G/SG/N/6/COL/6  
4 September 2013  
(13-4668)  Page: 1/4  
Committee on Safeguards  Original: Spanish  
 
  NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT 
ON SAFEGUARDS ON INITIATI ON OF AN INVESTIGATION 
AND THE REASONS FOR IT 
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 3 September 2013,  is being circulated at the request of the 
delegation of Colombia.  
_______________ 
 
 Pursuant to Article 12.1(a) of the WTO Agreement on Safeguards, Colombia hereby notifies the 
initiation of the following safeguards investigation in accordance with the regulations established 
in its domestic legislation – Decree No. 152 of 1998.  
1.  Date when the investigation was initiated 
The investigation was initiated on 5 August 2013 with Initiating Resolution (Resolución 
de Apertura) No. 185, published in Colombia n Official Journal No. 48.877 of 9 August 2013.
1 
 
2.  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, grooves or other deform ations 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. 
 
                                               
1 http://www.imprenta.gov.co G/SG/N/6/COL/6 
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  3.  Reasons for the initiation of the investigation 
 i. Request 
 The investigation request was submitted by  the companies ACERIAS PAZ DEL RIO S.A. 
and DIACO S.A., which together account for 50% of  domestic output 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). 
 
 ii. Evidence on the basis of which the in vestigation was initiated (bars and rods 
of iron or non-alloy steel (corrugated bars and rods)) 
 
 Analysis of imports 
The behaviour of total imports during the years 2010 and 2011 shall be taken as the historical 
reference, while the year 2012 shall be considered as the most recent or critical period in which 
imports have increased in such quantities and under such conditions as to cause or threaten 
to cause injury to the domestic industry.  
In annual terms, total imports of bars and rods of iron or non-alloy steel (corrugated bars 
and rods) were on the rise, with increases of 70% in 2011 and 325% in 2012 in comparison to 2010.  
The six-monthly analysis shows a 56% growth in imports from the second half of 2010 to the first 
half of 2012, and also shows growth for each six-month period from the second half of 2011 to the second half of 2012 of 139%, 78% and 0.309% respectively in comparison to the previous period. 
The analysis shows a significant drop in import s in the first half of 2011, with the volume 
of imports falling by 18%.  
 Analysis of injury indicators 
In order to analyse the impact that the imports had on the domestic industry in the first and 
second half of 2012 (critical period), the average for these periods was compared with the average for the first and second halves of 2010 and 2011 (reference period). 
 
The comparison of the reference period with the crit ical period found sufficient indication of serious 
injury in the poor performance of the domestic industry in respect of the following variables: 
volume of production in relation to Apparent Domestic Consumption (ADC); (1) net sales revenue; 
(2) gross profit margin; (3) operating profit margin; (4) total imports in relation to the volume of production; (5) final inventory; (6) direct employment; (7) sales of domestic producers 
in relation to ADC; (8) total imports in relation to ADC. 
 When comparing the behaviour of financial variab les for production of bars and rods of iron 
and non-alloy steel (corrugated bars and rods), no injury was found in respect of: 
(1) volume of production; (2) volume of domestic sales; (3) installed capacity utilization; 
(4) productivity; (5) real monthly wages; (6) implicit real price.  
 Causal link 
Since the second half of 2011, the domestic prod ucers' market share has decreased, while the 
volume of imports has steadily increased. This was most notable in the first and second half 
of 2012. In the first and second half of 2012, imports displaced domestic producers. 
 The domestic sales component of ADC showed a lo ss of market share of 9.44 percentage points, 
while other domestic producers lost 5.37 percentage points during the same periods. 
 
Total imports with respect to ADC between the reference period and the critical period gained 14.81 percentage points in the two halves of 2012, and there is a causal link between them 
and the serious injury shown in the performance of economic and financial variables important 
to the domestic industry for bars and rods of iron or non-alloy steel (corrugated bars and rods).  G/SG/N/6/COL/6 
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  As for the domestic industry's ability to properly supply the domestic market for bars and rods 
of iron or non-alloy steel (corrugated bars and ro ds) it was able to cover 134.02% in the reference 
period and 100.65% in 2012. These figures refer to ACERIAS PAZ DEL RIO S.A. and DIACO S.A., which accounted for 56% of the domestic industry during the second half of 2012, and to the other 
non-applicant domestic producers. 
  iii. Evidence on the basis of which the in vestigation was initiated (corrugated bars 
and rods, hot rolled) 
 
 Analysis of imports 
The behaviour of total imports during the years 2010 and 2011 shall be taken as the historical 
reference, while the year 2012 shall be considered as the most recent or critical period in which 
imports have increased in such quantities and under such conditions as to cause or threaten to cause injury to the domestic industry. 
 
