G/SG/N/8/ARM/3  
G/SG/N/10/ARM/3  
17 September  2019 
(19-5955) Page: 1/6 
Committee of Safeguards  Original:  English  
 
  
NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT ON  
SAFEGUARDS ON FINDIN G A SERIOUS INJURY  OR THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
NOTIFICATION OF A PR OPOSAL TO  
IMPOSE A MEASURE  
ARMENIA  
(Certain flat -rolled steel products)  
The following communication, dated 16 September 2019 , is being circulated at the request of the 
delegation of Armenia.  
_______________  
On 7 August  2018 the Department for Internal Market Defence of the Eurasian Economic 
Commission (hereinafter 'the DIMD ') initiated a safeguard investigation on imports of certain 
flat-rolled steel products into the customs territory of the Eurasian Economic Union (hereinafter 
'Union ') (see WTO document G/SG/N/6/ARM/3 ). 
Pursuant to  Article 12.1 (b) of the Agreement on Safegua rds Armenia  hereby notifies the Committee 
on Safeguards that the DIMD has made a finding of the threat of serious injury to the domestic 
industry caused by increased imports.  
Draft report setting forth the findings and reasoned conclusions reached on all p ertinent issues of 
fact and law and the public notice on publication of a draft report were published on 1 0 June 2019 
on the official website of the Eurasian Economic Union :  
(http://eec.eaeunion.org/ru/act/trade/podm/investigations/PublicDocuments/SG10_report.pdf , 
http://eec.eaeunion.org/ru/act/trade/podm/investigations/PublicDocuments/SG10_notice_publicati
on.pdf ). 
1. Provide evidence, citing relevant data and the applicable period of investigation  of 
serious inj ury or threat thereof caused by increased imports  
The DIMD  has made an injury assessment for three product categories covered by the investigation, 
namely hot-rolled steel products , cold -rolled steel products and coated steel products  named 
together  'certain flat -rolled steel products '. The investigation covers the period from  1 January  2015 
to 30 June 2018 (hereinafter 'period of investigation '). 
In the case of hot-rolled steel products , the analysis of economic indicators  has revealed that the 
Union industry was losing its market share on the Union market to foreign producers, which had a 
negative impact on the Union industry 's prices . Indeed, the growth in costs per unit outpaced the 
price increase leading to a decline in the  level of profitability.  
It has  also been found that i ncreased imports of hot-rolled steel products  into the Union market are 
expected to continue in the immediate future . Indeed, in addition to the risk of trade diversion posed, 
inter alia , by the measures under Section 232 of the Trade Expansion Act of 1962 adopted by the 
United States of America, several countries have steel capacity expansion plans while, first, demand G/SG/N/8/ARM/3 • G/SG/N/10/ARM/3  
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  on certain markets is likely to decrease and, second, the ability of third markets to absorb additional 
export s of steel is limited due to the trade measures in place . At the same time, the Union market 
is attractive to suppliers of hot-rolled steel products  from third countries , in particular  in view of its 
size and prices.  
Increasing volumes of imports of hot-rolled steel products  will continue to take market share away 
from the Union industry and displace sales of the Union industry on the Union market . This will result 
in a decline in the levels of production by the Union industry, sales of the Union industry in the Union 
market and profits earned by the Union industry from such sales . In addition , if costs of production 
continue to increase, the price of the Union industry 's hot-rolled steel products  on the Union market 
will be prevented from increasing at a commensurate rate with costs and the level of profitability 
will further decline.  
The DIMD  has therefore concluded that the Union industry will imminently become seriously injured 
if no measures are taken . The DIMD  has also concluded that there is a causal link between  increased  
imports  of hot -rolled steel products and  the threat of serious injury  to the Union industry . 
The DIMD  has found that col d-rolled steel products and coated steel products are not being imported 
in such increased quantities as to cause or threaten to cause serious injury to the Union industry.  
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)  
The DIMD has analyz ed import data covering the period of investigation, i.e. the perio d from 
1 January , 2015 to 30 June, 2018 for each  three product categories covered by the investigation, 
namely hot -rolled steel products, cold -rolled steel products and coated steel products . The DIMD 
has analyzed data for each year of the period of the investigation, as well as for the period 
1 July 2017 - June 30 2018 compared  with the period 1 July 2016 - 30 June 2017. 
The DIMD has not found evidence of an absolute increase in imports or an increase in imports relative 
to domestic production concerning cold -rolled steel products and coated steel products.  
In the case o f hot-rolled steel products , imports increased in absolute terms by 25,6% from 2015 
to 2017 and  by 25,9% in the period 1 July 2017 - 30 June 2018 compared with the period 
1 July 2016 - 30 June 2017. 
In relation to domestic production  imports  increased by 6,1% between 2015 and 2017 and by 6,5% 
in the period 1 July 2017 - 30 June 2018 compared  with the period 1 July 2016 - 30 June 2017. 
The DIMD concludes that there has been a sudden, sharp and recent increase in imports both in 
absolute and relative terms (to domestic production ) for hot -rolled steel products.  
