G/SG/N/8/ARE/2, G/SG/N/8/BHR/2  
G/SG/N/8/KWT/2, G/SG/N/8/OMN/2  
G/SG/N/8/QAT/2, G/SG/N/8/SAU/2  
 
17 May 2018 
(18-2927) Page: 1/3 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT ON  
SAFEGUARDS ON FINDIN G A SERIOUS INJURY O R THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
COOPERATION COUNCIL FOR THE ARAB STATES OF THE GULF "GCC"  
(Chemical Plasticizers ) 
The following communication, 9 May 2018, is being circulated at the request of the State of Kuwait 
as President of the GCC on behalf of the GCC member States.  
 
_______________  
 
 
Pursuant to Article 12.1(b) of the WTO Agreement on Safeguards, the State of Kuwait notifies the 
Committee on Safeguards that the GCC - Bureau of Technical Secretariat for Anti -Injurious 
Practices in International Trade  (TSAIP) hereafter referred as "the Investigating Authority" has 
found a prel iminary determinations of serious injury caused by increased imports  on behalf of 
GCC member States.1 
 
1  THE PRODUCT SUBJECT TO THE INVESTIGATION  
The products covered by the investigation include:  
Prepared Additives for cements, mortars or concretes (chemical plasticizers) known as 
superplasticizers or hyperplasticizers in liquid or powder form and take different commercial names 
like SNF/NSF/PNS, SMF or PCE. These products are used for all types of  concrete like ready -mix 
concrete, precast and pre -stressed concrete, in areas of congested reinforcement, where higher 
workability is of benefit, in reducing water concrete for the sake of improving impermeability and 
durability; marine concrete, gunite c oncrete, architectural concrete, special concrete, pumpable 
concrete.  
The product under investigation is classified under the following GCC -Unified Tariff Codes from 
items: (38244000).  
2  PROVIDE THE BASIS FO R: 
Making a preliminary determination, as provided  for in Article 4, that increased imports have 
caused serious injury.  
The investigation  was initiated  on 20 September 20172, after receiving of a documented 
safeguards application filed by "Methanol Chemicals Company (CHEMANOL )" pursuant to the 
GCC Common Law on Antidumping, Countervailing Measures and Safeguard Measures and its 
Rules of Implementation, in which it alleged that increased imports of the subject product had 
caused serious injury to the domestic industry producing s imilar products.  
                                                
1 A copy of the preliminary report issued by GCC -TSAIP  has been submitted electronically (in Arabic 
only). To consult this document, please contact Ms Budd ( hilary.budd@wto.org ) or Ms Naville 
(delphine.naville@wto.org ) of the Rules Division.  
2 G/SG/N/6/BHR/3.  G/SG/N/8/ARE/2 • G/SG/N/8/BHR/2 • G/SG/N/8/KWT/2 • G/SG/N/8/OMN/2 • G/SG/N/8/QAT/2 • 
G/SG/N/8/SAU/2  
 
- 2 - 
 
  The GCC -TSAIP (Investigating Authority) made a preliminary determination on the following:  
(a) Unforeseen Developments  
The GCC-TSAIP examined data on unforeseen developments either provided by the complainant or 
collected during the investiga tion and made the following determinations:  
 The increase in imports is mainly due to developments in the steel industry worldwide in 
terms of excess production, especially in China.  
 The availability of huge quantities of raw naphthalene at competitive pri ces is an opportunity 
to be used as a valuable product to produce the product under investigation.  
 Global steel production declined by 17 million tons in the five years preceding the entry into 
force of the WTO Agreement in 1995, and increased by 769 milli on tons during the 15 years 
following China's accession to the WTO between 2000 and 2015, resulting in increased 
production and exports of the product under investigation.  
 The significant increase in naphthalene supply produced by the increase in steel pro duction 
has led to a significant increase in the amount of exports of the product under investigation 
to the GCC States, which have caused serious damage to the domestic industry .  
 Waiting for the updating of the imports data to include the first half of 2 017, GCC -TSAIP is 
still examining the unforeseen developments and the definitive determination will be 
reflected in the next phase of the ongoing investigation.  
(b) Increased Imports  
The investigation period covers temporarily 2012 to 2016 for the purpose of d etermining increased 
imports. This period will be updated after updating the imports data to include the first half of 
2017 as stated in the Notice of Initiation published in the Official Gazette Volume (14).  
 
