G/SG/N/7/EU/1  
G/SG/N/11/EU/1  
 
18 July 2018  
(18-4504) Page: 1/18 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.4 OF THE A GREEMENT ON SAFEGUAR DS 
BEFORE TAKING A PROV ISIONAL SAFEGUARD ME ASURE  
REFERRED TO IN ARTIC LE 6 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
(Certain steel products)  
EUROPEAN UNION 
The following communication, dated 16 July 2018, is being circulated at the request of the 
Delegation of the European Union.   
 
_______________  
 
 
NOTIFICATION UNDER A RTICLE 12.4 BEFORE T AKING PROVISIONAL SA FEGUARD 
MEASURES  
1.  Specify the product subject to  the proposed provisional safeguard measure  
 
The 28 product categories ( "the product concerned " or the "product categories concerned "), 
together with the CN codes under which these products are currently classified, are listed in 
Annex  I.  
 
2.  Specify the  proposed provisional safeguard measure  
 
The proposed provisional safeguard measure consists in the establishment of temporary tariff 
quotas in respect of the product concerned, in excess of which an additional duty of 25% will be 
required to be paid. The proposed tariff quotas are listed in Annex II.  
 
3.  Specify the proposed date of introduction of the proposed provisional safeguard 
measure  
 
The proposed date of introduction of the provisional safeguard measure is 19 July 2018.  
 
4.  Specify the expected duration of the provisional safeguard measure  
 
The proposed provisional safeguard measure will apply for a period of 200 days.  
 
5.  Provide the basis for:  
 
i. Making a preliminary determination, as provided for in Article 6, that incr eased  
imports have caused or are threatening to cause serious injury; and  
 
UNFORESEEN DEVELOPMENTS  
 
The Commission has preliminarily determined that the above -mentioned increase in imports of 
steel products in the Union has been the result of unforeseen developments that finds its source in G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
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  a number of factors establishing and aggravating imbalances in t he international trade of the 
products concerned.  
 
First of all, the nominal global steelmaking capacity has more than doubled since 2000, from a 
level of 1.05 billion tonnes in 2000 to 2.29 billion tonnes in 2016 and has remained at a very high 
level in 2017 (2.27 billion tonnes) . In addition, actual global steel production in 2016 (1.6 billion 
tonnes) was still 100 million tonnes higher than global steel demand (1.5 billion tonnes). 
Consequently, there has been over the last years a major gap between no minal global capacity 
and production and between production and demand, generating an unprecedented overcapacity 
in the global steel market which has persisted despite the measures adopted to narrow it. 
Moreover, looking forward, whereas global production in 2017 increased by more than 5% due to 
an economic recovery, global steel demand in 2018 will show only moderate growth with further 
deceleration predicted for 2019. There was a sign of recovery in 2017, but important risks remain.  
 
The steel firms conti nue to be financially vulnerable since, as mentioned above, there are 
persisting structural imbalances in the steel sector. These imbalances are accentuated by distortive 
subsidies and government support measures . Given the important fixed costs in the st eel sector, 
many steel producers, notably in countries where the State distorts the normal play of market 
forces, kept capacity utilisation at high rates and flooded third country markets with their products 
at low prices when they could not be absorbed by  domestic consumption. This has resulted in 
increasing imports in the EU and overall price depression. Import prices have in general undercut 
Union industry prices in 2017, based on an average price comparison for each product category. 
Such an average pri ce comparison does not necessarily reflect all the specificities which may have 
an impact on comparability, but nevertheless gives a good indication of the general price level of 
imports as compared to Union prices. Undercutting was established for 17 prod uct categories, with 
ranges between 1.2% and 23%.  
 
Secondly, the above effect has been exacerbated by trade -restrictive practices in third country 
markets. Indeed, since 2014/2015, in reaction to the above mentioned oversupply of steel and the 
market -distorting practices, several countries have begun to make greater use of trade policy and 
trade defence instruments in the steel sector with a view to protecting their domestic producers. 
Mexico, South Africa, India and Turkey have applied import tariffs ' increases ranging from 2.5% to 
40% for a series of steel products including inter alia: hot rolled and cold rolled steel, flat steel 
products like strips, and also rebars. These products were typically imported in increasing 
quantities over the period of inves tigation. Furthermore, third countries continued throughout 
2017 to impose trade restrictive measures: some countries introduced minimum import prices 
(India), some imposed mandatory national standards for steel (Indonesia) and others imposed 
local content  requirements, including through government procurement (U.S.).  
 
In addition, recourse to trade defence instruments has steadily increased. Based on WTO statistics, 
whereas during 2011 -2013 on average around 77 steel -related investigations had been initiat ed 
per year, during 2015 -2016 this average increased to 117. In February 2018, the U.S. had 169 
anti-dumping and countervailing duty orders in place on steel, as well as 25 ongoing investigations 
that could lead to an even more restrictive picture for impo rts of steel into the U.S.  As the U.S. is 
one of the world 's largest steel importing countries – representing around 13.1% of the world steel 
imports (in 2016) – the impact of such a large number of trade remedies has been strongly felt 
globally.  
 
Third,  in the context of the prevailing persistent worldwide overcapacity, the illegal and restrictive 
U.S. Section 232 measures, given their level and scope, are likely to cause substantial trade 
diversion of steel products into the Union. The U.S. have calcula ted that the imposition of a single 
across -product tariff under the Section 232 measures with almost no country exclusion should 
decrease imports by approximately 13 million tonnes – correspon ding to 7% of Union 
consumption . The Union market is generally a  very attractive market for steel products both in 
terms of demand and prices. Some of the main exporters to the US are also traditional steel 
suppliers to the Union and there is no doubt that these countries, as well as others whose exports 
and production  will be affected by the U.S. measures and the foreseeable trade diversion cascade, 
will redirect their exports to the Union. Even a partial diversion of the abovementioned trade flows 
into the Union will unavoidably result in a new price depression and un dercutting on the EU 
market, bringing price down to levels comparable to those of 2016, with significant negative 
consequences on the profitability of the Union steel industry. It should finally be noted that the 
additional import increase which is liable to further deteriorate the economic situation of the Union G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
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  steel industry might especially originate from countries currently not subject to anti -
dumping/countervailing duty measures.  
 
