G/L/1276/Add.1  
G/SG/191/Add.1  
 
2 November  2018 
(18-6893) Page: 1/9 
Council for  Trade in Goods  
Committee on Safeguards   
 
REQUEST UNDER ARTICL E 13.1(E) OF THE AGR EEMENT ON SAFEGUARDS  
(REQUEST FROM THAILA ND) 
FACTUAL REPORT TO TH E COUNCIL FOR TRADE IN GOODS BY  
THE CHAIRPERSON OF T HE COMMITTEE ON SAFE GUARDS  
Addendum  
This document contains the Annexes to the factual report circulated in document G/L/1276 -
G/SG/191.  
 
_______________  
 
  G/L/1276/Add.1 • G/SG/191/Add.1  
 
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 ANNEX 1  
 
(G/L/1213/Rev.1 -G/SG/158/Rev.1 , circulated on 16 March 2018)  
 
 
REQUEST UNDER ARTICL E 13.1(E) OF  
THE AGREEMENT ON SAFEGUARDS  
 
REQUEST FROM THAILAN D CONCERNING  
A SUSPENSION OF CONC ESSIONS OR OTHER OBL IGATIONS BY TURKEY  
THAILAND  
Revision  
The following communication, dated 15 March 2018, is being circulated at the request of the 
Delegation of Thailand.1 
 
_______________  
 
 
Without prejudice to rights and obligations under the WTO  Covered Agreements and pursuant to 
Article 13.1(e) of the Agreement on Safeguards, Thailand hereby requests the Committee on 
Safeguards to review whether the suspension of concessions or other obl igations applied by Turkey 
is "substantially equivalent" as provided for in Article 8.2 of the Agreement on Safeguards and to 
report as appropriate to the Council for Trade in Goods.  
 
The basis for this request is as follows:  
 
1  FACTS  
1. On 7 June 2014, in relation to increased imports and in order to remedy the serious injury 
suffered by the domestic industry, Thailand imposed a safeguard measure  on non - alloy hot rolled 
steel flat products in coils and not in coils (hereinafter refer to as "the products co ncerned") for a 
duration of 3 years and progressively liberalized it at regular interval during  the period of its 
application.  
 
2. On 21 June 2017, the decision to extend a safeguard measure that is being applied against 
the products concerned was notified  (WTO Document G/SG/N/8/THA/3/Suppl.2 and 
G/SG/N/10/THA/3/Suppl.2 ) according to which a public hearing was held on 24 April 2017 and the 
Ministry of Economy of Republic of Turkey requested a time slot for prior consultation. That 
consultation was held on 2 1 April 2017 during which there was no discussion on the issue relating 
to maintaining a substantially equivalent level of concessions and other obligations to that existing 
under GATT 1994 due to the fact that the Turkish import share of the subjected goo ds counted only 
for 5. 14% of Thailand's total import.  
 
3. On 3 August 2017, Turkey notified to the Council for Trade in Goods the proposed suspension 
of concessions and other obligations referred to in paragraph 2 of Article 8 of the WTO Agreement 
on Safeguards (WTO Document G/L/1183 and G/SG/N/12/TUR/5 ) consisting of an increase in import 
duty of air -conditioning machine (HSC: 8415.10) originating in Thailand effectuated fro m 5 
September 2017 for 3 years.  
 
4. On 22 November 2017, Turkey published in its Official Journal the increase in import duty of 
air-conditioning machine from Thailand by 9.27% based on the selected import value of non-alloy 
hot rolled steel flat products in coils and not in coils  in 2013 wh ere there was a maximum surge in 
imports before the initiation of Thailand's investigation.  
 
                                                
1 In the preparation for circulation of the original document (G/L/1213 -G/SG/158), a reproduction error 
occurred in certain cells in the tables in the Annex. For ease  of reference, this revised document reproduces the 
entire document with the reproduction error corrected.  G/L/1276/Add.1 • G/SG/191/Add.1  
 
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   2  SUBSTANTIALLY EQUIVA LENT CONCESSIONS  
5. Thailand considers that the suspension  of concessions and other obligations  applied by Turkey 
is not substantially equivale nt as provided for in Article 8.2 of the Agreement on Safeguards 
considering that the substantially equivalent  concessions should be calculated based on a 3 -year 
average of import value preceding the original measure where the level of concessions is not a ffected 
and where relevant factors of injury indicate that the domestic industry suffered from the surge in 
imports . 
 
