G/SG/N/8/MAR/4  
G/SG/N/10/MAR/4  
G/SG/N/11/MAR/4  
29 May 2015  
(15-2784)  Page: 1/6  
Committee on Safeguards  Original: French  
 
  NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON 
SAFEGUARDS OF A FINDING OF SERIOUS INJURY OR THREAT OF 
SERIOUS INJURY CAUSED BY INCREASED IMPORTS 
 
NOTIFICATIONS PURSUANT TO AR TICLE 12.1(C) AND ARTICLE 9, 
FOOTNOTE 2, OF THE AGREEMENT ON SAFEGUARDS 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2, 
OF THE AGREEMENT ON SAFEGUARDS 
MOROCCO  
(Cold-Rolled Sheets in Coils or Cut, and Plated or Coated Sheets) 
The following communication, dated 20 May 2015, is being circulated at the request of the 
delegation of Morocco. 
 
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Morocco hereby confirms the results of the preliminary determination in the safeguards investigation on imports of cold-rolled sheets and plated or coated sheets, as notified in document G/SG/N/7/MAR/3 - G/SG/N/11/MAR/3 of 22 October 2014 concerning the application of a 
provisional safeguard measure. 
 In the light of the foregoing, Morocco hereby subm its its notification concerning the application of 
a definitive safeguard measure to imports of cold-rolled sheets and plated or coated sheets, 
in accordance with Article 12.1(c) of the Agreement on Safeguards..  
The above-mentioned provisional safeguard measure was published in Official Journal ( Bulletin 
Officiel ) No. 6303 of 27 October 2014 in the form of a joint order of the Minister of Industry, 
Trade, Investment and the Digital Economy and the Minister of the Economy and Finance.  
1. Description of the products subject to the investigation 
 The products under investigation are cold-rolled sheets in coils or cut, and plated or coated sheets, 
all of which belong to the family of flat steel products. 
 The flat steel sheets under investigation are imported into Morocco under the HS tariff headings 
listed below. It should be noted that in light of the comments and observations submitted by the 
parties involved in the investigation, the Ministry of Foreign Trade examined the sheets under investigation taking into account the exclusion of sheets relating to the free export zone of Tangiers and sheets that certain industries requeste d be excluded. Accordingly, the tariff headings 
for cold-rolled sheets and plated or coated sheets retained for the safeguard procedure are as 
follows: G/SG/N/8/MAR/4 • G/SG/N/10/MAR/4 • G/SG/N/11/MAR/4 
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   Cold-rolled sheets : 7209 (with the exception of 7209.16.00.20; 7209.17.00.20; 
7209.18.00.20; 7209.26.00.20; 7209.27.00.20; 7209.28.00.20), 7211 (with the exception of 7211.13; 7211.14; 7211.19; 7211.23.00.10; 7211.23.00.40; 7211.29.00.20; 7211.29.00.50); 7225.50.10.00; 7225.50.90.00; 7226 (with the 
exception of 7226.11.00; 7226.19.00). 
 
 Plated or coated sheets : 7210 (with the exception of 7210.11; 7210.12; 7210.30.00; 
7210.50; 7210.90.21.00; 7210.90.22.00; 7210.90.23.00; 7210.90.29.91); 7212 (with 
the exception of 7212.10; 7212.20.00; 7212.30.99.00; 7212.40.20.00; 7212.40.39.10; 7212.50.20.00; 7212.50.63.00; 7212.50.64.00); 7225 (with the exception of 7225.11.00; 7225.19.00; 7225.30; 7225.40; 7225.91); 7226 (with the exception of 
7226.20.00.11; 7226.20.00.21; 7226.20.00.51; 7226.20.00.52; 7226.20.00.59; 
7226.91.00; 7226.99.10.00; 7226.99.90.99). 
 
