G/SG/N/10/ARE/1, G/SG/N/11/ARE/2, 
G/SG/N/10/BHR/1, G/SG/N /11/BHR/2  
G/SG/N/10/KWT/1, G/SG/N/11/KWT/2, 
G/SG/N/10/OMN/1, G/SG/N/11/OMN/2,  
G/SG/N/10/QAT/1, G/SG/N/11/QAT/2, 
G/SG/N/10/SAU/1, G/SG/N/11/SAU/2  
 
15 June 2017 
(17-3190) Page: 1/4 
Committee on Safeguards  Original: English  
 
NOTIFICATION  UNDER ARTICLE 12.1(B ) OF THE AGREEMENT  ON SAFEGUARDS  
ON FINDING A SERIOUS  INJURY  OR THREAT THEREOF  
CAUSED  BY INCREASED IMPORTS   
NOTIFICATION OF A PR OPOSAL TO IMPOSE A M EASURE  
NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
BAHRAIN , KINGDOM OF ; KUWAIT , THE STATE OF ; OMAN, THE SULTANATE OF ; QATAR, 
THE STATE OF ; SAUDI ARABIA, KINGDOM OF ; AND UNITED ARAB EMIRATES  
(COOPERATION COUNCIL FOR THE ARAB STATES OF THE GULF "GCC")  
(Flat-rolled products of iron or non -alloy ste el) 
The following communication , dated 8 June 2017, is being circulated at the request of the Kingdom 
of Bahrain  as President of the GCC on behalf of the GCC M ember States: Bahrain, Kingdom  of; 
Kuwait, the State of; Oman , the Sultanate of ; Qatar , the State  of; Saudi Arabia, Kingdom of; and 
United Arab Emirates.  
 
_______________  
 
 
In continuation to WTO documents G/SG/N/6/BHR/1 -G/SG/N/6/KWT/1 -G/SG/N/6/OMN/1 -
G/SG/N/6/QAT/1 -G/SG/N/6/SAU/1 -G/SG/N/6/ARE/1 dated 10 June 2016 and G/SG/N/8/ARE/1 -
G/SG/N/8/BHR/1 -G/SG/N/8/KWT/1 -G/SG/N/8/OMN/1 -G/SG/N/8/QAT/1 -G/SG/N/8/SAU/1 dated 17 
January 2017 and G/SG/N/8/ARE/1/Corr.1 -G/SG/N/8/BHR/1/Corr.1 -G/SG/N/8/KWT/1/Corr.1 -
G/SG/N/8/OMN/1/Corr.1 -G/SG/N/8/QAT/1/Corr.1 -G/SG/N/8/SAU/1/Corr.1  dated 31  January  2017.  
 
1. Evidence of seriou s injury or threat thereof caused by increased imports  
The final determination of serious injury is based on the evaluation of the overall position of the 
GCC industry in light of all relevant factors having a bearing on the situation of that industry, 
which shows a significant overall impairment and thus it is concluded that GCC industry has 
suffered serious injury and that the increase of GCC imports under investigation has caused 
serious injury to the GCC industry as follows:  
 Index 2012=100  
 2012  2013  2014 2015  
Production volume  100 107.53  79.72  79.14  
Capacity utilization  100 107.53  79.72  79.14  
Sales volume  100 105.84  79.35  72.62  
Market share of domestic sales  100 92.95  62.63  46.74  
Market share of imports  100 104.63  124.53  134.95  
Inventory volume  100 84.29  32.01  231.16  
Employment  100 101.12  84.76  77.32  
Productivity  100  106.34  94.05  102.35  
Losses  100 5.86 38.65  52.74  G/SG/N/10/AR E/1, G/SG/N/11/ARE/2 • G/SG/N/10/BHR/1, G/SG/N/11/BHR/2 • 
G/SG/N/10/KWT/1, G/SG/N/11/KWT/2 • G/SG/N/10/OMN/1, G/SG/N/11/OMN/2 • 
G/SG/N/10/QAT/1, G/SG/N/11/QAT/2 • G/SG/N/10/SAU/1, G/SG/N/11/SAU/2  
 
- 2 - 
 
  (a) Production and production utilization  
 
From the above table it is evident that the production decreased during 2012 -2015 by 20 .86% and 
the production utilization followed the same trend by a decline of 20.86% which demonstrates that 
the available capacity was not fully utilized during the period of investigation.  
 