6. In fact, the substantially equivalent concessions for Turkey should be at most at the amount 
of 5.70% additional duty instead of 9.27% on the products concerned, as indicated in the Annex.  
 
3  REQUEST  
7. Pursuant to the mandate established in Article 13.1(e) of the Agreement on Safeguards, 
Thailand requests that the Committee on Safeguards review whether the suspension of concessions 
or othe r obligations applied by Turkey is "substantially equivalent"  as provided for in Article 8.2 of 
the Agreement on Safeguards. Thailand also requests that the Committee report its findings to the 
Council for Trade in Goods.  
 
 
ANNEX  
 
LEVEL OF SUBSTANTIAL LY EQUIVALENT CONCESSIO NS OR OTHER OBLIGATI ONS 
 
1. Based on Thai Customs Authority's statistics, application of a 3 -year average safeguard duty 
of 20.87% on non -alloy hot rolled steel flat products in coils and not in coils should result in 
3.2 million US dol lars ($) of duty collected by Thailand with regard to Turkish exports of the relevant 
product based on an average of the import value from June 2011 – May 2014.  
 
Non-alloy hot rolled steel flat products in coils and not in coils  
 
Turkey's Exports $  Thailand's Increase 
in Duty  Duty Collected  
June 2011  
–  
May 2012  June 2012  
–  
May 2013  June 2013  
 –  
May 2014  
- 6,621,224  39,563,944    
3-year average   15,395,056  20.87%  3,212,948  
 
 
2. The substantially equivalent concessions and other obligations as regards air -conditioning 
machine originating in Thailand should be at the amount of 5.70% based on a 3 -year average of 
export value during the same period  of the said product to Turkey.  
 
Air-conditioning Machine  
 
Thailand's Exports $  Turkey's Increase in 
Duty Duty Collected  
June 2011  
–  
May 2012  June 2012  
–  
May 2013  June 2013  
 –  
May 2014  
44,585,697  73,529,548  50,935,734    
3-year average   56,350,326  5.70%  3,211,969  
 
_______________   G/L/1276/Add.1 • G/SG/191/Add.1  
 
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 ANNEX 2  
 
(G/L/1183 -G/SG/N/12/TUR/5 , circulated on 3 August 2017) 
 
 
NOTIFICATION UNDER A RTICLE  12.5 OF THE A GREEMENT ON SAFEGUAR DS TO THE 
COUNCIL FOR TRADE IN  GOODS OF PROPOSED S USPENSION OF CONCESS IONS  
AND OTHER OBLIGATION S REFERRED TO IN PAR AGRAPH  2 OF 
ARTICLE  8 OF THE AGR EEMENT ON SAFEGUARDS  
TURKEY 
The following  communication, dated 3 August 2017, is being circulated at the request of the 
Delegation of Turkey.  
_______________  
 
 
Pursuant  to Article  12.5 of the Agreement  on Safeguards,  and in accordance  with the agreed  format  
for notifications  (G/SG/1,  1 July 1996) , the Government  of Turkey  provides  the immediate  
notification  to the Council  for Trade  in Goods  of proposed  suspension  of concessions  and other  
obligations  referred  to in paragraph  2 of Article  8. 
 
1. Which  Member  is proposing  suspension  of concessions  and other  obligations  
referred  to in Article  8.2? 
 
Turkey.  
 
2. Specify  the measure,  the product  subject  to the measure,  the WTO  document  that 
notified  the safeguard  measure,  and the Member  imposing  the measure  in relation  to 
which  the Member  is proposing  suspension  of concessions  and other  obligations  referred  
to in Article  8.2 
 
The extended  measure  imposed  by Thailand  in the form of a tariff increase  on imports  of non-alloy 
hot rolled  steel flat products  in coils and not in coils, for three  years  starting  from 7 June 2017 until 
6 June 2020.  
 
The extended  measure  has been notified  in G/SG/N/8/THA/3/Suppl.2 -G/SG/N/10/THA/3/Suppl.2  
(dated  21 June 2017).  
 
