G/SG/N/8/MAR/4/Suppl.3  
G/SG/N/10/MAR/4/Suppl.3  
G/SG/N/11/MAR/4/Suppl.3  
 
18 January 2019  
(19-0315) Page: 1/4 
Committee on Safeguards  Original: French  
 
  
NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT ON SAFEGUA RDS 
ON FINDING A SERIOUS  INJURY OR THREAT TH EREOF  
CAUSED BY INCREASED IMPORTS  
NOTIFICATION PURSUAN T TO ARTICLE 12.1(C)  
OF THE AGREEMENT ON SAF EGUARDS  
NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2,  
OF THE AGREEMENT ON SAFEGUARDS  
MOROCCO  
(Cold -Rolled Sheets in Coils or Cut, and Plated or Coated Sheets)  
Supplement  
The f ollowing communication, dated 11  January 2019 , is being cir culated at the reques t of the 
delegation of Morocco . 
 
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Pursuant to Article 12.1(c) of the Agreement on Safeguards, Morocco hereby notifies the extension 
of the safeguard measure on imports of cold-rolled s heets  and plated or coated s heets . 
 
1  DESCRIPTION OF THE P RODUCT SUBJECT TO TH E SAFEGUARD MEASURE  
The products subject to the safeguard measure are cold-rolled s heets in coils or cut, neither plated 
nor coated,  and plated or coated s heets , all of which belong to the family of flat steel prod ucts. 
These products are imported under the following headings  of the Harmonized System (HS) : 
 
- Cold-rolled sheets : 7209 ( with the exception of  7209.16.00.20; 7209.17.00.20; 
7209.18.00.20;  7209.26.00.20; 7209.27.00.20; and 7209.28.00.20), 7211 ( with the 
exception of  7211.13; 7211.14 ; 7211.19; 7211.23.00.10;  7211.23.00.40; 7211.29.00.20; 
and 7211.29.00.50), 7225.50.10.00, 7225.50.90.00,  and 7226 (with the exception of  
7226.11.00 and  7226.19.00);  
 
- Plated or coated sheets : 7210 ( with the exception of 7210.11 ; 7210.12;  7210.30.00; 
7210.50; 7210.90.21.00; 7210.90.22.00; 7210.90.23.00 ; and  7210.90.29.91), 7212 ( with 
the exception of  7212.10; 7212.20.00; 7212.40.20.00; 7212.40.39.10; 7212.50.20.00; 
7212.50.63.00 ; and 7212.50.64.00), 7225 ( with the exception of 7225.11.00; 7225.19.00; 
7225.30; 7225.40 ; and 7225.91) and 7226 ( with the exception of 7226.20.00.11; 
7226.20.00.21; 7226.20.00.51; 7226.20.00.52; 7226.20.00.59; 7226.91.00 ; and 
7226.99.10.00).  
 G/SG/N/8/MAR/4/Suppl.3 • G/SG/N/10/MAR/4/Suppl.3 • G/SG/N/11/MAR/4/Suppl.3  
 
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  2  DESCRIPTION OF THE P ROPOSED MEASURE  
The safeguard measure consi sts of an additional ad valorem  duty of  16% applicable to imports of 
cold-rolled steel sheets and plated or coated sheets exceeding  a fixed quota of 36,000 tonnes , in 
accordance with the following timetable : 
 
Year Additional ad valorem  duty 
From 1 January  2019 to 31 December  2019 16% 
From 1 January  2020 to 31 December  2020 15.5% 
From 1 January  2021 to 31 December  2021 15% 
From 1 January 2022 0% 
 
3  PROPOSED DATE OF INT RODUCTION OF THE MEA SURE  
The definitive safeguard measure will be published in the Official Journal of the Kingdom of Morocco . 
Its provisions will enter into force on 31 December 2018 .  
 
4  EXPECTED DURATION OF  THE MEASURE  
The Moroccan Ministry of Industry, Investment, Trade and the Digital Economy (the Ministry) plans 
to renew the safeguard measure for an additional duration of three years, i.e. un til 
31 December  2021.  
 
