G/SG/N/8/CAN/3/Suppl.1  
G/SG/N/10/CAN/1  
G/SG/N/11/CAN/1/Suppl.1  
 
13 May 2019  
(19-3291) Page: 1/10 
Committee on Safeguards  Original: English  
 
 NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT ON  
SAFEGUARDS ON FINDIN G A SERIOUS INJURY O R THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
 
NOTIFICATION PURSUAN T TO ARTICLE 12.1(C)   
OF THE AGREEMENT ON SAFEGUARDS  
 
NOTIFICATION PURSUAN T TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
CANADA  
(Certain steel products)  
The following communication, dated 11 May 2019, is being circulated at the request of the Delegation 
of Canada.  
 
_______________  
 
 
Enclosed please find a copy of notifications pursua nt to Article 12.1(c) and Article 9, footnote 2 of 
the WTO Agreement on Safeguards, upon taking a decision to impose a safeguard measure on 
imports of certain steel products (heavy plate and stainless steel wire).  
 
  G/SG/N/8/CAN/3/Suppl.1 • G/SG/N/10/CAN/1 • G/SG/N/11/CAN/1/Suppl.1  
 
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  NOTIFICATION PURSUAN T TO ARTICLE 12.1( C)  
OF THE AGREEMENT ON SAFEGUARDS  
The global safeguard investigation was initiated by the Canadian International Trade Tribunal (CITT) 
on October 11, 2018 (G/SG/N/6/CAN/4, p.4 -6). This was done concurrently to a decision to impose 
provisional safeguard me asures, which entered into force on October 25, 2018 for a period of 
200 days (G/SG/N/6/CAN/4, p.2 -3). The CITT issued its inquiry report and recommendations on 
April 3, 2019 (G/SG/N/8/CAN/3, circulated April 5, 2019).  
 
1. Provide evidence, citing relevan t data and the applicable period of investigation of 
serious injury or threat thereof caused by increased imports.  
 
The CITT inquiry determined that imports of heavy plate and stainless steel wire were threatening 
to cause serious injury to the domestic industry producing like or directly competitive goods. The 
CITT report ( www.citt -tcce.gc.ca/en/node/8544 ) and notification G/SG/N/8/CAN/3 (April 5, 2019) 
provide further information on the applicable period of investigation and relevant data.  
 
2. Provide information on whether there is an absolute increase in imports or an 
increase in imports relative to domestic production (please see also Article 2.1 for the 
context).  
 
The CITT has analysed import d ata covering the period of investigation, i.e. the period from 
January  1, 2015 to June 30, 2018, for each of the seven classes of goods subject to the inquiry. The 
CITT has analyzed data for each year of the period of investigation (POI), as well as for th e first half 
of 2018, compared to the same period in 2017.  
 
For the products for which the CITT has found threat of serious injury to the domestic industry, the 
CITT has found evidence of an increase in imports both in absolute and relative terms during the 
POI.  
 
In the case of heavy plate, absolute imports increa sed 38% between 2015 and 2017, with a year -
on-year increase of 98% between 2016 and 2017. Imports in 2018 are projected to remain at a high 
level based on projected data in the first half of 2018. Imports relative to domestic production 
increased 20 percen tage points between 2015 and 2017, with a year -on-year increase of 
38 percentage points in 2017. Relative imports continued to increase in the first half of 2018.  
 
In the case of stainless steel wire, absolute imports increased 8% between 2015 and 2017. 
Additionally, imports increased 82% in the first half of 2018, compared to the same period in 2017, 
and annualized imports for 2018 were on pace to exceed all years throughout the POI. Imports 
relative to domestic production decreased between 2015 and 2017,  but increased by 84  percentage 
points in the first half of 2018, compared to 2017. Imports in the first half of 2018 actually exceeded 
the volume of domestic production.  
 
3. Provide the precise description of the products involved.  
 
The products covered by the finding of threat of serious injury are:  
A. Heavy plate  
B. Stainless steel wire  
 
Further product details and exclusions are described in Annex I, along with HS codes under which 
these products are usually imported. HS codes are provided for illustrative purposes only.  
 
