G/SG/N/8/THA/1/Suppl.5  
G/SG/N/10/THA/1/Suppl.3  
 
3 May 2013  
(13-2363)  Page: 1/5  
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 PROPOSAL TO EXTEND A MEASURE 
THAILAND  
(Glass Block) 
Supplement 
 
The following communication, dated 2 May 2013, is being circulated at the request of the 
Delegation of Thailand. 
 
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 With reference to Thailand’s Notification of the initiation of a safeguard investigation (WTO 
Document G/SG/N/14/THA/1) dated 8 January 2013, Thailand hereby provides notification to the 
Committee on Safeguards pursuant to Article 12. 1(b) of the Agreement on Safeguards, on the 
proposing to extend a safeguard measure that is being applied against imports of glass blocks and exemption of safeguard measures to developing countries. 
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF  THE AGREEMENT ON SAFEGUARDS UPON 
MAKING A FINDING OF SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED 
IMPORTS 
 1. Evidence that the safeguard measure co ntinues to be necessary to prevent or 
remedy serious injury or threat thereof caused by increased imports and that the 
industry concerned is adjusting.  a. Basic Industry indicators 
 
MT unless otherwise stated 2009 2010 2011 2012 
Production 100 143 163 185 
Capacity Utilisation 100 140 156 157 
Sales 100 87 139 155 
Stocks 100 104 91 207 
Productivity 100 102 104 118 
Employment (numbers) 100 118 147 137 
Consumption* 100 141 124 141 
Market share 100 62 112 110 
* Consumption = Sales + Imports G/SG/N/8/THA/1/Suppl.5 • G/SG/N/10/THA/1/Suppl.3 
 
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  Following the imposition of measures in January 2011, the domestic industry was able to increase 
production substantially which resulted in improvements in capacity utilisation rates, productivity and employment.  
In spite of these improvements, domestic sales have been unable to follow the rate of increase in 
production since the imposition of measures with output rising by 85 percentage points compared with domestic sales in the order 55 percentage points. This has resulted in an increase in stocks 
and this increase would have been far greater if it were not for exports to third markets. 
Although installed capacity is sufficient to meet domestic demand, the market share of the 
domestic industry has not reached levels that could reasonably have been expected with the imposition of measures.  In this respect, although there was a significant increase in market share 
in 2011, this increase is partly attributable to the overall decline in consumption; and by 2012, the 
market share of the domestic declined even thou gh consumption expanded in the order of 17% as 
imports increased both in absolute terms and relative to consumption. 
 
In this respect, it is concluded that the domestic industry has not adequately benefited from an increase in domestic sales that would have enabled the industry to fully remedy the injury suffered 
and this is considered to attributable to: 
 - the spike in the increase in imports in 2010 just prior to the application of measures in a 
significant quantity of which was carried over into 2011-2012.  
 
- Imports have remained at high levels with a further increase witnessed in 2012. In fact, 
imports in 2012 had again increased in the order of 17.75%. 
 
b. Condition of imports  
As imports have remained high in 2011 with increases witnessed in 2012, this ability to maintain 
market share in spite of the measures in force is largely due to prices that have remained below those of the domestic industry.  As result, the domestic industry has continued to face losses in 
2009-2011 with only a modest return to profitability in 2012. 
 
Thai baht 2009 2010 2011 2012 
Profit/loss on domestic sales (100) (54) (80) Profit 
 
c. Evidences that the Indust ry concerned is adjusting 
 
The adjustment plan of the domestic industry is in two phases: 
 i) The first phase focuses on improving product perception, distribution and marketing channels. 
The intention of this phase has been to distinguish the overall quality of the product concerned 
domestic industry from imports so that the choice of the consumer is not just linked to price.  
Within this phase, there is evidence of several programs and initiatives that have been undertaken 
and are being actively implemented by the domestic industry to include:  - In view of the increasing importance to marketing of environmental and social issues in 
Thailand, the company is embracing a wide range of initiatives to include supporting social 
programs as well as to implement policies to protect air, water, land; and a dissemination program to ensure that the market is aware of the social and environmental standards being 
adopted. 
 - Quality products is a theme that has been accentuated in the past two years and this is 
supported by quality benchmarking and encouraging innovation through process and 
knowledge development programs 
 - Marketing drive programs to stimulate demand for glass blocks over other alternatives. 
 
- Improvements in product delivery and produc t presentation to include warehousing and 
distribution centres. G/SG/N/8/THA/1/Suppl.5 • G/SG/N/10/THA/1/Suppl.3 
 
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  ii) A second phase involves the upgrading of production technologies. This phase was initially 
intended for 2012, but has been delayed, as the ability of the domestic industry to raise capital has been impaired due to the losses sustained on  domestic sales and the possibility that the 
measure in force would be terminated at the three-year term. 
 
The upgrading of technology is essential as it will assist in lowering costs and allow the domestic industry to compete without the need for protection beyond the extension of these measures.  
 
This second phase is set to be implemented in 2013 and there is evidence that the Industry is 
securing loans; the production site is being accommodated for these changes; and that negotiations are underway for purchases of several new machines. 
 
