G/SG/N/10/ARE/2, G/SG/N/11/ARE/3, 
G/SG/N/10/BHR/2, G/SG/N/11/BHR/3  
G/SG/N/10/KWT/2, G/SG/N/11/KWT/3, 
G/SG/N/10/OMN/2, G/SG/N/11/OMN/3  
G/SG/N/10/QAT/2, G/SG/N/11/QAT/3, 
G/SG/N/10/SAU/2, G/SG/N/11/SAU/3  
 
5 April 2019  
(19-2170) Page: 1/5 
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 OF A PR OPOSAL TO IMPOSE A MEASURE  
 
NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
  COOPERATION  COUNCIL  FOR  THE ARAB  STATES  OF THE GULF  "GCC"  
(Chemical Plasticizers ) 
The following communication, dated 3 April 2019 , is being circulated at the request o f the Sultanate 
of Oman  as President of the GCC on behalf of the GCC member States.  
 
_______________  
 
 
Referring to the WTO document G/SG/N/6/BHR/3 dated on 3 October 2017, and the WTO document 
G/SG/N/8/ARE/2 -G/SG/N/8/BHR/2 -G/SG/N/8/KWT/2 -G/SG/N/8/OMN/2 -G/SG/N/8/QAT/2 -
G/SG/N/8/SAU/2 dated on 17 M ay 2018.  
 
1  EVIDENCE OF SERIOUS  INJURY OR THREAT TH EREOF CAUSED BY INCR EASED IMPORTS  
(a) Serious Injury  
 
The investigation period for the purposes of determining serious injury covered the period 2012 to 
the first half of 2017.  
 
The final determination of serious injury is based on the evaluation of the overall position of the GCC 
industry in light of all relevant factors having a bearing on the situation of that industry, which shows 
a significant overall impairmen t and thus it is concluded that GCC industry has suffered serious injury 
and that the increase of GCC imports under investigation has caused serious injury to the GCC 
industry as follows:  
Index 2012=100  
Index 2016(1st half)=100  
 2012  2013  2014  2015  2016  First half 
of 2016  First half of 
2017  
Production 
volume  100 88.09  90.11  78.61  65.15  100 95.84  
Capacity 
utilization  100 88.09  90.11  78.61  65.15  100 95.84  
Sales volume  100 86.51  88.00  72.79 64.56  100  90.27  
Market share 
of domestic 
sales  100 87.24  92.12  53.05  36.95  100 98.16  
Market share 
of imports  100 106.01  103.71  122.12  129.70  100 100.21  G/SG/N/10/ARE/2, G/SG/N/11/ARE/3 • G/SG/N/10/BHR/2, G/SG/N/11/BHR/3 • 
G/SG/N/10/KWT/2, G/SG/N/11/KWT/3 • G/SG/N/10/OMN/2, G/SG/N/11/OMN/3 • 
G/SG/N/10/QAT/2, G/SG/N/11/QAT/3 • G/SG/N/10/SAU/2, G/SG/N/11/SAU/3  
 
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   2012  2013  2014  2015  2016  First half 
of 2016  First half of 
2017  
Inventory 
volume  100 538.96  391.29  1086.23  597.19  100 137.75  
Employment  100 101.96  109.80  100.00  94.12  100 86.00  
Productivity  100  86.39  82.07  78.61  69.23  100 111.44  
Losses  100 71.65  42.46  -24.00  -66.17  100 -185.88  
 
Based on the period of investigation referred to above, GCC -TSAIP analyzed the rate and volume of 
the increase in imports and assessed the impact on GCC industry of chemical plasticizers. According 
to the injury data above, there is sufficient final eviden ce that the GCC industry is suffering a serious 
injury in the form of decline in domestic sales, market share, production, employment, and increase 
in losses, in conjunction with the increase of imports.  
 
The Investigating Authority made a final determinat ion that the GCC industry is suffering serious 
injury during the period referred to above.  
 
