G/SG/N/10/TUR/15/Suppl.2  
G/SG/N/11/TUR/20/Suppl.2  
15 July 2021 
(21-5616) Page: 1/8 
Committee on Safeguards  Original:  English  
 
  
NOTIFICATION UNDER ARTICLES  7.2 AND  12.1(C) OF THE AGREEMENT   
ON SAFEGUARDS ON TAKING A DECISION  TO APPLY A SAFEGUARD  
MEASURE  (EXTENSION OF THE EXISTING MEASURE)  
NOTIFICATION PURSUANT TO ARTI CLE 9, FOOTN OTE 2 
OF THE AGREEMENT ON SAFEGUARDS  
TURKEY 
Wallpaper and similar wallcoverings  
Supplement  
The following communication, dated and received on 1 4 July 2021, is being circulated at the request 
of the delegation of Turkey.  
 
_______________  
 
 
Turkey  enclose s a notification pursuant to Article 7.2, 12.1(c) and Article 9, footnote 2 of the 
Agreement on Safeguards, on taking a decision to extend a safeguard measure that is being applied 
against imports of wallpaper and similar wallcoverings and non-application of the safeguard measure 
to developing countries . The initial safeguard measure was notified with the document 
G/SG/N/8/TUR/1 5 - G/SG/N/10/TUR/1 5 - G/SG/N/11/TUR/ 20, dated 26 June 2015. The first 
extension of the measure  pursuant to Articles 7.2 and 12.1(c) was notified with  the docum ent 
G/SG/N/6/TUR/20/Suppl.1, dated 9 March  2018. The initiation of the review investigation pursuant 
to Article 7.2 regarding the extension of a safeguard measure was also notified with the document 
G/SG/N/6/TUR/20/Suppl.2 , dated 20 January  2021. 
Consistent with Article 12.3 of the Agreement on Safeguards , Turkey is ready to hold consultations 
with those Members having a substantial interest as exporters of the product concerned.  
1  NOTIFICATION UNDER ARTIC LES 7.2 AND 12.1(C) OF THE AGREEMENT ON 
SAFEGUARDS UPON TAKING A DECISION TO EXTEND A SAFEGUARD MEASURE  
1.1  Evidence that the safeguard measure continues to be necessary to prevent or remedy 
serious injury or threat thereof caused by increased imports  
The investigation has been conducted by the Turkish Investigating Authority . In order to review the 
situation of the domestic industry after imposition of the safeguard measure, an evaluation of all 
relevant factors of an objective and quantifiable nature was undertaken for the period under 
consideratio n (PUC), January  2016-December  2020. The data, which were submitted by the 
applicant companies and used in this analysis, represent major proportion of the total domestic 
production of the product involved according to the 2020 figures.  
(i) Consumption  
In calc ulating the size of the domestic market, domestic sales figures of the applicant  domestic 
producers and import figures in the related period are summed up.  G/SG/N/10/TUR/15/Suppl.2 • G/SG/N/11/TUR/20/Suppl.2  
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  Tons 2016  2017  2018  2019  2020  
Consumption  
(Indexed)  100 106 99 61 64 
Throughout  the PUC, consumption index  decreased,  except for 2017 and  2020, and ended up with 
a decrease of 36 points in comparison with that of the base year.  
(ii) Production  
Tons 2016  2017  2018  2019  2020  
Production  
(Indexed)  100 166 159 140 135 
Annual production index  of the domestic producers , which  increased in 2017, decreased  from 201 8 
onwards . In 2020, production index was recorded as 135 . 
(iii) Domestic Sales  
Tons 2016  2017  2018  2019  2020  
Domestic Sales  
(Indexed)  100 122 135 87 95 
Domestic sales indicate annual increase rates of 2 2% and 10% in 2017  and 2018, respectively . 
However, the index decreased by 36 % in 2019 and went back to  95 point s in 2020.  
