G/SG/N/10/MAR/3/Suppl. 5 
G/SG/N/11/MAR/2/Suppl. 5 
22 December  2021 
(21-9568) Page: 1/4 
Committee on Safeguards  Original:  French  
 
  
NOTIFICATION UNDER ARTICLE 12.1(C) OF THE AGREEMENT ON SAFEGUARDS  
(EXTENSION OF THE EXISTING MEASURE)  
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2,  
OF THE AGREEMENT ON SAFEGUARDS  
MOROCCO  
Wire Rods and Reinforcing Bars  
Supplement  
The following communication, dated  and received on  21 December  2021, is being circulated at the 
request of the delegation of Morocco . 
 
_______________  
 
 
Pursuant to Article 12.1(c) of the Agreement on Safeguards, Morocco hereby notifies the exte nsion 
of the safeguard measure on imports of wire rods and reinforcing bars.  
 
1. DESCRIPTION OF THE PRODUCT SUBJECT TO THE SAFEGUARD MEASURE  
The products subject to the safeguard measure are wire rods with a diameter of 5.5 to 14 millimetres 
and reinforcing bars with a diameter ranging from 5.5 to 40 millimetres . These products are imported 
under Moroccan tariff subheadings 7213.91.90.00 (wire rods) and 7214.20.90.00 and 
7214.99.91.00 (reinforcing bars).  
 
2. DESCRIPTION OF THE PROPOSED MEASURE  
The sa feguard measure consists of an additional specific duty of DH 0.55/kg applicable to imports 
in excess of a quota of 146,410 tonnes for wire rods and a quota of 123,938 tonnes for reinforcing 
bars. 
 
3. PROPOSED DATE OF INTRODUCTION OF THE MEASURE  
The definitiv e safeguard measure will be published in Morocco's Official Journal . Its provisions will 
enter into force  on 1 January  2022. 
 
4. EXPECTED DURATION OF THE MEASURE  
The Morocc an Minist ry of Industr y and Trade (the Ministry) plans to renew the safeguard measure 
for an additional period , until 15 October 2023. G/SG/N/10/MAR/3/Suppl. 5 • G/SG/N/11/MAR/2/Suppl. 5 
- 2 - 
  5. EXPECTED TIMETABLE FOR PROGRESSIVE LIBERALIZATION OF THE MEASURE  
The level of the quota for reinforcing bars will continue to increase by 6% each year to meet the 
liberalization requirement, in accordance with Article 65 of Law No. 15-09 on trade defence measures 
and Article 7.4 of the WTO Agreement on Safeguards . The quota for wire rods will be fixed at  
146,410 tonnes throughout the period of extension of the measure.  
Table 1 : Annual quota levels for reinforcing bars  
(In tonne s) 
 From 1 January 202 2 to 
31 December 202 2 From 1 January 202 3 to 
31 December 202 3 
Reinforcing bars  123,938  129,825  
 
6. EVIDENCE THAT THE SAFEGUARD MEASURE CONTINUES TO BE NECESSARY TO 
REMEDY OR PREVENT SERIOUS INJURY AND THAT THE INDUSTRY CONCERNED IS 
ADJUSTING  
In order to determine whether the safeguard measure continues to be necessary to remedy or 
prevent serious injury and whether the Moroccan industry is adjus ting in accordance with Article  69 
of Law No. 15-09 and Article 7.2 of the WTO Agreement on Safeguards, the Ministry examined 
whether the safeguard measure was still needed to remedy serious injury . In this connection, it 
examined wire rod and reinforcing bar import trends and the Moroccan industry's economic and 
financial indicators . The Ministry then examined whether the safeguard measure continued to be 
necess ary to prevent serious injury . The examination focused, for th is purpose, on the foreseeable 
and imminent behaviour of the imports and their effects on the Moroccan wire rod and reinforcing 
bar industry after the lifting of the safeguard measure . The Ministry also examined this industry's 
restructuring programme.  
 
6.1  Determination as to  whether the  safeguard measure continues to be necessary to 
remedy serious injury  
In order to determine whether the safeguard measure continues to be necessary to remedy serious  
injury, the Ministry examined the domestic industry's economic and financial indicators, namely 
production, production capacity, rate of capacity utilization, sales, production costs, profitability, 
inventories, productivity and employment . A slight, but nevertheless very fragile, improvement in 
the situation of the Moroccan wire rod and reinforcing bar industry was observed.  
Overview of indicators of serious injury suffered by the domestic wire rod and 
reinforcing  bar industry  
 