(Base year 2012)  2012  2013  2014  2015  2016  
Imports Volume (ton)  339,565.49  356,979.65  336,453.76  568,955.79  769,459.90  
Index  100 105.13  99.08  167.55  226.60  
Imports/production ratio  100 118.65  110.47  213.00  347.65  
 
The GCC -TSAIP considered as shown in the table above that the subject product is being imported 
into the GCC States market in such increasing quantities in absolute terms and relative to 
GCC production.  
 
The GCC -TSAIP made a preliminary determination that sharp and significant increase of the 
imports of the imported products occurred i n the investigation period, and it will be determined 
definitively whether the conditions of the recent, sudden, sharp and significant increase in imports 
will be met, either in absolute or relative terms, after updating the imports data as indicated 
above . 
(c) Serious Injury  
The investigation period for the purposes of determining serious injury covered temporarily the 
period 2012 to 2016.  
 
The preliminary determinations of a serious injury analysis relates to the information submitted by 
Chemanol whose produc tion of the GCC like product constitutes the major proportion of the total 
GCC production of those products and it represents the GCC industry under the requirements of 
Article 3 of the GCC Common Law on Antidumping, Countervailing Measures and Safeguard 
Measures and its Rules of Implementation.  
 G/SG/N/8/ARE/2 • G/SG/N/8/BHR/2 • G/SG/N/8/KWT/2 • G/SG/N/8/OMN/2 • G/SG/N/8/QAT/2 • 
G/SG/N/8/SAU/2  
 
- 3 - 
 
  (Base year 2012)  2012  2013  2014  2015  2016  
Production volume  100 88.60  89.69  78.66  65.18  
Capacity utilization  100 88.60  89.69  78.66  65.18  
Sales volume  100 86.50  87.93  72.60  64.58  
Market share of domestic sales  100 87.23  92.07  52.93  36.96  
Market share of imports  100 106.02  103.74  122.18  129.70  
Inventory volume  100 538.34  256.50  1079.56  596.69  
Employment  100 90.91  118.18  118.18  104.55  
Losses  100 96.49  57.66  -18.23  -48.18  
 
Based on the period of investigation referred to above, GCC -TSAIP analyzed the rate and volume 
of the increase in imports and assessed the impact on GCC industry of chemical plasticizers, 
knowing that the GCC industry provided data injury until the first h alf of 2017, which will be 
studied and reflected in the next phase of the investigation after updating the imports data as 
indicated above.  
 
According to the injury data above, there is preliminarily sufficient evidence that the GCC industry 
is suffering a serious injury in the form of  decline in domestic sales, market share, production, 
employment, and increase in losses, in conjunction with the increase of imports.  
The Investigating Authority  made a preliminary determination that the GCC industry is suff ering 
serious injury during the period referred to above, and the determination of the existence of 
serious injury will be determined definitively after updating the imports data as indicated above.  
(d) Causal Link between Increased Import and Serious Injury  
Based on the preliminary determinations, The GCC -TSAIP has examined the impact of other 
factors, other than the massive increase in imports that might cause serious injury to the GCC 
industry, such as trade restrictive practices, consumption, export perform ance and technology; 
However these factors did not contribute to the serious injury suffered by the GCC industry. 
Therefore, The GCC -TSAIP found that there is sufficient preliminary evidence to the existence of 
the causal link between the serious injury ca used to the GCC industry and the increase of imports 
of the product under investigation, and the determination of the existence of causal link will be 
determined definitively after updating the imports data as indicated above .  
(e) Preliminary determinatio n  
The GCC -TSAIP determined the existence of:  
 Massive increase of imports of the products under investigation as result of unforeseen 
developments; and the determination of the existence of the increase in imports will be 
determined definitively after upda ting the imports data as indicated above;  
 Serious injury to the GCC industry; and the determination of the existence of serious 
injury will be determined definitively after updating the imports data as indicated above;  
 Causal link between the serious injur y and the increase in imports, and the 
determination of the existence of causal link will be determined definitively after 
updating the imports data as indicated above . 
Based on the preliminary determination, the Permanent Committee  made decision to continue the 
investigation and not to impose provisional measures.  
__________