G/SG/N/8/TUR/13/Suppl.2  
G/SG/N/10/TUR/13/Suppl.3  
G/SG/N/11/TUR/16/Suppl.2  
 
9 November 2017 
(17-6090) Page: 1/8 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E  
AGREEMENT ON SAFEGUA RDS ON FINDING  
A SERIOUS INJURY OR THREAT THEREOF  
CAUSED BY INCREASED IMPORTS  
 
NOTIFICATION PURSUAN T TO ARTICLE 12.1(C)  
OF THE AGREEMENT ON SAFEGUARDS  
(EXTENSION OF THE EX TENSION MEASURE)  
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNO TE 2  
OF THE AGREEMENT ON SAFEGUARDS  
TURKEY 
(Polyethylene terephthalate)  
Supplement  
The following notification, dated 7 November 2017, is being circulated at the request of the 
Delegation of Turkey.  
 
_______________  
 
We provide notification pursuant to Article 7.2, 12.1(c) and Article 9, footnote 2 of the 
Agreement on Safeguards, on making a finding that the industry concerned is adjusting and on 
taking a decision to extend a safeguard measure concerning Polyethylene terephthalate (PET) and  
non-application of the safeguard measure to developing countries. The initial safeguard 
measure  was notified to Committee on Safeguards with the document G/SG/N/8/TUR/13 - 
G/SG/N/10/TUR/13 -G/SG/N/11/TUR/16, dated 24 June 2011.  The ex tension of the measure 
pursuant to articles 9 and 12.1(c) was notified with document G/SG/N/8/TUR/13/Suppl.1 - 
G/SG/N/10/TUR/13/Suppl.2 -G/SG/N//11/TUR/16 Suppl.1, dated 8 October 2014.  
Consistent with Article 12.3 of the Agreement on Safeguards , Turkey is r eady to hold 
consultations with those Members having a substantial interest as exporters of the product 
concerned.  
1  NOTIFICATION UNDER A RTICLE 12.1(C) OF TH E AGREEMENT ON SAFEG UARDS UPON 
TAKING A DECISION TO  EXTEND A SAFEGUARD M EASURE  
1.1   Evidence that the saf eguard measure continues to be necessary to prevent or 
remedy serious injury or threat thereof caused by increased imports  
The investigation has been carried out by the Turkish Investigating Authority. All relevant 
factors of an objective and quantifiable  natur e for the period of 2013 -2017 ( January -June) were 
evaluated.  Following figures (other than consumption and market shares) on economic indicators 
of the domestic producers are based on the data submitted by 3 domestic producers which 
produce whole dom estic production. Figures on consumption and market shares are based on the 
estimations of domestic sales of all domestic producers, general imports and vertical usage by the 
domestic producers.  G/SG/N/8/T UR/13/Suppl.2 • G/SG/N/10/TUR/13/Suppl.3 • G/SG/N/11/TUR/16/Suppl.2  
 
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  (i) Consumption  
Consumption of the product concerned in domes tic market was established on the basis of 
total domestic sales of all domestic producers, vertical usage by domestic producers and total 
imports of the product concerned into Turkey. The annual and periodical consumption the product 
concerned are shown in  the following table:  
 