3. Describe  the proposed  suspension  of concessions  and other  obligations  referred  to 
in Article  8.2, and the proposed  date from  which  it will come  into effect  
 
The proposed  suspension  of substantially  equivalent  concessions  and other  obligations  under  
GATT  1994 to the trade  of Thailand  takes  the form of an increase  in duty on selected  products  
originating  in Thailand, as indicated  in Annex  I and calculated  as indicated  in Annex  II. 
 
Without  prejudice  to the effective  exercise  of its right to suspend  substantially  equivalent  
concessions  or other  obligations  referred  to in Article  8.2, the Government  of Turkey  reserves its 
right to effectuate  the proposed  suspension  from 5 September  2017.  
 
  G/L/1276/Add.1 • G/SG/191/Add.1  
 
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   ANNEX I  
The products  covered  are determined,  within  the Annex,  by HS codes  (6 digits)  only. 
 
HS codes  and Description       Additional  Duty  
 
8415.10  Air-conditioning  machines  (of a kind  
designed  to be fixed to a window,  wall, ceiling      9.27 % 
or floor, self-contained  or "split-system")  
 
ANNEX II  
LEVEL OF SUBSTANTIAL LY EQUIVALENT CONCES SIONS OR OTHER OBLIG ATIONS  
1. Application  of the increase d duty of 21% on non-alloy hot rolled  steel flat products  in coils 
and not in coils by Thailand  safeguard  measures  would  result  in 6.5 million  US dollars  ($) of duty 
collection  by Thailand  with regard  to Turkish  exports  of the relevant  products  (based  on the export  
value  in 2013;  31 million  US dollars  $). 
 
Affected  Products  Turkish  Exports  $ Thailand's  Increase  in 
Duty  Duty  Collected  
Non alloy hot rolled  steel 
flat products  in coils and 
not in coils 30,992,000  21% 6,508,320  
Total  30,992,000   6,508,320  
 
2. To maintain  the equivalent  level of concessions  and other  obligation  under  GATT  1994,  as 
regards  selected  products  listed  in Annex  I, Turkey 's proposed  suspension  of concession  would  affect  
70.1 million  US dollars  ($) (based  on the import  value  in 2013)  of Turkish  imports  originating  in 
Thailand  and would  result  in 6.5 million  US dollars  ($) of duty collected.  
 
_______________  
 G/L/1276/Add.1 • G/SG/191/Add.1  
 
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 ANNEX 3  
(Excerpts from the minutes of the regular meeting  held on 23 April 2018 (G/SG/M/53) ) 
 