Consequently, the abovementioned unforeseen developments have lead and will further lead to a 
clear increase of steel imports into the Union.  
 
INCREASE IN IMPORTS  
 
Based on the information from Eurostat, the prior steel surveillance mechanism, as well as 
information submitted by the Union industry, the Commission has carried out a preliminary 
analysis of the increase in imports of the products concerned over the period 2013 -2017. The 
Commission has also examined the evolution of imports during the first quarter of 2018 in order to 
confirm the recent increase in imports.  
 
The total imports of the products concerned have developed as follows:  
 
 2013  2014  2015  2016  2017  
Imports (000 tonnes)  18 861  22 437  27 164  29 778  30 573  
Index 2013=100  100 119 144 158 162 
Market shares  12.7%  14.4%  16.9%  17.9%  18.0%  
 Source: Eurostat  
 
In overall terms, imports of the 28 product categories concerned, taken altogether, increased in 
absolute terms by 62% over the period 2013 -2017. The increase of imports was especially marked 
until 2016. Subsequently, imports continued to increase and remaine d at a very high level.  
 
Imports for the vast majority of the individual product categories covered by the investigation also 
showed an increase in absolute terms over the last five years. For example, the imports of the 
largest categories in terms of impo rts (product categories 1, 4, and 7) have increased by 45%, 
168%, and 78% respectively.  
 
There was however not an increase for 5 product categories, namely products 10, 11, 19, 24, and 
27. The Commission therefore considers that these product categories sh ould at this stage be 
excluded from the scope of the provisional measures. The Commission, nevertheless, reserves the 
right to include these 5 product categories in the scope of the definitive measures and to this 
effect will continue monitoring the import s within these categories. The evolution of imports for 
each product category is presented in Annex II.  
 
In addition to the exclusion, at this stage, of the abovementioned product categories, the 
Commission has also considered the exclusion of certain coun tries from the scope of the measures 
in line with the conclusions in recital (121). Accordingly, the Commission has excluded the imports 
of these product categories from these aforementioned countries from the rest of its preliminary 
analysis and reviewed the imports ' evolution.  
 
On this basis, the imports of the products concerned by this preliminary determination have 
developed as follows:  
 
 2013  2014  2015  2016  2017  
Imports (000 tonnes)  17 367  20 764  25 556  28 174  29 122  
Index 2013=100  100 120 147 162 168 
Market shares  12.1%  13.8%  16.5%  17.5%  17.8%  
 Source: Eurostat  
 
Imports increased in absolute terms by 68% during the period 2013 -2017, with market shares 
increasing from 12.1% to 17.80%. The most significant increase took place in the period 2013-
2016, but imports continued to increase and remained at a high level in 2017.  
 
The trend of increasing imports continues in 2018. When comparing the first quarter of 2018 with 
the first quarter of 2017, the overall import increase amounts to 10%. For 9 product categories, G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
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  the increase is more than 20% and for one of those categories (category 13) the increase is more 
than 100%. Moreover, this increase took place even before the Section 232 measures entered into 
force.  
 
The Commission therefore conclude s that there has been a sudden, steep, and significant increase 
of imports in absolute terms for 23 product categories. In addition, the increase of imports 
continues in the first quarter of 2018 and it is expected to be even more significant in view of th e 
expected trade diversion from the Section 232 measures.  
 
THREAT OF SERIOUS INJURY  
 
Global situation of the Union steel industry  
 
In order to formulate its preliminary determination as to whether there is evidence of serious 
injury or threat of serious injury to the Union industry for the product concerned under 
assessment, the Commission, in line with Article 9 of Regulation 2015/478 and Article 6 of 
Regulation 2015/755, has examined the trends of consumption, production, capacity utilisation, 
sales, ma rket share, prices, profitability, stocks, Return On Capital Employed (ROCE), cash flow 
and employment for the product concerned for the years 2013 to 2017 (pending the collection of 
2018 data).  
 
This analysis has been carried out globally and also individ ually for the 23 product categories 
showing an increase of import volumes ("the products/product categories under assessment"). As 
explained in Section II above, the Commission considers such a global and comprehensive analysis 
adequate in this investigati on, given the interrelation, interconnection, and the level of competition 
between the different products from a demand and supply point of view.  
 
When looking at the overall situation, the Union consumption, sales of Union producers and the 
corresponding market share developed as follows:  
 
(000 tonnes)  2013  2014  2015  2016  2017  
Consumption  144,908  152,146  157,236  163,100  166,244  
Index 2013=100  100 105 109 113 115 
Domestic sales  125,808  129,261  129,542  132,717  134,542  
Index 2013=100  100 103 103 105 107 
Market shares (%)  86.8%  85.0%  82.4%  81.4%  80.9%  
 Source: Eurostat and industry data  
 
The consumption of the products under assessment increased consistently every year during the 
period 2013 -2017, and by 15% overall. The sales of Union producers also increased, but to a 
much lesser extent than Union consumption, i.e. by 7% only. Consequently, the Union producers 
could not benefit from the increasing Union demand and lost market shares, going from 86.8% to 
80.9%. It should be recalled that during the sa me period imports increased by 68%.  
 
On the basis of the questionnaire replies received from the Union producers, production and 
production capacity developed as follows:  
 
000 tonnes  2013  2014  2015  2016  2017  
EU production  184,912  190,687  192,493  194,369  200,650  
Index 2013=100  100 103 104 105 109 
Production capacity  257,331  257,138  258,056  260,171  265,353  
Index 2013=100  100 100 100 101 103 
Capacity utilisation (%)  71.9%  74.2%  74.6%  74.7%  75.6%  
 Source: Industry data  
 
Production capacity increased by 3% during the period 2013 -2017, but less than the production 
level which increased by 9%. As a result, the capacity utilisation rate increased from 72% to 76%.  
 G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
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  The stocks held by the cooperating companies increased overall by 20% in the period 2013 -2017.  
 
