G/SG/N/8/MAR/8  
G/SG/N/10/MAR/8  
G/SG/N/11/MAR/8/Suppl.1  
16 September  2020 
(20-6192) Page: 1/4 
Committee on Safeguards  Original:  French  
 
  
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON SAFEGUARDS  
ON FINDING A SERIOUS INJURY OR THREAT THEREOF  
CAUSED BY INCREASED EXPORTS  
NOTIFICATION UNDER CHAPTER 12.1(C) OF THE AGREEMENT ON SAFEGUARDS  
ON TAKING A DECISION TO APPLY A SAFEGUARD MEASURE  
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 , OF THE  
AGREEMENT ON SAFEGUARDS  
MOROCCO  
Tubes and pipes of iron or steel 
The following communication, dated 7 September 2020, is being circulated at the request of the 
delegation of Morocco . 
 
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Morocco hereby confirms the results of the preliminary determination in the safeguards 
investigation  concerning imports of tubes and pipes of iron or steel, as notified in document 
G/SG/N/6/MAR/12 -G/SG/N/7/MAR/5 -G/SG/N/11/MAR/8  on the application of a provisional 
safeguard measure.  
The above -mentioned provisional safeguard measure was published in Official Journal No. 6838 
of12 December 2019 in the form of Joint Order No. 3032.19 of 4  Safar 1441 (3 October 2019) of 
the Minister of Industry, Investment, Trade and the Digital Economy and the Minister of the Economy 
and Finance.  
In accordance with Article 12.1(b) and 12.  1(c) of the Agreement on Safeguards, Morocco hereby 
notifies a finding of serious injury to the domestic industry producing tubes and pipes of iron or steel, 
and the definitive safeguard measure proposed. This notification contains all pertinent information 
relating to the proposed safeguard measure, in accordance with Article 12.2 of the  Agreement on 
Safeguards, and an offer to consult with Members having a subs tantial interest as exporters of the 
product concerned, in accordance with Article 12.3 of the Agreement.  G/SG/N/8/MAR/8 • G/SG/N/10/MAR/8 • G/SG/N/11/MAR/8/Suppl.1  
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  1  DETERMINATION OF SERIOUS INJURY CAUSED BY INCREASED IMPORTS  
Overview of indicators pertaining to the domestic industry producing tubes and pipes of 
iron or steel  
 2014  2015  2016  2017  2018  2019  
Imports (tonnes)  6,037  14,653  18,103  16,670  15,356  34,959  
Production (tonnes)  59,244  63,318  79,518  85,125  79,314  71,031  
Share of imports in relation to domestic 
production  10.19%  23.14%  22.77%  19.58%  19.36%  49.22%  
Market share taken by imports  7% 14% 15% 13% 14% 29% 
Sales (tonnes)  64,162  72,013  76,056  88,032  77,250  72,712  
Productivity (tonnes/employee)  274 304 384 364 335 292 
Capacity utilization rate  31% 33% 40% 43% 40% 37% 
Profits (MAD thousand)  22,819  23,369  51,262  22,958  19,708  11,470  
Number of employees  216 208 207 234 237 243 
Source:  Foreign Exchange Board and data from the domestic industry.  
➢ Market share taken by imports:  As indicated in the above table, the market share 
taken by imports increased from 7% in 2014 to 15% in 2016. The share then fell back 
2 percentage points between 2016 and 2017 before recovering slightly between 2017 
and 2018. It then rose by 15 percentage points in 2019, to the detriment of the market 
share taken by the domestic industry.  
➢ Sales:  Sales improved between 2014 and 2017 before falling in 2018 and 2019. The 
year-on-year increases were 12.24% in 2015, 5.61% in 2016 and 15.75% in 2017. I n 
the downturn that followed, sales contracted by 12.25% between 2017 and 2018 and 
by 5.87% between 2018 and 2019. 
➢ Production:  Although the production of tubes and pipes of iron or steel grew between 
2014 and 2017, it then shrank by 10.35% between 2017 and  2018 and by 10.44% 
between 2018 and 2019.  
➢ Productivity:  Productivity per employee grew until 2016, in line with the growth in 
production. However , the productivity rate declined by 5.21% in 2017, 7.97% in 2018 
and 12.84% in 2019 , following the downturn in  production . 
➢ Capacity utilization rate:  During the investigation period, the capacity utilization rate 
peaked in 2017, at 43%, before deteriorating in 2018 and 2019.  
➢ Employment:  Despite the decline in production and sales in the local market in 2018 
and 20 19, employment rose during the same period. According to the data from the 
investigation, the disconnect between employment levels on the one hand and 
production and sales on the other is due to the increased use of temporary workers as 
a result of uncerta inties linked to market trends.  
➢ Profitability:  Despite the domestic industry's profitability gains up to and including 
2016, profitability has fallen considerably since 2017. Specifically, productivity fell by 
55.21% between 2016 and 2017, 14.16% between 2 017 and 2018 and 41.80% 
between 2018 and 2019.  
In short, the analysis of various injury factors shows that the domestic industry is in crisis. 
Consequently, the Ministry has definitively concluded that there has been serious injury, as defined 
in Article 5 3 of Law No. 15 -09 and Article 45 of Decree No. 2 -12-645, to the domestic industry 