5  REQUEST UNDER ARTICL E 13.1(E) OF THE AGR EEMENT ON SAFEGUARDS  
(G/L/1213/R EV.1–G/SG/158/R EV.1) (ITEM REQUESTED BY THAILAND)  
99.  Thailand  explain ed that this issue related to Turkey's suspension of concessions taken under 
Article 8.2 of the Agreement. The issue of substantially equivalent level of concessions did not come 
up in the prior consultation with Turkey. Turkey's exports of the subject pro duct to Thailand 
accounted for only 5.14% of Thailand's total imports. Nevertheless, as suspension of concessions, 
Turkey increased the import duty of air -conditioning machines from Thailand by 9.27% for three 
years starting from 5 September 2017 until 4 S eptember 2020. This calculation was based on the 
import value of non -alloy hot rolled steel flat products in 2013. In addition, the end time of this 
suspension, 4 September 2020, extended to after the planned duration of the measure, which was 
6 June 2020.  The amount suspended was not substantially equivalent as laid down in Article 8.2 of 
the Agreement. It should be calculated based on a 3 -year average of import value preceding the 
original measure. By calculating the retaliation measure on the basis of th e imports in 2013 alone, 
Turkey arbitrarily exceeded the feasible limit of retaliation which should be at most 5.70% rather 
than 9.27% additional duty. Therefore, Thailand requested the Committee to review whether the 
application of such suspension of conc essions was substantially equivalent and to report to the CTG.  
100.  For the information of the Committee, the Chair recalled that Article 13.1(e) of the Agreement 
set out the functions of this Committee to "review, at the request of the Member taking a SG 
measu re, whether proposals to suspend concessions or other obligations are 'substantially 
equivalent', and rep ort as appropriate to the CTG".  
101.  Turkey  pointed out that it requested for compensation on 21 April 2017. Since the 
compensation was not provided, Turkey notified its proposal of suspension of concessions in line 
with Article 8.2 of the Agreement. This proposal was not disapproved by the CTG, an d so it came 
into effect on 5 September 2017. Immediately after the imposition of the retaliatory measure, 
Thailand requested to hold a bilateral meeting in order to find an amicable solution. While these 
discussions were ongoing, Thailand submitted a requ est to the Committee under Article 13.1(e) of 
the Agreement. Turkey's views were the following: First, Article 13.1(e) did not deal with measures 
already in force, but dealt with "proposals". Thus, Thailand's request was not appropriate. Second, 
there was no rule in the Agreement indicating which periods should be taken as a basis for the 
calculation of the substantially equivalent level of concessions. There were examples of other 
countries' past notifications where the same method as Turkey's was used. Th ird, Turkey disagreed 
with Thailand's statement that there was no discussion on maintaining substantially equivalent level 
of concessions during the consultations prior to the imposition of the measure.  
102.  The US recalled that there was a request under Articl e 13.1(b) of the Agreement in 2011 in 
which a Member requested the Committee to find whether the procedural requirements of the 
Agreement had been complied with. In that case, the Chair of the Committee provided her own 
factual report to the CTG when the C ommittee was unable to reach a consensus on the finding. The 
Committee discussed the Member's request during a regular Committee meeting and also met 
informally on subsequent occasions. For Thailand's request at hand, the Committee should consider 
proceedi ng in similar steps as taken in 2011 –2012. That is, listen to the views of the Members and 
come up with a result consistent with Article 13.1(e) of the Agreement.  
103.  Australia  supported having further discussions, including in the form of informal consultatio ns. 
Like the US, it recalled a similar request made in 2011. The Chair of the Committee at that time 
submitted the report to the CTG on his/her own responsibility. Informal consultations as well as 
formal discussions in the Committee took place. Australia suggested that the Committee consider 
taking a similar approach.  
104.  The Chair  stated that he would ask the incoming Chair to hold informal consultations on this 
issue as soon as possible.  
105.  The Committee took note  of the statements made.  
_______________    
 
   G/L/1276/Add.1 • G/SG/191/Add.1  
 
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 ANNEX 4  
Past Article 12.5 Notifications  of Proposed Suspension  
 
 
Member 
proposing 
suspension  Against whom?  
 Original measure 
imposed on ...  Proposed Suspension 
Notified in …1  Year when proposed 
suspension was notified  Period Used to Calculate  
Turkey  US Steel and aluminium2  G/L/1242  2018 Based on exports of the products concerned to the 
US in the year (2017) immediately preceding the 
year in which the safeguard measure was imposed 
(2018).  
Russia  US Steel and aluminium  G/L/1241  2018 No indication of the year(s) used.  
 
Japan  US Steel and aluminium  G/L/1240  2018 Based on exports of the products concerned to the 
US in the year (2017) immediately preceding the 
year in which the safeguard measure was imposed 
(2018).  
India US Steel and aluminium  G/L/1239  2018 Based on exports of the products concerned to the 
US in the year (2017) immediately preceding the 
year in which the safeguard measure was imposed 
(2018).  
EU  US Steel and aluminium  G/L/1237  2018 Based on exports of the products concerned to the 
US in the year (2017) immediately preceding the 
year in which the safeguard measure was imposed 
(2018).  
China  US Steel and aluminium  G/L/1218  2018 Based on exports of the products concerned to the 
US in 2014 while the safeguard measure was 
imposed in 2018.  
Japan  
 US Solar cells  G/L/1226  2018 No details of the proposed suspension of concession 
and the calculation thereof in this notification.  
Korea  
 US Solar cells  G/L/1224  2018 Based on exports of the products concerned to the 
US in the year (2017) immediately preceding the 
year in which the safeguard measure was imposed 
(2018).  
Korea  
 US Washers  G/L/1223  2018 Based on exports of the products concerned to the 
US in the year (2017) immediately preceding the 
year in which the safeguard measure was imposed 
(2018).  
China  
 US Washers  G/L/1221  2018 No details of the proposed suspension of concession 
and the calculation thereof in this notification.  
                                                