Consumption  2013  2014  2015  2016  2016/6  2017/6  
Index  100 101 103 105 56 50 
Consumption of the product concerned increased steadily on annual basis. Consumption 
index, which was 100 in 2013, increased to 105 in 2016. Periodic consump tion index, which was 
56 in the first half of 2016, receded to 50 in the same period of 2017.  
(ii) Market Share  
Market shares of the imported and domestic products under investigation are as below.  
Market share  2013  2014  2015  2016  2016/6  2017/6  
Imported products (Index)  100 39 35 36 41 56 
Domestic products (Index)  100 188 193 192 185 164 
Market share of the imported products displayed a decrease between 2013 and 2014 as a 
result of a likewise decrease in imports. Market share index of imports decreased from 100 to 
39 between these years. From 2014 on, market share of imports increased gradually, and index 
grew into 56 in the first half of 2017.  
Market share of the domestic products increased steadily between 2013 and 2015, and 
index receded by 1 point in  2016. Index increased from 100 in 2013 to 192 in 2016. On periodical 
basis, index decreased from 185 in the first half of 2016 to 164 in the same period of 2017.  
(iii) Production  
Production  2013  2014  2015  2016  2016/6  2017/6  
Index  100 195 193 209 109 87 
Compared to 2013, annual domestic PET production almost doubled in 2014 and index 
increased from 100 to 195. Receding to 193 in 2015, production recovered in 2016 again and 
index increased to 209. Periodic production showed decrease in 2017. Index receded from 109 in 
the first half of 2016 to 87 in the same period of 2017.  
(iv) Production Capacity and Capacity Utilization Rate (CUR)  
Capacity  2013  2014  2015  2016  2016/6  2017/6  
Index  100 100 111 111 56 38 
CUR (Index)  100 195 174 188 197 226 
Annual productio n capacity of the product concerned showed an increase in 2015, and it 
remained stable in other years. Capacity index, which was 100 in 2013, increased to 111 in 2016. 
Periodical capacity index decreased from 56 in the first half of 2016 to 38 in the same period 
of 2017.  
Capacity utilization rate had a tendency to increase except for 2015. CUR index, which was 
100 in  2013, rose to 188 in 2016. Tendency to increase continued periodically as well, and periodic 
CUR index increased from 197 in first half of 201 6 to 226 in the same period of 2017.  G/SG/N/8/T UR/13/Suppl.2 • G/SG/N/10/TUR/13/Suppl.3 • G/SG/N/11/TUR/16/Suppl.2  
 
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  (v) Domestic Sales Volume  
Domestic sales  2013  2014  2015  2016  2016/6  2017/6  
Index  100 143 135 146 79 44 
Domestic sales followed a fluctuating pattern on annual basis. Sales index, which was 
100 in 2013, increased to 14 3 in 2014, and then decreased to 135 in 2015. Index increased 
to 146 in 2016. Periodic domestic sales showed a decrease. Index decreased from 79 in the first 
half of  2016 to  44 in the same period of 2017.  
(vi) Exports  
Exports  2013  2014  2015  2016  2016/6  2017/6 
Index  100 923 797 1.360  596 775 
Export sales of producers increased by nine times in 2014. Export index increased from 100 
in 2013 to 923 in 2014. Index receded to 797 in 2015, but it again increased to 1.360 in 2016. 
Periodic export sales index also  showed an increase. Index increased from 596 in the first half 
of 2016 to 775 in the same period of 2017.  
(vii) Stocks  
Closing Stocks  2013  2014  2015  2016  2016/6  2017/6  
Index  100 130 118 76 108 32 
Closing  stocks of domestic producers decreased steadily from 2014 on. Index, which was 
100 in  2013, increased to 130 in 2014, and decreased until 2016 to the level of 76. Periodic stocks 
index also showed a decrease. Index decreased from 108 in the first half of 2016 to 32 in the 
same period of 2017.  
(viii) Em ployment  
Employment  2013  2014  2015  2016  2016/6  2017/6  
Index  100 114 121 130 130 99 
Employment in PET production showed a tendency to increase on annual basis. Employment 
index increased from 100 in 2013 to 130 in 2016. Periodic employment showed a downwa rd 
display. Employment index decreased from 130 in the first half of 2016 to 99 in the same period 
of 2017.  
(ix) Productivity  
Productivity  2013  2014  2015  2016  2016/6  2017/6  
Index  100 171 160 161 84 87 
Productivity, in terms of production per person, incr eased steadily on annual basis, except 
for the slight decrease in 2015. Index, which was 100 in 2013, increased to 161 in 2016. Tendency 
to increase continued on periodic basis, and index increased from 84 in the first half of 2016 to 
87 in the same period  of 2017.  
(x) Profitability  
Profitability  2013  2014  2015  2016  2016/6  2017/6  
Index  -100 -78 101 -69 9 131 
Profitability of domestic producers showed a negative trend on annual basis, except for the 
year 2015. Profitability index, which was -100 in 2013 in creased to 101 in 2015. In 2016, index 
receded to -69. On periodic basis, profitability figures illustrated a positive trend. Index, which 
was 9 in the first part of 2016, increased to 131 in the same period of 2017.  G/SG/N/8/T UR/13/Suppl.2 • G/SG/N/10/TUR/13/Suppl.3 • G/SG/N/11/TUR/16/Suppl.2  
 
