G/L/1306  
G/SG/N/12/KOR/4  
 
2 April 2019  
(19-2101) Page: 1/4 
Council for Trade in Goods  
Committee on Safeguards  Original: English  
 
IMMEDIATE NOTIFICATI ON UNDER ARTICLE 12. 5 OF THE AGREEMENT  
ON SAFEGUARDS TO THE  COUNCIL FOR TRADE I N GOODS OF  
PROPOSED SUSPENSION OF CONCESSIONS AND O THER  
OBLIGATIONS REFERRED  TO IN PARAGRAPH 2  OF 
ARTICLE 8 OF THE AGR EEMENT ON SAFEGUARDS  
REPUBLIC OF KOREA 
The following communication, dated 2 April 2019, is being circulated at the request of the Delegation 
of the Republic of Korea.  
 
_______________  
 
 
Pursuant to Article 12.5 of the Agreement on Safeguards, and in accordance with the agreed format 
for notifi cations (G/SG/1, 1 July 1996; amended 19 October 2009, 
G/SG/1/Rev.1  - G/SG/N/6/Rev.1  - G/SG/89), the Republic of Korea  provides the immediate 
notification to the Council for Trade in Goods of the proposed suspension of concessions and other 
obligations ref erred to in paragraph 2 of Article 8 . 
 
1. Which Member is proposing suspension of concessions and other obligations 
referred to in Article 8.2  
 
The Republic of Korea  
 
2. Specify the measure, the product subject to the measure, the WTO document that 
notifi ed the safeguard measure, and the Member imposing the measure in relation to 
which the Member is proposing suspension of concessions and other obligations referred 
to in Article 8.2 of the Agreement on Safeguards  
 
On 1 February  2019, the European Union im posed definitive  safeguard measures on imports of 
certain steel  products , effective from 2 February  2019 to 30 June 2021. Those measures replaced 
the provisional safeguard measures in place since 18 July 2018.  
 
The safeguard measures at issue were notified  in WTO documents 
G/SG/N/8/EU/1  - G/SG/N/10/EU/1  - G/SG/N/11/EU/1/Suppl.1; 
G/SG/N/8/EU/1/Suppl.1  - G/SG/N/10/EU/1/Suppl.1  - G/SG/N/11/EU/1/Suppl.2.  
 
3. Describe the proposed suspension of concessions and other obligations referred to 
in Article 8.2 of the Agreement on Safeguards, and the proposed date from which it will 
come into effect  
 
The Republic of Korea provides this written noti fication  in order to achieve the highest degree of 
legal certainty that, in all circumstances, its rights to suspend the ap plication of substantially 
equivalent concessions or other obligations pursuant to Article 8 of the Agreement on Safeguards 
are fully protected. The Republic of Korea hereby reserves the right to withdraw, modify, supplement 
or replace this notification, a nd/or make a further notification or notifications, should it deem that 
appropriate, including in light of any subsequent developments.  
 
The proposed suspension of substantially equivalent concessions and other obligations under 
GATT  1994 to the trade of t he European Union will take the form of an increase in dut ies on selected G/L/1306 • G/SG/N/12/KOR/4  
 
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  products  originating in the European Union. The substantially equivalent concessions or other 
obligations under GATT 1994 were calculated as indicated in Annex I. The details of the suspension 
of concessions and other obligations will be provided to the Council for Trade in Goods before their 
application.  
 
Without prejudice to the effective exercise of its right to suspend substantially equivalent 
concessions or other obligations refe rred to in Article 8.2, the Republic of Korea  hereby reserves its 
right to apply the proposed suspension  from 19 July 2021 in case the European Union decides to 
extend the period of application of the measure in accordance with Article 7 of the Agreement o n 
Safeguards or the fifth day following the date of a decision from the WTO Dispute Settlement Body 
that the measures imposed by the European Union  are not in conformity with the WTO Agreement, 
if that is earlier . 
 
The Republic of Korea also reserves its right to suspend substantially equivalent concessions or other 
obligations upon the expiration of the 30 days from the day on which the written notice of such 
suspension is received by the Council for Trade in Goods to the extent that the measures have not 
been taken as a result of an absolute increase in imports . 
 