(b) Unforeseen developments  
 
The GCC -TSAIP examined data on unforeseen developments either provided by the complainant or 
collected during the investigation and made the following determinations:  
 
• The available information shows that these unexpected developments are in fact related to 
the development of the global steel industry, since Naphthalene - the main raw material in 
the production of the product under investigation - is extracted from the distillation of coke 
used in the steel industry.  
 
• During the iron oxide reduction proces s using coal coke, the coal tar produced from the coal -
fired gases is produced. Coal tar is the main source of Naphthalene production, with 
more than 92% of the world's Naphthalene production coming from coal tar. It is worth 
noting that according to ECB s tatistics, 38 liters of tar / ton of coal and 4.8 kg of raw 
naphthalene  /liter of tar are produced.  
 
• Naphthalene majority of producers are Chinese (55%), India (16%), the United States of 
America (12%), Japan (4%), the EU and South Korea (2%) and other cou ntries.  
 
• 50% of the world's production of Naphthalene is used in the production of plastic softeners, 
mainly SNF. China is one of the largest consumers of naphthalene for the production of SNF. 
70% of Chinese demand for this substance is used in the manufa cture of the product under 
investigation. It also shows that the demand for naphthalene for the SNF industry is still 
experiencing the strongest growth globally, at about 2.5% per year, so the SNF 
manufacturing is the largest final user of naphthalene.  
 
• Global crude steel production has been shown to have continued to grow in the last 15 years, 
with world production reaching 1.69 billion tons in 2017 compared with 850 million tons in 
2000, an increase of more than 98.7%, of which 831.7 million tons in China  alone, Followed 
by Japan and India respectively with 104.7 and 101.4 million tons during 2017.  
 
• The world's steel industry utilization is still less than 69.5% at the end of 2017. As the steel 
industry is growing, global steel production may rise further, requiring greater use of coke, 
thus increasing the supply of naphthalene extracted from coal tar  and thus a significant 
increase in the quantity of production and exports of the product under investigation.  
 
• The GCC -TSAIP therefore concluded that the increase in imports of the product under 
investigation occurred as a result of unforeseen development s.  
 G/SG/N/10/ARE/2, G/SG/N/11/ARE/3 • G/SG/N/10/BHR/2, G/SG/N/11/BH R/3 • 
G/SG/N/10/KWT/2, G/SG/N/11/KWT/3 • G/SG/N/10/OMN/2, G/SG/N/11/OMN/3 • 
G/SG/N/10/QAT/2, G/SG/N/11/QAT/3 • G/SG/N/10/SAU/2, G/SG/N/11/SAU/3  
 
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  (c) Causal Link  
 
Based on the final determination, GCC-TSAIP has examined the impact of other factors, other than 
the massive increase in imports that might cause serious injury to the GCC industry, such as trade 
restrictive practices, consumption, export performance and technology; however, these factors did 
not contribute to the serious injury suffered by the GCC industry. Therefore, GCC -TSAIP found that 
there is sufficient evidence to the existence of the causal link between the serious injury caused to 
the GCC industry and the increase of imports of the  product under investigation.  
 
2  INFORMATION ON WHETH ER THERE IS AN ABSOL UTE INCREASE IN IMPO RTS OR AN 
INCREASE IN IMPORTS RELATIVE TO DOMESTIC  PRODUCTION  
The product under investigation is being imported into GCC countries in such increased quantities in 
absolute terms and relative to GCC production as follows:  
 
        Index 2012=100  
Index 2016 (1st half)=100  
 2012  2013  2014  2015  2016  First half 
of 2016  Frist half 
of 2017  
Imports 
Volume (ton)  339,565  356,980  336,454  568,956  769,459  523,010  481,956  
Index  100 105.13  99.08  167.55  226.60  100 92.15  
Imports/prod
uction ratio  100 119.34  109.95  213.16  347.79  100 96.15  
 