5  EXPECTED TIMETABLE F OR PROGRESSIVE LIBER ALIZATION OF THE MEA SURE  
The additional duty will be liberalized  progressively , in accordance with Article 65 of Law No. 15 -09 
on trade defence measures and Article 7.4 of the WTO Agreement on Safeguards , according to the 
following timetable : 
 
Year Additional ad valorem  duty 
From 1 January 2019 to 31 December  2019 16% 
From 1 January 2020 to 31 December  2020 15.5% 
From 1 January  2021 to 31 December  2021 15% 
From 1 January  2022 0% 
 
6  EVIDENCE THAT THE SA FEGUARD MEASURE CONT INUES TO BE NECESSAR Y TO REMEDY 
OR PREVENT SERIOUS I NJURY AND THAT THE I NDUSTRY 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 adjusting in accordance with Article 69 
of Law No. 15 -09 and Article 7.2 of the WTO Agreement o n Safeguards, the Ministry  examined 
whether the safeguard measure was still needed to remedy serious injury.  In this connection, it 
examined import trends for cold -rolled steel sheets and plated or coated sheets,  and the Moroccan  
industry's economic and financial indicators . The Ministry  then examined whether the safeguard 
measure continued to be necessary to prevent serious injury.  The examination focused, for that 
purpose, on the foreseeable and imminent behaviour of the imports an d their effects on  the 
Moroccan  cold-rolled steel sheet and plated or coated sheet  industry after the lifting of the safeguard 
measure.  The Ministry  also examined this ind ustry's restructuring programme .  
 
6.1  The safeguard measure continues to be necessary to remedy serious in jury 
In order to determine whether the safeguard measure continues to be necessary t o remedy serious 
injury, the Ministry  examined the domestic industry's economic and financial indicators, namely 
production, production capacity, rate of capacity utilizati on, sales, production costs, profitability, 
inventori es, productivity and employment . A slight, but nevertheless very fragile, improvement in 
the situation of the Moroccan cold-rolled steel sheet and plated or coated sheet industry was 
observed . G/SG/N/8/MAR/4/Suppl.3 • G/SG/N/10/MAR/4/Suppl.3 • G/SG/N/11/MAR/4/Suppl.3  
 
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  Table : Overview of indicators  of serious injury suffered by the domestic cold -rolled steel 
sheet and plated or coated sheet industry  
 
2014  2015  2016  2017  Jan-
April  
2017  Jan-
April  
2018  
Imports 
(tonnes ) Cold-rolled flat steel sheets, 
neither plated nor coated  25,984 25,519 20,705 13,055 2,856 4,976 
Coated flat steel sheets  39,975 22,292 37,039 21,192 7,417 13,647 
Plated  flat steel sheets  9,846 9,636 8,430 2,426 295 1,295 
Production  
(index  
2014=100)  Cold-rolled flat steel sheets, 
neither plated nor coated  64 58 107 127 127 127 
Coated flat steel sheets  53 71 104 112 112 112 
Plated flat steel sheets  68 73 114 105 105 105 
Imports/  
production  
(index  
2014=100)  Cold-rolled flat steel sheets, 
neither plated nor coated  100 107 39 24 31 51 
Coated flat steel sheets  100 53 63 31 56 66 
Plated flat steel sheets  100 24 13 4 2 6 
Domestic 
sales  
(volume)  
(index  
2014=100)  Cold-rolled flat steel sheets, 
neither plated nor coated  100 90 112 168 33 29 
Coated flat steel sheets  100 133 170 181 37 58 
Plated flat steel sheets  100 134 168 192 41 77 
Domestic 
consumption 
(tonnes ) 
(index  
2014=100)  Cold-rolled flat steel sheets, 
neither plated nor coated  100 95 82 90 19 24 
Coated flat steel sheets  100 104 148 127 32 54 
Plated flat steel sheets  100 120 133 122 25 50 
Market 
share of 
domestic 
industry  
(index  
2014=100)  Cold-rolled flat steel sheets, 
neither plated nor coated  100 95 136 187 170 122 
Coated flat steel sheets  100 128 115 142 115 108 
Plated flat steel sheets  100 111 126 158 164 153 
Market 
share of 
imports  (%) 
(index  
2014=100)  Cold-rolled flat steel sheets, 
neither plated nor coated  100 103 81 53 62 88 
Coated flat steel sheets  100 68 84 52 83 91 
Plated flat steel sheets  100 85 65 21 13 28 
Local selling 
price  
(dirhams / 
tonne ) 
(index  
2014=100)  Cold-rolled flat steel sheets, 
neither plated nor coated  100 96 88 101 93 120 
Coated flat steel sheets  100 98 91 104 99 120 
Plated flat steel sheets  
100 96 94 103 97 119 
Profit s 
(dirhams / 
tonne ) 
(index  
2014=100)  Cold-rolled flat steel sheets, 
neither plated nor coated  100 351 709 529 566 916 
Coated flat steel sheets  100 215 316 254 260 335 
Plated flat steel sheets  100 195 363 271 246 386 
Inventories 
(tonnes ) 
(index  
2014=100)  Cold-rolled flat steel sheets, 
neither plated nor coated  100 231 348 235 257 186 
Coated flat steel sheets  100 124 247 87 116 150 
Plated flat steel sheets  100 73 141 95 100 80 
Production capacity (tonnes )  
(index  2014=100)  100 100 100 100 100 100 
Production capacity utilization rate  
(index  2014=100)  100 115 179 184 143 182 
Employment (persons ) (index  2014=100)  100 100 86 88 86 88 
Productivity (tonne/employee ) 
(index  2014=100)  100 114 209 209 56 69 
Investment (dirhams ) (index  2014=100)  100 31 32 35 32 111 
Net profit s (dirham ) (index  2014= -100) -100 -76 -18 -18 -3 -9 
Source:  Foreign Exchange Board and data from Maghreb Steel.  G/SG/N/8/MAR/4/Suppl.3 • G/SG/N/10/MAR/4/Suppl.3 • G/SG/N/11/MAR/4/Suppl.3  
 