4. If the final measure replaces a provisional measure, or if a final measure is 
extended, a Member is encouraged to provide a written description of any part of the 
imported product that will no longer be subject to the measur e and the Harmonized 
System numbers under which it enters at least at a 6 -digit level, and at a sub -national 
level (e.g., 8 -digit, 9 -digit or 10 -digit level) if practicable.  
 
The final safeguard measure to be imposed, described below, follows from the prov isional measure 
notified on October 12, 2018 (G/SG/N/6/CAN/4), which entered into force on October  25, 2018.  
 G/SG/N/8/CAN/3/Suppl.1 • G/SG/N/10/CAN/1 • G/SG/N/11/CAN/1/Suppl.1  
 
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  Provisional safeguard measures on concrete reinforcing bar, energy tubular products, hot -rolled 
sheet, pre -painted steel and wire rod  ceased to a pply on April 28, 2019. A detailed description of 
those products can be found in Annex II, along with HS codes under which these products are usually 
imported. HS codes are provided for illustrative purposes only.  
 
5. Provide precise description of the pr oposed measure.  
 
The final safeguard measures are separate tariff -rate quotas on imports of heavy plate and stainless 
steel wire. Consistent with Canada 's international commitments, special consideration is given to 
developing countries and certain free tr ade agreement partners, as some of Canada 's free trade 
agreements provide that trading partners be accorded preferential treatment when imposing 
safeguards. The final safeguard measures therefore apply to imports from all sources,  other than 
goods originating in the United States, Mexico, Chile, Israel,  Korea, Panama, Peru, Colombia and 
developing countries benefitting from the General Preferential Tariff in Canada under the Customs 
Tariff (see the list of developing countries at A nnex III below).  
 
The tariff -rate quota for each product over a three -year period is as follows:  
 
Heavy Plate  
Period  Quota Volume  
(tons) Over -Quota Surtax  
(%) 
May 13, 2019 to May 12, 2020  100,000  20 
May 13, 2020 to May 12, 2021  110,000  15 
May 13, 2021 to October 24, 2021  54,699  10 
Stainless Steel Wire  
Period  Quota Volume  
(tons) Over -Quota Surtax  
(%) 
May 13, 2019 to May 12, 2020  2,800  25 
May 13, 2020 to May 12, 2021  3,080  15 
May 13, 2021 to October 24, 2021  1,532  5 
 
6. Provide proposed date of introduction of the measure.  
 
The final measures are scheduled to enter into force on May 13, 2019.  
 
7. Provide expected duration of the measure.  
 
The safeguard measures are scheduled to remain in force until October 24, 2021.  
 
8. For a measure with a  duration of more than three years, provide the proposed date 
for the review (under Article 7.4) to be held not later than the mid -term of the measure, 
if such a date for the review has already been scheduled.  
 
Not applicable.  
 
9. If the expected duration  is over one year, provide expected timetable for progressive 
liberalization of the measure.  
 
Each year, for both product categories, quota quantities will grow by 10 per cent, and the over -
quota surtax will be reduced. More details on the progressive libe ralization of the final safeguard 
measures can be found above, in section 5.  
 
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 extend a safeguard measure:(i) provide the 
deadlines for interested parties to comment or any other procedures relevant to the 
decision to apply the measures, and (ii) provide information regarding procedures for 
prior consultation with those Members having a substantial interest as exporters of the 
product concerned.  
 
Not applicable.  
 G/SG/N/8/CAN/3/Suppl.1 • G/SG/N/10/CAN/1 • G/SG/N/11/CAN/1/Suppl.1  
 
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  11. Provide information relating to the extension of a safeguard measure:   
 
Not applicable.  
 
12. If the notification relates to a decision to apply or extend a safeguard measure, 
Members are encouraged to provide the  following information:  
(i) The major exporting Members of imports of the product involved.  
(ii) If there are any exporting Members to which the measure does not apply for any 
reason other than the application of Article 9.1, the names of such exporting Me mbers 
and reasons for non -application of the measure.  
 