From the above table it is evident that the volume of imports increased significantly either in absolute 
terms or in relation to the production during the period of investigation, where imports increased  
absolutely by 126.6% during 2012 -2016 and decrease during the first half of 2017 only by 7.85% 
compared to the same period of 2016. Related to the production, the imports recorded during the 
same periods, respectively, an increase by 247.65% and a slight decrease by 3.85% . Even there is 
a slight decline in imports in the first half of 2017, there is still a recent, sudden and sharp and large 
increase in imports under investigation, especially after  the significant increase recorded by these 
imports during 2016, and the volume of imports during the first half of 2017 were larger than the 
volume of imports during the years from 2012 to 2014, which indicates clearly the existence of 
recent, sudden, sha rp and significant increase in GCC imports during the period of investigation.  
 
3  ADJUSTMENT PLAN  
The GCC industry has provided a viable adjustment plan for restructuring and adjusting its position 
so that it can develop its performance and competitiveness within the GCC and international markets 
so that it can compete with foreign imports after expira tion of the safeguard measure imposition.  
 
4  DESCRIPTION OF THE P RODUCT INVOLVED  
Prepared Additives for cements, mortars or concretes (chemical plasticizers) known as 
superplasticizers or hyper plasticizers in liquid or powder form and take different commerc ial names 
like SNF/NSF/PNS, SMF or PCE. These products are used for all types of concrete like ready -mix 
concrete, precast and pre -stressed concrete, in areas of congested reinforcement, where higher 
workability is of benefit, in reducing water concrete fo r the sake of improving impermeability and 
durability; marine concrete, unite concrete, architectural concrete, special concrete.  
 
The product concerned is classified under the following GCC -Unified Tariff Code (38244000).  
 
5  DESCRIPTION OF THE P ROPOSED MEAS URE 
The Permanent Committee has recommended imposing safeguard measure for three years at the 
form of tariff increase and quantitative restriction. The proposed measure will consist of an additional 
specific duty of the order of 221 USD/Ton applicable to i mports exceeding the quota of 250,354 ton.  
 
For the purpose of liberalizing the definitive safeguard measure, the proposed specific duty will be 
decreased by around 10% each year as shown in point (10) below.  G/SG/N/10/ARE/2, G/SG/N/11/ARE/3 • G/SG/N/10/BHR/2, G/SG/N/11/BHR/3 • 
G/SG/N/10/KWT/2, G/SG/N/11/KWT/3 • G/SG/N/10/OMN/2, G/SG/N/11/OMN/3 • 
G/SG/N/10/QAT/2, G/SG/N/11/QAT/3 • G/SG/N/10/SAU/2, G/SG/N/11/SAU/3  
 
- 4 - 
 
  6  PROPOSED DATE OF INT RODUCTION OF THE MEA SURE  
The date of introduction of the measure will be determined in the TSAIP - Official Gazette which will 
be published once the Ministerial Committee approves the imposition of the measure.  
 
7  EXPECTED DURATION OF  THE MEASURE  
The safeguard measure, if adopted, wi ll remain in force for three years.  
 
8  OFFER OF CONSULTATIO NS UNDER ARTICLE 12. 3 
Consistent with Article 12.3 of the WTO Agreement on Safeguards, the GCC -TSAIP offers 
consultations with Members having a substantial interest as the exporters of the products i nvolved. 
Members with a substantial interest, requesting a consultation should contact the GCC -TSAIP not 
later than 10 (Ten) days from the date of the circulation of this notification at the following address:  
 
The Cooperation Council for the Arab States o f the Gulf  
GCC-Bureau of Technical Secretariat for Anti Injurious Practices in International Trade  
6725 Jeddah Rd - AL Hada Dist  
Unit No 1 Riyadh 12324 -3147 
Tel: (+966) 11 2551388 T el: (+966) 11 2551399  
Fax: (+966) 11 2810093, Kingdom of Saudi  Arabia  
Email:  TSAD@gccsg.org  
 
9  FOR A MEASURE WITH A  DURATION OF MORE TH AN THREE YEARS, PROV IDE THE 
PROPOSED DATE FOR TH E REVIEW (UNDER ARTI CLE 7.4) TO BE HELD NOT LATER THAN 
THE MID -TERM OF THE MEASURE, IF SUCH DAT E FOR THE REVIEW HAS  ALREADY BEEN 
SCHEDULED  
Not applicab le. 
 