(b) Sales and market share of GCC industry  
 
The above table shows that the sales volume of the GCC industry decreased by 27.38% during the 
period 2012 -2015 which led to a decline of the its market share during the same period by 
53.26% in favor of the GCC imports that acquired a large share of the GCC market during the 
period of investigation.  
 
(c) Market share of imports  
 
It is evident form the table above that the market share of imports under investigation increased 
significantly during the period 2012 -2015 by about 35% whereas the market share of GCC 
industry declined  as shown above.  
 
(d) Inventory  
 
It is evident that the inventory increased sharply during the period 2012 -2015 by 131.16% which 
indicates a difficulty for GCC industry to sell its product inside GCC market.  
 
(e) Employment  
 
The employment decreased during  the period 2012 -2015 by 22.68% which means that GCC 
industry let off more employees so that it can contain the loss incurred during this period.  
(f) Productivity  
 
The productivity recorded a slight increase of 2.35% during the period 2012 -2015 and this i s due 
to the layoffs of more employees compared to the production volume.  
(g) Losses  
 
The GCC industry recorded a decrease of its losses during the period 2012 -2015 by 47.26%, but 
despite the relative improvement in the amount of loss during 2014 and 2015  compared with 
2012, the GCC industry losses have aggravated again during 2014 and 2015: despite the 
achievement of significant losses in 2012, the GCC industry was able to reduce significantly its 
losses during the year 2013 due to the increase in product ion and sales during this year which 
recorded a slight evolution of imports, but because of the significant increase in imports in both 
absolute and relative terms from the year 2014 until the year 2015, the GCC industry has 
recorded again significant loss es especially in light of decline of production and sales during the 
same period . 
(h) Unforeseen developments  
 
The GCC -TSAIP examined data on unforeseen developments either provided by the complainant or 
collected during the investigation and made the foll owing determinations:  
 The increase rate in world steel production capacity mostly driven by increase in Chinese 
output;  
 Global Excess steel supply (including the subject products);  
 Steel demand contracts in the world creating a gap between supply and dema nd 
resulting in excess steel supply;  
 Economic recession occurred in China had a negative impact on the other countries' 
economies with excessive steel supply to switch their steel exports to GCC states 
market;  
 The deprecation of many currencies to record l ow against the dollar;  G/SG/N/10/ARE/1, G/SG/N/11/ARE/2 • G/SG/N/ 10/BHR/1, G/SG/N/11/BHR/2 • 
G/SG/N/10/KWT/1, G/SG/N/11/KWT/2 • G/SG/N/10/OMN/1, G/SG/N/11/OMN/2 • 
G/SG/N/10/QAT/1, G/SG/N/11/QAT/2 • G/SG/N/10/SAU/1, G/SG/N/11/SAU/2  
 
- 3 - 
 
   Trade remedies measures applied by many WTO members forces countries with excess 
capacities to export the excessive supply to the GCC states market where there are no 
trade measures in place . 
 
The GCC -TSAIP therefore concluded that t he increase in imports of the product under 
investigation occurred as a result of unforeseen developments.   
 
(i) Causal Link  
  
Based on the final determination , GCC-TSAIP has examined the impact of other factors, other than 
the massive increase in imports  that might cause serious injury to the GCC industry, such as trade 
restrictive practices, consumption, export performance and technology; however , these factors did 
not contribute to the serious injury suffered by the GCC industry. Therefore, GCC -TSAIP fo und that 
there is sufficient evidence to the existence of the causal link between the serious injury caused to 
the GCC industry and the increase of imports of the product under investigation.  
2. Information on whether there is an absolute increase in imports  or an increase in 
imports relative to domestic production  
The product under investigation is being imported into GCC countries in such increased  quantities 
in absolute terms and relative to GCC production  as follows:  
 
        Index 2012=100  
 2012  2013  2014 2015  
Imports Volume (ton)  193,552.27  230,613.33  305,381.85  405,809.82  
Index  100 119.15  157.78  209.66  
Imports/production ratio  100 110.81  197.92  264.94  
 
From the above table it is evident that t he volume of imports increased significantly either in 
absolute terms or in relation to the production during the period 2012 -2015, where imports 
increased  absolutely by 109.66%. Compared with production, the imports increased during the 
same period  by 164.94% , which indicates clearly the existence of recent, su dden, sharp and 
significant  increase in GCC imports during the period of investigation.  
 