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  Conclusion  
Although the market share of  the domestic products had a fluctuating course on the annual 
basis, it has begun to increase following the application of safeguard measure. Lastly, in 2014, this 
increase with a rate of 80% has reached at the highest level. However, the domestic producer s 
had to carry on their business in a low profit margin in order to compete with the low -priced 
import, leading to very low profit.  Nevertheless, domestic producers have lost their market share 
since 2016 as a result of the increase in imports.  
Additionall y, some economic indicators of domestic production displayed a tendency to 
deteriorate in the investigation period. For instance, domestic sales and employment decreased in 
2017, and total production capacity has narrowed in the same period. There occurred  deterioration 
in some years in productivity, CUR, and export sales. Profitability rates followed a negative path on 
annual basis, except for the year 2015.  
1.2  Information on the course of imports and imports relative to domestic production  
For the evaluation  of absolute imports and relative imports to domestic production, data 
covering the period of 2013 -2017 ( January -June) has been used.  
(i) Absolute imports  
Total imports of PET decreased between the years 2013 and 2015, and rose by 2% in 2016. 
Periodical indicators maintained the tendency to increase, and imports rose by 21% in the first 
part of 2017 compared to the same period of 2016.  
On the other hand, the unit prices of imported and domestic products are compared with a 
view to assess the conditions o f competition in the domestic market.  
Prices  Unit 2013  2014  2015  2016  2016/6  2017/6  
Price Undercutting  Index  100 173 633 576 626 62 
Price Suppression  Index  100 98 150 164 157 30 
As can be seen in the table above, price undercutting and price suppressi on have been 
positive throughout the investigation period. In other words, during the investigation period, unit 
import prices of the product under investigation have coursed below the level domestic sales unit 
prices.  
Price undercutting index increased un til 2015, and decreased slightly in 2016. Index 
increased from 100 in 2013 to 633 in 2015, and receded to 576 in 2016. Periodic index on price 
undercutting decreased from 626 in the first part of 2016 to 62 in the same part of 2017.  
Price suppression incre ased steadily on annual basis. Index, which was 100 in 2013 rose 
to 164 in  2016. On periodic basis, price suppression index decreased from 157 in the first part 
of 2016 to  30 in the same part of 2017.  
(ii) Imports relative to domestic production  
Imports/pr oduction  2013  2014  2015  2016  2016/6  2017/6  
Index  100 20 19 18 21 32 
Ratio of imports to domestic production decreased steadily on annual basis. Index, which 
was 100 in 2013 decreased to 18 in 2014. On periodic basis, this tendency reversed and index 
increased from 21 in the first part of 2016 to 32 in the same period of 2017.  G/SG/N/8/T UR/13/Suppl.2 • G/SG/N/10/TUR/13/Suppl.3 • G/SG/N/11/TUR/16/Suppl.2  
 
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  1.3   Precise description of the product involved  
The HS based code under the Turkish Customs Tariff Schedule and description of the 
product concerned are  listed in the table below.  
HS B ased Code  Description of the Product  
3907.61.00.00.00  Having a viscosity number of 78 ml/g or higher  
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 t he proposed measure  
The safeguard measure is proposed to be extended for 3 years until 7 November 2020 
(7 November 2020 is included) in the form of variable duty which will be implemented as shown in 
the table below.  
Turkish Customs 
Tariff Code  Description  of 
The Product  1st Period  
8/11/2017 - 
7/11/2018) (%)  2nd Period  
8/11/2018 - 
7/11/2019) (%)  3rd Period  
8/11/2019 - 
7/11/2020) (%)  
3907.61.00.00.00  Having a viscosity 
number of 78 ml/g 
or higher  6.40 6.20 6.00 
1.6   Proposed date of introduction of the measure  
The measure will come into force in 8 November 2017 with the publication of the approval of 
the Council of Ministers after the procedures are concluded.  
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 threa t thereof, and 
does not relate to a decision to apply or extend 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 is provided in Section 1.1.  
Evidence that the industry concerned is adjusting:  
A safeguard implementation purposes a domestic industry 's adjustment to the market 
conditions. Structural adjustment programs submitted by the domestic  producers include In the 
period after the measures taken, the plans for increasing the volume of production with new 
investments, accelerating of the studies on increasing productivity, enrichment of the product 
development and range, and R&D projects etc .  G/SG/N/8/T UR/13/Suppl.2 • G/SG/N/10/TUR/13/Suppl.3 • G/SG/N/11/TUR/16/Suppl.2  
 