Consistent with Canada 's international commitments, special consideration is given to certain free 
trade agreement partners, as Canada 's free trade agreements provide that certain trading partners 
be accorded preferential treatment when imposing safeguards. Therefore, the final safeguard 
measures do not apply to goods originating in the following countries, as per the relevant free trade 
agreement with Canada: Colombia, Chile, Israel, Korea, Mexico, Panama, Peru and the United 
States.  
 
13. Members are encouraged to attach, in an electronic form, publicly available 
document(s) containing the relevant decision(s) made by the competent autho rity. This 
document may be in the original language of the Member, even when the language is not 
one of the official languages of the WTO. The document will neither be translated nor 
circulated to the Committee, but will be made available by the Secretaria t to Members 
requesting it.  
 
The government order imposing the measure will be published in the May 29th edition of the Canada 
Gazette, Part II.  
 
Details on the final safeguard measures can be found in the Notice to Importers issued by Global 
Affairs Cana da (https://international.gc.ca/trade -commerce/controls -controles/notices -
avis/945.aspx ) and Customs Notice 19 -08 issued by the Canada Border Service Agency  
(https://www.cbsa -asfc.gc.ca/publications/cn -ad/cn19 -08-eng.html ).  
 
  G/SG/N/8/CAN/3/Suppl.1 • G/SG/N/10/CAN/1 • G/SG/N/11/CAN/1/Suppl.1  
 
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  NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
1. Specify the measure  
 
The measure consists of a tariff -rate quota in excess of which additional duties must be paid, as 
described in the notification under Article 12.1(c) above.  
 
2. Specify the product subject to the measure  
 
The products subject to the measure are:  
A. Heavy plate 
B. Stainless steel wire  
 
3. Specify the developing countries to which the measure is not applied under 
Article  9.1 of the Agreement on Safeguards  
 
The measure does not apply to products originating in the list of developing country members of the 
WTO reproduced in Annex III. The list at Annex III includes developing country members of the WTO 
benefitting from the General Preferential Tariff in Canada  under the Customs Tariff .  
 
  G/SG/N/8/CAN/3/Suppl.1 • G/SG/N/10/CAN/1 • G/SG/N/11/CAN/1/Suppl.1  
 
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  ANNEX I  
 
PRODUCTS COVERED BY FINAL SAFEGUARD MEAS URES  
A. Heavy plate:  
 
Hot-rolled carbon steel plate and high -strength low -alloy steel plate not further manufactured than 
hot-rolled, heat -treated or not, in widths from 80 inc hes (+/ - 2,030 mm) to 152 inches  
(+/- 3,860 mm) inclusive, and thicknesses from 0.375 inches (+/ -9.525 mm) up to and including 
4.0 inches (101.6 mm), with all dimensions being plus or minus allowable tolerances contained in 
the applicable standards.  
 
For greater certainty, these dimensional restrictions apply to steel plate that contains alloys greater 
than required by recognized industry standards provided that the steel does not meet recognized 
industry standards for an alloy -specification steel plate.  
 
The definition excludes:  
• All plate in coil form;  
• All plate having a rolled, raised figured at regular intervals on the surface (also known as 
floor plate).  
 
Heavy plate is commonly imported under any of the following 10 -digit HS numbers below.  
• Prior to January 1, 2017: 7208.51.00.10; 7208.51.00.93; 7208.51.00.94; 7208.51.00.95; 
7208.52.00.10; 7208.52.00.93; 7208.52.00.94; 7208.52.00.95  
• As of January 1, 2017: 7208.51.00.10; 7208.51.00.93; 7208.51.00.94; 7208.51.00.95; 
7208.52.00.10; 7208.52.00.93 ; 7208.52.00.96  
 
HS codes are provided for illustrative purposes only. There may be goods under the listed HS 
numbers that do not fall within the product definition, or heavy plate that is imported under an HS 
number that is not listed.  
 
B. Stainless stee l wire:  
 
Cold drawn, and cold drawn and annealed, stainless steel round wire, up to and including 0.256 
inches (6.50 mm) in maximum solid cross -sectional dimension; and cold drawn, and cold drawn and 
annealed, stainless steel cold -rolled profile wire, up t o and including 0.031 square inches 
(0.787  sq. mm) in maximum solid cross -sectional area.  
 
