G/SG/N/10/MAR/7/Suppl.2  
G/SG/N/11/MAR/7/Suppl.6  
 
25 May 2023  
(23-3610) Page: 1/4 
Committee on Safeguards  Original: French  
 
  
NOTIFICATION UNDER ARTICLES 7.2 AND 12.1(C)  OF  
THE AGREEMENT ON SAFEGUARDS  (EXTENSION OF THE EXISTING MEASURE)  
 
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2,  
OF THE AGREEMENT ON SAFEGUARDS  
Hot-Rolled Sheets  
MOROCCO  
Supplement  
The following communication, dated and received on 25 May 2023, is being circulated at the request 
of the delegation of Morocco.  
 
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Pursuant to Article 7.2 and Article 12.1(c) of the Agreement on Safeguards, Morocco hereby notifies 
the extension of the safeguard measure on imports of hot -rolled sheets.  
1  DESCRIPTION OF THE PRODUCT SUBJECT TO THE SAFEGUARD MEASURE  
The products under consideration and subject to the review are hot -rolled steel sheets, whether or 
not in coils.  
During the orig inal investigation, the product under consideration was classified under the following 
Moroccan customs HS code tariff headings: 72.08, 72.11.13, 72.11.14, 72.11.19, 72.25.30, 
72.25.40, 72.26.20.00.11, 72.26.20.00.21, 72.26.20.00.30, 72.26.20.00.40, 72.26. 20.00.51, 
72.26.20.00.52, 72.26.20.00.59, 72.26.91, 72.26.99.90.91 and 72.26.99.90.99.  
In the edition of the Moroccan customs tariffs dated 1 January 2022, the product under consideration 
is now classified under the following tariff headings: 72.08, 72.11 .13, 72.11.14, 72.11.19, 72.25.30, 
72.25.40, 72.26.20.00.11, 72.26.20.00.20, 72.26.20.00.51, 72.26.20.00.52, 72.26.20.00.59, 
72.26.91 and 72.26.99.80.00.   
2  DESCRIPTION OF THE PROPOSED MEASURE  
The safeguard measure consists of an additional  ad valorem  safegu ard duty of 23%.  
3  PROPOSED DATE OF INTRODUCTION OF THE MEASURE  
The definitive safeguard measure will be published in Morocco's Official Journal. Its provisions will 
enter into force on 19 June 2023.  G/SG/N/10/MAR/7/Suppl.2 • G/SG/N/11/MAR/7/Suppl.6  
 
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4  EXPECTED DURATION OF THE MEASURE  
The Moroccan Ministry of  Industry and Trade (the Ministry) plans to renew the safeguard measure 
for an additional duration of three years, i.e. until 18 June 2026.  
5  EXPECTED TIMETABLE FOR PROGRESSIVE LIBERALIZATION OF THE MEASURE  
In order to satisfy the requirement for the progre ssive liberalization of the measure, in accordance 
with Article 65 of Law No. 15 -09 on trade defence measures and Article 7.4 of the WTO Agreement 
on Safeguards, the additional ad valorem  duty of 23% will be reduced by 1 percentage point each 
year. 
6  EVIDENC E THAT THE SAFEGUARD MEASURE CONTINUES TO BE NECESSARY TO REMEDY 
OR PREVENT SERIOUS INJURY AND THAT THE INDUSTRY CONCERNED IS ADJUSTING  
In order to determine whether the safeguard measure continues to be necessary to remedy or 
prevent serious injury and wh ether the Moroccan industry is adjusting in accordance with Article  69 
of Law  No. 15 -09 and Article 7.2 of the WTO Agreement on Safeguards, the Ministry examined the 
trend in imports of hot -rolled sheets and the domestic industry 's economic and financial indicators. 
The Ministry then analysed the foreseeable and imminent behaviour of the imports and their effects 
on the Moroccan hot -rolled sheet industry after the lifting of the safeguard measure. The Ministry 
also examined this industry's restru cturing programme.  
6.1  Determination as to whether the safeguard measure continues to be necessary to 
remedy serious injury  
In order to determine whether the safeguard measure continues to be necessary to remedy serious 
injury, the Ministry examined the domest ic industry's economic and financial indicators, namely 
production, production capacity, rate of capacity utilization, sales, production costs, profitability, 
inventories, productivity and employment. An improvement in the situation of the Moroccan 
hot-rolled sheet industry was observed, but it remains very fragile.  G/SG/N/10/MAR/7/Suppl.2 • G/SG/N/11/MAR/7/Suppl.6  
 