2. Data relating to increased imports 
 According to Foreign Exchange Board statistics, im ports of cold-rolled sheets rose by 65% between 
2010 and 2013, with a slight decrease of 5% in the period January-April 2014 in relation to the 
same period in 2013.  Imports of plated or coated sheets also increa sed by 65% between 2010 and 2013. In the period 
January-April 2014, they increased by 97% in relation to the same period in 2013. 
 In terms relative to domestic production, the index of the ratio of imports to domestic production 
of cold-rolled sheets reached 263 in 2013 and 186 in the period January-April 2014. The index of 
the ratio of imports to domestic production of plated or coated sheets rose to 188 in 2013, reaching 325 in the first four months of 2014. 
Table 1: Imports* of Cold-Rolled Sheets and Plated or Coated Sheets 
 Index: 2010 = 100; index: 2013 (Jan-April) = 100 
Imports  2010 2011 2012 2013 2013 
(Jan-April) 2014 
(Jan-April)  
Imports 
(tonnes) Cold-rolled sheets 13,679 15,309 15,802 22,622 9,972 9,470 
Plated or coated 
sheets 14,867 19,234 29,776 24,584 6,693 13,154 
Imports/ 
Production 
(%) Cold-rolled sheets 100 97 142 263 100 186 
Plated or coated 
sheets 100 122 222 188 100 325 
* Source: Foreign Exchange Boar d and data from Maghreb Steel. 
From the evidence above, it was concluded that the volume of imports had increased significantly 
in absolute and relative terms. 
 Unforeseen developments 
 
Taking into account the verification and examination of the available data, the Moroccan Ministry of Foreign Trade confirms the data in the preliminary determination according to which the 
increase in imports of cold-rolled sheets and plated  or coated sheets may be qualified as a massive 
increase resulting from unforeseen developments within the meaning of Article XIX of the GATT 1994 and the Agreement on Safeguards. G/SG/N/8/MAR/4 • G/SG/N/10/MAR/4 • G/SG/N/11/MAR/4 
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  3. Evidence of injury ca used by increased imports 
Table 2: Overview of indicators* of injury to Maghreb Steel 
 Index 2010 = 100; index 2013 (Jan-April) = 100 
Indicators of injury 2010 2011 2012 2013 2013 
(Jan-Ap
ril) 2014  
(Jan-Ap
ril) 
Imports (tonnes) Cold-rolled sheets  13,679 15,309 15,802 22,622 9,972 9,470 
Plated or coated sheets 14,867 19,234 29,776 24,584 6,693 13,154 
Imports/ 
Production (%) Cold-rolled sheets 100 97 142 263 100 186 
Plated or coated sheets 100 122 222 189 100 325 
Market share 
of imports (%) Cold-rolled sheets 100 106 141 191 100 91 
Plated or coated sheets 100 116 183 161 100 151  
Overall market share of imports (%) 100 113 163 177 100 115 
Sales (tonnes) Cold-rolled sheets 100 104 66 49 100 128 
Plated or 
coated sheets Galvanized 
sheets 100 106 87 80 100 122 
Pre-lacquere
d sheets 100 101 83 97 100 63 
Market share 
of Maghreb Steel (%) Cold-rolled sheets 100 97 80 57 100 120 
Plated or coated sheets 100 96 81 86 100 78 
Overall market share of Maghreb Steel (%) 100 96 80 78 100 87 
Production  Cold-rolled sheets 100 116 81 62 100 51 
Plated or 
coated 
sheets Galvanized 
sheets 100 103 81 74 100 53 
Pre-lacquere
d sheets 100 112 116 113 100 30 
Productivity (tonnes/employee) 100 26 23 97 100 61 
Employment (persons) 100 101 97 86 100 97  
Production 
capacity (tonnes) Cold-rolled sheets 400,000 400,000 400,000 400,000 133,333 133,333 
Plated or coated sheets 280,000 280,000 280,000 280,000 93,333 93,333 
Capacity 
utilization rate Cold-rolled sheets 100 108  92 84 100 59 
Plated or coated sheets 100 107 95 89 100 61 
Inventories 
(tonnes) Cold-rolled sheets 100 264 160 107 100 45 
Plated or 
coated 
sheets Galvanized 
sheets 100 132 79 75 100 64 
Pre-lacquere
d sheets 100 133 81 155 100 124 
Price 
(DH/tonne) Cold-rolled sheets 100 112 106 103 100 100 
Plated or 
coated 
sheets Galvanized 
sheets 100 101 94 94 100 105 
Pre-lacquere
d sheets 100 106 102 102 100 98 
Cost 
(DH/tonne) Cold-rolled sheets 100 121 117 111 100 98  
Plated or 
coated 
sheets Galvanized 
sheets 100 118 115 109 100 98 
Pre-lacquere
d sheets 100 117 118 112 100 97 
Results 
(thousand DH) Cold-rolled sheets 100 -308 -274 -131 100 102 
Plated or 
coated sheets Galvanized 
sheets 100 34 6 25 100 500 
Pre-lacquere
d sheets 100 64 26 61 100 64 
Profitability Cold-rolled sheets 100 -265 -393 -255 100 79 
Plated or 
coated sheets Galvanized 
sheets 100 31 7 33 100 389 
Pre-lacquere
d sheets 100 59 31 61 100 104 
* Source: Data compiled from Foreign Exchan ge Board statistics and Maghreb Steel data. 
 G/SG/N/8/MAR/4 • G/SG/N/10/MAR/4 • G/SG/N/11/MAR/4 
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  3.1. Rate and amount of the increase in imports: As outlined above, imports of cold-rolled 
sheets and plated or coated sheets have seen a sudden, massive and recent increase. This development has a negative impact on the performance of Maghreb Steel, as shown by its 
economic indicators. 
 