000 tonnes  2013  2014  2015  2016  2017  
Stocks  11,006  11,896  12,391  12,117  13,222  
Index 2013=100  100 108 113 110 120 
 Source: questionnaire replies  
 
Unit sales prices, profitability and cash flow of the Union producers developed as follows:  
 
000 tonnes  2013  2014  2015  2016  2017  
Unit sales prices (€/tonne)  673.5  652.8  616.9  572.9  681.5  
Index 2013=100  100 97 92 85 101 
Profitability  -1.0%  0.9%  0.9%  2.2%  6.2%  
Cash flow (mio€)  3,133  4,975  6,519  5,386  6,141  
Index 2013=100  100 159 208 172 196 
Source: questionnaire replies  
 
In the period 2013 -2016 there was a significant price depression on the Union market: Unit sales 
prices decreased by 15%. It should be recalled that imports also increased significantly during this 
period. The average unit sales pric e recovered however in 2017 and reached a level comparable to 
2013. Profitability overall remained at a very low level during the period 2013 -2016. Despite a 
significant decrease in prices, the Union industry could nevertheless reduce its cost of productio n 
in 2016 to such an extent that it managed to make a small level of profit of 2.2%. The situation 
temporarily recovered in 2017. Sales prices increased by almost 20% between 2016 and 2017 and 
reached their 2013 level. The Union industry achieved a level o f profit of 6.2% since cost of 
production (raw material), even if increasing, remained lower than in 2013. The overall cash flow 
position of the Union industry increased by approximately 60%.  
 
In terms of employment, over the 5 year period, the Union prod ucers of the product categories 
under assessment lost almost 10.000 jobs.  
 
000 tonnes  2013  2014  2015  2016  2017  
Employment (FTE)  189,265  183,470  182,136  182,162  181,303  
Index 2013=100  100 97 96 96 96 
Source: questionnaire replies  
 
Situation at the level of individual product categories  
 
In addition to the global analysis of the situation for the product concerned overall, which the 
Commission considers to be the appropriate standpoint for the appraisal of the necessity of 
safeguard measures in this invest igation, the Commission has also assessed the situation at the 
level of the individual product categories in order to confirm the above trends at a disaggregated 
level.  
 
When looking at individual product categories, the situation is more contrasted but g enerally 
shows the same trends. The economic indicators are provided individually and by product 
categories in Annex III.  
 
The Union consumption for all but two product categories increased in the last five years. While 
this increase remained modest for so me individual products, with a minimum increase of 2%, it 
was much more marked for others, with a maximum increase of 169%.  
 
Sales volumes were generally stable in the period 2013 -2017 or, in some cases, slightly increased 
but, except for three product cat egories, they did not increase as much as EU consumption. As a 
result, there was a decrease of market shares over the five year period for all but 3 products.  
 
Production levels generally increased for 18 out of 23 of the individual products, as well as 
capacity utilisation rates.  G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
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In terms of prices, there was a significant price decrease for each product (except for one product 
that was subject to anti -dumping duties in the form of a minimum import price) in the period 
2013-2016. Prices recovered in 2017 , given a general recovery of the steel market but also as a 
consequence of the various trade defence measures taken against unfair pricing behaviour and 
subsidised imports. For 16 products the price level remained lower in 2017 than in 2013. It should 
be noted that average import price levels were almost systematically lower than Union prices for 
all years, and for all product categories.  
 
As far as profit is concerned, all product categories were sold at a loss or at a much reduced profit 
until 2016. Only  7 products could recover to a level of profit above 6% in 2017. These products 
are significant in terms of EU production volume and six of them are currently subject to (recent) 
anti-dumping or countervailing duty measures. Note that these measures concer n only some 
countries of origin. All other products remained either loss making (3 products) or only close to 
break -even (13 products). It is considered that the level profit below 6% is insufficient to cover 
the investments needed to sustain the activity,  as, in the majority of the recent investigations, the 
Commission has used a level of around 8% profit as a sufficient profit level in this sector in order 
to cover investments. As for cash flow, for half of the products the cash flow deteriorated in 2013 -
2017 and for 6 products the cash flow was even negative in 2017. The return on capital employed 
(ROCE) remained low in the period 2013 -2016, but subsequently improved for a large majority of 
the product categories, even though for 5 products the ROCE was s till negative in 2017.  
 
In terms of stocks, the stocks increased for 17 product categories. Only the stocks of 5 product 
categories decreased and for one product category it remained at the same level during the 
period.  
 
The above analysis corroborates th at the situation of the Union steel industry deteriorated 
significantly in the period 2013 -2016. This materialised by a decrease in market shares, and by a 
significant price depression which prevented the industry from benefiting from lower raw material 
costs. These trends existed both at a global and individual product level. The situation partially 
recovered in 2017. While many product categories are still below a level of sustainable profit, 
some have improved, most likely as a result of the recent impos ition of anti -dumping and anti -
subsidy measures. Globally, and for individual product categories, it is therefore considered that 
the Union industry is still in a fragile situation and vulnerable to further increase in imports, in 
particular if imports fro m countries subject to trade defence measures are replaced by other 
imports diverted from the U.S. market as a result of the Section 232 action.  
 
This is, for example, typically the case for product categories 1, 2 and 4, which are important in 
terms of U nion demand but also because these product categories (in particular categories 1 and 
2) are used as raw material to produce other steel products. For product categories 1, 2 and 4, the 
financial situation was negative in 2016, but became positive in 2017 following the imposition of 
anti-dumping and anti -subsidy measures against a number of countries like, amongst others, 
China and Russia. Imports from these countries have however been recently and partially replaced 
by imports from India, Korea and Turkey,  the two latter being also significant supplier to the U.S. 
In the first quarter of 2018, i.e. before the imposition of the measures in the U.S., Union imports 
have already increased for product category 1 as compared to the first quarter 2017, and this 
increase is mainly due to imports from Turkey.  
 
