures at any
time after 2 September 2002.
A copy of this letter has also been sent to the Permanent Missions of Argentina;  Australia;
Canada;  China, P.R;  Chinese Taipei;  Egypt;  Japan;  Korea;  Malaysia;  New Zealand;  Thailand andthe United States.
Pursuant to Articles 12.1(b) and 12.1(c) of the Agreement on Safeguards , the European
Communities submits a notification on finding serious injury or threat thereof, to the domestic
industries producing certain steel products and a notification on proposed  safeguard measures.  Thisnotification contains all pertinent information relating to the proposed safeguard measures in
accordance with Article 12.2 of the Agreement on Safeguards  and an offer of consultations pursuant
to Article 12.3 of the Agreement on Safeguards .G/SG/N/8/EEC/1
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NOTIFICATION UNDER ARTICLE 12.1(b), 12.1(c) AND 12.2 OF THE
AGREEMENT ON SAFEGUARDS
In light of the agreed format for notifica tions (G/SG/W/1, 23 February 1995), the European
Communities provides notification to the Committee on Safeguards of findings of serious injury or
threat thereof caused by increased imports and notification of proposed safeguard measures.
On 28 March 2002, the European Communities initiated an investigation relating to serious
injury to domestic producers of products like or directly competing with imported steel products.  The21 steel products covered by the investigation are non-alloy hot-rolled coils, non-alloy hot-rolled
sheets and plates, non-alloy hot-rolled narrow strip, alloy hot-rolled flat products, cold-rolled sheets,
electrical sheets (other than GOES), metallic coated sheets, organic coated sheets, tin mill products,
quarto plates, wide flats, non-alloy merchant bars and light sections, alloy merchant bars and light
sections, rebars, stainless bars and light shapes, stainless wire rod, stainless steel wire, fittings(<609.6 mm), flanges (other than of stainless steel), gas pipes and hollow sections.
On the same day, provisional measures were imposed on 15 selected steel products amongst
those covered by the investigation.  These products are non-alloy hot-rolled coils, non-alloy hot-rolled
sheets and plates, non-alloy hot-rolled narrow strip, alloy hot-rolled flat products, cold-rolled sheets,electrical sheets (other than GOES), tin mill products, quarto plates, wide flats, non-alloy merchant
bars and light sections, alloy merchant bars and light sections, rebars, stainless steel wire, fittings
(<609.6 mm) and flanges (other than of stainless steel).
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 in G/SG/N/6/EEC/1, G/SG/N/7/EEC/1,
G/SG/N/11/EEC/1 (27 March 2002).
Consistent with Article 12.2 of the Agreement on Safeguards , this notification contains all
pertinent information relating to the seven products on which definitive safeguard measure are
proposed.  The Annexes I and II to this notifications include all the elements of information specified
in Article 12.2 of the Agreement on Safeguards .
Consistent with Article 12.3 of the Agreement on Safeguards , the European Communities is
prepared to consult with those Members having a substantial interest as exporters of one or more of
the products concerned, with a view to, inter alia , reviewing the information provided in this
notification, exchanging views on the measure proposed, and reaching an understanding on ways to
achieve the objective set out in Article 8.1 of the Agreement .
The European Communities invites those Members to provide a direct contact point so that
the European Communities may inform them wit hout delay of any developments regarding the
subject of any consultations.
1. Provide evidence of serious injury or th reat thereof caused by increased imports
Non-alloy hot-rolled coils:
See Annex I, p. 7
Non-alloy hot-rolled sheets and plates:
See Annex I, p. 12G/SG/N/8/EEC/1
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Non-alloy hot-rolled narrow strips:
See Annex I, p. 17
Alloy hot-rolled flat products:
See Annex I, p. 22
Cold-rolled sheets:
See Annex I, p. 27
Fittings (<609.6 mm):
See Annex I, p. 32
Flanges (other than of stainless steel):
See Annex I, p. 37
2. Provide information on whether there is an absolute increase in imports or an increase
in imports relative to domestic production (please see also Article 2.1 for the context)
Non-alloy hot-rolled coils:
See Annex I, p. 6
Non-alloy hot-rolled sheets and plates:
See Annex I, p. 11
Non-alloy hot-rolled narrow strip:
See Annex I, p. 16
Alloy hot-rolled flat products:
See Annex I, p. 21
Cold-rolled sheets:
See Annex I, p. 26
Fittings (<609.6 mm):
See Annex I, p. 31
Flanges (other than of stainless steel):
See Annex I, p. 36
3. Provide precise description of the product involved
Non-alloy hot-rolled coils:
See Annex I, p. 6
Non-alloy hot-rolled sheets and plates:
See Annex I, p. 10
Non-alloy hot-rolled narrow strip:
See Annex I, p. 16G/SG/N/8/EEC/1
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Alloy hot-rolled flat products:
See Annex I, p. 21
Cold-rolled sheets:
See Annex I, p. 26
Fittings (<609.6 mm):
See Annex I, p. 31
Flanges (other than of stainless steel):
See Annex I, p. 36
4. Provide precise description of the proposed measure
Non-alloy hot-rolled coils:
See Annex I, p. 10
Non-alloy hot-rolled sheets and plates:
See Annex I, p. 15
Non-alloy hot-rolled narrow strip:
See Annex I, p. 20
Alloy hot-rolled flat products:
See Annex I, p. 25
Cold-rolled sheets:
See Annex I, p. 30
Fittings (<609.6 mm):
See Annex I, p. 34
Flanges (other than of stainless steel):
See Annex I, p. 40
Annex II contains a list of products originating in developing countries to which it is proposed
not to apply safeguard measures, except in the cases of those products originating in those
countries against which an ‘x’ appears in that annex.
5. Provide proposed date of introduction of the measure
Under Community law, a decision whether to impose safeguard measures shall be taken, in
principle within 9 months from the date of the initiation of the investigation In exceptionalcircumstances, this time limit may be extended by a further maximum period of two months.  The
seven products for which safeguard measures are proposed are currently subject to provisional
measures, which are set to expire on 28 September 2002.  The proposed date of introduction of the
proposed measures is 29 September 2002.
6. Provide expected duration of the measure
The expected  duration of the proposed measures is three years.G/SG/N/8/EEC/1
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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 mid-term of the measure, if such a
date for the review has already been scheduled
Not applicable.
8. If the expected duration is over one year, provide expected timetable for progressive
liberalisation of the measure
As noted above in item 4, each of the proposed measures provides for progressive
liberalisation.  The terms of the liberalisation are indicated in item 4.
9. Provide information relating to the extension of a safeguard measure
Not applicable.G/SG/N/8/EEC/1
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ANNEX I
PRODUCT 1: HOT-ROLLED COILS
1. Product Concerned
(1) The product concerned is certain flat rolled products of iron or non-alloy steel, of a width of
600 mm or more, not clad, plated or coated, in coils, not further worked than hot-rolled
(hereinafter referred to as ‘hot-rolled coils’).  The product concerned is currently classified
under CN codes 7208 10 00, 7208 25 00, 7208 26 00, 7208 27 00, 7208 36 00, 7208 37 10,
7208 37 90, 7208 38 10, 7208 38 90, 7208 39 10, 7208 39 90.
