G/SG/N/7/COL/2  
G/SG/N/11/COL/2  
16 September 2013  
(13-4885)  Page: 1/4  
Committee on Safeguards  Original: Spanish  
 
  NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON SAFEGUARDS 
BEFORE TAKING A PROVISIONAL SAFEGUARD MEASURE 
REFERRED TO IN ARTICLE 6 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
COLOMBIA  
(Bars and Rods of Iron or Non-Alloy Steel (C orrugated Bars and Rods), and Bars and Rods, 
Hot-Rolled, of Iron or Non-Alloy Steel (Corrugated Bars and Rods, Hot-Rolled)) 
The following communication, dated 12 September 2013,  is being circulated at the request of the 
delegation of Colombia. 
 
_______________ 
 
 
Pursuant to Article 12.4 of the WTO Agreement on Safeguards, Colombia hereby notifies the adoption of a provisional measure on imports of bars and rods of iron or non-alloy steel 
(corrugated bars and rods) and bars and rods, hot-rolled, of iron or non-alloy steel (corrugated 
bars and rods, hot-rolled) in accordance with the regulations established in its domestic legislation – Decree No. 152 of 1998.  
The initiation of this investigation was notified by document G/SG/N/6/COL/6 
of 3 September 2013.  
1. Product involved 
 The products under investigation are bars and rods of iron or non-alloy steel (corrugated bars 
and rods) and bars and rods, hot rolled, of iron or non-alloy steel (corrugated bars and rods, 
hot rolled), which are classified in the National Customs Tariff (Decree No. 4927 of 2011) under the following subheadings: 
PRODUCT SUBHEADING DESCRIPTION (ADAPTED TEXT) 
Bars and rods of iron 
or non-alloy steel 7214.20.00.00 Bars and rods of iron or non-alloy steel, not further worked 
than forged, hot rolled, hot drawn or hot extruded, but including those twisted after rolling, containing indentations, ribs, gr ooves or other defo rmations produced 
during the rolling process or twisted after rolling. 
Bars and rods, 
hot rolled, of iron 
or non-alloy steel 7213.10.00.00 Bars and rods, hot rolled, of iron or non-alloy steel, 
containing indentations, ribs, grooves or other deformations 
produced during the rolling process. 
 
2. Proposed measure 
 - Bars and rods or iron or non-alloy steel (corrugated bars and rods): 
Customs duty of 25.6%. G/SG/N/7/COL/2 • G/SG/N/11/COL/2 
- 2 - 
   
- Bars and rods, hot-rolled, of iron or non-alloy steel (corrugated bars and rods, hot-rolled): 
 Customs duty of 21.96%. 
 
3. Proposed date of introduction of the measure 
 
In the coming days. 
 4. Grounds for application of the provisional measure 
 
a. Existence of critical circumstances 
 Pursuant to domestic legislation (Article 33 of Decree No. 152 of 1998), and in accordance with 
Article 6 of the WTO Agreement on Safeguards, a study was conducted in order to analyse the 
behaviour of indicators of critical circumstances. The study focused on variables in respect of inventories, domestic sales, and gross and operating profit, which were taken from the 
economic and financial information, by line of production, provided by ACERÍAS PAZ DEL RÍO S.A. 
and DIACO S.A. The study compared the performance of each of these indicators between the first 
and the second half of 2012, in the light of the increase in imports in that year.  
- Bars and rods of iron or non-alloy steel (corrugated bars and rods): 
 
The six-monthly analysis shows a 56% growth in  imports in the second half of 2010 compared 
to the first half of 2010, and also shows growth for each six-month period from the second half 
of 2011 to the second half of 2012 of 139%, 78% an d 0.309% respectively in comparison to the 
previous period. The analysis shows a drop in the volume of imports of 18% in the first half 
of 2011 to 26,974,403 kg. 
 Between the reference period and the critic al period, average imports increased 215.49% 
from 35,360,012 kg to 111,556,753 kg, i.e. by 76,196,741 kg. 
 
Per unit prices decreased by 5.18% in the first and second halves of 2012 from US$0.72 per kg to US$0.69 per kg, i.e. a difference of US$0.04 per kg. 
 
During the reference period, from 2010 to 2012, Mexico accounted for an overwhelming share of the volume of imports (81.81%), and during the critical period, the countries that accounted for 
the greatest share of imports were Mexico (65.1%), Turkey (27.22%), Brazil (3.21%), 
Spain (2.74%) and the United States (1.34%). It can therefore be concluded that Mexico was among the five main suppliers of the product under investigation and the growth rate in its imports was substantially higher than that of total imports of the subject product. 
 
The volume of imports during the first and seco nd half of 2012 increased by 0.3%, or 343,819 kg, 
from 111,384,844 kg to 111,728,662 kg. 
 
Prices for the first and second half of 2012 decreased by 5.18% from US$0.72 per kg to US$0.69 per kg, i.e., by US$0.04 per kg. 
 