(Index: 2017=100 and first half of 
2020=100)   2017  2018  2019  2020  2020 
(first 
half)  2021  
(first 
half)  
Imports (tonnes)  Wire rod s 103,455  108,290  174,157  117,051  34,543  32,500  
Reinforcing 
bars 90,050  40,514  120,797  68,123  19,264  49 
Domestic 
production (tonnes)  Wire rod s 100 104 95 80 100 707 
Reinforcing 
bars 100 98 120 126 100 129 
Imports /Production  Wire rod s 100 101 177 142 100 13 
Reinforcing 
bars 100 46 112 60 100 0 
Local sales  (tonnes )  Wire rod s 100 100 98 102 100 437 
Reinforcing 
bars 100 100 120 118 100 138 G/SG/N/10/MAR/3/Suppl. 5 • G/SG/N/11/MAR/2/Suppl. 5 
- 3 - 
  (Index: 2017=100 and first half of 
2020=100)   2017  2018  2019  2020  2020 
(first 
half)  2021  
(first 
half)  
Exports ( tonnes ) Wire rod s 100 98 67 - - - 
Reinforcing 
bars 100 702 1415 35 - - 
Market share of 
domestic industry  Wire rod s 100 97 70 94 100 186 
Reinforcing 
bars 100 105 99 103 100 105 
Market share of 
imports  Wire rod s 100 102 121 104 100 40 
Reinforcing 
bars 100 47 112 66 100 0 
Local sales price  
(MAD/ tonne )  Wire rod s 100 114 104 100 100 121 
Reinforcing 
bars 100 108 89 82 100 125 
Profitabilit y 
(MAD/ tonne ) Wire rod s (100)  (50) (86) 1 (100)  650 
Reinforcing 
bars 100 48 37 29 (100)  6092 
Final inventories  
(tonnes ) Wire rod s 100 169 175 157 100 450 
Reinforcing 
bars 100 79 59 119 100 97 
Production capacity (tonnes ) 100 100 100 100 100 100 
Production capacity utilization 
rate 100 99 118 121 100 130 
Emplo yment (person s) 100 100 103 107 100 114 
Productivity (tonnes/employee)  100 99 114 113 100 135 
Invest ment  (MAD)  100 151 128 77 100 312 
Source : Data compiled from Foreign Exchange Board statistics and results of a survey for  domestic  producers . 
6.2  Determination as to whether the safeguard measure continues to be necessary to 
prevent serious injury  
In order to determine whether the safeguard measure continues to be necessary to prevent serious 
injury, the Ministry examined the risk that imports would continue to increase in the coming years 
due to factors such as the following:  
 
i. The increase in global overcapacity ; 
ii. The self -sufficiency of countries in the Middle East and North Africa  and exports from these 
countries ; and  
iii. The increased protection of domestic markets . 
Having examin ed the above factors, Morocco concluded that there is a real and imminent risk of 
imports of wire rods and reinforcing bars increasing once the safeguard measure is lifted . 
 
6.3  Determination as to whether the d omestic industry  engages in  adjustment plan s 
The Moroccan wire rod and reinforcing bar industry has provided evidence showing that it has 
instituted a structural adjustment plan aimed at increasing the competitiveness of the Moroccan 
steel sector . However, other adjustment measures are being implemented,  which require the 
application of the safeguard measure for an additional period . 
 
7. REFERENCE TO THE WTO DOCUMENT THAT NOTIFIED THE INITIAL APPLICATION OF 
THE MEASURE  
The WTO document containing the most recent Article 12 .1(c) notification is document 
G/SG/N/10/MAR/3/Suppl.4 - G/SG/N/11/MAR/2/Suppl.4 - G/SG/N/14/MAR/1/Suppl.3, published on  
22 January  2019. G/SG/N/10/MAR/3/Suppl. 5 • G/SG/N/11/MAR/2/Suppl. 5 
- 4 - 
  8. THE DURATION OF THE MEASURE FROM INITIAL APPLICATION UNTIL THE DATE ON 
WHICH IT WILL BE EXTENDED  
Morocco applied a provi sional safeguard measure to imports of wire rods and reinforcing bars, which 
entered into force on 3 0 May 2 013. This measure was applied definitively, for a period of two years, 
on 21 March 2 015. This measure was extended for a period of three years, until 31 December 2018 . 
It was then re-extended for another  three years, which will end on 31 December 2 021. Morocco now 
intends to extend this safeguard measure  for a period of one year, 9 months and 15 da ys, 
until 15 October  2023. 
 
9. DEVELOPING COUNTRIES EXCLUDED FROM THE SAFEGUARD MEASURE UNDE R 
ARTICLE  9.1 OF THE AGREEMENT ON SAFEGUARDS  
Albania ; Angola ; Antigua and Barbuda ; Argentina ; Armenia ; Bahrain, Kingdom of ; Bangladesh ; 
Barbados ; Belize; Benin; Bolivia; Botswana ; Brazil; Brunei Darussalam ; Burkina Faso ; Burundi ; 
Cabo Verde ; Cambodia ; Cameroon ; Central African Republic ; Chad; Chile; China; Colombia ; Congo; 
Costa Rica ; Côte d'Ivoire ; Cuba; Democratic Republic of the  Congo;  Djibouti ; Dominica ; 
Dominican  Republic ; Ecuador ; El Salvador ; Fiji; the former Yugoslav Republic of Macedonia 
(FYROM) ; Gabon; Gambia ; Georgia ; Ghana; Grenada ; Guatemala ; Guinea ; Guinea -Bissau ; Guyana ; 
Haiti; Honduras ; Hong Kong, China ; 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 Lucia ; 
Saint Kitts and Nevis ; 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 ; Togo; Tonga; Trinidad and Tobago ; Tunisia ; Uganda ; 
United Arab Emirates ; Uruguay ; Vanuatu ; Venezuela, Bolivarian Republic of ; Viet Nam ; Yemen ; 
Zambia ; Zimbabwe.  
 
10. OFFER OF CONSULTATIONS UNDER ARTICLE 12.3  
In accordance with Article 12.3 of the Agreement on Safeguards, Morocco is ready to consult on the 
proposed safeguard measure with those Members having a substantial interest as e xporters of the 
products concerned.  
 
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