Stainless steel wire is commonly imported under the following 10 -digit HS numbers: 7223.00.00.10; 
7223.00.00.20  
 
HS codes are provided for illustrative purposes only. There may be goods under the listed HS 
numbers that do not fall within the product definition, or rebar that is imported under an HS number 
that is not listed.   G/SG/N/8/CAN/3/Suppl.1 • G/SG/N/10/CAN/1 • G/SG/N/11/CAN/1/Suppl.1  
 
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  ANNEX II  
 
PRODUCTS COVERED BY PROVISIONAL MEASURES  NOT COVERED BY FINA L 
SAFEGUARD MEASURES  
A. Concrete reinforcing bar:  
 
Hot-rolled deformed steel concrete reinforcing bar in straight lengths or coils, commonly identified 
as rebar, in various diameters up to and including 56.4 millimet ers, in various finishes.  
The definition excludes:  
• plain round bar;  
• fabricated rebar products; and  
• 10-mm-diameter (10M) rebar produced to meet the requirements of CSA G30 18.09 (or 
equivalent standards) and that is coated to meet the requirements of epoxy standard 
ASTM A775/A 775M 04a (or equivalent standards) in lengths from 1 foot (30.48 cm) up 
to and including 8 feet (243.84 cm).  
Concrete reinforcing bar is commonly imported under the following 10 -digit HS numbers:  
7213.10.00.00; 7214.20.00.00 . 
 
HS codes are provided for illustrative purposes only. There may be goods under the listed HS 
numbers that do not fall within the product definition, or rebar that is imported under an HS number 
that is not listed.  
 
B. Energy tubular:  
 
Carbon and alloy ste el energy tubular products, including line pipe, tubing, and casing, finished or 
unfinished, welded or seamless, having a nominal outside diameter greater than or equal to 
2.375  inches (60.3 mm), and less than or equal to 60 inches (1,524 mm) (with all dim ensions being 
plus or minus allowable tolerances contained in the applicable standards), heat treated or not heat 
treated, regardless of length, wall thickness, surface finish (coated or uncoated), and end finish 
(plain, beveled , threaded, or threaded and coupled), in all grades, meeting or supplied to meet 
American Petroleum Institute ("API") 5L, API 5L -B, API 5CT, Canadian Standards Association ("CSA") 
Z245.1, International Standards Organization ("ISO") 3183, American Society for Testing and 
Materials (" ASTM") ASTM A333, ASTM A106, ASTM A53 -B or their equivalents and/or enhanced 
proprietary standards, whether or not actually certified or stenciled, whether or not meeting 
specifications for other end uses (e.g. single -, dual -, or multiple ‑certified, for us e in oil and gas, 
piling pipe, or other applications).  
 
For greater certainty, the product definition includes casing and tubing that are referred to as "green 
tubes" in the industry. These are formed tubes with the requisite chemistry and dimensions of ca sing 
or tubing, but that require further processing before they may be used in a well. They are included 
in the definition above as unfinished, non -heat treated, or plain end pipe. The finishing required may 
be heat treatment, threading, coupling, testing,  or any combination of these processes.  
 
The definition excludes:  
• Drill pipe, pup joints, couplings, coupling stock, galvanized or stainless steel line pipe, and 
casing or tubing containing 10.5 % or more by weight chromium;  
• Submerged arc longitudinal welded line pipe, regardless of grade, outside diameter and 
wall thickness, in lengths of 60 feet (18.288 m) with no girth welds for exclusive use in 
slurry or tailings piping systems in oil sands projects and marked "For Use as 
Slurry/Tailings Pipe Only "; for greater certainty, use in a pipeline meeting CSA Z -662 or 
as pressure piping meeting CSA B51 Code is not permitted under this exclusion;  
• Submerged arc longitudinal welded line pipe, regardless of outside diameter, wall 
thickness and length, for exclusive use in high -temperature steam distribution pipelines 
and marked "For Steam Distribution Only ", certified to meet the requirements of CSA 
Z662-15 Clause 14 and/or Annex I and certified to have proven fatigue/creep test 
propert ies as provided in sections I.2.3.2 and I.3.2.1 of CSA Z662 -15 as established by 
means of a creep test of no less than 10,000 hours carried out in accordance with ASTM 
E139; and  
• Unfinished seamless carbon or alloy steel line pipe in the form of mother tubes having 
outside diameters of 184, 197, 210, 235, 260, 286, 328, 350, 368, 377, 394, 402, 419, G/SG/N/8/CAN/3/Suppl.1 • G/SG/N/10/CAN/1 • G/SG/N/11/CAN/1/Suppl.1  
 