producing tubes and pipes of iron or steel.  G/SG/N/8/MAR/8 • G/SG/N/10/MAR/8 • G/SG/N/11/MAR/8/Suppl.1  
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  2  DETERMINATION OF THE EXISTENCE OF A MASSIVE INCREASE IN IMPORTS  
2.1  Absolute increase in imports  
In absolute terms, imports of tubes and pipes of iron or steel grew significantly by 143% in between 
2014 and 2015, then by 24% in 2016. These imports then contracted by 8% in both 2017 and 2018 
before growing significantly by 128% between 2018 and 2019. For the reporting period 2014 -2019, 
imports of tubes and pipes of iron or steel grew by 479%.  
 2014  2015  2016  2017  2018  2019  
Imports (tonnes)  6,037  14,653  18,103  16,670  15,356  34,959  
Trend  - +142.72%  +23.54%  -7.92%  -7.88%  +127.66%  
Source:  Data from the Foreign Exchange Board  
2.2  Increase in imports in relative terms compared to domestic production  
Imports of the product under consideration relative to domestic production grew significantly 
between 2014 and 2015, by 127%, before declining slightly between  2016 and 2018. The share of 
imports in relation to production , which was 10% in 2014, reached 49% in 2019,  rising  by a massive 
154% between 2018 and 2019. Between 2014 and 2019 , the growth rate of imports in relative 
terms compared to production was 383%.  
 2014  2015  2016  2017  2018  2019  
Share of imports in relation to domestic 
production  10.19%  23.14%  22.77%  19.58%  19.36%  49.22%  
Source:  Data from the Foreign Exchange Board and the domestic industry  
3  UNFORESEEN DEVELOPMENTS  
The Ministry's definitive view is that the massive increase in imports of tubes and pipes of iron or 
steel is due to Morocco's GATT commitments and to a confluence of unforeseen developments as 
defined by  Article 52 of Law No. 15 -09 and Article 2.1 of the Agreement on Safeguards.  
4  CAUSAL LINK  
In accordance with the requirements of Article 54 of Law No. 15 -09 and Article 46 of its implementing 
Decree, the Ministry examined the correlation between the massive increase  in imports and serious 
injury, and the eff ects of other factors that might cause serious injury to the domestic industry.  
As a result, the Ministry's definitive conclusion is that there is a causal link between the massive 
increase in imports of tubes and pipes of iron or steel and the serious inj ury to the domestic industry. 
This causal link is not affected by the existence of other injury factors, especially as none of these 
factors is likely to cause or threaten to cause serious injury to the domestic industry.  
5  DESCRIPTION OF THE PRODUCT SUBJECT  TO THE SAFEGUARD MEASURE  
The products subject to the definitive safeguard measure are tubes and pipes of iron or steel. These 
products are imported under the following Moroccan tariff headings and subheadings:  
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.  
Tubes and pipes of a diameter exceeding 406.4  mm, covered by section 7305 of the customs 
nomenclature, were excluded  from the scope of the investigation.  
6  DESCRIPTION OF THE PROPOSED MEASURE  
The definitive safeguard measure consists of an additional ad valorem  duty of 25%.  G/SG/N/8/MAR/8 • G/SG/N/10/MAR/8 • G/SG/N/11/MAR/8/Suppl.1  
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  7  PROPOSED DATE OF INTRODUCTION OF THE MEASURE  
The proposed definitive safeguard measure will enter into force on the day immediately following 
the date of publication in Morocco's Official Journal of the joint order imposing the measure.  
8  EXPECTED DURATION OF THE MEASURE  
The expected duration of the proposed measure is three years.  
9  EXPECTED TIMETAB LE FOR PROGRESSIVE LIBERALIZATION OF THE MEASURE  
In order to satisfy the requirement under Article 65 of Law No. 15 -09 for the progressive 
liberalization of the measure following its first year of application, the additional ad valorem  duty of 
25% will be reduced by 1 percentage point each year.  
10  DEVELOPING COUNTRIES EXCLUDED FROM THE DEFINITIVE SAFEGUARD MEASURE 
UNDER ARTICLE 9.1 OF THE  AGREEMENT ON SAFEGUARDS  
Albania; Angola; Antigua and Barbuda; Argentina; Armenia; Bahrain, Kingdom of; Bangladesh; 
Barbado s; Belize; Benin; Bolivia; Botswana; Brazil; Brunei  Darussalam; Burkina  Faso; Burundi; 
Cabo Verde; Cambodia; Cameroon; Central  African  Republic; Chad; Chile; Colombia; Congo; 
Costa  Rica; Côte  d'Ivoire; Cuba; Democratic  Republic of the  Congo; Djibouti; Domi nica; 
Dominican  Republic; Ecuador; Egypt; El  Salvador; Eswatini; Fiji; Gabon; Gambia; Georgia; Ghana; 
Grenada; Guatemala; Guinea; Guinea -Bissau; Guyana; Haiti; Honduras; India; Indonesia; Jamaica; 
Jordan; Kazakhstan; Kenya; Korea, Republic of; Kuwait; Kyrg yz 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; North Macedonia; 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; 
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.  
11  OFFER OF CON SULTATIONS 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 exporters of the 
products concerned.  
 
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