G/SG/N/6/MAR/12  
G/SG/N/7/MAR/5  
G/SG/N/11/MAR/8  
4 October  2019 
(19-6439) Page: 1/6 
Committee on Safeguards  Original:  French  
 
  
NOTIFICATION UNDER A RTICLE 12.1(A) OF TH E AGREEMENT ON SAFEG UARDS  
ON INITIATION OF AN INVESTIGATION AND TH E REASONS FOR IT  
NOTIFICATION UNDER A RTICLE 12.4 OF THE A GREEMENT  
ON SAFEGUARDS BEFORE  TAKING A PROVISIONA L 
SAFEGUARD MEASURE REFERRED TO IN ARTIC LE 6 
NOTIFICATION UNDER  ARTICLE 9, FOOTNOTE  2, 
OF THE AGREEMENT ON SAFEGUARDS  
MOROCCO  
(Welded Tubes and Pipes, of Iron or Steel) 
The following communication, dated 2 October 2019, is being circulated at the request of the 
delegation of Morocco.  
 
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Pursuant to Article 12.1(a) and 12.4 of the Agreement on Safeguards, Morocco hereby notifies the 
initiation of a safeguard investigation concerning imports of tubes and pipes of iron or steel, and  the 
proposed application of a provisional safeguard measure against these  imports. Morocco also 
notifies, pursuant to Article 9, footnote 2 , of the Agreement on Safeguards, the list of developing 
countries excluded from the provisional measure.  
I. NOTIFICATION UNDER A RTICLE 12.1(A) OF TH E AGREEMENT ON SAFEGUA RDS ON 
INITIATION OF AN INV ESTIGATION AND THE R EASONS FOR IT  
1. Date of initiation of the investigation  
The investigation will be initiated on Monday 7 October 2019.  
A notice concerning the initiation of the investigation is available to the public on the Ministry's 
website ( http://www.mcinet.gov.ma/ce/antidumping/avis_sauvgarde.asp ). 
2. Precise description of the product involved  
The products under consideration  are welded tubes and pipes, of iron or steel, conical or pyramidal, 
of circular, square or rectangular cross -section.  
 
These products are imported into Morocco under the following headings of the Moroccan customs 
nomenclatu re: 7305.31.10.00; 7305.31.99.00; 7305.39.10.00; 7305.39.99.00; 7306.19.10.90; 
7306.19.99.00; 7306.30.10.99; 7306.30.99.00; 7306.50.10.90; 7306.50.99.00; 7306.61.10.00; 
7306.61.90.00; 7306.69.10.00; 7306.69.99.00; 7306.90.10.90; and 7306.90.99.00.  
 G/SG/N/6/MAR/12 • G/SG/N/7/MAR/5 • G/SG/N/11/MAR/8  
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  3. Reasons  for initiation of the investigation  
The investigation was initiated by the Ministry following a petition submitted by the companies 
INDUSTUBE , BATIFIER  and LONGOFER  on behalf of the domestic industry producing tubes and pipes 
of iron or steel.  
According t o the petition, the products in question have been imported into the Moroccan market in 
such increased quantities, both in absolute terms and in relation to domestic production, as to cause 
serious injury to the domestic industry producing tubes and pipes of iron or steel.  
This increase in imports appears to be the result of unforeseen developments, namely the imbalance 
between  significant global production capacity and stagnant global demand in this sector, the recent 
increase in protective measures regard ing the products concerned, and the persistent effects of the 
2008 world crisis, most notably the considerable decline in European demand , which has led to 
significant overproduction . 
According to the domestic industry, increased imports of tubes and pipes of iron or steel have caused 
serious injury to the domestic industry producing these  goods , as shown through the drop in 
production, sales, market share, and sales profitability, espe cially in 2017 and 2018.  
Data collected by the Ministry has also showed the existence of the critical circumstances described 
in section 5.2 of this document.  
4. Deadlines and procedures for importers, exporters and other interested parties to 
present evidenc e and views, including (i) deadlines and procedures for Members and 
exporters to identify themselves as interested parties, if so required, to participate in the 
investigation and (ii) the date of an intended hearing as provided for in Article 3.1  
In order  to gather the information required for its investigation, the Ministry will send questionnaires 
to the importers and domestic producers of the product at issue that were identified in the petition.  
Other parties not identified  who wish to receive a questi onnaire and participate in the investigation 
should contact the Ministry by fax or email within 15 days of the date of initiation of the investigation 
(i.e. by 4 p.m. on Wednesday 23 October 2019 at the latest).  
Replies to the investigation questionnaires must reach the Ministry within the time limits indicated 
in the questionnaires. Any party requesting an extension of these time  limits must show good cause.  