2. Increased Imports
(2) It is concluded that the product concerned is being imported in quantities that have increased
suddenly, sharply and significantly in the most recent past.  The increase in imports between
1999 and 2000 of 25 per cent in absolute terms, 28 per cent relative to production sold in the
free market and 24 per cent relative to total production is sudden, sharp and significant, and is
compounded by the further increase which occurred in 2001 when imports increased by afurther 4 per cent in absolute terms (11 per cent relative to total production, and 8 per cent
relative to production sold on the free market).PRODUCT 1
Hot rolled coils
Consumption
1997 1998 1999 2000 2001
Volume (in tonnes) 22,943,397 22,894,274 22,544,897 23,178,301 22,501,555
Import data
1997 1998 1999 2000 2001
Total imports
Volume (in tonnes) 3,281,808 4,817,109 3,847,708 4,829,175 5,011,290
Rate of increase (in %) 46.8% -20.1% 25.5% 3.8%
Market share (in %) 14.3% 21.0% 17.1% 20.8% 22.3%
Ratio between imports and total production (in %) 4.9% 7.4% 5.8% 7.2% 8.0%
Ratio between imports and production sold (in %) 14.8% 23.7% 18.6% 23.8% 25.8%
)
Unit prices (in Euro/tonne) 242 221 223 290 254
1998/1997 1999/1998 2000/1999 2001/2000
Volume as moving averages (in tonnes) 4,049,459 4,332,409 4,338,442 4,920,233G/SG/N/8/EEC/1
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3. Serious Injury
(3) In order to provide as complete a picture as possible of the situation of the Community
producers, the European Communities has obtained and analysed data both for hot-rolledcoils destined for captive use and those destined for the free market.  Because the free market
sales are in competition with the imported products concerned, the European Communities
focussed its attention on the free market.  While it has, to the extent possible, combined free
market and captive data, it has also split the analysis between free market and captive use,
where necessary and possible.G/SG/N/8/EEC/1
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PRODUCT 1
Hot rolled coils 
Situation of Community producers
1997 1998 1999 2000 2001
Capacity (in tonnes) 78,500,000 78,500,000 78,500,000 78,500,000 78,500,000
Utilisation rate of capacity (in %) 85.2% 83.4% 84.3% 85.9% 79.4%
Opening stocks ( in tonnes) 2,928,346 3,059,191 2,872,418 3,780,685 4,353,854
Total production (in tonnes) 66,892,420 65,474,371 66,184,419 67,414,844 62,361,216
Purchases (in tonnes) 120,911 30,654 49,582 161,965 40,695
Total sales (in tonnes) 22,197,392 20,329,899 20,692,111 20,301,403 19,448,814
Captive use (in tonnes) 44,685,095 45,361,899 44,633,623 46,702,238 42,785,150
Closing stock (in tonnes) 3,059,191 2,872,418 3,780,685 4,353,854 4,521,801
Sales volume outside the EU (in tonnes) 2,535,803 2,252,734 1,994,922 1,952,276 1,958,549
Sales volume in the EU (in tonnes) 19,661,589 18,077,165 18,697,189 18,349,126 17,490,265
Unit prices of EU sales (Euro/tonne) 273 290 235 301 277
Net profit/loss on EU sales (in %) 6.3% 9.4% -6.5% 10.8% -3.1%
Market share (%) 85.7% 79.0% 82.9% 79.2% 77.7%
Employment (end of period) 34,814 34,644 32,371 32,583 31,181
Productivity (tonne/employee) 1,921 1,890 2,045 2,069 2,000
Volume, unit prices and profitability of EU sales 
 on a per quarter basis
Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002
Volume (in tonnes) 4,761,821 4,761,127 4,179,049 3,788,269 4,689,210
Unit prices (in Euro/tonne) 283 277 277 270 254
Profitability (in %) 1.1% -3.0% -3.2% -8.2% -10.9%
    Price undercutting in 2001 = 3.9%
    Price underselling in 2001 = 17.5%
Data given above on the situation of the Community producers verified by
sample check and on-spot investigations of companies representing the following
following percentage of total Community production: 91.4%G/SG/N/8/EEC/1
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(4) A substantive evaluation of the effect  of all the relevant factors on the situation of Community
producers has been conducted.  It has been concluded that a sufficient number of the injury
indicators attest to injury in a manner that points to “significant overall impairment” and that
the indicators which point to injury reveal a significant overall impairment in the position ofthe Community producers.
(5) The overall data shows that while production capacity remained stable and there is a slight
increase in productivity, there is, in general terms, a negative development for capacity
utilisation, production, employment, and negative elements can as well be observed for cash
flow and ROCE.
(6) The free market data shows, in general terms, and before the background of a decline in
consumption and an increase in stocks, negative developments for sales, market share, prices
and profitability.
(7) The data for captive use has demonstrated that a similar trend was identified in respect of
captive use.  These findings were indeed supported by the analysis of the whole activity for
the product concerned.
(8) Taking account of all of the overall factors and relying, in particular, on its analysis of free
market activities, the conclusion is reached that the Community producers have sufferedserious injury.
(9) In particular, it is considered that whilst, in 2001, as imports reached their highest level for
five years (5m tonnes), the Community producers' EU sales volume reached their lowest level
for five years (17.49m tonnes) and profitability fell rapidly.  This occurred against thebackground of a concurrent fall in production sold on the free market, consumption and
falling prices.  Against such a background, imports could have been expected to fall, but
instead they rose for the second consecutive year.
(10) The rate of deterioration of the Community producers’ situation is particularly significant in
the context of a market which is characterised by long term relationships between producers
and users, long term supply contracts, and the attachment of significant importance to security
of supply.
(11) The effect of this combination of factors on the Community producers is reflected in the
economic indicators.  The Community producers have lost market share, which reached its
lowest level for five years in 2001.  Capacity utilisation has fallen sharply in 2001, and with itproductivity.  Employment has also fallen and is expected to fall further in 2002.  The overall
effect of the falls in production, EU sales volume and prices was to reduce the profitability of
the Community producers and plunge them into a loss making situation in 2001.  The full
extent of the damage incurred is perhaps best illustrated by the continuing deterioration in
profitability throughout 2001 and into Q1 2002.
4. Causation
(12) It is considered that there is a causal link between the increased volume of  imports and
reduced sales volumes of the like product.  This is demonstrated by the coincidence in timebetween the recent increase in the imports and the rapid deterioration of the injury indicators
pointing to a serious overall impairment of the Community producers' situation.G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
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(13) The effects of the following other factors have been identified and their nature and extent has
been examined: fall in consumption in the EU between 2000 and 2001, reduced exports by
Community producers to the US and other countr ies, excess capacity, restructuring of the
Community industry .  While a small portion of the injury is attributable to the fall in
consumption and exports considered cumulatively, in the context of the increased imports and
the decline of the prices those imports have caused, there can be no doubt that there is a
genuine substantial causal link between increased imports and the serious injury suffered by
the Community producers.
5. Proposed Measure
(14) It is proposed that definitive safeguard measures be taken in relation to imports.  To remedy
or prevent the serious injury suffered by the Community producers of hot-rolled coils it is
necessary to limit imports in excess of a specified level for a period of three years as from
29 March 2002.
(15) The remedy should be in the form of tariff quotas in excess of which an additional duty
requires to be paid.  In accordance with the relevant provisions of Community legislation,
which refer to the EU’s obligations under Article XIX of the GATT and the WTO Safeguards
Agreement, these measures should be liberalised progressively during the period of their
validity.
(16) In order to preserve traditional trade flows, in  the first year, such tariff quotas should be based
on the average of imports during the last three years plus 10 per cent.  That amount should be
increased by 5 per cent in each year following, during which the measures are in force.
(17) The additional duties to be paid above quota, in the first year, should be set at the level of the
underselling calculation (subject to a maximum of 26 per cent in order to avoid excessive
levels of duty).  That rate of duty should be decreased by 10 per cent in each year following,
during which the measures are in force.  The duties would be - 17.5 per cent for the period
29.3.2002 – 28.3.2003; 15.7 per cent for the period 29.3.2003– 28.3.2004; 14.1 per cent for
the period 29.3.2004 – 28.3.2005.
(18) The measures should last for three years (including the period of provisional measures),
expiring in March 2005, unless circumstances change so that the measures are no longer
necessary.
(19) The indicative quotas would be at least 3.1 million tonnes for the period 29.3.2002 –
28.3.2003; 3.2 million tonnes for the period 29.3.2003– 28.3.2004; 3.4 million tonnes for the
period 29.3.2004 – 28.3.2005.
PRODUCT 2: HOT-ROLLED SHEETS AND PLATES
1. Product Concerned
(20) The product concerned is certain flat rolled products of iron or non-alloy steel, of a width of
600 mm or more, not clad, plated or coated, not in coils, not further worked than hot-rolled
- with patterns in relief; or,G/SG/N/8/EEC/1
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- other than with patterns in relief, of a thickness of 4.75 mm or more but not
exceeding 10 mm and of a width less than 2050 mm, other than rolled on four faces
or in a closed box pass and of a width not exceeding 1250 mm; or,
- other than with patterns in relief, of a thickness of 3 mm or more but less than 4.75
mm other than rolled on four faces or in a closed box pass and of a width exceeding
1250 mm and of a thickness of 4 mm or more; or
- other than with patterns in relief, of a thickness of less than 3 mm.The product concerned is currently classified under CN codes 7208 40 10, 7208 40 90, 7208
52 99, 7208 53 90, 7208 54 10, 7208 54 90.
2. Increased Imports
(21) The product concerned is being imported in quantities that have increased suddenly, sharply
and significantly in the most recent past.  The increase in imports between 1999 and 2000 of
12 per cent in absolute terms, 30 per cent relative to production sold in the free market and
24 per cent relative to total production is sudden, sharp and significant, and is compounded byPRODUCT 2
Non alloy hot rolled sheets and plates
Consumption
1997 1998 1999 2000 2001
Volume (in tonnes) 2,038,964 2,291,736 2,469,281 2,220,950 2,209,059
Import data
1997 1998 1999 2000 2001
Total imports 
Volume (in tonnes) 417,598 511,040 477,067 533,107 572,133
Rate of increase (in %) 22.4% -6.6% 11.7% 7.3%
Market share (in %) 20.5% 22.3% 19.3% 24.0% 25.9%
Ratio between imports and total production (in %) 19.0% 21.2% 18.5% 23.0% 26.2%
Ratio between imports and production sold (in %) 23.0% 25.8% 22.1% 28.9% 32.0%
Unit prices (in Euro/tonne) 264 248 246 305 229
1998/1997 1999/1998 2000/1999 2001/2000
Volume as moving averages (in t onnes) 464,319 494,054 505,087 552,620G/SG/N/8/EEC/1
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the further increase which occurred in 2001 when imports increased by a further 7 per cent in
absolute terms (14 per cent relative to total production, and 11 per cent relative to production
sold on the free market).