It is likely that a further increase in steel imports in the Union would prevent the Union industry, 
which has not yet fully recovered, to benefit from the positive effect of the recent trade defence 
measures.  
 
Threat of serious injury  
 
In its Steel Communication of March 20161, the Commission concluded that the Union steel 
industry was facing a number of serious challenges, fuelled by global overcapacity, a dramatic 
increase of global exports, and an unprecedented wave of unfair trading practices.  
 
                                                
1 Communication from the Commission to the European Parliament, the European Council, the Council, 
the European Economic and Social Committee, the Committee of the Regions, and the European Investment 
Bank: Steel: Preserving sustainable jobs and growth in Eu rope, COM(2016) 155 final, 16.3.2016.  G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
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  In parallel, in order to remedy the injury caused by unfair trade imports, the Union has imposed a 
number of anti -dumping and anti -subsidy measures against imports of steel products. In total, 
there are curr ently no less than 19 anti -dumping or anti -subsidy measures against the unfairly 
traded imports of 14 product categories under investigation from various countries. During the 
period under investigation, i.e. 2013 -2017, 13 new investigations determined tha t the EU steel 
industry suffered (or in one case was threatened to suffer) from material injury caused by unfair 
trade practices.  
 
As noted in recital (55), the Union industry is still in a fragile situation and vulnerable to a further 
increase in imports.  The recent U.S. decision not to exclude EU ex ports from the scope of 
Section  232 measures will likely reduce the Union producers ' ability to export their products to the 
U.S. and make their situation even more vulnerable.   
 
Steel imports have increased s ignificantly, remaining at high levels in 2017. The further increase of 
imports in 2018 – in particular from those countries or exporters not subject to trade defence 
measures – is likely to prevent the industry from a full recovery and from benefiting fro m these 
measures. The Union steel industry is indeed considered to be still vulnerable to further increases 
of imports.  
 
In the absence of provisional safeguard measures, it is likely that the situation will develop into 
actual serious injury in the forese eable future.  
 
In this context, pursuant to Article 9(2) of Regulation 2015/478 and Article 6(3) of Regulation 
2015/755, the Commission has examined the rate of increase of the exports to the Union and the 
likelihood that available capacity is used to expo rt into the Union.  
 
First, as concluded above, imports into the Union increased substantially in the period 2013 -2017, 
i.e. by 68% globally. While the increase was especially marked until 2016, imports continued to 
increase in the subsequent period, albeit  at a slower pace. As highlighted in recitals 0 and 0 
regarding critical circumstances – imports increased again significantly, by almost 10%, in the first 
quarter of 2018. The rate of increase of imports is therefore significant.  
 
Second, in a situation of global overcapacity in various countr ies, it is expected that the restrictive 
U.S. Section 232 measures, given their level and scope, are likely to cause trade diversion of steel 
products in the Union.  
 
The U.S. have announced their intention to decrease imports by approximately 13 million to nnes 
and, as a result, have imposed in March 2018 an additional import duty of 25% against imports of 
a very large number of steel products. The volume of steel that will no longer be exported to the 
U.S. will unavoidably be diverted to other third countri es.  
 
Some of the main exporters to the US are also traditional steel suppliers to the Union. It is more 
than likely that these countries, as well as others, will to a large extent be willing to redirect their 
exports to the Union. The Union market is inde ed generally an attractive market for steel products 
both in terms of demand and prices. In fact, the EU is, after China, but before the U.S., one of the 
main markets for steel, where demand has increased in the last years and prices have also now 
recovere d. 
 
In this context, a significant increase of supply on the Union market caused by an influx of imports 
will result in a general downward price pressure, resulting in price levels comparable to 2016 with 
significant negative consequences on the profitabil ity of the Union steel industry.  
 
Conclusions  
 
Under these circumstances, and based on the above, it is preliminary concluded that, although the 
Union steel industry has partially recovered for some product categories in 2017, notably due to 
trade defence  measures, for the bulk of product categories under assessment the financial 
situation is still well below sustainable levels, which makes the Union industry still vulnerable to 
another surge of imports. Accordingly, the Commission concludes that the Union  steel industry is 
in a situation of threat of serious injury for the 23 product categories under assessment.  
 G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
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  CAUSATION  
 
The Commission has made a preliminary determination that there is a causal link between 
increased imports of the product under assessment on the one hand and a threat of serious injury 
on the other hand, on the following basis.  
 
It is first recalled that the products produced by the Union producers are like or directly competing 
with the products concerned. They have the same basic characteristics, the same uses and are 
sold via similar or identical sales channels and strongly compete on price.  
 
As explai ned in Sections IV and VI, the Union producers have suffered in terms of loss of market 
share and significant price pressure resulting in a negative or unsustainable level of profit. For 
some products, even if the producers have recovered, serious injury a ppears to be imminent.  
 
In the period 2013 -2017, imports of the product concerned increased significantly and took away 
Union market shares based on lower than EU producers' price levels. Indeed, the market share of 
imports, overall, grew from 12.2% to 17. 6% and import prices remained almost systematically 
lower than the Union sales prices for each individual product.  
 
The causal link between the increased imports and the situation of the Union producers was 
especially marked in the period 2013 -2016, when l ow priced imports peaked (+62%) and EU 
producers' prices fell by 15%. For category 13, the decrease in prices amounted even to 20% 
whereas for categories 1 and 3 they were 19% and 18% respectively. As a result, Union producers 
of the like products were eit her in a loss making situation or just close to break even. In the year 
2017, imports remained at a high level and continued to undercut prices, despite a general price 
increase. EU prices recovered, but not sufficiently for a number of products which were  still sold at 
a loss or reduced profit.  
 