(iv) Capacity and Capacity Utilization  
Tons  2016  2017  2018  2019  2020  
Capacity (Indexed)  100 100 160 160 160 
CUR(%) (Indexed)  100 166 99 88 84 
The capacity and the capacity utilization rate of the domestic producers are indexed in the table 
above . There is an increase in domestic production capacity  in 2018 . With the effects of the 
decreasing  production , a decrease  in the capacity utilization rate is observed  from the year 201 7 
onwards.  
(v) Employment  
Number of 
Workers  2016  2017  2018  2019  2020  
Employment  
(Indexed)  100 94 126 114 123 
The overall number of workers employed by the domestic producers increase d in 2018, in parallel 
with the increasing capacity . Following a dec line in 2019, the index level of employment reached 
123 in 2020.  
(vi) Productivity  
Tons per Worker  2016  2017  2018  2019  2020  
Productivity  
(Indexed)  100 177 126 123 110 
When the productivity indicator that describe s the annual production amount performed by one 
worker is examined, it is seen  an increase by 77% in 201 7 in comparison to that of 201 6. However, 
the productivity has a decreasing trend with the effects of low capacity utilization rate s in 2018 
onwards . G/SG/N/10/TUR/15/Suppl.2 • G/SG/N/11/TUR/20/Suppl.2  
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  (vii) Stocks  
Tons 2016  2017  2018  2019  2020  
Stocks  
(Indexed)  100 312 310 399 410 
The end of period stocks increased  during the PUC , except for 2018 . It is understood that the 
wallpaper sector tends to keep stocks due to its characteristics such as changing needs of end users 
and the difference between supply and demand  conditions  in certain periods.  
(viii)  Profitability  
Net Profit/Total 
Sales  2016  2017  2018  2019  2020  
Profitability  
(Indexed)  100 75 63 43 105 
The index of  the profitability of the domestic produc ers is given in the table above . According to 
these values , profitability index, which dropped by 25 % in 2017, increased in the 2020. 
(ix) Conclusion  
With the introduction of  the safeguard measure in 2015, absolute and relative imports  of wallpaper  
and similar wallcoverings  have decreased considerably and the situation of the domestic producers  
has entered an upward trend . As a result, the market share  and the sales of the domestic producers 
increased  relatively during the PUC and the domestic industry realized  a capacity increase in 2018.  
During the PUC, employment figures also went up, however, the capacity u tilization rate and labor 
productivity have a decreasing trend with the effects of low capacity utilization rates from 2018 
onwards . The stocks increased constantly during the PUC. 
The profitability has been decreasing for the first four years with the increase of wallpaper production 
and the number of producer s in the country . The main reason for this situation is increased costs . 
In addition to  the increase in the prices of raw materials used in production , rising costs of basic 
inputs (labor, energy, etc.) and the negative impact of Covid -19, the newly established companies ' 
increasing  financial and  research and development costs  are among the main reasons for the 
decrease in profitability . However, the profitability began to increase a nd recover in 2020 . Therefore, 
it is concluded that the economic figures of the domestic industry recovered to some extent.  
1.2  Information on imports in absolute term and relative to domestic production  
Imports figures of the PUC are presented in the table be low. In addition to the figures covered by 
the PUC, imports statistics of the first 4 -month periods of 2020 and 2021 are provided as 
supplementary information.  
(i) General View of Imports  
IMPORTS  Quantity  Value  Unit Price  Change  
Period  Kg $ ($/Kg)  Kg $ ($/Kg)  
2016  2,224,999  13,214,426  5.94 - - - 
2017  2,079,416  13,526,406  6.50 -7% 2% 10% 
2018  1,214,959  8,496,343  6.99 -42% -37% 8% 
2019  664,602  4,985,626  7.50 -45% -41% 7% 
2020  654,789  4,781,271  7.30 -1% -4% -3% 
2020(4)  164,337  1,273,031  7.75  - - - 
2021(4)  192,975  1,522,746  7.89 17% 20% 2% 
As seen in the table above, in the investigation period imports of the product concerned followed a 
decreasing trend after the entry into force of the safeguard measure in 2016 . Imports decreased by 
7% to 2,07 9 tons in 2017 compar ed to that of the previous year . Decrease rates became 42% and 
45% in 2018 and 2019, respectively.  G/SG/N/10/TUR/15/Suppl.2 • G/SG/N/11/TUR/20/Suppl.2  
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  On the contrary, the most recent import data shows an increasing trend . In the first 4 -month  period  
of 202 1, quantity of imports increased by 17%, compared to the same period of the previous year.  