3. Serious Injury
(22) In order to provide as complete a picture as possible of the situation of the Community
producers, the European Communities has obtained and analysed data both for hot-rolled
sheets and plates destined for captive use and those destined for the free market.  Because the
free market sales are in competition with the imported products concerned, the European
Communities focussed its attention on the free market.  While it has, to the extent possible,combined free market and captive data, it has also split the analysis between free market and
captive use, where necessary and possible.G/SG/N/8/EEC/1
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PRODUCT 2
Non alloy hot rolled sheets and plates
Situation of Community producers
1997 1998 1999 2000 2001
Capacity (in tonnes) 3,500,000 3,600,000 3,600,000 3,600,000 3,600,000
Utilisation rate of capacity (in %) 63% 67% 72% 64% 61%
Opening stocks ( in tonnes) 109,875 167,389 215,337 232,342 265,431
Total production (in tonnes) 2,193,175 2,406,637 2,580,125 2,317,395 2,184,078
Purchases (in tonnes) 00000
Total sales (in tonnes) 1,817,720 1,982,901 2,157,285 1,847,294 1,787,395
Captive use (in tonnes) 317,941 375,788 405,835 437,013 372,850
Closing stock (in tonnes) 167,389 215,337 232,342 265,431 289,264
Sales volume outside the EU (in tonnes) 196,354 202,206 165,070 159,450 150,469
Sales volume in the EU (in tonnes) 1,621,366 1,780,696 1,992,214 1,687,843 1,636,926
Unit prices of EU sales (Euro/tonne) 321 347 286 363 334
Net profit/loss on EU sales (in %) 5.7% 10.5% -3.7% 8.5% -1.6%
Market share (%) 79.5% 77.7% 80.7% 76.0% 74.1%
Employment (end of period) 6,461 6,699 6,489 6,229 5,942
Productivity (tonne/employee) 339 359 398 372 368
Volume, unit prices and profitability of EU sales 
 on a per quarter basis
Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002
Volume (in tonnes) 452,189 444,231 382,515 357,993 353,998
Unit prices (in Euro/tonne) 343 331 333 330 315
Profitability (in %) 2.5% -2.3% -3.2% -4.6% -8.5%
    Price undercutting in 2001 = 27.9%
    Price underselling in 2001 = 56.0%
Data given above on the situation of the Community producers verified by
sample check and on-spot investigations of companies representing the following
following percentage of total Community production: 92.8%G/SG/N/8/EEC/1
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(23) A substantive evaluation of the effect  of all the relevant factors on the situation of Community
producers has been conducted.  It has been concluded that a sufficient number of the injury
indicators attest to injury in a manner that points to “significant overall impairment” and that
the indicators which point to injury reveal a significant overall impairment in the position ofthe Community producers.
(24) The overall data shows that while production capacity remained stable there is, in general
terms, a negative development for capacity utilisation, production, employment, productivity,
and negative elements can as well be observed for cash flow and ROCE.
(25) The free market data shows, in general terms,  an increase in negative developments for sales,
market share, stocks, prices and profitability.
(26) The data for captive use has demonstrated that, notwithstanding an increase in captive use in
2000, a similar trend was identified in respect of captive use.  These findings were supported
by the analysis of the whole activity for the product concerned.
(27) Taking account of all of the overall factors and relying, in particular, on its analysis of free
market activities, the conclusion is reached that the Community producers have suffered
serious injury.
(28) In particular, it is considered that whilst, in 2001, as imports reached their highest level for
five years (572,133 tonnes), the Community producers'  EU sales volume reached its lowest
level for five years (1.64 m tonnes) and profitability fell rapidly.  This occurred against the
background of a concurrent fall in production sold on the free market, consumption and
falling prices.  Against such a background, imports could have been expected to fall, butinstead they rose for the third consecutive year.
(29) The rate of deterioration of the Community producers’ situation is particularly significant in
the context of a market which is characterised by long term relationships between producers
and users, long term supply contracts, and the attachment of significant importance to security
of supply.
(30) The effect of the increase in relevant imports on the Community producers is reflected in the
economic indicators.  The Community producers are suffering significant losses.  The overall
effect of the falls in production, EU sales volume and prices was to reduce the profitability of
the Community producers and create a loss making situation in 2001.  The full extent of the
damage incurred is illustrated by the continuing deterioration in prices and profitabilitythroughout 2001 and into Q1 2002.  The Community producers have lost market share, which
reached its lowest level for five years in 2001.  Capacity utilisation has also fallen sharply in
2001 to its lowest level for five years, and so too has productivity despite substantial job
losses in both 2000 and 2001.  By 2001, employment had reached its lowest level for the five
year period, and it is expected to fall further.
4. Causation
(31) It is considered that there is a causal link between the increased volume of  imports and
reduced sales volumes of the like product.  This is demonstrated by the coincidence in timebetween the recent increase in the imports and the rapid deterioration of the injury indicators
pointing to a serious overall impairment  of the Community producers' situation.G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
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(32) The effects of the following other factors have been identified and their nature and extent has
been examined: fall in consumption in the EU between 2000 and 2001, reduced exports by
Community producers to the US and other countr ies, excess capacity, restructuring of the
Community industry .  While a small portion of the injury is attributable to the fall in
consumption and exports considered cumulatively, in the context of the increased imports and
the decline of the prices those imports have caused, there can be no doubt that there is a
genuine substantial causal link between increased imports and the serious injury suffered by
the Community producers .
5. Proposed Measure
(33) It is proposed that definitive safeguard measures be taken in relation to imports.  To remedy
or prevent the serious injury suffered by the Community producers of hot-rolled coils it is
necessary to limit imports in excess of a specified level for a period of three years as from
29 March 2002.
(34) The remedy should be in the form of tariff quotas in excess of which an additional duty
requires to be paid.  In accordance with the relevant provisions of Community legislation,
which refer to the EU’s obligations under Article XIX of the GATT and the WTO Safeguards
Agreement, these measures should be liberalised progressively during the period of their
validity.
(35) In order to preserve traditional trade flows, in  the first year, such tariff quotas should be based
on the average of imports during the last three years plus 10 per cent.  That amount should be
increased by 5 per cent in each year following, during which the measures are in force.
(36) The additional duties to be paid above quota, in the first year, should be set at the level of the
underselling calculation (subject to a maximum of 26 per cent in order to avoid excessive
levels of duty).  That rate of duty should be decreased by 10 per cent in each year following,
during which the measures are in force.  The duties would be - 26 per cent for the period
29.3.2002 – 28.3.2003; 23.4 per cent for the period 29.3.2003– 28.3.2004; 21 per cent for the
period 29.3.2004 – 28.3.2005.
(37) The measures should last for three years (including the period of provisional measures),
expiring in March 2005, unless circumstances change so that the measures are no longer
necessary.
(38) In accordance with Article 5 (2) (a) of the Agreement on Safeguards , and Article XIII of the
GATT 1994, all Members having a substantial interest in supplying the product concerned
shall have the possibility to obtain the allocation of a specific share in this quota.
(39) The European Communities would take due account of the fact that three countries (Russia,
Kazakhstan and Ukraine) are already subject to severe quantitative restrictions.  Furthermore,the European Communities would also take account of the exemption of developing countries
with import shares of less than 3 per cent.G/SG/N/8/EEC/1
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(40) The indicative amounts are contained in the table below.
Allocation of quotas among countries having a substantial interest in supplying the
product concerned
Product Country Quota
29.3.02 –
28.3.03Quota
29.3.03 –
28.3.04Quota
29.3.04 –
28.3.05
02 Non-alloy Hot-rolled
Sheets and PlatesSlovakia 175,339 184,106 193,311
Poland 117,132 122,989 129,138
Hungary 88,199 92,609 97,239
Bulgaria 59,702 62,687 65,822
Others 100,393 105,413 110,683
Total 540,765 567,803 596,194
PRODUCT 3: NON-ALLOY HOT-ROLLED NARROW STRIPS
1. Product Concerned
(41) The product concerned is flat rolled products of iron or non-alloy steel, of a width less than
600 mm,
- not clad, plated or coated, not further worked than hot-rolled, other than rolled on
four faces or in a closed box pass and of a width exceeding 150 mm and a thicknessof not less than 4 mm, not in coils and without patterns in relief (CECA); or,
- clad, but not further worked than clad.The product concerned is currently classified under CN codes 7211 14 10, 7211 14 90, 7211
19 20, 7211 19 90, 7212 60 11, 7212 60 19, 7212 60 91.
2. Increased ImportsG/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 17
(42) The product concerned is being imported in quantities which have increased suddenly,
sharply and significantly in the most recent past.  The increase in imports between 1999 and
2000 of 21 per cent in absolute terms, 23 per cent relative to production sold on the free
market and 16 per cent relative to total production taken together with the further increase
which occurred in 2001 when imports increased by a further 20 per cent in absolute terms(32 per cent relative to overall production, and 28 per cent relative to production sold on the
free market) is sudden, sharp and significant.