3.2.  Sales: The level of sales of cold-rolled sheets on the domestic market fell sharply by 50% 
between 2010 and 2013. Even though, as Arcelor Mi ttal noted in its comments, the trend in sales 
of cold-rolled sheets was positive in the first four months of 2014, this increase is not enough to 
offset the downturn of the previous years. Domestic sales of plated or coated sheets also plummeted between 2010 and 2013. This decline continued during the first four months of 2014, when sales were lower than in the same period in 2013.  
 
3.3.  Market share: Maghreb Steel's market share of cold-rolled sheets fell sharply between 
2010 and 2013, before increasing in the first four months of 2014. The market share of plated or 
coated sheets fell steadily throughout the period covered by the investigation. Maghreb Steel 
therefore lost a considerable share of the market  during the period covered by the investigation.  
 
3.4.  Production: Production of cold-rolled sheets fell by 73% between 2010 and 2013 and 
by 49% during the first four months of 2014 compared to the same period in 2013. Production of plated or coated sheets fell by 10% between 2010 and 2013 and by 38% during the first four 
months of 2014. 
 
3.5.  Productivity: It should be noted that productivity fell by 2% between 2010 and 2013. 
The most notable decrease was observed in 2012. During the first four months of 2014, 
productivity in terms of tonnes/employee fell compared to the same period in the previous year, 
which contributes to the serious injury suffered by Maghreb Steel.  
3.6.  Employment: The number of workers employed to produce the sheets under investigation 
fell significantly between 2010 and April 2014. Empl oyment within Maghreb Steel has not followed 
a "positive trend", as claimed by Arcelor Mittal in its comments. On the contrary, the number of employees linked to production has decreased. 
 
3.7.  Production capacity and capacity utilization rate: The capacity utilization rate indicator 
shows a steady decline for both cold-rolled sh eets and plated or coated sheets from the end 
of 2011 onwards. This decline is even more pronounced when comparing the first four months 
of 2014 with the first four months of 2013, when the capacity utilization rate fell by 60%.  
 
3.8.  Inventories: The year-on-year analysis showed an increase in inventories between 2010 
and 2013. The inventory reduction of around 32% during the first four months of 2014 corresponds to a 40% drop in production.  
 
3.9.  Prices and cost of production: As noted in the preliminary report, Maghreb Steel's prices 
for both cold-rolled sheets and plated or coated sheets were reduced as of 2012. In fact, in 2012, when imports were at their peak, the prices of all the products were reduced. When imports of 
plated or coated sheets fell by 18% in 2013, their prices remained stable while those of cold-rolled 
sheets fell slightly. During the first four months of 2014, the prices of cold-rolled sheets remained stable while those of plated or coated sheets conti nued to fall. Within the latter category, prices of 
galvanized sheets increased by 5.31%, yet this increase could not offset the previous decline.  
 3.10.  Profitability: A detailed analysis of profitability shows that cold-rolled sheets were sold at a 
loss between 2011 and April 2014. As for plated or coated sheets, their profitability fell between 
2010 and 2012, resulting in almost zero profits in 2012. The increase observed in 2013 and during 
the first four months of 2014 is not enough to recove r the low levels of profitability coinciding with 
the massive increase in imports.  
 
Following the examination of the injury indicators listed above, the preliminary results
1 of the 
investigation were confirmed as regards the existence of serious injury to the domestic industry 
producing cold-rolled sheets and plated or coated sheets. 
 