Parties that believe the investigation concerns them have a period of 30 days from the date of 
initiation of the investigation (i.e. by 4 p.m. on Monday 11 November 2019 at the latest) to make 
themselves known as interested parties.  
In addition to their questionnaire replies, parties that believe the investigation concerns them may 
also submit their vie ws and comments on the initiation of the investigation, in writing, and in 
confidential and non -confidential versions , within 30 days of the date of initiation of the investigation 
(i.e. by 4 p.m. on Monday 11 November 2019 at the latest).  
During the investigation, the Ministry may hold a public hearing, either ex officio  or at the request 
of the parties concerned, to allo w interested parties to put forward their views and defend their 
interests. Once agreement has been reached on holding a public hearing, the Ministry will, in due 
course, inform the interested parties of the date on which it will take place and the arrange ments 
for the event.  
II. NOTIFICATION UNDER A RTICLE 12.4 BEFORE T AKING A PROVISIONAL SAFEGUARD 
MEASURE  
1. Product subject to the proposed safeguard measure  
The products under consideration  are welded tubes and pipes, of iron or steel, conical or pyramidal, 
with circular, square or rectangular cross -section , as referred to in point 2 of this document.  G/SG/N/6/MAR/12 • G/SG/N/7/MAR/5 • G/SG/N/11/MAR/8  
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  2. Proposed provisional safeguard measure  
It is proposed to apply a provisional safeguard meas ure to imports of tubes and pipes of iron or 
steel, which will take the form of an additional ad valorem  duty of 25%.  
3. Entry into force of the proposed provisional safeguard measure  
The provisional safeguard measure is expected to enter into force on the day immediately following 
the date of publication, in Morocco's Official Journal, of the joint order imposing the measure  (the 
measure is not yet in force ). 
4. Expected duration of the provisional safeguard measure  
The provisional safeguard measure will be applied for 200 days.  
5. The basis for:  
5.1. Making a preliminary determination, as provided for in Article 6 of the Agreement 
on Safeguards , that increased imports are causing or threatening to cause serious 
injury:  
1. Increase d imports  
Imports of tubes and pi pes of iron or steel rose significantly by 126% between 2014 and 2015, 
before falling by  32% between  2015 and 2016 , and ris ing once again by  approximately 11% in 2017 
and 2018. The drop in imports in 2016 do es not represent a fall in relation to previous years, as 
imports still  followed  an upwards trend. In fact, discounting  the year 2015, in which the volume of 
imports was exceptionally high, the 2016 import volume rose by 54.4% compared to 2014. The 
exceptional  peak in 2015 was due to imports of  tubes and pipes for the Noor Project at the 
Ouarzazate solar power station.  
In 2017, imports rose by 10.5% in relation to 2016, and the upward trend continued into 2018.  In 
short, imports of tubes and pipes of iron or steel grew by 89% during the 2014 -2018 review period.  
As regards production, the share of imports of the product under consideration fell in 2016 compared 
to 2014 -2015, then rose by 17% during the more recent 2017 -2018 period.  
This increase in imports appears to be the result of unforeseen developments such as the imbalance 
between significant global production capacity and stagnant global demand in this sector, the recent 
increase in protective measures regarding  the products c oncerned, and the persistent effects of the 
2008 world  crisis, most notably the considerable decline in European demand, which has led to 
significant overproduction . 
 
2014  2015  2016  2017  2018  
Imports (tonnes)  18,287  41,331  28,235  31,213  34,600  
Trends  - 126%  -31.68%  10.55%  10.85%  
Share of imports in domestic industry 
production (%)  45.69%  96.73%  42.86%  54.34%  63.45%  
Source:  Foreign Exchange Board and data from the domestic industry.  
2. Serious injury or threat thereof  
2.1. Market share taken by imports  
The market share taken by imports increased between 2014 and 2018 despite a decline in 2016.  It 
rose from 18% in 2014 to 32% in 2015 and from 21% in 2017 to 26% in 2018. In parallel , the 
market share of the domestic industry fell from 45% in 2016 to 40% in 2017 and 37% in 2018.  
 2014  2015  2016  2017  2018  
Market share taken by imports (%)  18.29%  32.23%  21.46%  21.42%  26.23%  
Source:  Data from the domestic industry.  G/SG/N/6/MAR/12 • G/SG/N/7/MAR/5 • G/SG/N/11/MAR/8  
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  2.2. Sales  
Domestic industry sales rose between 2014 and 2016, but dropped  steadily  in 2017 and 2018.  Sales 
levels in 2016 read with the domestic industry's net results for the same year show that the sales 
volume was achieved at the expense of the profitability of the domestic industry and is not a n 
indication of the ind ustry's performance.  