3. Serious Injury
(43) In order to provide as complete a picture as possible of the situation of the Community
producers, the European Communities has obtained and analysed data both for hot-rolled
sheets and plates destined for captive use and those destined for the free market.  Because the
free market sales are in competition with the imported products concerned, the European
Communities focussed its attention on the free market.  While it has, to the extent possible,
combined free market and captive data, it has also split the analysis between free market and
captive use, where necessary and possible.PRODUCT 3
Non alloy hot rolled narrow strips
Consumption
1997 1998 1999 2000 2001
Volume (in tonnes) 2,139,438 2,196,904 2,234,572 2,239,916 2,129,442
Import data
1997 1998 1999 2000 2001
Total imports 
Volume (in tonnes) 85,864 129,697 146,345 176,854 214,414
Rate of increase (in %) 51.0% 12.8% 20.8% 21.2%
Market share (in %) 4.0% 5.9% 6.5% 7.9% 10.1%
Ratio between imports and total production (in %) 3.1% 4.7% 5.5% 6.4% 8.4%
Ratio between imports and production sold (in %) 3.6% 5.4% 6.1% 7.4% 9.8%
Unit prices (in Euro/tonne) 44 232 208 302 239
1998/1997 1999/1998 2000/1999 2001/2000
Volume as moving averages (in tonnes) 107,781 138,021 161,600 195,634G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 18
PRODUCT 3
Non alloy hot rolled narrow strips
Situation of Community producers
1997 1998 1999 2000 2001
Capacity (in tonnes) 3,810,000 3,810,000 3,810,000 3,810,000 3,800,000
Utilisation rate of capacity (in %) 72% 73% 69% 73% 67%
Opening stocks ( in tonnes) 182,468 190,212 198,033 113,383 142,532
Total production (in tonnes) 2,736,501 2,763,332 2,646,967 2,784,800 2,553,066
Purchases (in tonnes) 00000
Total sales (in tonnes) 2,384,192 2,389,818 2,380,537 2,378,099 2,188,765
Captive use (in tonnes) 344,566 365,693 351,081 377,552 368,239
Closing stock (in tonnes) 190,212 198,033 113,383 142,532 138,595
Sales volume outside the EU (in tonnes) 330,618 322,611 292,309 315,037 273,737
Sales volume in the EU (in tonnes) 2,053,574 2,067,207 2,088,227 2,063,062 1,915,028
Unit prices of EU sales (Euro/tonne) 334 347 298 359 343
Net profit/loss on EU sales (in %) 2.3% 5.8% -3.2% 5.5% -1.7%
Market share (%) 96.0% 94.1% 93.5% 92.1% 89.9%
Employment (end of period) 8,852 9,082 8,727 8,310 7,812
Productivity (tonne/employee) 309 304 303 335 327
Volume, unit prices and profitability of EU sales 
 on a per quarter basis
Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002
Volume (in tonnes) 565,520 498,165 422,842 428,502 484,470
Unit prices (in Euro/tonne) 349 342 341 337 332
Profitability (in %) 1.6% -1.9% -2.8% -5.2% -8.5%
    Price undercutting in 2001 = 26.7%
    Price underselling in 2001 = 53.5%
Data given above on the situation of the Community producers verified by
sample check and on-spot investigations of companies representing the following
following percentage of total Community production: 72.1%G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 19
(44) A substantive evaluation of the effect  of all the relevant factors on the situation of Community
producers has been conducted.  It has been concluded that a sufficient number of the injury
indicators attest to injury in a manner that points to “significant overall impairment” and that
the indicators which point to injury reveal a significant overall impairment in the position ofthe Community producers.
(45) The overall data shows that while production capacity remained stable and there is a slight
increase in productivity, there is, in general terms, a negative development for capacity
utilisation, production, employment, and negative elements can as well be observed for cash
flow and ROCE.
(46) The free market data shows, in general terms, and before the background of stagnant
consumption and a decrease in stocks, negative developments for sales, market share, prices
and profitability.
(47) The data for captive use has demonstrated that a stable trend was identified in respect of
captive use.  These findings were indeed supported by the analysis of the whole activity for
the product concerned.
(48) Taking account of all of the overall factors and relying, in particular, on the analysis of free
market activities, the conclusion is reached that the Community producers suffered seriousinjury.
(49) In particular, it is considered that whilst, in 2001, as imports reached their highest level for
five years (214,414 tonnes), the Community producers’ EU sales volume reached their lowest
level for five years (1.92m tonnes) and their profitability rapidly declined.  This occurredagainst the background of a concurrent fall in production and consumption.  Against such a
background, imports could have been expected to fall, but instead they rose for the second
consecutive year.  
(50) The rate of deterioration of the Community producers’ situation is particularly significant in
the context of a market which is characterised by long term relationships between producers
and users, long term supply contracts, and the attachment of significant importance to security
of supply.
(51) The effect of this combination of factors on the Community producers is reflected in the
economic indicators.  The Community producers’ profitability has fallen from 5.5 per cent in
2000 to –8.5 per cent in Q1 2002.  They are suffering significant losses.  The Communityproducers have lost market share, which reached its lowest level for five years in 2001.
Capacity utilisation has also fallen sharply in 2001 to its lowest level for five years and so too
has productivity despite substantial job losses in both 2000 and 2001.  By 2001, employment
had reached its lowest level for the five-year period.
4. Causation
(52) It is considered that there is a causal link between the increased volume of  imports and
reduced sales volumes of the like product.  This is demonstrated by the coincidence in time
between the recent increase in the imports and the rapid deterioration of the injury indicatorspointing to a serious overall impairment  of the Community producers' situation.
(53) The effects of the following other factors have been identified and their nature and extent has
been examined: fall in consumption in the EU between 2000 and 2001, reduced exports byG/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 20
Community producers to the US and other countr ies, excess capacity, restructuring of the
Community industry .  While a small portion of the injury is attributable to the fall in
consumption and exports considered cumulatively, in the context of the increased imports and
the decline of the prices those imports have caused, there can be no doubt that there is agenuine substantial causal link between increased imports and the serious injury suffered by
the Community producers .
5. Proposed Measure
(54) It is proposed that definitive safeguard measures be taken in relation to imports.  To remedy
or prevent the serious injury suffered by the Community producers of hot-rolled coils it isnecessary to limit imports in excess of a specified level for a period of three years as from
29 March 2002.
(55) The remedy should be in the form of tariff quotas in excess of which an additional duty
requires to be paid.  In accordance with the relevant provisions of Community legislation,which refer to the EU’s obligations under Article XIX of the GATT and the WTO Safeguards
Agreement, these measures should be liberalised progressively during the period of their
validity.
(56) In order to preserve traditional trade flows, in  the first year, such tariff quotas should be based
on the average of imports during the last three years plus 10 per cent.  That amount should be
increased by 5 per cent in each year following, during which the measures are in force.
(57) The additional duties to be paid above quota, in the first year, should be set at the level of the
underselling calculation (subject to a maximum of 26 per cent in order to avoid excessivelevels of duty).  That rate of duty should be decreased by 10 per cent in each year following,
during which the measures are in force.  The duties would be - 26 per cent for the period
29.3.2002 – 28.3.2003; 23.4 per cent for the period 29.3.2003– 28.3.2004; 21 per cent for the
period 29.3.2004 – 28.3.2005.
(58) The measures should last for three years (including the period of provisional measures),
expiring in March 2005, unless circumstances change so that the measures are no longernecessary.
(59) In accordance with Article 5 (2) (a) of the Agreement on Safeguards , and Article XIII of the
GATT 1994, all Members having a substantial interest in supplying the product concerned
shall have the possibility to obtain the allocation of a specific share in this quota.
(60) The European Communities would take due account of the fact that three countries (Russia,
Kazakhstan and Ukraine) are already subject to severe quantitative restrictions.  Furthermore,
the European Communities would also take account of the exemption of developing countries
with import shares of less than 3 per cent.G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 21
(61) The indicative amounts are contained in the table below.
Allocation of quotas among countries having a substantial interest in supplying the
product concerned
Product Country Quota
29.3.02 –
28.3.03Quota
29.3.03 –
28.3.04Quota
29.3.04 –
28.3.05
03 Non-alloy Hot-rolled
Narrow StripBulgaria 44,159 46,367 48,685
Slovakia 56,509 59,334 62,301
Switzerland 27,692 29,077 30,531
Czech Rep, 29,341 30,808 32,348
Turkey 8,509 8,934 9,381
Others 27,317 28,683 30,117
Total 193,526 203,203 213,363
PRODUCT 4: ALLOY HOT-ROLLED FLAT PRODUCTS
1. Product Concerned
(62) The product concerned is certain alloy hot-r olled flat products.  The product concerned is
currently classified under the following CN codes : 7225 1910, 7225 3000, 7225 4080, 7226
1910, 7226 9110, 7226 9190 and 7226 9920.
2. Increased ImportsG/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 22
(63) The product concerned is being imported in quantities which have increased suddenly,
sharply and significantly in the most recent past.  The increase in imports between 1999 and
2001 of over 1700 per cent in absolute terms, and over 1500 per cent relative to production
sold in the free market and relative to total production is sudden, sharp and significant.