1  For the sake of succinctness, only one symbol is indicated in this column even for multiple -symbolled documents.    
2 The US does not understand i t measures, taken on the basis of Section 232 of the Trade Expansion Act of 1962, to be SG measures. See, for example, G/SG/1 68. Same 
for all entries in this table related to the US measures imposed in 2018 on steel and aluminium.     
 G/L/1276/Add.1 • G/SG/191/Add.1  
 
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 Member 
proposing 
suspension  Against whom?  
 Original measure 
imposed on ...  Proposed Suspension 
Notified in …1  Year when proposed 
suspension was notified  Period Used to Calculate  
China  
 US Solar cells  G/L/1220  2018 No details of the proposed suspension of concession 
and the calculation thereof in this notification.  
Turkey  Thailand  Non-alloy hot rolled 
steel  G/L/1183  
 2017 Based on exports of the products concerned to 
Thailand in the year (2013) immediately preceding 
the year in which the safeguard measure was 
originally imposed (2014).  
Indonesia  India Saturated fatty 
alcohols  G/L/1117  
 2015 No details of the proposed suspension of concession 
and the calculation thereof in this notification.  
Chinese Taipei  Indonesia  Flat rolled products of 
iron/steel  G/L/1076  
 2014 No details of the proposed suspension of concession 
and the calculation thereof in this notification.  
Russia  Ukraine  Motor cars  G/L/1032  
 2013 Based on exports of the products concerned to 
Ukraine in the year (2012) immediately preceding 
the year in which the safeguard measure was 
imposed (2013).  
Turkey  Ukraine  Motor cars  G/L/1028  
 2013 Based on exports of the product concerned to 
Ukraine in the year (2012) immediately preceding 
the year in which the safeguard  measure was 
imposed (2013).  
Norway  EC Farmed salmon  G/L/738  
 2005 Based on average exports of the product concerned 
to the EC during the last three years (2002 -2004) 
preceding the year in which the safeguard measure 
was imposed (2005).  
Turkey  Jordan  Pasta G/L/626  
 2003 No details of the proposed suspension of concession 
and the calculation thereof in this notification.  
Turkey  Jordan  Sanitary ware 
products  G/L/625  
 2003 No details of the proposed suspension of concession 
and the calculation thereof i n this notification.  
Turkey  EC Certain steel products  G/SG/N/12/TUR/1  
 2002 No details of the proposed suspension of concession 
and the calculation thereof in this notification.  
Switzerland  US Certain steel products  G/C/18  
 2002 No indication of the year(s) used.  
China  US  Certain steel products  G/C/17  
 2002 Based on exports of the products concerned to the 
US in 2000 while the safeguard measure was 
imposed in 2002.  
Norway  US Certain steel products  G/C/16  
 2002 Based on average  exports of the products concerned 
to the US during the last three years (1999 -2001) 
preceding the year in which the safeguard measure 
was imposed (2002).  
Japan  US Certain steel products  G/C/15  
 2002 Based on exports of the products concerned to the 
US in  the year (2001) immediately preceding the 
year in which the safeguard measure was imposed 
(2002).    
 
   G/L/1276/Add.1 • G/SG/191/Add.1  
 
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 Member 
proposing 
suspension  Against whom?  
 Original measure 
imposed on ...  Proposed Suspension 
Notified in …1  Year when proposed 
suspension was notified  Period Used to Calculate  
EC US Certain steel products  
 G/C/10  
 2002 Based on average exports of the products concerned 
to the US during the last three years (1999 -2001) 
preceding the year in which the safeguard measure 
was imposed (2002).  
Poland  Slovak Republic  Sugar G/L/453  
 2001 Based on average exports of the product concerned 
to Slovakia during the last three years (1998 -2000) 
preceding the year in which the safeguard measure  
was imposed (2001).  
EC US Wheat gluten  G/L/251  
 1998 Based on average exports of the product concerned 
to the US during the last three years (1995 -1997) 
preceding the year in which the safeguard measure 
was imposed (1998).  
 
 
__________