 2014  2015  2016  2017  2018  
Sales (tonnes)  40,482  42,474  60,338  58,681  49,859  
Source:  Data from the domestic industry.  
2.3. Production  
Production showed a downward trend , falling by  13% in 2017/2016 and 5% in 2018/2017.  
 2014  2015  2016  2017  2018  
Production (tonnes)  40,028  42,730  65,870  57,442  54,527  
Source:  Data from the domestic industry.  
2.4. Productivity  
Productivity dropped by 16% between 2016 and 2017 and by 7% between 2017 and 2018.  
 2014  2015  2016  2017  2018  
Productivity (tonnes/employee)  106.74  113.64  151.43  126.80  117.26  
Source:  Data from the domestic industry.  
2.5. Production capacity utilization  
The production capacity utilization rate rose between 2014 and 2016, but dropped steadily in 2017 
and 2018. The domestic industry was unable to fully utilize its available capacity.  
 2014  2015  2016  2017  2018  
Capacity utilization rate  29.65%  31.65%  48.79%  42.55%  40.39%  
Source:  Data from the domestic industry.  
2.6. Profit s and losses 
The weighted average profit of the domestic industry fell substantially by 89.4% between 2014 and 
2016. Despite a n improvement  in 2017, the domestic industry faced losses for the first time in 2018. 
These losses amounted to MAD 2.5 million. Thus, to cope with competition from imports and 
maintain its market share, the domestic industry had to reduce its profit margins in the 2014 -2017 
period, recording substantial losses in 2018.  
 2014  2015  2016  2017  2018  
Weighted average profit of the domestic 
industry ( MAD thousand)  17,386  13,354  1,836  10,726  -2,552  
Source:  Data from the domestic industry.  
2.7. Employment  
Despite stagnant production and sales in the local market, employment rose from 2016  onwards . 
According to the domestic industry, the increase in employment was due to the increased use of 
temporary employees by producers given the uncertainties of market trends. For this reason, 120 
of 465 employees in 2018 were temporary workers.  
 2014  2015  2016 2017  2018  
Number of employees  375 376 435 453 465 
Source:  Data from the domestic industry.  G/SG/N/6/MAR/12 • G/SG/N/7/MAR/5 • G/SG/N/11/MAR/8  
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  2.8. Inventories  
Increased imports resulted in accumulated unsold finished goods inventories in 2016, 2017 and 
2018. According to the petitioners, these surplus inventories have incurred major logistics and 
financial costs for the company.  
 2014  2015  2016  2017  2018  
Inventories (tonnes)  12,801  11,286  15,920  13,481  16,319  
Source:  Data from the domestic industry.  
In conclusion, in relation to serious injury, the investigation data verified by the Ministry shows an 
overall impairment in the position of the domestic industry, especially in 2017 and 2018, with a drop 
in production, sales, market share and sales profit ability.  
3. Causation  
In accordance with Article 54 of Law No. 15 -09 on trade defence measures and Article 46 of its 
implementing decree, the investigation must determine whether factors other than a massive 
increase in imports are also causing serious inj ury to the domestic industry.  
The Ministry examined the correlation between the increased imports and the injury suffered, as 
well as the effects of factors other than increased imports that may have caused injury to the 
domestic industry producing  tubes a nd pipes of iron or steel, namely: a contraction in demand or 
changes in the patterns of consumption; trends in domestic prices and production costs of the like 
or directly competitive domestic product ; competition between foreign and domestic producers and 
between the domestic producers themselves; technological developments; domestic industry export 
results; and productivity trends.  
The examination of the data collected from the petitioners shows that, provisionally and at this 
stage, the cont ribution of factors other than imports to the injury suffered by the domestic industry 
is not clearly established and that this injury is primarily caused by increased imports.  
5.2. Determining the existence of critical circumstances where delay would caus e serious 
injury which it would be difficult to repair  
A preliminary determination has been made that critical circumstances exist in which delay would 
cause injury  that would be difficult to repair.  
In addition to the impairment of the domestic industry's  position in 2017 and 2018, the serious 
injury suffered by the industry worsened in the first half of 2019 when compared to the same period 
in 2018.  
The examination of recent available data from 2019 concerning  imports of the product under 
consideration sh ows that the volume of imports rose steadily in 2019 . The import volume grew from 
17,858 tonnes in the first half of 2018 to 23,043 tonnes in the same period in 2019 , an increase of 
29%. This volume represents 66% of the total volume imported  in 2018  and 8 7% of the domestic 
industry 's production in the first half of 2019.  