Even if profit recovered for some product categories, their situation is still vulnerable. Indeed, 
based on previous years' developments, these product categories are particularly sensitive to price 
pressure, and a ny further increase of imports at low prices would have a significant negative 
impact on their situation.  
 
In this context, it is considered that the restrictive measures taken by the U.S. pursuant to 
Section  232 of the Trade Expansion Act, given their lev el and scope, are likely to cause imminent 
serious injury to Union producers.  
 
The Commission therefore provisionally concludes that, in relation to the 23 product categories 
under assessment, there is a causal link between the increase in imports, the pre ssure on the 
Union steel market price and the threat of serious injury suffered by Union producers.  
 
OTHER KNOWN FACTORS  
 
To ensure that the serious injury is not attributable to factors other than the increase in imports, 
the Commission has carried out a preliminary analysis to determine whether the other factors may 
have contributed to the serious injury suffered by the Union producers.  
 
The global overcapacity was found to have played a role in the sense that it boosted cheap imports 
into the Union. Con sumption for the steel products concerned increased and could therefore not 
weaken  the causal link.  
 
The Commission also considered the attribution of serious injury due to imports of the products 
concerned from members of the European Economic Area (EEA).  As a result of the EEA Agreement 
between the Union and its Member States, on the one hand, and members of the EEA (Norway, 
Iceland, and Liechtenstein), on the other hand, the Union has established a close economic 
integration with the markets of EEA count ries, as well as the industries of the products concerned. 
The industry in those markets is mature and saturated, due to which  it is considered that the 
exclusion of products originating in the members of the EEA from the safeguard measures will 
have littl e (if no) impact on the import levels of the products. Indeed, and while the imports from 
these countries have indeed contributed for some product categories to an increase in imports 
(overall imports from these countries show an increase of approximately 9%), the share of those 
imports in the total imports is limited (EEA share in imports is about 1.5%, with a corresponding G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
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  market share of 0.3% in total). In addition, EEA members are traditionally minor suppliers of the 
product concerned to the U.S., which  means that the risk of trade diversion has preliminarily been 
determined to also be limited. Having, therefore, regard to the traditionally minor supplies to the 
U.S., the maturity of the industry in EEA markets, and the related limited risk of trade dive rsion 
stemming therefrom, the Commission considers that imports of the products concerned from EEA 
members may only have very marginally, if at all contributed to the threat of serious injury.  
 
Consequently, the Commission has not identified other factors that would weaken the causal link 
between the increase in imports and the serious injury to the Union producers. Nevertheless, a 
more detailed examination of all other factors that have or may have contributed to the injury will 
be undertaken in the remain der of the investigation.  
 
ii.  Determining that there are critical circumstances where delay would cause 
damage which it would be difficult to repair  
 
As indicated above, Union steel producers are globally in a situation of threat of injury and serious 
injury is clearly imminent. For some individual product categories, there are already indications 
pointing towards serious injury. A further increase of imports will likely have significant adverse 
effects on the economic situation of the industry overall.  
 
The Commission has examined whether critical circumstances exist in which delay would cause 
damage which it would be difficult to repair. In particular it was examined whether imports have 
continued to increase in the most recent period.  
 
Based on a comp arison between imports of steel products in the first quarter 2018 and the first 
quarter 2017, it appears that for 18 of the 23 product categories imports increased by 26%. This 
increase of imports is significantly more important than that experienced in t he period 2016 -2017, 
which was around 2%.  
 
The 25% tariffs under Section 232 on steel products were introduced on 23 March 2018. It is at 
this stage not possible to assess the full effect of the U.S. measures in terms of trade diversion. 
The increase of im ports into the Union in the first quarter 2018 could however be seen as an 
anticipation of their effects and, therefore, give a good indication of what could be the potential 
future development of Union imports after the US measures have been imposed.  
 
On 30 May 2018, the U.S. also decided that Section 232 measures should be enforced against the 
Union, Mexico and Canada. The Commission considers that this is a further critical element since it 
would not only restrict Union exports but also increase the ris k of trade diversion from the other 
two important steel producing countries.  
 
Given the vulnerable situation of the industry, and in view of the most recent increase of imports, 
a further oversupply of steel products on the Union market, and the resulting pressure on prices, 
will undoubtedly have serious consequences on the situation of the Union producers.  
 
Therefore, the Commission considers that, on account of the real risk of trade diversion and the 
further restriction of imports to the U.S. of importan t steel producing countries, there are critical 
circumstances by which any delay in the adoption of provisional safeguard measures would cause 
damage which would be difficult to repair. The Commission therefore concludes that provisional 
safeguard measures  should be adopted without delay.  
 
6.  Offer of consultations  
 
The European Union offers consultations on the provisional safeguard measures at any time after 
the measure is taken.  
 G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
- 10 - 
 
  7.  Other information  
 
A copy of the Commission Regulation which will be p ublished in the O fficial Journal of the 
European  Union will be submitted to the Committee.* 
 
 
NOTIFICATION UNDER A RTICLE 9, FOOTNOTE 2  UPON TAKING A DECISI ON NOT TO 
APPLY THOSE PROVISIO NAL SAFEGUARD MEASUR ES TO CERTAIN PRODUC TS 
ORIGINATING IN DEVEL OPING CO UNTRIES  
1.  Specify the measure  
 
The measures consist of temporary tariff quotas in excess of which additional duty requires to be 
paid, described in the notification under Article 12.4 above.  
 
2.  Specify the product subject to the measure  
 
The measures apply to the products described in paragraph 1 of the notification under Article 12.4 
above.  
 
3.  Specify the developing countries to which the measu re is not applied under 
Article  9.1 of  the Agreement on Safeguards  
 
The list of products originating in developing countries members of the WTO to which the 
provisional measures do not apply are laid down in Annex 3. Where the measures do apply 
because the import share of the developing countries is above 3%, they are mark ed with an "x".  
  
