G/SG/N/8/EGY/7
G/SG/N/10/EGY/7
G/SG/N/11/EGY/8/Suppl.1
16 April 2015
(15-2048)  Page: 1/5
Committee on Safeguards  Original: English
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON 
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT 
THEREOF CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
EGYPT 
(Steel rebar) 
The following communication, dated 15 April 2015, is being circulated at the request of the 
Delegation of Egypt.  
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  The Arab Republic of Egypt hereby wishes to no tify the Committee on Safeguards pursuant to 
Article 12.1(b) of the Agreement on Safeguards on finding serious injury caused by increased 
imports, Article 12.1(c) of the Agreement on Safeguards on the decision to apply a definitive safeguard measure and footnote 2 of the Article 9 of the Agreement on Safeguards. 
 
Consistent with Article 12.3 of the Agreement on Safeguards, Egypt is prepared to consult with 
those Members having a substantial interest as exporters of the subject product. 
 
A. NOTIFICATIONS UNDER ARTICLE 12.1(B) AND 12.1(C) OF THE AGREEMENT ON 
SAFEGUARDS UPON MAKING A FINDING A SERIOUS INJURY 
 
1. Evidence of Serious Injury caused by increased imports  
 (a) Serious Injury 
 
In order to make a final determination of serious injury to the domestic industry producing the like or directly competitive product, an evaluation of all relevant factors on an objective and 
quantifiable basis having a bearing on its situation has been undertaken.  
 (i) Market Share  
 2011 2012 2013 2011 
(Jan.-Sep.) 2014 
(Jan.-Sep.) 
Market share of Domestic industry  -- 5 2 -- (3) 
Market share of 
Imports  -- 4 (1) -- 8 
 
The market share of the domestic industry incr eased by 5%, 2% respectively when compared 
to 2011 as a base year. At the same time, the ma rket share of imports increased by 4 % in 2012 
and decreased by only 1% in 2013 when compared to 2011. When considering the nine months G/SG/N/8/EGY/7 • G/SG/N/10/EGY/7 • G/SG/N/11/EGY/8/Suppl.1 
 
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  period of 2011 and 2014, market share of import s remarkably surged to 8%, while the market 
share of the domestic industry deceased by 3% when compared to 2011. 
 (ii) Domestic Sales 
 
 2011 2012 2013 2011 
(Jan.-Sep.) 2014 
(Jan.-Sep.) 
Domestic sales  
Index % 100 126 123 100 125 
 
There was an increase in the sales of domestic industry by 26 and 23 percent during 2012 and 2013 respectively when compared to the base year 2011. The sales of the domestic industry also increased by 25% during the first nine months of 2014 compared to the same corresponding 
period of 2011. 
 (iii) Production 
 
 2011 2012 2013 2011 
(Jan.-Sep.) 2014 
(Jan.-Sep.) 
Production  Index % 100 126 122 100 128 
 
The domestic industry's production increased by 26% and 22% in 2012, 2013 respectively when 
compared to the base year 2011. During January to September 2014, the domestic production increased by 28% when compared to the same corresponding period of 2011. 
 
(iv) Productivity  
 2011 2012 2013 2011 
(Jan.-Sep.) 2014 
(Jan.-Sep.) 
Productivity Index %  100 103 97 100 99 
 
Productivity increased by 3% and then declined  by 3% during 2012 and 2013 respectively when 
compared to year 2011. The level of productivity  of the domestic industry decreased during the 
first nine months of the year 2014 by 1% only when compared to the same period of year 2011. 
 
(v) Capacity Utilisation 
 
 2011 2012 2013 2011 
(Jan.-Sep.) 2014 
(Jan.-Sep.) 
Capacity utilization  Index %  -- (1) (4) -- (1) 
 
The capacity utilization declined by 1% and 4%during 2012and 2013 respectively when compared 
to 2011, and decreased by 1% during the first ni ne months of the year 2014 when compared to 
the same period of 2011. 
 (vi) Profit and Loss  
 2011 2012 2013 2011 
(Jan.-Sep.) 2014 
(Jan.-Sep.) 
Profit/loss Index %  100 10 88 100 (172) 
 
The profits of the domestic industry declin ed by 90% and 12% in 2012 and 2013 respectively 
when compared to 2011. During the first nine mont hs of the year 2014, the profits of the domestic 
industry declined by172% and turned into losses when compared to the same period of 2011.  
 G/SG/N/8/EGY/7 • G/SG/N/10/EGY/7 • G/SG/N/11/EGY/8/Suppl.1 
 
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  (vii) Employment 
 
 2011 2012 2013 2011 
(Jan.-Sep.) 2014 
(Jan.-Sep.) 
Employment index 100 123 125 100 130 
 
The number of the employees increased by 23%  and 25% in 2012 and 2013 respectively when 
compared to 2011. There was an increase of 30% in labour's number during the first nine months of the year 2014 compared to the same period of year 2011. 
 
(viii) Inventory  
 2011 2012 2013 2011 
(Jan.-Sep.) 2014 
(Jan.-Sep.) 
Inventories Index%  100 122 54 100 153 
 
The volume of inventory increased by 22% in 2012, and then declined by 46% in 2013 (when 
provisional safeguard measures of 6.8% of the previous investigation were imposed during the 
first five months) when compared to the year 2011. The inventory increased substantially by 53 % during the first nine months of the year 2014 co mpared to the same period of the year 2011. 
 