It is understood that within the scope of the investigation, imports of the product concerned have 
increased in unit price , except for 2020. 
(ii) Imports Relative to Domestic Production  
Imports/Production  2016  2017  2018  2019  2020  
Index  100 62 38 24 25 
Imports relative to domestic production  has shown a sharply declining trend . The index, which stood 
at 100 in 201 6, went down to 25 points  in 2017.  
(iii) Market Share of Imports  
Market Share of 
Imports  2016  2017  2018  2019  2020  
Index  100 89 55 49 46 
The index of market share of imports decreased from 100 in 2016 to 46 in 2020.  
1.3  Precise description of the product involved  
The HS  based codes under the Turkish Customs Tariff Schedule and description of the product  
concerned are listed in the table below.  
HS Based Code  Description of the Product  
4814.20.00.00.00  Wallpaper and similar wallcoverings, consisting of paper coated or covered, on the  
face side, with a grained, embossed, coloured, design -printed or otherwise  
decorated layer of plastics  
4814.90.10.00.00  Wallpaper and similar wallcoverings, consisting of grained, embossed, surface - 
coloured, design -printed or otherwise su rface-decorated paper, coated or covered  
with transparent protective plastics  
4814.90.70.10.00  Wallpaper and similar wall coverings, consisting of paper covered, on the face side,  
with plaiting material, whether or not bound together in parallel strands or woven  
1.4  Description of any part of the imported product that will no longer be subject to the 
measure in the extension  
Not applicable.  
1.5  Precise description of the proposed measure  
The safeguard measure  is proposed to be extended for 3 years until 5 August  2024 (5 August  2024 
is included)  in the form of specific duty which will be implemented as shown in the table below.  
Turkish Customs 
Tariff Code  Description of The Product  1st Period  
(6.8.20 21- 
5.8.20 22) 2nd Period  
(6.8.20 22- 
5.8.202 3) 3rd Period  
(6.8.202 3- 
5.8.202 4) 
4814.20.00.00.00  Wallpaper and similar wallcoverings, consisting of 
paper coated or covered, on the face side, with a 
grained, embossed, colour ed, design -printed or 
otherwise decorated layer of plastics  
3.00 
USD/Kg  2.75 
USD/Kg  2.50 
USD/Kg  4814.90.10.00.00  Wallpaper and similar wallcoverings, consisting of 
grained, embossed, surface -coloured, 
design -printed or otherwise surface -decorated 
paper, coated or covered with transparent 
protective plastics  
4814.90.70.10.00  Wallpaper and similar wall coverings, consisting 
of paper covered, on the face side, with plaiting 
material, whether or not bound together in 
parallel strands or woven  G/SG/N/10/TUR/15/Suppl.2 • G/SG/N/11/TUR/20/Suppl.2  
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  1.6  Proposed date of introduction of the measure  
The measure will come into force on 6 August  2021. 
1.7  Expected duration of the measure  
The expected duration of the proposed measure is three years.  
1.8  Proposed date for the review  
Not applicable.  
1.9  Expected timetable for progressive liberalization of the measure  
The measure is proposed to be liberalized annually as stated in the Section  1.5. 
1.10  If the notification relates only to a finding of serious injury or threat thereof, and 
does not relate to a decision to apply or exte nd a safeguard measure:  
Not applicable.  