                                                
* A copy of the Implementing Regulation (EU) 2018/1013 of 17 July 2018 was submitted in electronic 
form. To consult this document, please contact Ms Budd ( hilary.budd@wto.org ) or Ms Naville 
(delphine.naville@wto.org ) of the Rules Division.  G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
- 11 - 
 
  Annex I  
Product categories  
 
Product 
Number  Product category  CN Codes  
1 Non Alloy and Other Alloy Hot Rolled Sheets 
and Strips  7208 10 00, 7208 25 00, 7208 26 00, 7208 27 00, 7208 
36 00, 7208 37 00, 7208 38 00, 7208 39 00, 7208 40 
00, 7208 52 10, 7208 52 99, 7208 53 10, 7208 53 90, 
7208 54 00, 7211 13 00, 7211 14 00, 7211 19 00, 7212 
60 00, 7225 19 10, 7225 30 10, 7225 30 30, 7225 30 
90, 7225 40 15, 7225 40 90, 7226 19 10, 7226 91 20, 
7226 91 91, 7226 91 99  
2 Non Alloy and Other Alloy Cold Rolled 
Sheets  7209 15 00, 7209 16 90, 7209 17 90, 7209 18 91, 7209 
25 00, 7209 26 90, 7209 27 90, 7209 28 90, 7209 90 
20, 7209 90 80, 7211 23 20, 7211 23 30, 7211 23 80, 
7211 29 00, 7211 90 20, 7211 90 80, 7225 50 20, 7225 
50 80, 7225 99 00, 7226 20 00, 7226 92 00  
3 Electrical Sheets (other than GOES)  7209 16 10, 7209 17 10, 7209 18 10, 7209 26 10, 7209 
27 10, 7209 28 10, 7225 19 90, 7226 19 80  
4 Metallic Coated Sheets  7210 20 00, 7210 30 00, 7210 41 00, 7210 49 00, 7210 
61 00, 7210 69 00, 7210 90 80, 7212 20 00, 7212 30 
00, 7212 50 20, 7212 50 30, 7212 50 40, 7212 50 61, 
7212 50 69, 7212 50 90, 7225 91 00, 7225 92 00, 7226 
99 10, 7226 99 30, 7226 99 70  
5 Organic Coated Sheets  7210 70 80, 7212 40 80  
6 Tin Mill products  7209 18 99, 7210 11 00, 7210  12 20, 7210 12 80, 7210 
50 00, 7210 70 10, 7210 90 40, 7212 10 10, 7212 10 
90, 7212 40 20  
7 Non Alloy and Other Alloy Quarto Plates  7208 51 20, 7208 51 91, 7208 51 98, 7208 52 91, 7208 
90 20, 7208 90 80, 7210 90 30, 7225 40 12, 7225 40 
40, 7225 40 60  
8 Stainless Hot Rolled Sheets and Strips  7219 11 00, 7219 12 10, 7219 12 90, 7219 13 10, 7219 
13 90, 7219 14 10, 7219 14 90, 7219 22 10, 7219 22 
90, 7219 23 00, 7219 24 00, 7220 11 00, 7220 12 00  
9 Stainless Cold Rolled Sheets and Strips  7219 31 00, 7219 32  10, 7219 32 90, 7219 33 10, 7219 
33 90, 7219 34 10, 7219 34 90, 7219 35 10, 7219 35 
90, 7219 90 20, 7219 90 80, 7220 20 21, 7220 20 29, 
7220 20 41, 7220 20 49, 7220 20 81, 7220 20 89, 7220 
90 20, 7220 90 80  
12 Non Alloy and Other Alloy Merchant Bars 
and Light Sections  7214 30 00, 7214 91 10, 7214 91 90, 7214 99 31, 7214 
99 39, 7214 99 50, 7214 99 71, 7214 99 79, 7214 99 
95, 7215 90 00, 7216 10 00, 7216 21 00, 7216 22 00, 
7216 40 10, 7216 40 90, 7216 50 10, 7216 50 91, 7216 
50 99, 7216 99 00, 7228 10 20, 7 228 20 10, 7228 20 
91, 7228 30 20, 7228 30 41, 7228 30 49, 7228 30 61, 
7228 30 69, 7228 30 70, 7228 30 89, 7228 60 20, 7228 
60 80, 7228 70 10, 7228 70 90, 7228 80 00  
13 Rebars  7214 20 00, 7214 99 10  G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
- 12 - 
 
  Product 
Number  Product category  CN Codes  
14 Stainless Bars and Light Sections  7222 11 11, 7222 11 19, 7222 11 81, 7222 11 89, 7222 
19 10, 7222 19 90, 7222 20 11, 7222 20 19, 7222 20 
21, 7222 20 29, 7222 20 31, 7222 20 39, 7222 20 81, 
7222 20 89, 7222 30 51, 7222 30 91, 7222 30 97, 7222 
40 10, 7222 40 50, 7222 40 90  
15 Stainless Wire Rod  7221 00 10,  7221 00 90  
16 Non Alloy and Other Alloy Wire Rod  7213 10 00, 7213 20 00, 7213 91 10, 7213 91 20, 7213 
91 41, 7213 91 49, 7213 91 70, 7213 91 90, 7213 99 
10, 7213 99 90, 7227 10 00, 7227 20 00, 7227 90 10, 
7227 90 50, 7227 90 95  
17 Angles, Shapes and Sections of Iron or Non 
Alloy Steel  7216 31 10, 7216 31 90, 7216 32 11, 7216 32 19, 7216 
32 91, 7216 32 99, 7216 33 10, 7216 33 90  
18 Sheet Piling  7301 10 00  
20 Gas pipes  7306 30 41, 7306 30 49, 7306 30 72, 7306 30 77  
21 Hollow sections  7306 61 10, 7306  61 92, 7306 61 99  
22 Seamless Stainless Tubes and Pipes  7304 11 00, 7304 22 00, 7304 24 00, 7304 41 00, 7304 
49 10, 7304 49 93, 7304 49 95, 7304 49 99  
23 Bearing Tubes and Pipes  7304 51 12, 7304 51 18, 7304 59 32, 7304 59 38  
25 Large welded tubes  7305 11 00, 7305 12 00, 7305 19 00, 7305 20 00, 7305 
31 00, 7305 39 00, 7305 90 00  
26 Other Welded Pipes  7306 11 10, 7306 11 90, 7306 19 10, 7306 19 90, 7306 
21 00, 7306 29 00, 7306 30 11, 7306 30 19, 7306 30 
80, 7306 40 20, 7306 40 80, 7306 50 20, 7306 50 80,  
7306 69 10, 7306 69 90, 7306 90 00  
28 Non Alloy Wire  7217 10 10, 7217 10 31, 7217 10 39, 7217 10 50, 7217 
10 90, 7217 20 10, 7217 20 30, 7217 20 50, 7217 20 
90, 7217 30 41, 7217 30 49, 7217 30 50 , 7217 30 90, 
7217 90 20, 7217 90 50, 7217 90 90  
 