The comparison showed evidence of critical circ umstances: a decline of 9.95 percentage points 
in the domestic sales indicators, a decrease in the gross profit margin of 9.24 percentage points, and a reduction of 12.26 percentage points in the operating profit margin, while the final inventory 
of the finished product, in pesos, although it decreased by 42.29% during the second half of 2012 
in comparison to the first half of 2012, from the second half of 2011 to the first half of 2012 grew by 114.3%, and the figure for the second half of 2012 is 23.69% higher than for the second half 
of 2011. 
 - Bars and rods, hot rolled, of iron or non-alloy steel (corrugated bars and rods, hot rolled): 
 The six-monthly analysis shows an increase in imports over the last three six-month periods, i.e. the second half of 2011 and the first and second halves of 2012, with growth rates for each period of 11.73%, 11.031% and 62.341% respectively in comparison to the previous period. G/SG/N/7/COL/2 • G/SG/N/11/COL/2 
- 3 - 
  The analysis shows a drop in the volume of imports of 76.74% in the first half of 2011 
to 1,653,728 kg.  There was an increase in the volume of import s from the first to the second half of 2012 
of 62.34% from 23,389,691 kg to 37,971,130 kg, i.e. of 14,581,439 kg. 
 Per unit prices in the two halves of 2012 decreased by 8% from US$0.76 per kg 
to US$0.70 per kg, i.e. a difference of US$0.06 per kg. 
 During the critical period, the countries accounting for the greatest share of imports were Trinidad and Tobago (55.84%) and Mexico (43.89%). 
 
The comparison showed evidence of critical circ umstances: a decline of 14.78 percentage points 
in the domestic sales indicators, a decrease in th e gross profit margin of 13.84 percentage points 
and a reduction of 18.36 percentage points in the operating profit margin, while the final inventory 
of the finished product, in pesos, although it declined by 4.25% during the first half of 2012, 
grew by 14.33% in the first half of 2012 in comparison to the second half of 2011, and in the 
second half of 2012 was 9.48% higher than the figure recorded in the second half of 2011, so that 
as far as this variable is concerned, critical circumstances are deemed to exist.  5. Major exporting Members of imports of the product involved 
 
- Bars and rods of iron or non-alloy steel (corrugated bars and rods): 
 
Mexico, Turkey, Brazil, Spain. 
 - Bars and rods, hot rolled, of iron or non-alloy steel (corrugated bars and rods, hot rolled): 
 Mexico, Trinidad and Tobago, United Kingdom.  6. Countries not subject to the measure 
 
- Bars and rods of iron or non-alloy steel (corrugated bars and rods): 
 
Imports from the United States are excluded from the measure under the free trade agreement 
between the two countries. The agreement in questi on provides for the maintenance of WTO rights 
and obligations as regards the application of general safeguard measures, but includes an 
exclusion clause when the imports of the Parties are not a substantial cause of the injury. 
 Thus, imports originating in the United States must be excluded from the measure, since the 
analysis of the imports revealed that their share in total imports was a mere 1.34%. Consequently, 
these imports do not constitute a substantial cause of the serious injury determined 
in the investigation.  
- Bars and rods, hot rolled, of iron or non-alloy steel (corrugated bars and rods, hot rolled): 
 
N/A. 
 
7. Offer of consultations under Article 12.4  In accordance with Article 12.4 of the Agreement on Safeguards, Colombia is prepared to hold 
consultations on the provisional safeguard me asure, once the measure has been adopted, 
with those Members have a substantial intere st as exporters of the subject product. G/SG/N/7/COL/2 • G/SG/N/11/COL/2 
- 4 - 
  NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
- Bars and rods of iron or non-alloy steel (corrugated bars): 
 
In accordance with Article 9 of the WTO Agreement on Safeguards, "[s]afeguard measures shall 
not be applied against a product originating in a developing country Member as long as its share of imports of the product concerned in the import ing Member does not exceed 3%, provided that 
developing country Members with less than 3% import share collectively account for not more 
than 9% of total imports of the product concerned".  Pursuant to Article 9.1 of the WTO Agreement on Safeguards, and looking at the import statistics 
for the period analysed, the individual shares of  imports from Ecuador, Venezuela and Cuba were 
less than 3%, and collectively do not account for more than 9% of total imports of the product concerned. 
 
Thus, the provisional safeguard measure against imports of corrugated bars and rods would not apply to imports from the aforementioned countries, since they comply with the conditions set 
forth in Article 9 of the Agreement on Safeguards. 
 - Bars and rods, hot rolled, of iron or non-alloy steel (corrugated bars and rods, hot rolled): 
 
Pursuant to Article 9.1 of the WTO Agreement on Safeguards and looking at the import statistics 
for the period analysed, the individual share of Ve nezuelan imports is less than 3% and collectively 
does not account for more than 9% of total imports of the product in question. 
 
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