1.11  Information relating to the extension of a safeguard measure  
(i) Evidence that the safeguard measure continues to be necessary to prevent or remedy serious  
injury or threat thereof : 
With the entry into force of the safeguard measure, imports  of the product under investigation 
decreased remarkably during the investigation period, while the weighted average import unit price 
increased continuously except for 2020 . It is thought that the  reason for the recent increase in 
imported unit prices is the shift in line with consumer preferences in wallpaper and similar wall 
coverings to the upper segment product types, which are more expensive on a global basis . It is 
understood that the increas e in domestic production unit sales prices reflects a similar situation . In 
addition, the introduction of a specific safeguard measure has had imported products shift to upper 
segment high unit price segment in the market since  they are subject to less burden of measure  
proportionately . Finally, rise in production cost s is another reason behind the increase in unit prices.  
The International Trade Center (ITC) data of the global exporters of wallpaper and similar 
wallcoverings classified in the Customs Headi ngs as 4814.20 and 4814.90 which covers the top 
5 countries ranked according to the amount of exports realized in 2020 and approximately  
constitutes 75% of the whole exports  are presented in the following table.  
Countries  Quantity (Thousand Tons)  Value (Million $)  
2016  2017  2018  2019  2020  2016  2017  2018  2019  2020  
China  73 93 90 111 119 280 340 327 378 402 
Germany  54 54 48 44 43 261 257 246 211 209 
Russian Federation  16 18 23 26 29 54 74 90 102 108 
Ukraine  47 51 45 27 24 129 145 134 81 73 
Belgium  18 19 18 22 21 108 116 115 125 128 
Other  133 131 119 112 84 752 708 701 866 541 
Total  341 365 343 342 319 1.584  1.641  1.613  1.763  1.461  
 G/SG/N/10/TUR/15/Suppl.2 • G/SG/N/11/TUR/20/Suppl.2  
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  Countries  Unit Price ($/Kg)  % 
2016  2017  2018  2019  2020  2016  2017  2018  2019  2020  
China  3.84 3.65 3.64 3.41 3.38 21% 26% 26% 32% 37%  
Germany  4.85 4.80 5.13 4.78 4.90 16% 15% 14% 13% 13% 
Russian Federation  3.35 4.14 3.94 3.94 3.77 5% 5% 7% 8% 9% 
Ukraine  2.76 2.85 2.97 3.00 3.05 14% 14% 13% 8% 7% 
Belgium  6.11 6.07 6.32 5.73 6.10 5% 5% 5% 6% 7% 
Other  5.63 5.43 5.89 7.74 6.46 39% 36% 35% 33% 26% 
Total  4.65 4.49 4.70 5.16 4.58 100%  100%  100%  100%  100%  
As seen in the aforementioned table, China, Germany and the Russian Federation are the largest 
exporting countries within the framework of global exports and the share of China, which was the 
largest exporter during the investigation period, in total expor ts has increased continuously and the 
export price has decreased constantly in the same period . Export unit prices of China and the 
Russian  Federation, which are among the top 3 exporters , are below the general average export 
prices . In this context, it is  understood that these countries continue to have the opportunity to 
export low unit price wallpaper and similar wall coverings to other countries.  
In addition, although there was no price undercutting for general imports during the investigation 
period, i t was determined that products originating from the Russian Federation would undercut the 
prices of domestic products if the measure were not implemented . In this context, it is thought that 
if the exports  of these countries, which  are in the first place i n global exports , were increasingly 
forwarded into Turkish market  with the mentioned low unit values , significant obstacles w ould arise 
for domestic manufacturers to adapt to the competition conditions.  
In this respect, it has been determined that the safeguard measure continues to be necessary to 
prevent and remedy serious injury, taking into account that there is a delicate balanc e between 
import ed and domestic product prices on the market.  
(ii) Evidence that the industry concerned is adjusting:  
It is understood that there has been a sharp decline in import figures with the implementation  of 
safeguard measures in the investigation perio d, and it is also understood that domestic producers 
have recovered to some extent in economic indicators . Following  the safeguard measure, some 
economic indicators such as production, sales, capacity and employment increased, and market 
share of imports declined considerably . 
On the other hand, i n terms of industrial costs derived from the increasing exchange rate due to the 
use of imported raw materials ; and of commercial costs due to new factory establishment, capacity 
increase and increase in R&D expenditures , it is observed that there has been a decrease  in 
profitability in the first four years of PUC, however, it began to recover in 2020.  