3. Serious Injury
(64) In order to provide as complete a picture as possible of the situation of the Community
producers, the European Communities has obtained and analysed data both for hot-rolledsheets and plates destined for captive use and those destined for the free market.  Because the
free market sales are in competition with the imported products concerned, the European
Communities focussed its attention on the free market.  While it has, to the extent possible,
combined free market and captive data, it has also split the analysis between free market and
captive use, where necessary and possible.PRODUCT 4
Alloy hot rolled flat products
Consumption
1997 1998 1999 2000 2001
Volume (in tonnes) 2,432,368 2,374,912 2,173,281 2,749,210 2,723,826
Import data
1997 1998 1999 2000 2001
Total imports 
Volume (in tonnes) 3,374 5,063 25,719 158,233 468,773
Rate of increase (in %) 50.1% 408.0% 515.2% 196.3%
Market share (in %) 0.1% 0.2% 1.2% 5.8% 17.2%
Ratio between imports and total production (in %) 0.1% 0.2% 0.9% 4.5% 15.1%
Ratio between imports and production sold (in %) 0.1% 0.2% 1.1% 5.7% 18.9%
Unit prices (in Euro/tonne) 542 253 314 304 240
1998/1997 1999/1998 2000/1999 2001/2000
Volume as moving averages (in t onnes) 4,219 15,391 91,976 313,503G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 23
PRODUCT 4
Alloy hot rolled flat products
Situation of Community producers
1997 1998 1999 2000 2001
Capacity (in tonnes) 4,500,000 4,500,000 4,500,000 4,500,000 4,500,000
Utilisation rate of capacity (in %) 74.5% 71.6% 65.0% 78.6% 69.1%
Opening stocks ( in tonnes) 130,038 142,675 120,568 127,254 168,856
Total production (in tonnes) 3,350,622 3,222,004 2,922,827 3,538,723 3,111,090
Purchases (in tonnes) 00000
Total sales (in tonnes) 2,798,972 2,682,622 2,336,601 2,798,617 2,479,833
Captive use (in tonnes) 539,014 561,488 579,540 698,505 593,000
Closing stock (in tonnes) 142,675 120,568 127,254 168,856 207,112
Sales volume outside the EU (in tonnes) 369,977 312,774 189,038 207,640 224,780
Sales volume in the EU (in tonnes) 2,428,994 2,369,849 2,147,562 2,590,977 2,255,053
Unit prices of EU sales (Euro/tonne) 314 334 302 332 341
Net profit/loss on EU sales (in %) 6.4% 9.0% 4.1% 7.2% 3.2%
Market share (%) 99.9% 99.8% 98.8% 94.2% 82.8%
Employment (end of period) 3,170 3,246 2,829 2,964 2,705
Productivity (tonne/employee) 1,057 992 1,033 1,194 1,150
Volume, unit prices and profitability of EU sales 
 on a per quarter basis
Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002
Volume (in tonnes) 667,308 657,477 478,552 451,717 555,739
Unit prices (in Euro/tonne) 340 337 347 342 315
Profitability (in %) 6.1% 2.2% 4.2% -0.1% -5.0%
    Price undercutting in 2001 = 25.9%
    Price underselling in 2001 = 44.2%
Data given above on the situation of the Community producers verified by
sample check and on-spot investigations of companies representing the following
following percentage of total Community production: 74.2%G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 24
(65) A substantive evaluation of the effect  of all the relevant factors on the situation of Community
producers has been conducted.  It has been concluded that a sufficient number of the injury
indicators attest to injury in a manner that points to “significant overall impairment” and that
the indicators which point to injury reveal a significant overall impairment in the position ofthe Community producers.
(66) The overall data shows that while production capacity and productivity remained stable there
is, in general terms, a negative development for capacity utilisation, production, employment,
and negative elements can as well be observed for cash flow and ROCE.
(67) The free market data shows, in general terms, an increase in stocks, negative developments
for sales, market share and profitability.
(68) The data for captive use demonstrates a similar negative trend.  These findings were
supported by the analysis of the whole activity for the product concerned for which captive
use forms a significant part.
(69) Taking account of all of the overall factors and relying, in particular, on the  analysis of free
market activities, the conclusion is reached that the Community producers suffered serious
injury.
(70) In particular it is considered that while in 2001, as imports reached the highest level for
5 years (468,773 tonnes), the Community producers EU sales volume reached  a level only
slightly above the level in 1999, and lower than the level in other years, and with a decrease
between 2000 and 2001.
(71) The rate of deterioration of the Community producers’ situation is particularly significant in
the context of a market which is characterised by long term relationships between producers
and users, long term supply contracts, and the attachment of significant importance to security
of supply.
(72) The effect of this combination of factors on the Community producers is reflected in the
economic indicators which show a significant decline in sales, market share and profitability.
4. Causation
(73) It is considered that there is a causal link between the increased volume of  imports and
reduced sales volumes of the like product.  This is demonstrated by the coincidence in timebetween the recent increase in the imports and the rapid deterioration of the injury indicators
pointing to a serious overall impairment  of the Community producers' situation.
(74) The effects of the following other factors have been identified and their nature and extent has
been examined: fall in consumption in the EU between 2000 and 2001, reduced exports by
Community producers to the US and other countr ies, excess capacity, restructuring of the
Community industry.  It was found that they could not have been the cause of the serious
injury suffered by the Community producers.  In  the context of the increased imports and the
most recent decline in prices, as well as loss of sales volume and market share, which those
imports have caused, there can be no doubt that there is a genuine substantial causal linkbetween increased imports and the serious injury suffered by the Community producers.G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 25
5. Proposed Measure
(75) It is proposed that definitive safeguard measures be taken in relation to imports.  To remedy
or prevent the serious injury suffered by the Community producers of hot-rolled coils it isnecessary to limit imports in excess of a specified level for a period of three years as from
29 March 2002.
(76) The remedy should be in the form of tariff quotas in excess of which an additional duty
requires to be paid.  In accordance with the relevant provisions of Community legislation,
which refer to the EU’s obligations under Article XIX of the GATT and the WTO Safeguards
Agreement, these measures should be liberalised progressively during the period of theirvalidity.
(77) In order to preserve traditional trade flows, in  the first year, such tariff quotas should be based
on the average of imports during the last three years plus 10 per cent.  That amount should be
increased by 5 per cent in each year following, during which the measures are in force.
(78) The additional duties to be paid above quota, in the first year, should be set at the level of the
underselling calculation (subject to a maximum of 26 per cent in order to avoid excessive
levels of duty).  That rate of duty should be decreased by 10 per cent in each year following,
during which the measures are in force.  The duties would be – 26 per cent for the period29.3.2002 – 28.3.2003; 23.4 per cent for the period 29.3.2003– 28.3.2004; 21 per cent for the
period 29.3.2004 – 28.3.2005.
(79) The measures should last for three years (including the period of provisional measures),
expiring in March 2005, unless circumstances change so that the measures are no longernecessary.
(80) In accordance with Article 5 (2) (a) of the Agreement on Safeguards , and Article XIII of the
GATT 1994, all Members having a substantial inte rest in supplying the product concerned
shall have the possibility to obtain the allocation of a specific share in this quota.
(81) The European Communities would take due account of the fact that three countries (Russia,
Kazakhstan and Ukraine) are already subject to severe quantitative restrictions.  Furthermore,
the European Communities would also take account of the exemption of developing countries
with import shares of less than 3 per cent.
(82) The indicative amounts are contained in the table below.
Allocation of quotas among countries having a substantial interest in supplying the
product concerned
Product Country Quota
29.3.02 –
28.3.03Quota
29.3.03 –
28.3.04Quota
29.3.04 –
28.3.05
04 Alloy Hot-rolled
Flat ProductsSerb, Monten 25,951 27,249 28,611
Romania 14,688 15,422 16,194
Others 8,953 9,401 9,871
Total 49,593 52,072 54,676G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 26
PRODUCT 5: COLD-ROLLED SHEETS
1. Product Concerned
(83) The product concerned is certain cold-rolled sheets.  The product concerned is currently
classified under the following CN codes: 7209 1500, 7209 1690, 7209 1790, 7209 1891, 7209
2500, 7209 2690, 7209 2790, 7209 2890, 7209 9010, 7209 9090, 7225 2090, 7225 5000, 7211
2310, 7211 2399, 7211 2920, 7211 2950, 7211 2990, 7211 9011, 7211 9013, 7211 9090, 7212
6093, 7212 6099, 7226 9210 and 7226 9290.