10  IF THE EXPECTED DURA TION IS OVER ONE YEA R, PROVIDE THE EXPEC TED TIMETABLE 
FOR PROGRESSIVE LIBE RALIZATION OF THE ME ASURE  
Duration  Specific Duty Value (USD/Ton)  
First year  221 
Second year  199 
Third year  177 
 
11  IF THE MEASURE IS BE ING EXTENDED, ALSO PROVIDE: (I) EVIDENC E THAT THE 
INDUSTRY CONCERNED I S ADJUSTING AND THAT  THE SAFEGUARD MEASU RE CONTINUES 
TO BE NECESSARY TO P REVENT OR REMEDY SER IOUS INJURY  
Not applicable.  
 
12  SPECIFY THE DEVELOPI NG COUNTRIES TO WHIC H THE MEASURE IS NOT  APPLIED 
UNDER ARTICLE  9.1 OF THE AGREEMENT  ON SAFEGUARDS, AND THE IMPORT SHARES OF  
THESE COUNTRIES INDI VIDUALLY AND COLLECT IVELY  
The following developing countries are excluded from the measure as they export less than 3% 
individually and less than 9% collectively to GCC countr ies: 
 
Afghanistan, Albania, Angola, Antigua and Barbuda, Argentina, Armenia, Bangladesh, Barbados, 
Barbados, Belize, Benin, Bolivia, Botswana, Brunei Darussalam, Colombia, Costa Rica, Cuba, 
Paraguay and Peru Papua New Guinea Burkina Faso, Burundi, Tanzania, Thailand, Togo, Tonga, 
Chad, Chile, Trinidad and Tobago, Tunisia, Turkey, Cambodia, Cameroon, Cape Verde, 
Central  African Republic, Colombia, Democratic Republic of the Congo, Congo, Costa Rica, Croatia, 
Djibouti, Dominica, Dominican Republic, Ec uador, Egypt, Fiji, Gabon, Gambia, Georgia, Ghana, 
Grenada, Guatemala, Guinea, Guinea -Bissau, Guyana, Haiti, Honduras, Hungary, Jamaica, Jordan, 
Kenya, Kyrgyzstan, Laos, Lesotho, Macedonia, Madagascar, Malawi, Malaysia, Maldives, Mali, G/SG/N/10/ARE/2, G/SG/N/11/ARE/3 • G/SG/N/10/BHR/2, G/SG/N/11/BH R/3 • 
G/SG/N/10/KWT/2, G/SG/N/11/KWT/3 • G/SG/N/10/OMN/2, G/SG/N/11/OMN/3 • 
G/SG/N/10/QAT/2, G/SG/N/11/QAT/3 • G/SG/N/10/SAU/2, G/SG/N/11/SAU/3  
 
- 5 - 
 
  Mauritania, Mauritiu s, Macau, Mexico, Moldova, Mongolia, Montenegro, Morocco, Mozambique, 
Myanmar, Namibia, Nepal, Nicaragua, Niger, Nigeria, Rwanda, Saint Kitts and Nevis, Saint Lucia, 
Saint Vincent and the Grenadines, Samoa, Senegal, El Salvador, Sierra Leone and 
the Solomo n Islands, South  Africa, Côte d 'Ivoire, Sri Lanka, Suriname, Swaziland, Chinese Taipei , 
Tajikistan, Philippines, Vanuatu, Venezuela, Vietnam, Uganda, Ukraine, Uruguay, Yemen, Zambia, 
Zimbabwe, Cuba, Hong  Kong.  
 
 
__________