                                               
1 Document G/SG/N/7/MAR/3-G/SG/N/11/MAR/3 of 22 October 2014. G/SG/N/8/MAR/4 • G/SG/N/10/MAR/4 • G/SG/N/11/MAR/4 
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  4. Causal link 
 In accordance with the requirements of Ar ticle 54 of Law No. 15-09 and Article 46 of its 
implementing decree, and Article 4(b) of the WTO Agreement on Safeguards, the Ministry of 
Foreign Trade examined the correlation between the increased imports and the injury suffered, 
as well as the effects of factors other than increased imports which may cause injury to the domestic industry. It confirmed the conclusions of the preliminary determination according to 
which the injury suffered by Maghreb Steel is caus ed by massive imports of cold-rolled sheets and 
plated or coated sheets and cannot be attributed to other factors, most notably trends in domestic consumption, competition or the definitive elimination of customs duties on the products concerned. 
 
5. Precise description of th e proposed definitive measure 
 
The proposed safeguard measure entails the application of an additional ad valorem  duty of 22% 
to imports of cold-rolled sheets and plated or coated sheets.  
6. Expected timetable for progressive lib eralization of the definitive measure 
 In order to satisfy the progressive liberalization requirement, in accordance with Article 65 of Law No. 15-09 on trade defence measures and Article 7.4 of the Agreement on Safeguards, 
the definitive safeguard measure will be liberalized according to the following timetable: 
Table 3: Timetable for the liberalizatio n of the definitive safeguard measure 
Year Ad valorem  duty 
From the date of the entry into force of the measure 
until 31 December 2015 22% 
From 1 January 2016 to 31 December 2016 20% 
From 1 January 2017 to 31 December 2017 18% 
From 1 January 2018 to 31 December 2018 16% 
From 1 January 2019 0% 
 
7. Date of application of th e definitive safeguard measure 
 The definitive safeguard measure will enter into force on the date of publication, in Morocco's 
Official Journal, of the joint order imposing the measure. 
 8. Domestic industry adjustment plan 
 
Maghreb Steel is implementing a number of operational, commercial and financial transformation initiatives to ensure its competitiveness once the safeguard measure has been lifted. 
These initiatives consist of internal and external adjustment measures. 
 9. Developing Members exempt from the me asure in accordance with Article 9.1 of 
the Agreement on Safeguards 
 
The following developing countries are exempt from the definitive measure:  
Albania; Angola; Antigua and Barbuda; Kingdom of Saudi Arabia; Argentina; Armenia; Kingdom of 
Bahrain; Bangladesh; Barbados; Belize; Benin; Bolivia; Botswana; Brazil; Brunei Darussalam; 
Burkina Faso; Burundi; Cambodia; Cameroon; Cabo Verde; Central African Republic; Chad; Chile; 
Chinese Taipei; Colombia; Congo; Costa Rica; Côte d'Ivoire; Cuba; Djibouti; Democratic Republic 
of the Congo; Dominica; Dominican Republic; Ecuador; Egypt; El Salvador; Fiji; Former Yugoslav Republic of Macedonia (FYROM); Gabon; the Gambia; Georgia; Ghana; Grenada; Guatemala; Guinea; Guinea-Bissau; Guyana; Haiti; Honduras; Hong Kong, China; India; Indonesia; Jamaica; 
Jordan; Kenya; Republic of Korea; Kuwait; Kyrgyz Republic; Lao People's Democratic Republic; 
Lesotho; Macao, China; Madagascar; Malaysia; Malawi; Maldives; Mali; Mauritius; Mauritania; Mexico; Republic of Moldova; Mongolia; Montenegro; Mozambique; Myanmar; Namibia; Nepal; 
Nicaragua; Niger; Nigeria; Oman; Uganda; Pakistan; Panama; Papua New Guinea; Paraguay; 
Peru; Philippines; Qatar; Rwanda; Saint. Lucia; Saint. Kitts and Nevis; Saint Vincent and the G/SG/N/8/MAR/4 • G/SG/N/10/MAR/4 • G/SG/N/11/MAR/4 
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  Grenadines; Samoa; Senegal; Sierra Leone; Singapore; Solomon Islands; South Africa; Sri Lanka; 
Suriname; Swaziland; Tajikistan; Tanzania; Thailand; Togo; Tonga; Trinidad and Tobago; Tunisia; Uruguay; Vanuatu; Bolivarian Republic of Ve nezuela; Viet Nam; Zambia; and Zimbabwe. 
 
10. Offer of consultations under Article 12.3 
 In accordance with Article 12.3 of the Agreement on Safeguards, Morocco is ready to consult on 
the definitive safeguard measure with those Members having a substantial interest as exporters of 
the products concerned.  
__________