3. Provide the precise description of the product involved.  Provide the Harmonized 
System  numbers under which the product enters at least at a 6 -digit HS level, and 
at a sub -national level (e.g. 8 -digit HS , 9-digit HS or 10 -digit HS) if practicable  (The 
HS codes will be provided for reference purposes only)  
The product s covered by the finding of threat of serious injury are hot -rolled steel products  
(hot-rolled carbon steel and other alloy  steel in sheets and coils). 
Hot-rolled steel products are classified under the following codes within the Common Commodity 
Nomenclature of Foreign Economic Activity of the Eurasian Economic Union (CN of FEA EAEU) : 7208 
10 000 0, 7208 25 000 0, 7208 26 000 0, 72 08 27 000 0, 7208 36 000 0,  
7208 37 000 0, 7208 38 000 0, 7208 39 000 0, 7208 40 000 0, 7208 51 200 1, 7208 51 200 9,  
7208 51 910 0, 7208 51 980 0, 7208 52 100 0, 7208 52 910 0, 7208 52 990 0, 7208 53 100 0,  
7208 53 900 0, 7208 54 000 0, 7208 90 200 0, 720 8 90 800 0, 7211 13 000 0, 7211 14 000 0,  
7211 19 000 0, 7225 30 100 0, 7225 30 300 0, 7225 30 900 0, 7225 40 120 1, 7225 40 120 9,  
7225 40 150 1, 7225 40 150 9, 7225 40 400 0, 7225 40 600 0, 7225 40 900 0, 7226 91 200 0,  
7226 91 910 0, 7226 91 990 0.  G/SG/N/8/ARM/3 • G/SG/N/10/ARM/3  
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  The codes of CN of FEA EAEU are given for information purposes only.  
4. If the final measure replaces a provisional measure, or if a final measure is 
extended, a Member is encouraged to provide a written description of any part of 
the imported product that wil l no longer be subject to the measure and the 
Harmonized System numbers under which it enters at least at a 6 -digit level, and at 
a sub -national level (e.g., 8 -digit, 9 -digit or 10 -digit level) if practicable1 
Not applicable . 
5. Provide precise description  of the proposed measure  
The measure recommended by the DIMD is a quota on imports of hot -rolled steel products with an 
out-of-quota duty of 20 %. 
Consistent with the obligations under Article 9.1 of the Agreement on Safeguards, the measure 
recommended by the DIMD applies to imports from all sources, other than originating in developing 
and least -developed countries benefitting from the Unified Syste m of Tariff Preferences (USTP) of 
the Eurasian Economic Union, except for the Republic of Korea (see the list o f developing countries 
in Annex  below).  
Shares of imports from developing and least -developed countries, except for the Republic of Korea, 
indivi dually do not exceed 3 % and collectively do not account for more than 9 %. 
In order to comply with bilateral obligations under the Treaty on a Free Trade Area between Members 
of the Commonwealth of Independent States (CIS), Republic of Moldova, Uzbekistan a nd Tajikistan 
should also be excluded from the scope of the measure.  
Since hot -rolled steel used in the production of pipes (7208  51 910 0, 7208  51 200 9 and 
7225 40 400 0 of CN of FEA EAEU) accounts for 56 % of imports of hot -rolled steel products for the 
period from 2015 to 2017, the DIMD proposes a separate amount of quota for these products.  
The quota volume recommended by the DIMD is as follows.  
Product concerned  
(CN of FEA EAEU)  Quota Volume ( tones) 
Armenia  Belarus  Kazakhstan  Kyrgyz 
Republic  Russian 
Federation  
7208 10 000 0, 7208  25 000 0, 
7208 26 000 0, 7208  27 000 0, 
7208 36 000 0, 7208  37 000 0, 
7208 38 000 0, 7208  39 000 0, 
7208 40 000 0, 7208  51 200 1, 
7208 51 980 0, 7208  52 100 0, 
7208 52 910 0, 7208  52 990 0, 
7208 53 100 0, 7208  53 900 0, 
7208 54 000 0, 7208  90 200 0, 
7208 90 800 0, 7211  13 000 0, 
7211 14 000 0, 7211  19 000 0, 
7225 30 100 0, 7225  30 300 0, 
7225 30 900 0, 7225  40 120 1, 
7225 40 120 9, 7225  40 150 1, 
7225 40 150 9, 7225  40 600 0, 
7225 40 900 0, 7 226 91 200 0, 
7226 91 910 0,       7226 91 990 0 9 669 89 633 4 913 2 357 334 628 
7208 51 200 9, 7208  51 910 0, 
7225 40 400 0 329 36 640 5 116 329 512 982 
 
6. Provide proposed date of introduction of the measure  
The decision has  not been taken yet.  
                                                
1 The HS codes will be provided for reference purposes only.  G/SG/N/8/ARM/3 • G/SG/N/10/ARM/3  
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  7. Provide expected duration of the measure  
The DIMD has recommended that the measure be in force for 1 year.  
8. 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 . 
9. If the expected duration is over one year, provide expected timetable for progressive 
liberalization of the measure  
Not applicable . 