It has been fo und that domestic producers have been endeavoring to adapt  to a competitive 
environment in which safeguard measure will not be implemented  in the future . Most of the 
companies , that started production activities especially after the safeguard measure , expanded their 
product ranges by developing new and different type and size wallpaper s, focusing on premium  
products , established R&D units which were absent in the past and carrie d out some improvements  
within the company in order to increase quality standards.  
On the other hand, Covid -19 pandemic has also had significant negative effect s on the wallpaper 
sector , with a contraction in the market and rising raw material costs . It is known that efforts are 
being made by the companies in the sector to supply the raw materials from domestic producers, 
which  are needed by the wallpaper sector . It is considered that the safeguard measure  should be 
continued in order to make the paper and paint production in Turkey, which are the most important 
raw material s in terms of added -value and to develop the subsidiary industry branches more easily.  
In this context, it is understood that the domestic wallpaper industry is in the process of adaptati on 
within the framework of the external dependency on input s, the resources allocated for the R&D for 
the fashionable products, the establishment of new factories and the financing costs due to the 
capacity increase . Besides, the domestic producers recentl y focused on the premium segment G/SG/N/10/TUR/15/Suppl.2 • G/SG/N/11/TUR/20/Suppl.2  
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  products and also the new machines, which have the ability of production  of different size wallpapers . 
The domestic industry started to establish a more firm and widespread marketing network after 
2018 to be able to more co mpetitive against the global companies . 
(iii) Reference to the WTO document that notified the initial application of the measure : 
The introduction of the definitive safeguard measure was notified with the document 
G/SG/N/8/TUR/1 5, G/SG/N/10/TUR/1 5, G/SG/N/11/TUR/ 20, dated 2 6 June 2015. 
(iv) Duration of the measure from initial application till the da te at which it will be extended:  
The safeguard measure was initiated on  6 August  2015 and, after the first extension in 2018, will 
be in force till 5 August  2021. Turkey now intends to extend the safeguard measure until 
5 August  2024. 
(v) Precise description of the measure in place prior to the date of extension  
The measure in place p rior to the date of extension i s a specific  duty, which  was put into force on 
imports of wallpaper and similar wallcoverings by the Council of Ministers decision published in the 
Official Gazette dated  10 August  2018, no. 30505 . The level of duties is  identified  in the table below.  
Turkish Customs 
Tariff Code  Description of The Product  1st Period  
(6.8.2018 -< 
5.8.2019)  2nd Period  
(6.8.2019 - 
5.8.2020)  3rd Period  
(6.8.2020 - 
5.8.2021)  
4814.20.00.00.00  Wallpaper and similar wallcoverings, 
consisting of paper coated or covered, on the 
face side, with a grained, embossed, 
coloured, design -printed or otherwise  
decorated layer of plastics  
3.75 USD/Kg  3.50 USD/Kg  3.25 USD/Kg  4814.90.10.00.00  Wallpaper and similar wallcoverings, 
consisting of grained, embossed, 
surface -coloured, design -printed or otherwise 
surface -decorated paper, coated or covered 
with transparent protective plastics  
4814.90.70.10.00  Wallpaper and similar wall coverings, 
consisting of paper covered, on the face side, 
with plaiting material, whether or not bound 
together in parallel strands or woven  
1.12  Information relating to exporting members  
(i) The major exporting Members of imports of the product involved:  
Countries  Quantities (Tons)  Value (Thousand $) 
2016  2017  2018  2019  2020  2016  2017  2018  2019  2020  
Germany  441 474 385 308 253 2.446  2.977  2.446  1.889  1.614  
Italy 263 289 157 127 133 2.048  2.262  1.332  1.027  1.049  
China  156 244 258 85 115 862 1.532  1.507  475 653 
Belgium  98 139 75 60 60 942 1.251  709 459 524 
Holland  76 52 36 27 28 662 460 303 245 244 
Ukraine  327 225 102 7 15 1.314  889 418 24 60 
Belarus  93 45 0 0 10 442 218   
31 
Russian Federation  124 188 86 20 10 398 763 472 90 26 
France  48 37 22 5 9 339 289 279 124 86 
Japan  7 3 7 5 7 70 41 86 64 54 
Other  592 383 88 22 15 3.693  2.843  944 588 439 
Total  2.225  2.079  1.215  665 655 13.214  13.526  8.496  4.986  4.781  
(ii) There are no exporting members to which the measure does not apply for any reason other 
than the application of Article 9.1  
Not applicable.  G/SG/N/10/TUR/15/Suppl.2 • G/SG/N/11/TUR/20/Suppl.2  
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  1.13  Members are encouraged to attach, in an electronic form, publicly available 
document(s) containing the relevant decision(s) made by the competent authority.  