2. Increased Imports
(84) The product concerned is being imported in quantities which have increased suddenly,
sharply and significantly in the most recent past.  The increase in imports between 1999 and
2000 of 1.1m tonnes or 86 per cent (and of 98 per cent relative to production sold on the free
market, and 78 per cent relative to total production), to a level around 0.5m tonnes higher thanthe previous peak in 1998 is sudden sharp and significant, and is compounded by the further
increase which occurred in 2001 when imports increased further in absolute terms and relative
to total production, and to production sold on the free market.PRODUCT 5
Cold rolled sheets
Consumption
1997 1998 1999 2000 2001
Volume (in tonnes) 15,353,318 15,233,990 14,262,302 14,712,170 13,251,241
Import data
Total imports 1997 1998 1999 2000 2001
Volume (in tonnes) 1,228,151 1,839,053 1,312,704 2,445,101 2,460,647
Rate of increase (in %) 49.7% -28.6% 86.3% 0.6%
Market share (in %) 8.0% 12.1% 9.2% 16.6% 18.6%
Ratio - imports to total production (%) 2.6% 3.8% 2.8% 4.9% 5.5%
Ratio - imports to production sold (%) 7.3% 11.9% 8.7% 17.3% 19.9%
Unit prices (in Euro/tonne) 362 315 278 346 311
1998/1997 1999/1998 2000/1999 2001/2000
Volume as moving averages (in tonnes) 1,533,602 1,575,879 1,878,903 2,452,874G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 27
3. Serious Injury
(85) In order to provide as complete a picture as possible of the situation of the Community
producers, the European Communities has obtained and analysed data both for hot-rolledsheets and plates destined for captive use and those destined for the free market.  Because the
free market sales are in competition with the imported products concerned, the European
Communities focussed its attention on the free market.  While it has, to the extent possible,
combined free market and captive data, it has also split the analysis between free market and
captive use, where necessary and possible.G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 28
PRODUCT 5
Cold rolled sheets
Situation of Community producers
1997 1998 1999 2000 2001
Capacity (in tonnes) 59,059,300 60,630,200 59,571,800 59,703,500 57,815,300
Utilisation rate of capacity (in %) 79.6% 78.9% 79.0% 84.0% 76.9%
Opening stocks ( in tonnes) 1,953,514 2,044,553 2,202,337 2,000,325 2,337,687
Total production (in tonnes) 47,011,190 47,837,264 47,061,755 50,151,111 44,460,000
Purchases (in tonnes) 493,602 551,903 332,326 383,474 270,700
Total sales (in tonnes) 16,802,191 15,517,144 15,100,438 14,174,102 12,337,122
Captive use (in tonnes) 30,611,562 32,714,239 32,495,656 36,023,121 32,565,915
Closing stock (in tonnes) 2,044,553 2,202,337 2,000,325 2,337,687 2,165,350
Sales volume in the EU (tonnes) 14,125,167 13,394,937 12,949,598 12,267,069 10,790,594
Sales volume outside the EU (tonnes) 2,677,024 2,122,206 2,150,840 1,907,032 1,546,528
Unit prices of EU sales (Euro/tonne) 354 370 305 371 360
Net profit/loss on EU sales (in %) 1.8% 3.4% -11.6% 1.9% -7.9%
Market share (%) 92.0% 87.9% 90.8% 83.4% 81.4%
Employment (end of period) 23,766        23,514       22,546       22,412       21,739       
Productivity (tonne/employee) 1,978           2,034         2,087         2,238         2,045         
Volume, unit prices and profitability of EU sales 
 on a per quarter basis
Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002
Volume (in tonnes) 3,033,232 2,753,871 2,501,207 2,502,287 2,618,223
Unit prices (in Euro/tonne) 386 363 351 342 328
Profitability (in %) -0.8% -9.7% -9.8% -14.5% -17.9%
    Price undercutting in 2001 = 10%
    Price underselling in 2001 = 32%
Data given above on the situation of the Community producers
verified by sample check and on-spot investigations ofcompanies representing the following percentage of totalCommunity production: 75.2%G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 29
(86) A substantive evaluation of the effect of all the relevant factors on the situation of Community
producers has been conducted.  It has been concluded that a sufficient number of the injury
indicators attest to injury in a manner that points to “significant overall impairment” and that
the indicators which point to injury reveal a significant overall impairment in the position ofthe Community producers.
(87) The overall data shows that there is, in general terms, a negative development for production
capacity, capacity utilisation, production, employment, productivity, and negative elements
can as well be observed for cash flow and ROCE.
(88) The free market data shows, in general terms, an increase in stocks, negative developments
for sales, market share and profitability.
(89) The data for captive use demonstrates a similar negative trend.  These findings were
supported by the analysis of the whole activity for the product concerned for which captive
use forms a significant part.
(90) Taking account of all of the overall factors and relying, in particular, on its analysis of free
market activities, the conclusion is reached that the Community producers suffered serious
injury.
(91) In particular it is considered that while imports reached the highest level for 5 years in 2001
(2.46m tonnes), the Community producers EU sales volume reached its lowest level for five
years, and they suffered a fall in profitability.  Prices were lower in 2001, and there was a
concurrent drop in sales by the Community producers and  consumption.
(92) The rate of deterioration of the Community producers’ situation is particularly significant in
the context of a market which is characterised by long term relationships between producers
and users, long term supply contracts, and the attachment of significant importance to security
of supply.
(93) The Community producers have suffered large falls in sales volume, price suppression and
depression leading to a fall in sales prices in 2001.  There has been a substantial effect onmarket share and unsustainable losses are being incurred despite the fact that restructuring
within the industry has resulted in falls in employment and improvements in productivity.
Losses increased substantially in the first quarter of 2002.
(94) The effect of this combination of factors on the Community producers is reflected in the
economic indicators which show a significant decline in sales, market share and profitability
4. Causation
(95) It is considered that there is a causal link between the increased volume of  imports and
reduced sales volumes of the like product.  This is demonstrated by the coincidence in time between
the recent increase in the imports and the rapid deterioration of the injury indicators pointing to a
serious overall impairment of the Community producers' situation.
(96) The effects of the following other factors have been identified and their nature and extent has
been examined: fall in consumption in the EU between 2000 and 2001, reduced exports by
Community producers to the US and other countries,  excess capacity, restructuring of the Community
industry.  While a small portion of the injury is attributable to the fall in consumption and exports
considered cumulatively, in the context of the incr eased imports and the decline in prices which thoseG/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 30
imports have caused, there can be no doubt that there is a genuine substantial causal link between
increased imports and the serious injury suffered by the Community producers.
5. Proposed Measure
(97) It is proposed that definitive safeguard measures be taken in relation to imports.  To remedy
or prevent the serious injury suffered by the Community producers of hot-rolled coils it is
necessary to limit imports in excess of a specified level for a period of three years as from
29 March 2002.
(98) The remedy should be in the form of tariff quotas in excess of which an additional duty
requires to be paid.  In accordance with the relevant provisions of Community legislation,
which refer to the EU’s obligations under Article XIX of the GATT and the WTO Safeguards
Agreement, these measures should be liberalised progressively during the period of their
validity.
(99) In order to preserve traditional trade flows, in  the first year, such tariff quotas should be based
on the average of imports during the last three years plus 10 per cent.  That amount should be
increased by 5 per cent in each year following, during which the measures are in force.
(100) The additional duties to be paid above quota, in the first year, should be set at the level of the
underselling calculation (subject to a maximum of 26 per cent in order to avoid excessive
levels of duty).  That rate of duty should be decreased by 10 per cent in each year following,
during which the measures are in force.  The duties would be - 26 per cent for the period
29.3.2002 – 28.3.2003; 23.4 per cent for the period 29.3.2003– 28.3.2004; 21 per cent for the
period 29.3.2004 – 28.3.2005.
(101) The measures should last for three years (including the period of provisional measures),
expiring in March 2005, unless circumstances change so that the measures are no longer
necessary.
(102) In accordance with Article 5 (2) (a) of the Agreement on Safeguards , and Article XIII of the
GATT 1994, all Members having a substantial inte rest in supplying the product concerned
shall have the possibility to obtain the allocation of a specific share in this quota.
(103) The European Communities would take due account of the fact that three countries (Russia,
Kazakhstan and Ukraine) are already subject to severe quantitative restrictions on certain of
their exports.  Furthermore, the European Communities would also take account of theexemption of developing countries with import shares of less than 3 per cent.
(104) The indicative amounts are contained in the table below.   G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 31
Allocation of quotas among countries having a substantial interest in supplying the
product concerned
Product Country Quota
29.3.02 –
28.3.03Quota
29.3.03 –
28.3.04Quota
29.3.04 –
28.3.05
05 Cold-rolled Sheets Turkey 325,048 341,301 358,366
Slovakia 338,891 355,835 373,627
South Korea 157,863 165,756 174,044
Bulgaria 123,029 129,180 135,639
Serb, Monten 92,275 96,889 101,733
Argentina 154,200 161,910 170,006
Hungary 102,181 107,290 112,654
South Africa 81,724 85,810 90,101
Others 680,614 714,634 750,366
Total 2,055,815 2,158,605 2,266,536
PRODUCT 18:  FITTINGS
1. Product Concerned
(105) The product concerned is certain tube and pipe fittings (other than cast fittings, flanges and
threaded fittings), of iron and steel (not including stainless steel), with a greatest external
diameter not exceeding 609.6 mm, of a kind used for butt-welding (hereinafter referred to as
‘fittings’).  The product concerned is currently classified under CN codes 7307 93 11 and
7307 93 19.
2. Increased ImportsG/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 32
(106) The product concerned is being imported in quantities which have increased suddenly,
sharply and significantly in the most recent past.  In particular, the increase in importsbetween 2000 and 2001 of 35 per cent in absolute terms and of 35 per cent relative to both
total production and production sold on the free market is sudden, sharp and significant.