  G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
- 13 - 
 
  Annex  II 
Proposed tariff quotas  
 
Product 
Number  Product category  CN Codes  Volume of 
tariff quota 
(net tonnes)  Additional 
duty rate  
1 Non Alloy and Other Alloy Hot 
Rolled Sheets and Strips  7208 10 00, 7208 25 00, 7208 26 00, 7208 
27 00, 7208 36 00, 7208 37 00, 7208 38 
00, 7208 39 00, 7208 40 00, 7208 52 99, 
7208 53 90, 7208 54 00, 7211 14 00, 7211 
19 00, 7212 60 00, 7225 19 10, 7225 30 
10, 7225 30 30, 7225 30 90, 7225 40 15, 
7225 40 90, 7226 19 10, 7226 91 20, 7226 
91 91, 7226 91 99  4,269,009  25% 
2 Non Alloy an d Other Alloy 
Cold Rolled Sheets  7209 15 00, 7209 16 90, 7209 17 90, 7209 
18 91, 7209 25 00, 7209 26 90, 7209 27 
90, 7209 28 90, 7209 90 20, 7209 90 80, 
7211 23 20, 7211 23 30, 7211 23 80, 7211 
29 00, 7211 90 20, 7211 90 80, 7225 50 
20, 7225 50 80, 7226 20  00, 7226 92 00  1,318,865  25% 
3 Electrical Sheets (other than 
GOES)  7209 16 10, 7209 17 10, 7209 18 10, 7209 
26 10, 7209 27 10, 7209 28 10, 7225 19 
90, 7226 19 80  178,704  25% 
4 Metallic Coated Sheets  7210 20 00, 7210 30 00, 7210 41 00, 7210 
49 00, 7210 61 00, 7210 69 00, 7210 90 
80, 7212 20 00, 7212 30 00, 7212 50 20, 
7212 50 30, 7212 50 40, 7212 50 61, 7212 
50 69, 7212 50 90, 7225 91 00, 7225 92 
00, 7226 99 10, 7226 99 30, 7226 99 70  2,115,054  25% 
5 Organic Coated Sheets  7210 70 80, 7212 40 80  414,324  25% 
6 Tin Mill products  7209 18 99, 7210 11 00, 7210 12 20, 7210 
12 80, 7210 50 00, 7210 70 10, 7210 90 
40, 7212 10 10, 7212 10 90, 7212 40 20  367,470  25% 
7 Non Alloy and Other Alloy 
Quarto Plates  7208 51 20, 7208 51 91, 7208 51 98, 7208 
52 91, 7208 90 20, 7208 90 80, 7210 90 
30, 7225 40 12, 7225 40 40, 7225 40 60, 
7225 99 00  1,442,988  25% 
8 Stainless Hot Rolled Sheets 
and Strips  7219 11 00, 7219 12 10, 7219 12 90, 7219 
13 10, 7219 13 90, 7219 14 10, 7219 14 
90, 7219 22 10, 7219 22 90, 7219 23 00, 
7219 24 00, 7220 11 00, 7220 12 00  193,049  25% 
9 Stainless Cold Rolled Sheets 
and Strips  7219 31 00, 7219 32 10, 7219 32 90, 7219 
33 10, 7219 33 90, 7219 34 10, 7219 34 
90, 7219 35 10, 7219 35 90, 7219 90 20, 
7219 90 80, 7220 20 21, 7220 20 29, 7220 
20 41, 722 0 20 49, 7220 20 81, 7220 20 
89, 7220 90 20, 7220 90 80  476,161  25% 
12 Non Alloy and Other Alloy 
Merchant Bars and Light 
Sections  7214 30 00, 7214 91 10, 7214 91 90, 7214 
99 31, 7214 99 39, 7214 99 50, 7214 99 
71, 7214 99 79, 7214 99 95, 7215 90 00, 
7216 10 00, 7216 21 00, 7216 22 00, 7216 
40 10, 7216 40 90, 7216 50 10, 7216 50 
91, 7216 50 99, 7216 99 00, 7228 10 20, 
7228 20 10, 7228 20 91, 7228 30 20, 7228 
30 41, 7228 30 49, 7228 30 61, 7228 30 
69, 7228 30 70, 7228 30 89, 7228 60 20, 
7228 60 80, 7228 70 1 0, 7228 70 90, 7228 
80 00  728,270  25% 
13 Rebars  7214 20 00, 7214 99 10  714,964  25% G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
- 14 - 
 