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TABLE 1: OVERVIEW OF INDICATORS OF SERIOUS INJURY SUFFERED BY THE DOMESTIC 
HOT-ROLLED SHEET  INDUSTRY  
(Index: 2018=100)  2018  2019  2020  2021  H1 2021  H1 2022  
Imports (tonnes)  107,213  109,705  86,901  60,992  32,199  56,242  
Production (tonnes)  100 110 90 115 100 108 
Imports/Production  100 93 90 49 100 162 
Domestic sales (tonnes)  100 110 108 118 100 94 
Market share of domestic 
industry   100 101 104 113 100 92 
Market share of imports  100 95 86 54 100 164 
Domestic selling price 
(MAD/tonne)  100 92 96 129 100 139 
Profitability (MAD/tonne)  100 60 146 315 100 158 
Inventories (tonnes)  100 137 109 85 100 99 
Production capacity (tonnes)  100 100 100 100 100 100 
Production capacity 
utilization rate (%)  100 111 89 114 100 109 
Investment (MAD)  100 63 107 100 100 461 
Employment (persons)  100 108 104 112 100 102 
Productivity 
(tonnes/employee)  100 102 87 103 100 106 
Source: Data compiled from Foreign Exchange Board statistics and results of a survey for domestic 
producers.  
6.2  Determination as to whether the safeguard measure continues to be necessary to 
prevent serious injury  
In order to determine whether the safeguard measure continues to be necessary to prevent serious 
injury, the Ministry examined the risk that imports would increase in the coming years due to factors 
such as the following:  
i. the global overcapacity of steel products;  
ii. the decline in global demand; and  
iii. the increased protection of domestic markets.  
Having examined the above factors, Morocco concluded that there is a real and imminent risk of 
imports of hot -rolled sheets increasing once the safeguard measure is lifted.  
6.3  Determination as to whether the domestic industry engages in a djustment plans  
The Moroccan hot -rolled sheet industry has provided evidence showing that it has begun 
implementing its structural adjustment plan aimed at increasing its competitiveness. 
The implementation of adjustment measures is ongoing.  
7  REFERENCE TO THE WTO DOCUMENT THAT NOTIFIED THE INITIAL APPLICATION OF 
THE MEASURE  
The WTO documents containing the most recent Article 12.1(c) notification are document 
G/SG/N/8/MAR/7  - G/SG/N/10/MAR/7 - G/SG/N/11/MAR/7/Suppl.1, published on 13 May 2020, and 
its supplement G/SG/N/8/MAR/7/Suppl.1 - G/SG/N/10/MAR/7/Suppl.1 - 
G/SG/N/11/MAR/7/Suppl.2, published on 23 November 2020.  G/SG/N/10/MAR/7/Suppl.2 • G/SG/N/11/MAR/7/Suppl.6  
 
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8  DURATION OF THE MEASURE FROM INITIAL APPLICATION UNTIL THE DA TE AT WHICH 
IT WILL BE EXTENDED  
Morocco applied a safeguard measure to imports of hot -rolled sheets, which entered into force on 
19 June 2020 for a duration of three years until 18 June 2023. Morocco plans to extend this safeguard 
measure for a further thr ee years, i.e. until 18 June 2026.  
9  DEVELOPING COUNTRIES EXCLUDED FROM THE SAFEGUARD MEASURE UNDER 
ARTICLE  9.1 OF THE  AGREEMENT ON SAFEGUARDS  
Albania; Angola; Antigua and Barbuda; Argentina; Armenia; Kingdom of Bahrain; Bangladesh; 
Barbados; Belize; Benin; Bolivia; Botswana; Brunei Darussalam; Burkina Faso; Burundi; 
Cabo Verde; Cambodia; Cameroon; Central African Republic; Chad; Chile; Colombia; Congo; 
Costa Rica; Côte d'Ivoire; Cuba; Democratic Republic of the Congo; Djibouti; Dominica; 
Dominican  Republic; Ecuador; Egypt; El Salvador; Eswatini; Fiji; Gabon; Gambia; Georgia; 
Ghana; Grenada; Guatemala; Guinea; Guinea -Bissau; Guyana; Haiti; Honduras; Indonesia; 
Jamaica; Jordan; Kazakhstan; Kenya; Kuwait; Kyrgyz Republic; Lao People's Democratic 
Republic; Lesoth o; Madagascar; Malawi; Malaysia; Malawi; Maldives; Mali; Mauritania; 
Mauritius; Mexico; Republic of Moldova; Mongolia; Montenegro; Mozambique; Myanmar; 
Namibia; Nepal; Nicaragua; Niger; Nigeria; North Macedonia; Oman; Pakistan; Panama; 
Papua  New Guinea; Pa raguay; Peru; Philippines; Qatar; Rwanda; Saint Lucia; Saint Kitts and 
Nevis; Saint Vincent and the Grenadines; Samoa; Senegal; Sierra Leone; Singapore; 
Solomon  Islands; South Africa; Sri Lanka; Suriname; Tajikistan; Tanzania; Togo; Tonga; 
Trinidad and Tob ago; Tunisia; Uganda; United Arab Emirates; Uruguay; Vanuatu; 
Bolivarian  Republic of Venezuela; Viet Nam; Yemen; Zambia; Zimbabwe.  
10  OFFER OF CONSULTATIONS UNDER ARTICLE 12.3  
In accordance with Article 12.3 of the Agreement on Safeguards, Morocco is ready to  consult on the 
proposed safeguard measure with those Members having a substantial interest as exporters of the 
products concerned.   
 
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