10. If the notifica tion relates only to a finding of serious injury or threat thereof, and 
does not relate to a decision to apply or extend a safeguard measure : 
(i) provide the deadlines for interested parties to comment or any other 
procedures relevant to the decision to ap ply the measures, and  
(ii) provide information regarding procedures for prior consultation with those 
Members having a substantial interest as exporters of the product concerned.  
Interested parties are invited to comment on findings and reasoned conclusion s reached on all 
pertinent issues of fact and law set forth in a draft report publishe d on 10 June 2019 on the official 
website of the Eurasian Economic Union : 
(http://eec.eaeunion.org/ru/act/trade/podm/investigations/PublicDocuments/SG10_report.pdf ). 
Comments should be submitted to the DIMD no later than  24 June 2019 (as it is provided for in  the 
public notice on publication of a draft report : 
http://eec.eaeunion.org/ru/act/trade/podm/investigation s/PublicDocuments/SG10_notice_publicati
on.pdf ). 
The DIMD offers consultations with Members having a substantial interest as exporters of the product 
concerned . The time limit for such consultations is 2 4 June 2019 (as it is provided for in the public 
notice on publication of a draft report : 
http://eec.eaeunion.org/ru/act/trade/podm/investigations/PublicDocuments/SG10_notice_publicati
on.pdf ). 
11. If the measure is being extended, also provide:  
(i) evidence that the industry concerned is adjusting and that the safeguard 
measure continues to be necessary to prevent or remedy serious injury;  
(ii) reference to the WTO document that notified the initial application of the 
measure;  
(iii) duration of the measure from initial application till the date at which it will be 
extended;  and, 
(iv) precise description of the measure in place prior to the date of extension (in 
this context, please note that the last sentence of Article 7.4 states that : "A 
measure extended under paragraph 2 shall not be more restrictive than it was 
at the end of the initial period, and should continue to be liberalized.")  
Not applicable . G/SG/N/8/ARM/3 • G/SG/N/10/ARM/3  
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  12. If the notification relates to  a decision to apply or extend a safeguard measure, 
Members are encouraged to provide the following information:  
(i) The major exporting Members of imports of the product involved.  
(ii) If there are any exporting Members to which the measure does not apply  for 
any reason other than the application of Article 9.1, the names of such 
exporting Members and reasons for non -application of the measure.  
Not applicable . 
13. Members are encouraged to attach, in an electronic form, publicly available 
document(s) conta ining the relevant decision(s) made by the competent authority  
This document may be in the original language of the Member, even when the language is not one 
of the official languages of the WTO . The document will neither be translated nor circulated to th e 
Committee, but will be made available by the Secretariat to Members requesting it.  
Draft report setting forth the findings and reasoned conclusions reached on all pertinent issues of 
fact and law was published on 1 0 June 2019 on the official website of the Eurasian Economic Union  
(http://eec.eaeunion.org/ru/act/trade/podm/investigations/PublicDocuments/SG10_report.pdf ). 
 G/SG/N/8/ARM/3 • G/SG/N/10/ARM/3  
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  ANNEX  
List of deve loping and least -developed countries , Members of WTO  
 
Afghanistan  
Albania  
Angola  
Antigua and Barbuda  
Argentina  
Bahrain  
Bangladesh  
Barbados  
Belize  
Benin  
Bolivarian Republic of Venezuela  
Botswana  
Brazil  
Brunei Darussalam  
Burkina Faso  
Burundi  
Cabo Verde  
Cambodia  
Cameroon  
Central African Republic  
Chad 
Chile 
China  
Colombia  
Congo  
Costa Rica  
Côte D'Ivoire  
Croatia  
Cuba 
Democratic Republic of the Congo  
Djibouti  
Dominica  
Dominican Republic  
Ecuador  
Egypt  
El Salvador  
Eswatini  
Fiji 
Gabon  
Gambia  
Ghana  
Grenada  
Guatemala  
Guinea  
Guinea -Bissau  
Guyana  
Haiti 
Honduras  
Hong Kong, China  
India 
Indonesia  
Jamaica  
Jordan  
Kenya  
Kingdom of Saudi Arabia  
Lao People 's Democratic Republic  
Lesotho  Liberia  
Madagascar  
Malawi  
Malaysia  
Maldives  
Mali 
Mauritania  
Mauritius  
Mexico  
Mongolia  
Montenegro  
Morocco  
Mozambique  
Myanmar  
Namibia  
Nepal  
Nicaragua  
Niger  
Nigeria  
North Macedonia  
Oman  
Pakistan  
Panama  
Papua New Guinea  
Paraguay  
Peru 
Philippines  
Plurinational State of Bolivia  
Qatar  
Rwanda  
Saint Kitts and Nevis  
Saint Lucia  
Saint Vincent and the Grenadines  
Samoa  
Senegal  
Seychelles  
Sierra Leone Singapore  
Solomon Islands  
South Africa  
Sri Lanka  
Suriname  
Tanzania  
Thailand  
The State of Kuwait  
Togo 
Tonga  
Trinidad and Tobago  
Tunisia  
Turkey  
Uganda  
United Arab Emirates  
Uruguay  
Vanuatu  
Viet Nam  
Yemen  
Zambia  
Zimbabwe
__________