In annual terms, total imports of bars and rods, hot rolled, of iron or non-alloy steel (corrugated bars and rods, hot rolled) were on the rise, with increases of 69.18% in 2011 and 170% in 2012 
in comparison to 2010. 
 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 
six-month period of 11.73%, 11.031% and 62.341% respectively in comparison to the previous 
period. There was a significant drop in the first half of 2011, with the volume of imports falling by 76.74%. 
 
 Analysis of injury indicators 
In order to analyse the impact that the imports had on the domestic industry in the first 
and second half of 2012 (critical period), the average for these periods was compared with the 
average for the first and second halves of 2010 and 2011 (reference period).  The comparison of the reference period with the crit ical period found sufficient indication of serious 
injury in the poor performance of the domestic industry in respect of the following variables: 
(1) domestic volume; (2) gross profit; (3) operating profit; (4) operating profit margin; (5) imports over volume of production; (6) production in relation to Apparent Domestic 
Consumption (ADC); (7) net sales revenue; (8) gross profit margin; (9) operating profit margin; 
(10) total imports in relation to the volume of production; (11) final inventory; (12) final inventory over domestic sales; (13) installed capacity utilization; (14) sales of domestic producers in relation 
to ADC; (15) total imports in relation to ADC. 
 When comparing the behaviour of financial variables for production of bars and rods, hot rolled, of iron or non-alloy steel (corrugated bars and rods, hot rolled), no injury was found in respect of: 
(1) volume of production; (2) volume of production  in relation to ADC; (3) productivity; (4) real 
monthly wages; (7) direct employment; (8) implicit real price.  
 Causal link 
Since the second half of 2011, the domestic prod ucers' market share has decreased, while the 
volume of imports has steadily increased. This was most notable in the first and second half 
of 2012. In the first and second half of 2012, imports displaced domestic producers. 
 The domestic sales component of ADC showed a lo ss of market share of 10.53 percentage points, 
while other domestic producers lost 6.3 percentage points during the same periods. 
 
Total imports between the reference period and the critical period gained 16.83 percentage points 
in the two halves of 2012, and there is a causal  link between them and th e serious injury shown 
in the performance of economic and financial variables important to the domestic industry for bars 
and rods, hot rolled, of iron or non-alloy steel (corrugated bars and rods, hot rolled).  
As for the domestic industry's ability to properly supply the domestic market for bars and rods, 
hot rolled, of iron or non-alloy steel (corrugated bars and rods, hot rolled), it was able G/SG/N/6/COL/6 
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  to cover 235.23% in the reference period and 332.99% in 2012. These figures refer 
to ACERIAS PAZ DEL RIO S.A. and DIACO S.A., which accounted for 56% of the domestic industry during the second half of 2012, and to the other non-applicant domestic producers.  
 iv. Evidence 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 ACERIAS PAZ DEL RIO S.A. 
and DIACO S.A. The study compared the perfor mance of each of these indicators between 
the first and second half of 2012, in the light of the increase in imports in that year.  
The comparison showed evidence of critical circ umstances: a decline of 14.78% in domestic sales 
indicators, a decrease in the gross profit ma rgin of 13.84 percentage points from 17.02% 
to 3.18%, and a reduction of 18.36 percentage points in the operating profit margin over the same 
periods. 
 Between the first and second half of 2012, the volume of total imports rose by 62.34%, or 14,581 tonnes, from 23,389 tonnes to 37,971 tonnes. 
 
Per unit import prices in the two halves of 2012 decreased by 8% from US$760 per tonne in the 
first half of the year to US$700 per tonne in the second half. 
 
4.  Point of contact for the investigation and preferred means of communication 
Subdirección de Prácticas Comerciales (Sub-Directorate of Trade Practices) 
Calle 28 Nº 13A -15, Piso 3 
Bogotá, D.C. Tel.: (+57) 1 6067-676, Ext. 2225 and 1694 Fax: (+57) 1 6069-944 
E-mail: efernandez@mincit.gov.co and rrojas@mincit.gov.co 
 5.  Deadlines and procedures for importers, exporters and other interested parties 
to present evidence and their views 
On 16 August 2013, the Foreign Trade Directorate of the Ministry of Commerce, Industry 
and Tourism, via the national newspapers El Nu evo Siglo and La República, invited the parties 
concerned by the investigation to express their du ly substantiated views and to submit or request 
any evidence and documents that they considered relevant within thirty (30) working days from the first working day following the date of publication of the invitation.  
Furthermore, on 16 August 2013, the Sub-Direct orate of Trade Practices sent communications 
to the interested parties informing them of the initiation of the investigation and requesting them to complete questionnaires, which must be returned within thirty (30) working days from the 
first working day following the date they were sent. These questionnaires may be downloaded 
from the following address: http://www.mincit.gov.co/publicaciones.php?id=7614 . 
 
Neither a date nor a place has yet been decided for the public hearing. This information will be 
announced to interested parties in a communication and via the website of the Ministry of Commerce, Industry and Tourism.  
__________