G/SG/N/10/MAR/3/Suppl.4  
G/SG/N/11/MAR/2/Suppl.4  
G/SG/N/14/MAR/1/Suppl.3  
22 January  2019 
(19-0350) 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 1 1 January 2 019, 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 extension 
of the safeguard measure on imports of wire rods and reinforcing bars.  
 
1  DESCRIPTION OF THE P RODUCT SUBJECT TO TH E SAFEGUARD MEASURE  
The products subject to the safeguard measure are wire rods with a diameter of 5.5 to 14 milli metres 
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 safeguard 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 96,631  tonnes for reinforcing 
bars. 
 
3  PROPOSED DATE OF INTRODUCTION OF THE MEASURE  
The definitive safeguard measure will be published in Morocco's Official Journal . Its provisions will 
enter into force  on 31 December 2 018. 
 
4  EXPECTED DURATION OF THE MEASURE  
The Morocc an Minist ry of Industr y, Investment, Trade and the Digital Economy (the Ministry) plans 
to renew the safeguard measure for an additional duration of three years, i.e. until 
31 December  2021. 
 G/SG/N/10/MAR/3/Suppl.4 • G/SG/N/11/MAR/2/Suppl.4 • G/SG/N/14/MAR/1/Suppl.3  
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  5  EXPECTED TIMETABLE F OR PROGRESSIVE LIBER ALIZATION OF THE MEA SURE  
The level of the quota for reinforcing bars will continue to increase by 10 % 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 the date of the 
entry into force of the 
measure until 
31 December 2 019 From 1 January 2 020 to 
31 December 2 020 From 1 January 2 021 to 
31 December 2 021 
Reinforcing 
bars 96,631 106,294 116,923 
 
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 Min istry 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 whe ther the safeguard measure continued to be 
necessary 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 afte r the lifting of the safeguard measure . The Ministry also examined this industry's 
restructuring programme.  
 
6.1  The safeguard measure continues to be necessary to remedy or prevent 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, produ ction 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.  
Table  2: Overview of indicators of serious injury suffered by the domestic wire rod and 
reinforcing bar industry  
Index: 2014=100  
 
2014  2015  2016  2017  2017  
(first 
half)  2018  
(first 
half)  
Imports 
(tonne s) Wire rod  165,049 144,871 140,168 102,395 39,289 38,416 
Reinforcing 
bars 136,996 105,408 81,628 84,423 16,567 6,923 
Production 
(tonne s) Wire rod  100 127 188 276 141 161 
Reinforcing 
bars 100 117 122 109 56 54 
Imports 
/Production  Wire rod  100 69 45 23 17 14 
Reinforcing 
bars 100 66 49 56 22 9 
Sales 
(tonnes)  Wire rod  100 124 182 229 90 115 
Reinforcing 
bars 100 118 126 113 58 55 
Sales  
(thousand 
DH) Wire rod  100 110 137 193 79 115 
Reinforcing 
bars 100 105 101 112 54 56 G/SG/N/10/MAR/3/Suppl.4 • G/SG/N/11/MAR/2/Suppl.4 • G/SG/N/14/MAR/1/Suppl.3  
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2014  2015  2016  2017  2017  
(first 
half)  2018  
(first 
half)  
Average 
price/tonne  Wire rod  100 88 75 85 87 100 
Reinforcing 
bars 100 89 81 99 92 103 
Production 
costs 
(DH/t onne ) Wire rod 100 100 84 100 97 110 
Reinforcing 
bars 100 93 85 97 96 105 
Market size 
(tonne s) Wire rod  100 99 108 105 46 46 
Reinforcing 
bars 100 112 114 106 55 47 
Market 
share of 
imports  Wire rod  100 88 79 59 52 50 
Reinforcing 
bars 100 69 52 58 22 11 
Market 
share of 
domestic 
industry  Wire rod  100 128 175 263 308 347 
Reinforcing 
bars 100 104 107 103 102 114 
Production  capacity  
(tonnes)  2,605,000 2,605,000 2,605,000 2,605,000 1,407,500 1,407,500 
Rate of capacity utilization  100 116 124 116 109 108 
Final 
inventories 
(tonne s) Wire rod  100 85 72 120 84 27 
Reinforcing 
bars 100 121 139 119 99 102 
Local sale 
price  
(DH/tonne)  Wire rod  100 88 75 85 87 100 
Reinforcing 
bars 100 89 81 99 92 103 
Employment  100 106 101 102 103 102 
Productivity 
(tonne/person  employed ) 100 137 158 157 92 93 
Investment  (thousand 
DH) 234,941 159,609 157,609 170,176 64,780 77,824 
Export s in tonne s 1,930 706 9,702 27,016 15,354 32,558 
Profit  (thousand DH) 189,614 19,303 29,018 233,191 88,925 110,588 
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:  
 
- the risk of a sharp increase in imports caused by  global overcapacity ; 
- the threat posed by Chinese e xport s; 
- increased p rotection of domestic markets ; and 
- the self -sufficiency of countries in the Middle East and North Africa  and exports from these 
countries . 
Having examined the above fact ors, 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  Domestic industry adjustment plan  
The Moroccan wire rod and reinforcing bar industry has provided e vidence 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 . G/SG/N/10/MAR/3/Suppl.4 • G/SG/N/11/MAR/2/Suppl.4 • G/SG/N/14/MAR/1/Suppl.3  
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  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.3 -G/SG/N/11/MAR/2/Suppl.3 -G/SG/N/14/MAR/1/Su ppl.1,  dated 
22 December 2 015, and the amendment thereto, published on 1 9 April 2 016 in document 
G/SG/N/10/MAR/3/Suppl.3/Corr.1 -G/SG/N/11/MAR/2/Suppl.3/Corr.1 -
G/SG/N/14/MAR/1/Suppl.1/Corr.1.  
 
8  THE DURATION OF THE MEASURE FROM INITIAL  APPLICATION UNTIL T HE DATE ON 
WHICH IT WILL BE EXT ENDED  
Morocco applied a provisional 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. The measure was then extended for a period of three years, which will end on 
31 December 2 018. Morocco now intends to extend this safeguard measure until 3 1 December 2 021. 
 
9  DEVELOPING COUNTRIES  EXCLUDED FROM THE S AFEGUARD MEASURE UND ER 
ARTICLE  9.1 OF THE AG REEMENT ON SAFEGUARD S 
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.  
 
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