(ix) Conclusion  Considering all relevant factors having a bearing on the situation of the domestic industry, a final 
determination was made that the domestic industry is suffering from serious injury. The market 
share of the domestic industry declined; the pr oductivity and capacity utilization declined; the 
volume of inventory increased and there was a sharp increase in the domestic industry's losses. 
 
(b) Causation  
(i) Increase in Imports 
 There has been a significant increase in the volume of inventory during the period of investigation especially during the first nine months of the year 2014, which coincided with the substantial, 
sharp and sudden increase in imports. The inabilit y of the domestic industry to dispose of the 
production caused serious injury to the domestic industry.    
(ii) Other Causes 
 The Investigating Authority concludes that there are no other known factors, other than the 
increasing imports of the product concerned, caused serious injury suffered by domestic industry.  
 2. Absolute or relative increase in imports  
The product concerned have been imported into Egypt in such increased quantities and in such 
conditions in absolute terms as well as compared to the domestic production as to cause serious injury to the domestic industry. Import figures are indicated in the tables below.  
 
 (Unit: Thousand Ton) 
 2011 2012 2013 2011 
(Jan.-Sep.) 2014 
(Jan.-Sep.) 
Imports 260 573 207 195 685 
Index % 100 220 80 100 351 
Domestic Production ** ** ** ** ** 
Imports as % of 
domestic production 100 183 67 100 257 
 G/SG/N/8/EGY/7 • G/SG/N/10/EGY/7 • G/SG/N/11/EGY/8/Suppl.1 
 
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  Absolute Term 
 There was an increase in imports of 120% in absolute terms during 2012 when compared to 2011 as a base year. In 2013, the imports declined by 20% compared to the base year. During the first 
nine months of 2014, there was a substantial and sharp increase in the volume of imports of 
251 % compared to the same period of the base year. It is concluded that the products concerned are being imported into Egypt in quantities that have increased suddenly, sharply and significant. 
 
Relative Term  In relative term, it is observed that the proportion  of the imports in relation to domestic production 
increased by 83% in 2012 when compared to 201 1 as a base year, then declined by 33% in 2013 
when compared to the base year. When considerin g the figures in the nine months period of 2011 
and 2014, the relative imports to domestic production also surged significantly to 157%. 
 
3. Description of the subject product  The product under investigation is Steel Rebar for construction purposes. The product is currently classified under the HS tariff item numbers "72.13, 72.14" within the Egyptian Customs Tariff 
Classification.  
 4. Description of the proposed measure 
 
It is proposed to impose a definitive safeguard measure is in the form of a percentage from CIF duty. 
 
5. Entry into force of the prop osed definitive sa feguard measure 
 The definitive safeguard measure is proposed to enter into force, with the publication of the decree 
of the Minister of Industry, Trade and SMEs in the Official Gazette.  
 6. Expected Duration of the Measure 
 
The expected duration of the proposed measure is three years.    
7. Date of Review 
 Not available.  
8. Timetable for the Progressive Liberalisation of the Measure 
 To facilitate adjustment, the proposed measure will be liberalised as follows:   
  
(EGP/TON) 
Period From the publishing 
date till 13/10/2015 From 14/10/2015 to 
13/10/2016 From 14/10/2016 to 
13/10/2017 
Duty 8% from CIF duty within 
minimum 
408 EGP 6.5% from CIF duty 
within minimum 
325 EGP 3.5% from CIF duty 
within minimum 
175 EGP 
 
B. NOTIFICATIONS PURSUANT TO ARTICLE 9, FOOTNOTE 2 OF THE AGREEMENT ON 
SAFEGUARDS 
 1. Description of the subject product  
The product under investigation is Steel Rebar for construction purposes. The product is currently 
classified under the HS tariff item numbers "72.13, 72.14" within the Egyptian Customs Tariff Classification. 
 G/SG/N/8/EGY/7 • G/SG/N/10/EGY/7 • G/SG/N/11/EGY/8/Suppl.1 
 
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  2. Description of the proposed measure 
 It is proposed to impose a definitive safeguard measure is in the form of a specific duty of the percentage of CIF dutey. 
 
3. Developing Countries exempted from the safeguard measure  
Imports from Developing Country Members shall not be subject to the definitive safeguard 
measure as long as each Member's imports do not exceed three per cent of total imports into Egypt and the share of the Members with less than a three per cent import share do not collectively account for more than nine percent of total imports into Egypt.  
 
 Correspondence Address  
Ministry of Industry, Trade and Small and Medium Enterprises 
Trade Agreements Sector Central Department for International Trade Policies  
(Anti-dumping, Subsidy and Safeguard Department) 
Head of the Central Department for International Trade Policies "Ibrahim El Sginy" Ramses Extension St., Nasr City, Al-Maleya Towers Tower 6 – Floor 9 
Tel: 00 202 - 23422479 
Fax: 00 202 - 23420784 e-mail: Tas@ tas.gov.eg 
 
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