The official documents regarding the investigation and th e final decision are available in  the link 
below.  
https://ticaret.gov.tr/ithalat/ticaret -politikasi -savunma -araclari/korunma -onlemleri/yururlukteki -
onlemler  
2  NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 OF THE AGREEMENT ON 
SAFEGUARDS  
2.1  The measure  
It is proposed to impose safeguard measure as described in Section  1.5. 
2.2  The product subject to the measure  
The measure is applied to the product described in Section 1. 3. 
2.3  Developing countries  to which the measure is not applied under article 9.1 of the 
Agreement on Safeguards.  
The developing countries which are excluded from the measure as they export in quantities less than 
3% of imports to Turkey are listed below.  
Afghanistan, Angola, Antigu a And Barbuda, Argentina, Albania, Azerbaijan, Bangladesh, Barbados, 
Belarus, Belize, Benin, Bolivia (Plurinational State Of), Bosnia And Herzegovina, Botswana, Brazil, 
Burkina Faso, Burundi, Bhutan, Algeria, Djibouti, Cook Islands, Chad, Democratic Republ ic Of The 
Congo, Dominican Republic, Dominica, Ecuador, Equatorial Guinea, El Salvador, Indonesia, Eritrea, 
Ethiopia, Morocco, Fiji, C ôte D'Ivoire, Philippines, State Of Palestine, French Polynesia, Gabon, 
Gambia, Ghana, Guinea, Guinea -Bissau, Grenada, Gua temala, Guyana, South Africa, South Sudan, 
Georgia, Haiti, India, Honduras, Iraq, Iran, Jamaica, Cambodia, Cameroon, Cabo Verde, 
Montenegro, Kazakhstan, Kenya, Kyrgyzstan, Kiribati, Colombia, Comoros, Congo, Kosovo, 
Costa  Rica, Democratic People's Republic  Of Korea, Cuba, Lao People's Democratic Republic, 
Lesotho, Liberia, Libya, Lebanon, Madagascar, Republic Of North Macedonia, Malawi, Maldives, 
Malaysia, Mali, Marshall Islands, Mozambique, Mexico, Egypt, Micronesia (Federated States Of), 
Mongolia, Republi c Of Moldova, Montserrat, Mauritania, Mauritius, Myanmar, Namibia, Nauru, Nepal, 
Niger, Nigeria, Nicaragua, Niue, Central African Republic, Uzbekistan, Pakistan, Palau, Panama, 
Papua New Guinea, Paraguay, Peru, Rwanda, Russian Federation, Samoa, Sao Tome A nd Principe, 
Senegal, Seychelles, Serbia, Sierra Leone, Solomon Islands, Somalia, Sri Lanka, Saint Kitts And 
Nevis, Saint Lucia, Saint Vincent And The Grenadines, Sudan, Suriname , Eswatini , Chile, Tajikistan, 
United Republic Of Tanzania, Thailand, Timor -Leste, Togo, Tonga, Trinidad And Tobago, Tunisia, 
Tuvalu, Turkmenistan, Uganda, Ukraine, Oman, Uruguay, Jordan, Vanuatu, Venezuela (Bolivarian 
Republic Of), Viet Nam, Yemen, Zambia, Zimbabwe . 
 
__________