  Product 
Number  Product category  CN Codes  Volume of 
tariff quota 
(net tonnes)  Additional 
duty rate  
14 Stainless Bars and Light 
Sections  7222 11 11, 7222 11 19, 7222 11 81, 7222 
11 89, 7222 19 10, 7222 19 90, 7222 20 
11, 7222 20 19, 7222 20 21, 7222 20 29, 
7222 20 31, 7222 20 39, 7222 20 81, 7222 
20 89, 7222 30 51, 7222 30 91, 7222 30 
97, 7222 40 10, 7222 40 50, 7222 40 90  82,156  25% 
15 Stainless Wire Rod  7221 00 10, 7221 00 90  32,744  25% 
16 Non Alloy and Other Alloy 
Wire Rod  7213 10 00, 7213 20 00, 7213 91 10, 7213 
91 20, 7213 91 41, 7213 91 49, 7213 91 
70, 7213 91 90, 7213 99 10, 7213 99 90, 
7227 10 00, 7227 20 00, 7227 90 10, 7227 
90 50, 7227 90 95  1,058,110  25% 
17 Angles, Shapes and Sections 
of Iron or Non Alloy Steel  7216 31 10, 7216 31 90, 7216 32 11, 7216 
32 19, 7216 32 91, 7216 32 99, 7216 33 
10, 7216 33 90  167,817  25% 
18 Sheet Piling  7301 10 00  24,854  25% 
20 Gas pipes  7306 30 41, 7306 30 49, 7306 30 72, 7306 
30 77  185,280  25% 
21 Hollow sections  7306 61 10, 7306 61 92, 7306 61 99  387,343  25% 
22 Seamless Stainless Tubes and 
Pipes 7304 11 00, 7304 22 00, 7304 24 00, 7304 
41 00, 7304 49 10, 7304 49 93, 7304 49 
95, 7304 49 99  22,818  25% 
23 Bearing Tubes and Pipes  7304 51 12, 7304 51 18, 7304 59 32, 7304 
59 38  5,549  25% 
25 Large welded tubes  7305 11 00, 7305  12 00, 7305 19 00, 7305 
20 00, 7305 31 00, 7305 39 00, 7305 90 00  258,133  25% 
26 Other Welded Pipes  7306 11 10, 7306 11 90, 7306 19 10, 7306 
19 90, 7306 21 00, 7306 29 00, 7306 30 
11, 7306 30 19, 7306 30 80, 7306 40 20, 
7306 40 80, 7306 50 20, 7306 50 80 , 7306 
69 10, 7306 69 90, 7306 90 00  296,274  25% 
28 Non Alloy Wire  7217 10 10, 7217 10 31, 7217 10 39, 7217 
10 50, 7217 10 90, 7217 20 10, 7217 20 
30, 7217 20 50, 7217 20 90, 7217 30 41, 
7217 30 49, 7217 30 50 , 7217 30 90, 7217 
90 20, 7217 90 50, 7217 90  90 393,031  25% 
  
  G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
- 15 - Annex III  
List of products originating in developing countries members of the WTO to which the provisional measures do not apply.  
Where measures do apply, these are marked with an "x"  
 
Country / Product  
group  1 2 3 4 5 6 7 8 9 12 13 14 15 16 17 18 20 21 22 23 25 26 28 
Afghanistan                                                
Albania                                                
Angola                                                
Antigua and Barbuda                                                
Argentina                                                
Armenia                                                
Bahrain, Kingdom of                                                
Bangladesh                                                
Barbados                                                
Belize                                                
Benin                                                
Bolivia, Plurinational State 
of                                               
Botswana                                                
Brazil  x x       x x               x                 
Brunei Darussalam                                                
Burkina Faso                                                
Burundi                                                
Cabo Verde                                                
Cambodia                                                
Cameroon                                                
Central African Republic                                                
Chad                                               
Chile                                               
China      x x   x   x   x     x     x   x x x x x x 
Colombia                                                
Congo                                                
Costa Rica                                                
Côte d'Ivoire                                                
Cuba                                                
  G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
- 16 - Country / Product  
group  1 2 3 4 5 6 7 8 9 12 13 14 15 16 17 18 20 21 22 23 25 26 28 
Democratic Republic of the 
Congo                                                
Djibouti                                                
Dominica                                                
Dominican Republic                                                
Ecuador                                                
Egypt  x                 x                           
El Salvador                                                
Eswatini                                                
Fiji                                               
Gabon                                                
Gambia                                                
Georgia                                                
Ghana                                                
Grenada                                                
Guatemala                                                
Guinea                                                
Guinea -Bissau                                                
Guyana                                                
Haiti                                               
Honduras                                                
Hong Kong, China                                                
India x x x x x x x   x     x x       x   x x   x   
Indonesia              x                                 
Jamaica                                                
Jordan                                                
Kazakhstan                                                
Kenya                                                
Kuwait, the State of                                                
Kyrgyz Republic                                                
Lao People's Democratic 
Republic                                                
Lesotho                                                
Liberia                                                
Macao, China                                                
Madagascar                                                 
  G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
- 17 - Country / Product  
group  1 2 3 4 5 6 7 8 9 12 13 14 15 16 17 18 20 21 22 23 25 26 28 
Malawi                                                
Malaysia                  x                             
Maldives                                                
Mali                                               
Mauritania                                                
Mauritius                                                
Mexico                                                
Moldova, Republic of                      x     x                   
Mongolia                                                
Montenegro                                                
Morocco                                                
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                                                
Saudi Arabia, Kingdom of                                          x     
Senegal                                                
Seychelles                                                
Sierra Leone                                                 
  G/SG/N/7/EU/1 • G/SG/N/11/EU/1  
 
- 18 - Country / Product  
group  1 2 3 4 5 6 7 8 9 12 13 14 15 16 17 18 20 21 22 23 25 26 28 
Solomon Islands                                                
South Africa                x x                             
Sri Lanka                                                
Suriname                                                
Tajikistan                                                
Tanzania                                                
Thailand                                                
The former Yugoslav 
Republic of Macedonia          x   x                   x x           
Togo                                               
Tonga                                                
Trinidad and Tobago                                                
Tunisia                                                
Turkey  x x   x x       x x x     x x   x x     x x x 
Uganda                                                
Ukraine  x x         x       x x   x x   x x x       x 
United Arab Emirates                                x           x   
Uruguay                                                
Vanuatu                                                
Venezuela, Bolivarian 
Republic of                                                
Viet Nam    x   x         x                             
Yemen                                                
Zambia                                                
Zimbabwe                                                
 
 
__________