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  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 : 
 
- global over -capacity ; 
- the threat posed by Chinese exports ; 
- increased protection of domestic markets; and 
 
Having examined the above factors, Morocco concluded that there is a real and imminent risk of 
imports of cold-rolled steel sheet s and plated or coated sheet s increasing once the safeguard 
measure is lifted . 
 
6.3  Domestic industry adjustment plan  
The Moroccan cold-rolled steel sheet and plated or coated sheet  industry has provided evidence 
showing that it has instituted a structural adjustment plan aimed at increasing its competitiveness.  
However, other adjustment measures are being implemented, wh ich require the application of the 
safeguard measure for an additional period.  
 
7  REFERENCE TO THE WTO  DOCUMENT THAT NOTIF IED THE INITIAL APPL ICATION OF 
THE MEASURE  
The WTO document s containing the most recent Article 12.1(c) notification s are: 
 
- document G/S G/N/8/MAR/4 - G/SG/N/10/MAR/4 - G/SG/N/11/MAR/4 , dated  29 May 2015;  
- modificatory document G/SG/N/8/MAR/4/Suppl.1 - G/SG/N/10/MAR/4/Suppl.1 - 
G/SG/N/11/MAR/4/Suppl.1 , dated  14 September 2015;  
- modificatory document G/SG/N/8/MAR/4/Suppl.2 - G/SG/N/10/MAR/4/Suppl.2 - 
G/SG/N/11/MAR/4/Suppl.2, dated  13 September  2016.  
 
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 cold -rolled steel s heets and plated 
or coated sheet s, which entered into force on 27 October 2014 . This measure was applied definitively  
from 29 August 2015 to 31 December 2018.  Morocco plans  to extend this safeguard  measure until 
31 December 20 21. 
 
9  DEVELOPING COUNTRIES  EXCLUDED FROM  THE SAFEGUARD MEASURE UNDER 
ARTICLE  9.1 OF THE AGREEMENT  ON SAFEGUARDS  
Albania; Angola; Antigua and Barbuda; Argentina;  Armenia;  Kingdom of Bahrain; Bangladesh;  
Barbados; 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; Dominica;  
Dominican  Republic;  Ecuador;  El Salvador;  Fiji; Gabon; Gambia;  Georgia; Ghana;  Grenada;  
Guatemala; Guinea;  Guinea -Bissau; Guyana; Haiti;  Honduras; Hong Kong, China;  Indonesia; 
Jamaica; Jordan; Kenya;  Republic of Korea;  Kuwait;  Kyrgyz Republic;  Lao People's Democratic 
Republic;  Lesotho; Macao , China; Madagascar; Malawi;  Malaysia;  Maldives; Mali;  Mauritania;  
Mauritius;  Mexico;  Republic of Moldova; Mongolia;  Montenegro; Mozambique; Myanmar; Namibia; 
Nepal; Nicaragua; Niger;  Nigeria; Oman; Pakistan; Panama;  Papua New Guinea; Paraguay;  Peru; 
Philippines; Qatar;  Rwanda;  Saint Kitts and Nevis;  Saint Lucia;  Saint Vincent and the Grenadines; 
Samoa; Senegal; Sierra Leone;  Singapore;  Solomon Islands; South Africa;  Sri Lanka; Suriname; 
Swaziland;  Chinese Taipei;  Tajikistan;  Tanzania;  Thailand;  The former Yugoslav Republic of 
Macedoni a; Togo; Tonga;  Trinidad and Tobago;  Tunisia;  Uganda;  Uruguay; Vanuatu;  
Bolivarian  Republic of Venezuela;  Viet Nam;  Zambia;  Zimbabwe . 
 
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