Trends in domestic industry indicators in the first half of 2019 show further deterioration in relation  
to the same period in 2018. Production fell by 5% from 27,709 tonnes to 26,408 tonnes , while  sales 
fell by 4% from 25,048 tonnes to 24,066 tonnes.  
The above examination of recent data shows a continued increase in imports accompanied by a drop 
in domestic industry production and sales . It also shows  that imports are increasing at such an 
accelerated rate that the domestic industry has no chance of  improv ing its indicators.  
In light of the above, the Ministry considers that the collected data justif ies the existence of the 
massive increase in imports of tubes and pipes of iron or steel that is causing serious injury to the 
domestic industry , and therefore recommends the application of a provisional safeguard measure in 
accordance with Article 61.3 of  Law No. 15 -09 in order to avoid further injury during the investigation 
period.  G/SG/N/6/MAR/12 • G/SG/N/7/MAR/5 • G/SG/N/11/MAR/8  
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  Given the rate of increase of imports and the situation of the domestic industry, it is considered that 
a delay would cause serious injury  that would be difficult to repair du ring the investigation , in the 
absence of a provisional safeguard measure.  
6. Offer of consultations under Article 12.4  
In accordance with  Article 12.4 of the Agreement on Safeguards, Morocco is prepared to consult on 
the provisional safeguard measure with th ose Members having a substantial interest as exporters of 
the products  concerned . 
III. NOTIFICATION UNDER A RTICLE 9, FOOTNOTE 2 , UPON TAKING A DECIS ION NOT TO 
APPLY THE PROVISIONA L SAFEGUARD MEASURE TO CERTAIN PRODUCTS 
ORIGINATING IN DEVEL OPING COUNTRIES  
In accordance with the requirements governing special and differential treatment for developing 
country Members of the WTO, laid down in Article 76 of Law No. 15 -09 and Article 9 of the 
WTO Agreement on Safeguards: Albania; Angola; Antigua and Barbuda; Argent ina; Armenia; 
Bahrain, Kingdom of; Bangladesh; Barbados; Belize; Benin; Bolivia, Plurinational State of; 
Botswana; Brazil; Brunei Darussalam; Burkina Faso; Burundi; Cabo Verde; Cambodia; Cameroon; 
Central African Republic; Chad; Chile; Colombia; Congo; Cos ta Rica; Côte d'Ivoire; Cuba; 
Democratic Republic of the  Congo ; Djibouti; Dominica; Dominican Republic; Ecuador; Egypt; 
El Salvador; Fiji; Gabon; the Gambia; Georgia; Ghana; Grenada; Guatemala; Guinea; 
Guinea -Bissau; Guyana; Haiti; Honduras; Hong Kong, Chi na; India; Indonesia; Jamaica; Jordan; 
Kenya; Korea, Republic of; Kuwait; Kyrgyz Republic; Lao People's Democratic Republic; Lesotho; 
Macao, China; Madagascar; Malawi; Malaysia; Maldives; Mali; Mauritania; Mauritius; Mexico; 
Moldova, Republic of; Mongolia;  Montenegro; Mozambique; Myanmar; Namibia; Nepal; Nicaragua; 
Niger; Nigeria; Oman; Pakistan; Panama; Papua New Guinea; Paraguay; Peru; Philippines; Qatar; 
Rwanda; Saint Kitts and Nevis; Saint Lucia; Saint Vincent and the Grenadines; Samoa; Saudi Arabia, 
Kingdom of; Senegal; Sierra Leone; Singapore; Solomon Islands; South  Africa; Sri Lanka; 
Suriname; Swaziland; Chinese Taipei; Tajikistan; Tanzania; Thailand; The former Yugoslav Republic 
of Macedonia (FYROM);  Togo; Tonga; Trinidad and Tobago; Tunisia; Uganda;  United Arab Emirates; 
Uruguay; Vanuatu; Venezuela, Bolivarian Republic of; Viet  Nam; Yemen; Zambia; and Zimbabwe .  
7. Contact point for correspondence concerning the investigation  
To request information about the investigation procedure, parties should conta ct the Ministry using 
the fax number or email address provided below:  
Ministère de l'Industrie, de l'Investissement, du Commerce et de l'Économie Numérique  
Direction Générale du Commerce  
Direction de la Défense et de la Réglementation Commerciale  
Division de la Défense Commerciale  
Parcelle 14, Business center, aile Nord bd Riad,  
Hay Riad. BP 610, Rabat Chellah, M orocco  
Tel.: +212537 70  18 46  
Fax: +212537 72  71 50  
Email : mberredouane@mcinet.gov.ma   
 cmoublad @mcinet.gov.ma   
 ablamine @mcinet.gov.ma  
 
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