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  After entry into force of the initial safeguard measure and its extension in 2014, t here was 
witnessed no indication that the measure has caused deterioration in the tough competitive 
environment of the Turkish PET resin market. In this process, there o ccurred a  significant increase 
in capacity and the number of firms increased from 2 to 3. The figures related to consumption, 
domestic production and the number of producers in Turkey have shown an incre ase. It can be 
concluded that -during or after the re covery in data related to production, employment, sales and 
capacity - the competition in the industry has not caused any serious injury on domestic producers 
in Turkey. On the contrary, the measures taken have led to an increase in the competitive capacity  
and assured supply chain security of domestic industry.  
The safeguard implementation has put a pressure on the competitiveness of imported 
products. Yet, with the entry of new producer to PET market, this competition has been kept alive. 
This competition has also led domestic PET producers to keep a sustainable profitability level, 
which forced them to diminish production costs and diversify their customer portfolio as well.  
In this respect, it is observed that the domestic industry intends to implement an d to fulfil 
the following activities in order not to necessitate any other measure to be adapted for competition 
environment in the future.  
- Two producers have completed infrastructural preparation and one has also completed 
its auxiliary operations for a n ew line for PET production. The technology that will be 
employed in this produ ction line is being designated.  
- Specialist technical staff have been employed for the entities to provide more efficient 
productive output.  
- Within the scope of the effort on lowe ring costs, natural gas units have been replaced 
with coal plants as a source of energy.  
- A special technical staff have been comprised for the planning of further specialized 
product types. Within the scope of Research and Development studies, three TÜBİTA K 
(The Scientific and Technological Research Council of Turkey) projects were realized, two 
new projects were prepared, and one more project was submitted with the co -operation 
of two domestic producers. Additionally, as a R&D project output, hot -filling p acking PET 
resin was produced, and a new investment was realized in Manisa/Akhisar on hot -filling 
jar production.  
- Within the scope of product development studies, new investments on storage hoppers 
were realized with the aim of increasing product quality. In addition to this, different 
catalyzers and ingredients are being tested for the production of new PET types. The 
polymer type, named FH series, is a good example in this sense, and it provides for 
30% additional capacity (without making any additional i nvestment) and 25% energy 
saving.  
- Within the context of increasing product diversity; plastic foils, blood collection tubes, 
spirals production increased; and new export -oriented products with high profitability 
and for exclusive use began to be produced.  These products are being planned also for 
domestic use, and re -heat process of PET is also increasingly employed for providing 
energy saving in the process of PET preform production.  
- After the implementation of the safeguard measure, R -PET process also g ained 
popularity. With this process, in conformity with the rules of food chemical codex, 
PET resin is being chemically recycled and reused.  
- With the new trigeneration  investment, electrical energy required for the production 
facilities has been produced w ith natural gas. In this process, natural water has been 
obtained as a bi -product, and 93% efficiency has been obtained from the employment of 
natural gas.  G/SG/N/8/T UR/13/Suppl.2 • G/SG/N/10/TUR/13/Suppl.3 • G/SG/N/11/TUR/16/Suppl.2  
 