The suspension of concessions and other obligations will continue to apply until the European Union 's 
safeguard measures are lifted.  
  G/L/1306 • G/SG/N/12/KOR/4  
 
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  ANNEX I  
The substantially equivalent concessions or other obligations under GATT 1994 were calculated as 
follows:  
 
1. Application by the European Union of the tariff increase of 25% on out -of-quota imports of 
certain steel products from the Republic of Korea  would res ult in € 56.8 million of  duty collected, 
based on the export volume and value in 2017. The details of the calculation  are provided below.  
 
A(𝑉𝑜𝑙𝑢𝑚𝑒  𝑜𝑓 𝐾𝑜𝑟𝑒𝑎 ′𝑠 𝑒𝑥𝑝𝑜𝑟𝑡𝑠 )−C(𝑉𝑜𝑙𝑢𝑚𝑒  𝑜𝑓 𝑇𝑅𝑄  𝑓𝑜𝑟 𝐾𝑜𝑟𝑒𝑎 )
A(𝑉𝑜𝑙𝑢𝑚𝑒  𝑜𝑓 𝐾𝑜𝑟𝑒𝑎′𝑠 𝑒𝑥𝑝𝑜𝑟𝑡𝑠 )×B(𝑉𝑎𝑙𝑢𝑒  𝑜𝑓 𝐾𝑜𝑟𝑒𝑎 ′𝑠 𝑒𝑥𝑝𝑜𝑟𝑡𝑠 )×(25%  𝑇𝑎𝑟𝑟𝑖𝑓𝑓 ) 
 
(unit : ton, € 1,000)  
 
* The product categories out -of-quota imports of which are not expected to exist  (i.e. theoretical 
additional duty collected = 0) are excluded.  
 
** The volume of TRQ for each product was calculated as follows:  
1. (for products subject to CSQs) the average level of country -specific tariff -rate quotas  (CSQ) for 
Years 1, 2 and 3  
2. (for products not subjec t to CSQs) the average value of 105%, 110%, and 115% of the average 
level of exports from Korea to the EU in the period 2015 -2017 
 
2. Among the aforementioned theoretical additional duty collected of € 56.8 million, 
€ 22.63  million reflects the European Union's tariff increase of 25% on out -of-quota imports of "non 
alloy and other alloy quarto plates " from the Republic of Korea. This is the steel product for which 
the European Union's safeguard measures have not been taken as  a result of an absolute increase 
in imports.  
 Product  
Number  Product category*  2017 Korea's Exports to 
the EU  Volume of  
TRQ for 
Korea**  
(C) Theoretical 
additional 
duty 
collected  Volume (A) Value (B)  
1 Non Alloy and Other Alloy Hot 
Rolled Sheets and Strips  603,027  300,906  538,746  8,019  
2 Non Alloy and Other Alloy 
Cold Rolled Sheets  433,975  259,172  374,825  8,831  
4 Metallic Coated Sheets  842,498  600,964  828,294  2,533  
5 Organic Coated Sheets  289,655  267,278  268,275  4,932  
7 Non Alloy and Other Alloy 
Quarto Plates  531,773  285,897  363,425  22,627  
12 Non Alloy and Other Alloy 
Merchant Bars and Light 
Sections  52,734  36,815  50,912  318 
13 Rebars  93 57 34 9 
14 Stainless Bars and Light 
Sections  361 1,386  279 78 
15 Stainless Wire Rod  10,123  20,139  8,566  774 
17 Angles, Shapes and Sections 
of Iron or Non Alloy Steel  31,243  14,857  26,909  515 
22 Seamless Stainless Tubes 
and Pipes  4,647  27,247  4,281  536 
24 Other Seamless Tubes  21,411  27,983  21,391  6 
25 Large Welded Tubes  49,817  62,649  25,826  7,543  
27 Non Alloy and Other Alloy 
Cold Finished Bars  6,574  7,244  6,262  86 
Total      56,809  G/L/1306 • G/SG/N/12/KOR/4  
 
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  * On the basis of the information included in Annex II of Commission Implementing Regulation 
(EU) 2019/159, the world imports into the European Union of non alloy and other alloy quarto plates 
did not increas e in absolute terms over the period 2013 -MRP.  
 
 
 
__________  Product 
Number  Product category  2013 2014 2015 2016 2017 MRP 
7 Non Alloy and 
Other Alloy Quarto 
Plates  1,439,430  1,968,634  2,573,220  2,834,744  2,549,694  2,374,170