3. Adjustment plan  
The GCC industry has provided a viable adjustment plan for restructuring and adjusting its position 
so that it can develop its performance and competit iveness within the GCC and international 
markets so that it can compete with foreign imports after expiration of the safeguard measure 
imposition.  
4. Description of the product involved  
a. Flat-rolled products of iron or non -alloy steel, of a width of 600 mm or more, clad, plated or 
coated. // -Painted, varnished or coated with plastics;  
 
b. Flat-rolled products of iron or non -alloy steel, of a width of 600 mm or more, clad, plated or 
coated. // -Other . 
 
These products are imported, respectively, to GCC member  countries under HS Code: 721070 
and 721090 . 
5. Description of the proposed measure  
The Permanent Committee has recommended imposing safeguard duty for three years at the rate 
of additional duty  31% ad valorem  of the CIF value  on the imports  of the products u nder 
investigation . See point (8) regarding progressive liberalization of the proposed measure .  G/SG/N/10/AR E/1, G/SG/N/11/ARE/2 • G/SG/N/10/BHR/1, G/SG/N/11/BHR/2 • 
G/SG/N/10/KWT/1, G/SG/N/11/KWT/2 • G/SG/N/10/OMN/1, G/SG/N/11/OMN/2 • 
G/SG/N/10/QAT/1, G/SG/N/11/QAT/2 • G/SG/N/10/SAU/1, G/SG/N/11/SAU/2  
 
- 4 - 
 
  6. Proposed date of introduction of the measure  
The date of introduction of the measure will be determined in the TSAIP - Official Gazette which will 
be published once the Ministerial Committee approves the imposition of the measure.  
 
7. expected duration of the measure  
The safeguard measure, if adopted, will remain in force for three  years.  
 
8. For a measure with a duration of more than three years, provide the proposed date 
for the review (under Article 7.4) to be held not later than the mid -term of the 
measure, if such date for the review has already been scheduled  
Not applicable . 
 
9. If the expected duration is over one year, provide the expected timetable for 
progressive  liberalization of the measure  
Duration  Definitive safeguard duty  
First year  31% 
Second year  28% 
Third year  25% 
 
10. If the measure is being extended, also provide: (i) evidence that the industry 
concerned is adjusting and that the safeguard measure contin ues to be necessary 
to prevent or remedy serious injury  
Not applicable . 
 
11. Specify the developing countries to which the measure is not applied under 
Article  9.1 of the Agreement on Safeguards, and the import shares of these 
countries individually and collec tively  
The following developing countries are excluded from the measure as they export less than 3% 
individually and less than 9% collectively to GCC countries:  
 
Afghanistan; Albania; Angola; Antigua and Barbuda; Argentina; Armenia; Bangladesh; Barbados; 
Belize; Benin; Bolivia, Plurinational State of; Botswana; Brazil; Brunei Darussalam; Burkina Faso; 
Burundi; Cabo Verde; Cambodia; Cameroon; Central African Republic; Chad; Chile; Colombia; 
Congo; Congo, Democratic Republic of The; Costa Rica; Côte D’Ivoire;  Croatia; Cuba; Djibouti; 
Dominica; Dominican Republic; Ecuador; Egypt; El Salvador; Fiji; Gabon; The Gambia; Georgia; 
Ghana; Grenada; Guatemala; Guinea; Guinea -Bissau; Guyana; Haiti; Honduras; Hong Kong, 
China; Indonesia; Jamaica; Jordan; Kenya; Kyrgyz Re public; Lao People’s Democratic Republic; 
Lesotho; Macao, China; Macedonia, The Former Yugoslav Republic of; Madagascar; Malawi; 
Malaysia; Maldives; Mali; Mauritania; Mauritius; Mexico; Moldova, Republic of; Mongolia; 
Montenegro; Morocco; Mozambique; Myanm ar; Namibia; Nepal; Nicaragua; Niger; Nigeria; 
Pakistan; Panama; Papua New Guinea; Paraguay; Peru; Philippines; Rwanda; Saint Kitts and 
Nevis; Saint Lucia; Saint Vincent and The Grenadines; Samoa; Senegal; Sierra Leone; Singapore; 
Solomon Islands; South Af rica; Sri Lanka; Suriname; Swaziland; Tajikistan; Tanzania; Thailand; 
Togo; Tonga; Trinidad and Tobago; Tunisia; Turkey; Uganda; Uruguay; Vanuatu; Venezuela, 
Bolivarian Republic of; Viet Nam; Yemen; Zambia; and Zimbabwe  
 
__________