2. Information on whether there is an absolut e increase in imports or an increase in 
imports relative to domestic production 
 
MT 2009 2010 2011 2012 
China  7,976.86 14,195.64  5,991.12  6,257.0 
Indonesia  1,463.55  6,449.16  4,400.62  3,542 
Others    975.33    884.91    565.6  3,102.89 
Total 10,415.74 21,529.71 10,957.34 12,901.89 
 
The imports have increased in absolute terms during the overall period concerned.   
 2009 2010 2011 2012 
Total imports 100 207 105 124 
Production 100 143 163 185 
 
Prior to the imposition of measures imports significantly increased relative to production, but this 
increase was later reversed during the period 2011-2012. 
 
3. Conclusion  
The investigation concludes that the imports have still increased in absolute term during the year 2009–2012, and the domestic industry has continued to suffer serious injury since the imposition 
of measures. Although there is an improvement in  2012, and the benefit of the first phase of the 
adjustment plan are being realised in 2012, it is concluded that the extension of measures are 
necessary to provide further protection in order to remedy the injury being incurred; as well as to allow for the second phase of the adjustment to proceed and to restore the long term 
competitiveness of the domestic industry. 
 Furthermore, if measures were to be terminated, it is likely that there would be a further surge in imports bearing in mind that Thailand remains a natural outlet for regional suppliers that have a 
substantial interest and in the event, the continued viability of the domestic industry would likely 
be at stake.  
During the course of the investigation, concern has been expressed that measures are against the 
public interest in that the domestic industry is the sole supplier of the domestic goods in Thailand and that the measures have the effect of limiting the choice of supply and encouraging increases 
in prices. 
 In this respect, the Authority concludes that it is  in the long term public interest to extend the 
temporary protection to allow the industry to complete the adjustment process and regain 
competitiveness so as to provide the consumer with a wide choice between domestic and third 
country suppliers.  G/SG/N/8/THA/1/Suppl.5 • G/SG/N/10/THA/1/Suppl.3 
 
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  4. Provide precise descriptio n of the product involved 
 The product concerned is glass block, which is currently classified under the Thai Customs. Tariff Code 7016.9000 
 
5. If the final measure replaces a provis ional measure, or if a final measure is 
extended, a Member is encouraged to provid e a written description of any part of the 
imported product that will no longer be subject to the measure  
 Not applicable.  
6. Description of the proposed measure.  
 The proposed extended safeguard measure would be applied in the form of tariff increases at the 
ad valorem  rate of 27.5% on c.i.f. or a specific rate of 8.73 baht per piece, whichever is higher, for 
the first year. The measure would be progressively liberalized in the second year and the third year as indicated in Item 10 below. 
 
7. Date of introduction of the measure  
 The proposed measure is expected to come into effect on 15 January 2014. 
 
8. Expected duration of the measure.  
 
The proposed safeguard measure adopted would be effective from 15 January 2014 until 
14 January 2017.  
9. Proposed date for the review  
 Not applicable  
10. Timetable for the proposed progressi ve liberalization of the measure.  
 
Rate to apply whichever is higher Period of application 
27.50% on c.i.f. 8.73 baht/piece 15 Jan 2014 -14 Jan 2015 
26.00% on c.i.f. 8.23 baht/piece 15 Jan 2015 -14 Jan 2016 
24.50% on c.i.f. 7.73 baht/piece 15 Jan 2016 -14 Jan 2017 
 11. Information related to the propose d extension of a safeguard measure 
 
a. Evidences that the industry concerned are se rious injury and adjusting. Therefore, the 
safeguard measure continues to be necessary to prevent or remedy serious injury is provided 
under A. 1. c) mentioned above. 
 b. Reference to the WTO document that noti fied the initial application of the measure 
 
The relevant WTO document is G/SG /N/8/THA/1/Suppl.2-G/SG/N/10/THA/1-
G/SG/N/11/THA/1/Suppl.2.  
c. Duration of the proposed measure from initia l application till the date at which it will 
be extended  
 
The initial safeguard measure was applied from 15 January 2011 and will expire on 
14 January 2014. Thailand intends to extend the measure for three more years until 14 January 2017.  
d. Precise description of the measure in  place prior to the date of extension 
 Duty of 29% of c.i.f. price or 9.23 baht per piece, whichever is higher, during 15 January 2013 – 
14 January 2014. G/SG/N/8/THA/1/Suppl.5 • G/SG/N/10/THA/1/Suppl.3 
 
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  12. Information relating to exporting Members 
 a. The main exporting countries to Thailand are Ch ina, Indonesia, Iran with a combined share of 
imports of 84.81% 
 
b. There are no exporting Members to which the measure does not apply for any reason other than the application of Article 9.1 
 
13. Members are encouraged to attach, in an  electronic form, publicly available 
document(s) containing the relevant decisi on(s) made by the competent authority. 
 
Not applicable. 
 14. In accordance to section 19 of Thai law (The Safeguard Measures on Increased Imports Act. 
B.E.2550 (2007)), a public hearing has been set for interested parties directly concerned by this 
proceeding to be held on 9 May 2013, 09.30 hr. at Department of Foreign Trade at the below mentioned address: 
 
Department of Foreign Trade Ministry of Commerce of Thailand  44/100 Nonthaburi 1 Rd., 
Nonthaburi 11000 THAILAND 
Telephone: (662) 547-4739
 
Facsimile: (662) 547-4741 
 
15. In accordance to article 12.3 of the Agreement on Safeguards, those interested parties with 
substantial interest are invited for prior consultations to be held on 7 May 2013, 09.30 hr. at the 
same address as mentioned in 14. 
  
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