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  426, 450, 475, 480, 500, 521, 530, 560, 585 or 610 mm, in wall thicknesses from 9 m m 
to 110 mm and in lengths ranging from 7.72 m to 15.24 m, not stenciled as meeting any 
line pipe product specification, but imported for use in the production, and not solely for 
finishing, of seamless line pipe made to any one or several of API 5L, CSAZ2 45.1, 
ISO 3183, ASTM A333, ASTM A335, ASTM A106, ASTM A53 or their equivalents;  
• ASME SA 672 or ASME SA 691 electric -fusion welded steel pipe as certified under the ASME 
"Boiler and Pressure Vessel Code " rules (and stenciled  with at least one of the 
aforem entioned standards), of a length not to exceed 15 feet (4.572 m), for use other 
than in a CSA Z -662 pipeline application and imported with authorized inspection 
certificates and applicable ASME Partial Data Reports; and  
• Line pipe, regardless of grade, outs ide diameter and wall thickness, single stenciled as 
"DNV-OS-F101" for exclusive use in offshore applications and marked "For Offshore 
Applications Only ". 
 
Energy tubular products are commonly imported under a 10 -digit HS number falling under any of 
the fo llowing subheadings: 7304.19; 7304.29; 7305.11; 7305.12; 7305.19; 7306.19; 7306.29.  
 
HS codes are provided for illustrative purposes only. There may be goods under the listed HS 
numbers that do not fall within the product definition, or rebar that is impo rted under an HS number 
that is not listed.  
 
C. Hot-rolled sheet:  
 
Flat hot -rolled carbon and alloy steel sheet and strip, including secondary or non -prime material, in 
various widths from 0.75 inches (19 mm) and wider, and  
• for product in coil form, in thicknesses from 0.054 inches to 0.625 inches (1.37 mm to 
15.875 mm) inclusive,  
• for product that is cut to length, in thicknesses from 0.054 inches up to but not including 
0.187 inches (1.37 mm up to but not including 4.75 mm) .  
 
The definition excludes:  
• flat-rolled stainless steel sheet and strip; and  
• flat hot -rolled, cut to length alloy steel products containing no less than 11.5 % 
manganese, in thicknesses from 0.12 inches to 0.19 inches (3 mm to 4.75 mm).  
 
Hot-rolled sheet is commonly imported under th e following 10 -digit HS numbers:  
• Prior to January 1, 2017:  7208.25.00.10; 7208.25.00.20; 7208.25.00.30; 
7208.25.00.40; 7208.26.00.10; 7208.26.00.20; 7208.26.00.30; 7208.26.00.40; 
7208.27.00.10; 7208.27.00.20; 7208.27.00.30; 7208.27.00.40; 7208.36.00.10; 
7208.36.00.20; 7208.36.00.30; 7208.36.00.40; 7208.37.00.10; 7208.37.00.20; 
7208.37.00.30; 7208.37.00.40; 7208.38.00.10; 7208.38.00.20; 7208.38.00.30; 
7208.38.00.40; 7208.39.00.10; 7208.39.00.20; 7208.39.00.30; 7208.39.00.40; 
7208.53.00.10; 7208.53.00.20; 720 8.53.00.30; 7208.53.00.40; 7208.54.00.10; 
7208.54.00.20; 7208.54.00.30; 7208.54.00.40; 7208.90.00.00; 7211.14.00.90; 
7211.19.00.10;    7211.19.00.90;    7225.30.00.0.0;   7226.91.00.10;    7226.91.00.90  
• As of January 1, 2017:  7208.25.00.00; 7208.26.00.00; 7208.27.00.00; 7208.36.00.00; 
7208.37.00.10; 7208.37.00.20; 7208.37.00.50; 7208.38.00.10; 7208.38.00.20; 
7208.38.00.50; 7208.39.00.00; 7208.53.00.00; 7208.54.00.00; 7208.90.00.00; 
7211.14.00.90;    7211.19.00.90;    7225.30.0 0.00;    7226.91.00.00  
 
HS codes are provided for illustrative purposes only. There may be goods under the listed HS 
numbers that do not fall within the product definition, or rebar that is imported under an HS number 
that is not listed.  
 