3. Serious Injury
(107) Since no captive use was found, the European Communities focussed its analysis on the free
market.PRODUCT 18
FITTINGS
Consumption
1997 1998 1999 2000 2001
Volume (in tonnes) 70,077 70,096 64,804 61,658 63,077
 
Import data
1997 1998 1999 2000 2001
Total imports
Volume (in tonnes) 9,910 9,520 9,487 10,127 13,646
Rate of increase (in %) -3.9% -0.3% 6.7% 34.7%
Market share (in %) 14.1% 13.6% 14.6% 16.4% 21.6%
Ratio between imports and total production 11.4% 11.2% 11.9% 12.7% 17.2%
Ratio between imports and production sold 11.4% 11.2% 11.9% 12.7% 17.2%
Unit prices (in Euro/tonne) 1247 1184 1083 1042 1005
1998/1997 1999/1998 2000/1999 2001/2000
Volume as moving averages (in tonnes) 9,715 9,504 9,807 11,887G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 33
PRODUCT 18
FITTINGS
Situation of Community producers
1997 1998 1999 2000 2001
Capacity (in tonnes) 170,000 170,000 169,983 165,000 149,607
Utilisation rate of capacity (in %) 51.0% 50.0% 47.0% 48.3% 53.0%
Opening stocks ( in tonnes) 9,955 10,070 10,525 11,309 11,679
Total production (in tonnes) 86,619 84,932 79,892 79,729 79,292
Purchases (in tonnes) 796 724 792 541 1,037
Total sales (in tonnes) 87,300 85,200 79,900 79,900 79,500
Captive use (in tonnes) 00000
Closing stock (in tonnes) 10,070 10,525 11,309 11,679 12,508
Sales volume outside the EU (in tonnes) 27,133 24,624 24,583 28,369 30,069
Sales volume in the EU (in tonnes) 60,167 60,576 55,317 51,531 49,431
Unit prices of EU sales (Euro/tonne) 1,585 1,561 1,493 1,453 1,405
Net profit/loss on EU sales (in %) 4.4% 4.3% 2.0% 1.9% -1.0%
Market Share (in %) 85.9% 86.4% 85.4% 83.6% 78.4%
Employment (end of period) 834 824 791 808 800
Productivity (tonne/employee) 104 103 101 99 99
Volume, unit prices and profitability of EU sales 
 on a per quarter basis
Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002
Volume (in tonnes) 19,259 18,805 18,064 17,887 16,086
Unit prices (in Euro/tonne) 1,420 1,409 1,401 1,390 1,378
Profitability (in %) 0.9% -0.6% -1.8% -2.5% -3.0%
    Price undercutting in 2001 = 14.8%
    Price underselling in 2001 = 23.7%
Data given above on the situation of the Community producers verified by
sample check and on-spot investigations of companies representing the
following percentage of total Community production: 60.9%G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 34
(108) A substantive evaluation of the effect of all the relevant factors on the situation of Community
producers has been conducted.  It has been concluded that a sufficient number of the injury
indicators attest to injury in a manner that points to “significant overall impairment” and that
the indicators which point to injury reveal a significant overall impairment in the position ofthe Community producers.
(109) The data shows that while capacity utilisation, after going down, increased again slightly
having regard also to the reduction of capacity, and while employment and productivity
remained relatively stable, the other indicators examined showed, in general, negative
elements, i.e. production, cash flow and ROCE, sales, market shares (meaning that sales
declined more than consumption), prices (in spite of which substantial undercutting wasfound) and profitability, whereas stocks increased.
(110) Taking account of all of the overall factors, the conclusion is reached that the Community
producers suffered serious injury.
(111) In particular, it is considered that whilst, in 2001, as imports reached their highest level for
five years in terms of market share (21.6 per cent), the Community producers'  EU sales
volume and market share fell to its lowest level for five years (49,431 tonnes and 78.4 per
cent respectively).  Profitability fell rapidly.  This occurred against the background of an
overall fall in consumption and historically low prices.
(112) The effect of this combination of factors on the Community producers is reflected in the
economic indicators.  In particular, the Community producers have suffered from both
decreasing sales volumes and decrease in prices.  Whereas the overall consumption has also
decreased, the Community producers’ volumes in the Community market has decreased evenfurther, leading to significant loss in market share and most important poor profitability.
(113) The success of the imports vs. Community production can be derived from an undercutting in
prices, which, had not the Community producers also cut back its prices, would had been
even greater.
4. Causation
(114) It is considered that there is a causal link between the increased volume of  imports and
reduced sales volumes of the like product.  This is demonstrated by the coincidence in time
between the recent increase in the imports and the rapid deterioration of the injury indicators
pointing to a serious overall impairment  of the Community producers' situation.
(115) The effects of the following other factors has been identified and their nature and extent has
been examined: fall in consumption in the EU, reduced exports by Community producers to
other countries, excess capacity and pricing of imports.  While a small portion of the injury is
attributable to the fall in consumption, exports and non-utilisation of capacity consideredcumulatively, in the context of the increased imports and the decline of the prices those
imports have caused, there can be no doubt that there is a genuine substantial causal link
between increased imports and the serious injury suffered by the Community producers.
5. Proposed Measure
(116) It is proposed that definitive safeguard measures be taken in relation to imports.  To remedy
or prevent the serious injury suffered by the Community producers of hot-rolled coils it isG/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 35
necessary to limit imports in excess of a specified level for a period of three years as from
29 March 2002.
(117) The remedy should be in the form of tariff quotas in excess of which an additional duty
requires to be paid.  In accordance with the relevant provisions of Community legislation,
which refer to the EU’s obligations under Article XIX of the GATT and the WTO Safeguards
Agreement, these measures should be liberalised progressively during the period of their
validity.
(118) In order to preserve traditional trade flows, in  the first year, such tariff quotas should be based
on the average of imports during the last three years plus 10 per cent.  That amount should beincreased by 5 per cent in each year following, during which the measures are in force.
(119) The additional duties to be paid above quota, in the first year, should be set at the level of the
underselling calculation (subject to a maximum of 26 per cent in order to avoid excessive
levels of duty).  That rate of duty should be decreased by 10 per cent in each year following,during which the measures are in force.  The duties would be – 23.7 per cent for the period
29.3.2002 – 28.3.2003; 21.3 per cent for the period 29.3.2003– 28.3.2004; 19.2 per cent for
the period 29.3.2004 – 28.3.2005.
(120) The measures should last for three years (including the period of provisional measures),
expiring in March 2005, unless circumstances change so that the measures are no longer
necessary.
(121) In accordance with Article 5 (2) (a) of the Agreement on Safeguards , and Article XIII of the
GATT 1994, all Members having a substantial interest in supplying the product concernedshall have the possibility to obtain the allocation of a specific share in this quota.
(122) The European Communities would take account of the exemption of developing countries
with import shares of less than 3 per cent.
(123) The indicative amounts are contained in the table below.
Allocation of quotas among countries having a substantial interest in supplying the
product concerned
Product country Quota
29.3.02 – 28.3.03Quota
29.3.03 – 28.3.04Quota
29.3.04 – 28.3.05
18 Fittings (<609.6 mm) Slovakia 1,771 1,859 1,952
Thailand 1,157 1,215 1,276
Vietnam 741 778 817
Russia 1,038 1,090 1,144
Malaysia 1,104 1,159 1,217
Chinese Taipei 2,021 2,122 2,228
Romania 574 603 633
Czech Rep, 688 723 759
Poland 460 483 507
South Korea 477 500 525
Switzerland 387 406 427
Others 1,319 1,385 1,454
Total 11,736 12,323 12,939G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 36
PRODUCT 19:  FLANGES
1. Product Concerned
(124) The product concerned is iron and steel flanges (not cast) It is currently classified under CN
code 7307 91 00.
2. Increased Imports
PRODUCT 19
FLANGES
Consumption
1997 1998 1999 2000 2001
Volume (in tonnes) 187,483 187,413 169,424 152,884 172,836
 
Import data
1997 1998 1999 2000 2001
Total imports:
Volume (in tonnes) 69,555 77,754 76,781 76,575 96,754
Rate of increase (in %) 11.8% -1.3% -0.3% 26.4%
Market share (in %) 37.1% 41.5% 45.3% 50.1% 56.0%
Ratio between imports and total production 33.4% 41.9% 44.0% 47.1% 60.2%
Ratio between imports and production sold 35.9% 44.1% 45.4% 47.6% 61.4%
Unit prices (in Euro/tonne-Eurostat) 837 876 887 910 932
1998/1997 1999/1998 2000/1999 2001/2000
Volume as moving averages (in tonnes) 73,655 77,268 76,678 86,665G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 37
(125) The product concerned is being imported in quantities which have increased suddenly,
sharply and significantly in the most recent past.  The increase in imports between 2000 and
2001 of 20,000 tonnes or 26 per cent (and of 30 per cent relative to production sold on the
free market, and 28 per cent relative to total production), is sudden sharp and significant.
3. Serious Injury
(126) In order to provide as complete a picture as possible of the situation of the Community
producers, the European Communities has obtained and analysed data both for hot-rolled
sheets and plates destined for captive use and those destined for the free market.  Because the
free market sales are in competition with the imported products concerned, and becauseproduction for captive use is minimal by comparison to overall production (less than 2 per
cent in 2001) the European Communities focussed its attention on the free market.G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 38
PRODUCT 19
FLANGES
Situation of Community producers
1997 1998 1999 2000 2001
Capacity (in tonnes) 263,000 238,000 233,000 230,000 220,000
Utilisation rate of capacity (in %) 79% 78% 75% 71% 73%
Opening stocks ( in tonnes) 19,346 26,685 31,607 31,123 30,032
Total production (in tonnes) 208,218 185,520 174,412 162,581 160,818
Purchases (in tonnes) 5,126 6,748 4,756 3,441 1,205
Total sales (in tonnes) 193,643 176,244 169,180 160,955 157,602
Captive use (in tonnes) 12,362 11,102 10,472 6,157 3,315
Closing stock (in tonnes) 26,685 31,607 31,123 30,032 31,138
Sales volume outside the EU (in tonnes) 75,714 66,585 76,537 84,646 81,519
Sales volume in the EU (in tonnes) 117,928 109,659 92,643 76,309 76,082
Unit prices of EU sales (Euro/tonne) 1,481 1,435 1,445 1,125 1,061
Net profit/loss on EU sales (in %) 4.1% 5.3% 3.2% 1.7% -1.1%
Market Share (in %) 63% 59% 55% 50% 44%
Employment (end of period) 963 953 879 858 846
Productivity (tonne/employee) 216 195 198 189 190
Volume, unit prices and pr ofitability of EU sales 
 on a per quarter basis
Q1 2001 Q2 2001 Q3 2001 Q4 2001 Q1 2002
Volume (in tonnes) 19,228 19,008 18,951 18,895 13,541
Unit prices (in Euro/tonne) 1,064 1,078 1,066 1,036 978
Profitability (in %) 0.0% -0.9% -1.3% -2.2% -4.1%
    Price undercutting in 2001 = 10.3%
    Price underselling in 2001 = 23.0%
Data given above on the situation of the Community producers verified by
sample check and on-spot investigations of companies representing the
following percentage of total Community production: 63.5%G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 39
(127) A substantive evaluation of the effect  of all the relevant factors on the situation of Community
producers has been conducted.  It has been concluded that a sufficient number of the injury
indicators attest to injury in a manner that points to “significant overall impairment” and that
the indicators which point to injury reveal a significant overall impairment in the position ofthe Community producers.