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  - ERP system has been employed for more planned and streamlining business in PET 
production. With thi s system, which is planned to be completed in the end of 2017, 
productivity measurement will also be provided.  
In this context, it is understood that the domestic producers have been realizing and/or 
planning to realize significant activities and outputs o n the way to adjust into market situations. 
Without extension of the safeguard measure, it is evaluated that, domestic producers will not be 
able to realize planned investments and it can prevent domestic industry to adjust. Therefore, the 
safeguard measur e continues to be necessary to prevent or remedy serious injury.  
(ii) Reference to the WTO document that notified the initial application of the measure:  
The introduction of the definitive safeguard measure was notified in the document 
numbered  G/SG/N/8/TU R/13-G/SG/N/10/TUR/13 -G/SG/N/11/TUR/16, dated 24 June 2011. 
The extension of the definitive measure was notified with the G/SG/N/8/TUR/13/Suppl.1 - 
G/SG/N/10/TUR/13/Suppl.2 -G/SG/N/11/TUR/16 Suppl.1,  dated 8 October 2014.  
(iii) Duration of the measure from i nitial application till the date at which it will be extended:  
 The safeguard measure was initiated on 8 November 2011, was extended on 8 November 
2014, and will be in force till 7 November 2017. Turkey now intends to extend the safeguard 
measure until 7 N ovember 2020.  
(iv) Precise description of the measure in place prior to the date of extension  
 The measure in place prior to the date of extension is a variable duty, which was put into 
force on imports of PET by the Decree of Council of Ministers publishe d in the Official Gazette 
dated 9 September 2011, no. 28049. The level of duties is identified in the table below.   
Turkish Customs 
Tariff Code  Description of 
The Product  1st Period  
8/11/2014 - 
7/11/2015) (%)  2nd Period  
8/11/2015 - 
7/11/2016) (%)  3rd Period  
8/11/2016 - 
7/11/2017) (%)  
3907.60.20.00.00  Having a viscosity 
number of 78 ml/g 
or higher  6.75 6.65 6.55 
1.12  Information relating to exporting members  
(i) The major exporting Members of imports of the product involved:  
 The main exporters to Turkey for the p roduct concerned are Pakistan, I ndia and China. 
Pakistan has 23 % import share, and is followed by China and India with each having 21% import 
share in 2016.  
(ii) If there are any exporting Members to which the measure does not apply for any reason 
other t han the application of Article 9.1, the names of such exporting Members and reasons 
for non -application of the measure.  
 There are no exporting members to which the measure does not apply for any reason other 
than the application of Article 9.1  
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 the final decision are available in the 
link below.  
 http://www.ekonomi.gov.tr/portal/url/buk  G/SG/N/8/T UR/13/Suppl.2 • G/SG/N/10/TUR/13/Suppl.3 • G/SG/N/11/TUR/16/Suppl.2  
 
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  2  NOTIFICATION UNDER A RTICLE 9, FOOTNOTE 2  OF THE AGREEMENT ON SAFEGUARDS  
2.1  The measure  
 The measure that has been proposed to impose is described in Section 1.5.  
2.2  The product subject to the measure  
 The product subject to measure is 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 excl uded from the measure as their induvial export 
share in quantities less than 3 per cent of imports and their collective share constitute less than 
9 per cent to Turkey are listed below.  
 Afghanistan, Albania, Angola, Bangladesh, Benin, Bolivia, Bosnia and  Herzegovina, Burkina 
Faso, Burundi, Butane, Cambodia, Cape Verde, Central African Republic, Chad, Chile, Comoros, 
Congo, Congo Democratic Republic, Cook Islands, Cote d'Ivoire, Djibouti, Egypt, Equatorial 
Guinea, Eritrea, Ethiopia, Gambia, Georgia, Ghana,  Guinea, Guinea -Bissau, Haiti, Indonesia, 
Jordan, Kenya , Kiribati, Kosovo, Kyrgyzstan, Lao People's Democratic Republic, Lesotho, Liberia, 
Macedonia, Madagascar, Malawi, Mauritania, Mauritius, Micronesia (Federated States of), Moldova, 
Mongolia, Montenegr o, Morocco, Mozambique, Myanmar, Nauru, Nepal, Niger, Nigeria, Niue, 
Paraguay, Philippines, Rwanda, Samoa, Sao Tome and Principe, Senegal, Serbia, Sierra Leone, 
Solomon Islands, Somalia, South Sudan, Sri Lanka, Sudan, Swaziland, Tajikistan, Tanzania, 
Timor -Leste, Togo, Tonga, Tunisia, Tuvalu, Uganda, Ukraine, Uzbekistan, Vanuatu, Vietnam, West 
Bank and Gaza Strip, Yemen, Zambia.  
 
__________