D. Pre-painted steel:  
 
Pre-painted flat -rolled products of non -alloy and alloy steel (not including stainless steel) which are  
• painted,   
• varnished or  
• coated with plastics on at least one side,  G/SG/N/8/CAN/3/Suppl.1 • G/SG/N/10/CAN/1 • G/SG/N/11/CAN/1/Suppl.1  
 
- 9 - 
 
  in coils or cut lengths, in thicknesses up to 0.079 inches (2.0066 mm) and widths up to 61.5 inches 
(1562.1 mm) with all dimensions being plus or minus allowable tolerances contained in the applicable 
standards.  
 
The definition excludes:  
• products with a final coating of zinc -dust (a zinc -rich paint, containing by weight 70% or 
more of zinc); and  
• products with a substrate with a metallic coating of chromium.  
 
Pre-painted steel is commonly imported under the following 10 -digit HS numbers: 7210.70.00.00; 
7212.40.00.00 . 
 
HS codes are provided for illustrative purposes only. There ma y be goods under the listed HS 
numbers that do not fall within the product definition, or rebar that is imported under an HS number 
that is not listed.  
 
E. Wire rod:  
 
Certain hot -rolled products of carbon steel and alloy steel, in coils, of approximately r ound cross 
section, less than 19.00 mm in actual solid cross -sectional diameter.  
 
The definition excludes:  
• stainless steel;  
• tool steel;  
• high‑nickel steel;  
• ball bearing steel; and  
• concrete reinforcing bars and rods (also known as rebar).  
 
Wire rod is commonly imported under the following 10 -digit HS numbers: 7213.20.00.10; 
7213.91.00.11; 7213.91.00.21; 7213.91.00.31; 7213.99.00.10; 7213.99.00.30; 7213.99.00.50; 
7227.90.00.10.  
 
HS codes are provided for illustrative purposes only. There may  be goods under the listed HS 
numbers that do not fall within the product definition, or rebar that is imported under an HS number 
that is not listed.  
 
 
 
 
 
  G/SG/N/8/CAN/3/Suppl.1 • G/SG/N/10/CAN/1 • G/SG/N/11/CAN/1/Suppl.1  
 
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  ANNEX III  
 
LIST OF DEVELOPING C OUNTRY MEMBERS  
The final safeguard measures do not apply to produc ts covered originating in the developing 
country members of the WTO listed below.  
 
Afghanistan  Madagascar  
Angola  Malawi  
Armenia  Mali 
Bangladesh  Mauritania  
Belize  Moldova  
Benin  Mongolia  
Bolivia  Morocco  
Burkina Faso  Mozambique  
Burundi  Myanmar  
Cambodia  Nepal  
Cameroon  Nicaragua  
Cape Verde  Niger  
Central African Republic  Nigeria  
Chad Pakistan  
Congo  Papua New Guinea  
Côte d'Ivoire  Paraguay  
Democratic Republic of Congo  Philippines  
Djibouti  Rwanda  
Egypt  Samoa  
El Salvador  Senegal  
Fiji Sierra Leone  
Gambia  Solomon Islands  
Georgia  Sri Lanka  
Ghana  Swaziland  
Guatemala  Tajikistan  
Guinea  Tanzania  
Guinea -Bissau  Togo 
Guyana  Tonga  
Haiti Uganda  
Honduras  Ukraine  
Kenya  Vanuatu  
Kyrgyzstan  Vietnam  
Laos Yemen  
Lesotho  Zambia  
Liberia  Zimbabwe  
  
 
 
__________