(128) As regards captive use, the investigation has demonstrated that the production for captive use
is decreasing and is so small (2 per cent in 2001) that it is considered not to have had any
impact on the situation of the Community producers.  Thus, the total production is therefore
considered to have been in direct competition with the imports and analysed accordingly.
(129) There is, in general terms, a negative development for production capacity, capacity
utilisation, production, employment, productivity, and negative elements can as well be
observed for cash flow and ROCE.
(130) Furthermore, an increase in stocks, negative developments for sales, market share and
profitability can be observed.
(131) Taking account of all of the overall factors and relying, in particular, on its analysis of free
market activities, the conclusion is reached that the Community producers suffered serious
injury.
(132) In 2001, as imports reached their highest level for 5 years (96,754 tonnes), the Community
producers EU sales volume reached their lowest level and they suffered a significant fall in
market share.  Prices also fell to a five year low and the Community producers suffered a fall
in profitability.
(133) The effect of this combination of factors is reflected in the economic indicators.  In particular,
capacity utilisation, after going down, increased again slightly having regard also to the
reduction of capacity.  Employment went down, while productivity remained relatively stable
since 1998.  While cash flow showed positive elements, ROCE showed negative elements.
While consumption declined up to 2000, it increased again towards 2001.  Sales suffered a
serious downturn in particular between 1999 and 2000, and market share declined heavily.While stocks remained relatively stable with a slight increase, prices declined, with an
undercutting found of 10 per cent.  At the same time, profitability decreased.
(134) The Community producers have suffered from both decreasing sales volumes and decrease in
prices.  Whereas the overall consumption has also decreased, the Community producers’volumes in the Community market has decreased even further, leading to significant loss in
market share and most important to continuous losses.
(135) The success of the imports vs. Community production can also be derived from undercutting
in prices, which, had not the Community producers also cut back its prices, would had beeneven greater.
4. Causation
(136) It is considered that there is a causal link between the increased volume of  imports and
reduced sales volumes of the like product.  This is demonstrated by the coincidence in time
between the recent increase in the imports and the rapid deterioration of the injury indicators
pointing to a serious overall impairment  of the Community producers' situation.G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 40
(137) The effects of the following other factors have been identified and their nature and extent has
been examined: fall in consumption in the EU  between 2000 and 2001 and reduced exports by
Community producers to the US and other coun tries.  The European Communities examined
the effects of the following other factors: fall in consumption in the EU and reduced exports
by Community producers.  While a small portion of the injury may be attributable to the fall
in consumption and exports considered cumulatively, in the context of the increased imports
and the decline of the prices those imports have caused, there can be no doubt that there is a
genuine substantial causal link between increased imports and the serious injury suffered by
the Community producers.
5. Proposed Measure
(138) It is proposed that definitive safeguard measures be taken in relation to imports.  To remedy
or prevent the serious injury suffered by the Community producers of hot-rolled coils it is
necessary to limit imports in excess of a specified level for a period of three years as from
29 March 2002.
(139) The remedy should be in the form of tariff quotas in excess of which an additional duty
requires to be paid.  In accordance with the relevant provisions of Community legislation,
which refer to the EU’s obligations under Article XIX of the GATT and the WTO Safeguards
Agreement, these measures should be liberalised progressively during the period of theirvalidity.
(140) In order to preserve traditional trade flows, in  the first year, such tariff quotas should be based
on the average of imports during the last three years plus 10 per cent.  That amount should be
increased by 5 per cent in each year following, during which the measures are in force.
(141) The additional duties to be paid above quota, in the first year, should be set at the level of the
underselling calculation (subject to a maximum of 26 per cent in order to avoid excessive
levels of duty).  That rate of duty should be decreased by 10 per cent in each year following,
during which the measures are in force.  The duties would be - 23 per cent for the period
29.3.2002 – 28.3.2003; 20.7 per cent for the period 29.3.2003– 28.3.2004; 18.6 per cent for
the period 29.3.2004 – 28.3.2005.
(142) The measures should last for three years (including the period of provisional measures),
expiring in March 2005, unless circumstances change so that the measures are no longer
necessary.
(143) In accordance with Article 5 (2) (a) of the Agreement on Safeguards , and Article XIII of the
GATT 1994, all Members having a substantial interest in supplying the product concerned
shall have the possibility to obtain the allocation of a specific share in this quota.
(144) The European Communities would take account of the exemption of developing countries
with import shares of less than 3 per cent.
(145) The indicative amounts are contained in the table below.G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 41
Allocation of quotas among countries having a substantial interest in supplying the
product concerned
Product Country Quota
29.3.02 –
28.3.03Quota
29.3.03 –
28.3.04Quota
29.3.04 –
28.3.05
19 Flanges (other than
stainless steel)China 24,813 26,054 27,357
Poland 24,375 25,594 26,874
Romania 18,255 19,168 20,126
Czech Rep, 5,958 6,256 6,569
Others 14,881 15,625 16,406
Total 88,282 92,697 97,331G/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 42
ANNEX II
Indicative list of products originating in developing countries to which
the proposed measures apply
123451 8 1 9
AE United Arab
Emirates
AF Afghanistan
AG Antigua and
Barbuda
AO Angola
AR Argentina X X
BB Barbados
BD Bangladesh
BF Burkina Faso
BH Bahrain
BI Burundi
BJ Benin
BN Brunei Darussalam
BO Bolivia
BR Brazil
BS Bahamas
BT Bhutan
BW Botswana
BZ Belize
CD Democratic
Republic of Congo
CF Central African
Republic
CG Congo
CI Côte d’Ivoire
CL Chile
CM Cameroon
CN People’s Republic
of ChinaXX
Chinese Taipei X
CO Colombia
CR Costa Rica
CU Cuba
CV Cape Verde
CY Cyprus
DJ Djibouti
DM Dominica
DO Dominican
Republic
DZ Algeria
EC Ecuador
EG Egypt X
ER EritreaG/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 43
123451 8 1 9
ET Ethiopia
FJ Fiji
FM Federated States of
Micronesia
GA Gabon
GD Grenada
GH Ghana
GM Gambia
GN Guinea
GQ Equatorial Guinea
GT Guatemala
GW Guinea-Bissau
GY Guyana
HN Honduras
Hong Kong
HT Haiti
ID Indonesia
IN India
IQ Iraq
IR Iran (Islamic
Republic of)X
JM Jamaica
JO Jordan
KE Kenya
KH Cambodia
KI Kiribati
KM Comoros
KN St Kitts and Nevis
KW Kuwait
LA Lao People’s
Democratic
Republic
LB Lebanon
LC St Lucia
LK Sri Lanka
LR Liberia
LS Lesotho
LY Libyan Arab
JamahiriyaX
MA Morocco
MG Madagascar
MH Marshall Islands
ML Mali
MM Myanmar
MN Mongolia
MR Mauritania
MU Mauritius
MV Maldives
MW MalawiG/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 44
123451 8 1 9
MX Mexico
MY Malaysia X
MZ Mozambique
NA Namibia
NE Niger
NG Nigeria
NI Nicaragua
NP Nepal
NR Nauru
OM Oman
PA Panama
PE Peru
PG Papua New Guinea
PH Philippines
PK Pakistan
PW Palau
PY Paraguay
QA Qatar
RW Rwanda
SA Saudi Arabia
SB Solomon Islands
SC Seychelles
SD Sudan
SL Sierra Leone
SN Senegal
SO Somalia
SR Suriname
ST Sao Tomé and
Principe
SV El Salvador
SY Syrian Arab
Republic
SZ Swaziland
TD Chad
TG Togo
TH Thailand X
TN Tunisia
TO Tonga
TP East Timor
TT Trinidad and
Tobago
TV Tuvalu
TZ Tanzania (United
Republic of)
UG Uganda
UY Uruguay
VC St Vincent and
Northern
GrenadinesG/SG/N/8/EEC/1
G/SG/N/10/EEC/1
Page 45
123451 8 1 9
VE Venezuela
VN Vietnam X
VU Vanuatu
WS Samoa
YE Yemen
ZA South Africa X X
ZM Zambia
ZW Zimbabwe
__________