G/SG/Q2/CHL/12  
14 September  2016 
(16-4831) Page: 1/2 
Committee on Safeguards  Original:  Spanish  
 
  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 PURSUAN T TO ARTICLE 9, FOOT NOTE  2 
OF THE AGREEMENT ON SAFEGUARDS  
REPLY TO THE QUESTION1 POSED BY THE UNITED STATES  
REGARDING THE NOTIFICATION OF CHILE2 
(Steel Wire Rod)  
The following communication, dated 13 September  2016, is being circulated at the request of the 
delegation of Chile. 
 
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Chile thanks the United States for its questions  regarding the safeguards investigati on on imports 
of steel wire rod.  
 
Question  
 
Article XIX:1(a) of the General Agreement on Tariffs and Trade states that safeguard 
measures may be imposed if "any product is being imported into the territory ... in such 
increased quantities and under such conditions as to cause or threaten serious injury to 
domestic producers in that territory of like or directly competitive products ." 
In its notification, C hile indicates that imports from 2013 to 2014 decreased 40. 3%, 
while domestic economic indicators such as production, domestic sales, capacity 
utilization, and productivity all increased over the same period . There was also a 
relatively stable level of imp orts over the interim period of January -July 2014 compared 
to January -July 2015. Please explain how this decrease in imports, coupled with the 
improved performance of the domestic industry towards the end of the period of 
investigation supports a finding t hat wire rod is being imported into Chile in such 
increased quantities and under such conditions as to cause or threaten to cause serious 
injury to the domestic industry.  
 
Reply  
 
As established  in the first  record  of the investigation in question ( Record  No. 378), the period  of 
investigation considered by the investigating authority  runs from 2011 to July 2015. 
The investigating authority took account of  all the data pro vided in the notification u nder 
Article  12.1(b) and 12.1(c) of the Agreement  on Safeguar ds (G/SG/N/8/CHL/7 - 
G/SG/N/10/CHL/9 -G/SG/N/11/CHL/10).  
 
                                                
1 G/SG/Q2/CHL/11.  
2 G/SG/N/8/CHL/7 -G/SG/N/10/CHL/9 -G/SG/N/11/CHL/10 (dated 12  April 2016).  G/SG/Q2/CHL/12  
- 2 - 
  With respect to the increase  in imports, the notification shows that imports of wire rod in the 
period January -July 2015 increased by 9.7% compared with the same period in 2014 . This rise 
was preceded  by a decline of 40.3 % in 2014/2013 and increases of 114.1 % in 2013/2012 
and 246.1 % in 2012/2011 . Over the period 2011 -2014, imports thus increased by 342.5%. 
 
Furthermore, Article 2.1 of the Agreement on Safeguards supplements Article XIX:1(a) of the 
GATT , cited in the question posed by the United States, and specifies  that "A Member may apply a 
safeguard measure to a product onl y if that Member has determined [...] that such product is 
being imported into its territory in such increased quantities, absolu te or relative to domestic 
production, and under such conditions as to cause or threaten to cause serious injury to the 
domestic industry that produces like or directly competitive products" . As regards the analysis of 
imports in relative terms, the notifi cation states that the ratio o f imports to production grew 
by 466.2 % between 2011 and 2014, and by 22.8 % in the period January -July 2015 compared with 
the same period in 2014 . In 2014, the ratio fell by 48.9 % in rel ation to 2013, but had risen 
in 2013 and 2012 by 203 % and 265.8 % respectively.  
 
With respect  to the injury  analysis, the investigating authority considered the same period of 
investigation . As stated in the aforementioned notification , domestic prices fell throughout the 
period . The share of p roduction in apparent consumption, production,  domestic sales, utilization of 
installed capacity and productivity all declined  in the period January -July 2015 compared with the 
same period in 2014 . Financial losses were reported throughout the period  of inves tigation and 
employment dropped  as of 2014.  
 
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