G/SG/N/10/TUR/15/Suppl.1  
G/SG/N/11/TUR/20/Suppl.1  
 
5 July 2018 
(18-4203) Page: 1/8 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(C) OF TH E AGREEMENT  
ON SAFEGUARDS  ON TAKING A DECISION  
TO APPLY A SAFEGUARD  MEASURE  
(EXTENSION OF THE EX ISTING MEASURE)  
 
NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
TURKEY 
(Wallpaper and similar wallcoverings ) 
Supplement  
The following notification, dated 4 July 2018, is being circulated at the request of the Delegation of 
Turkey.  
 
_________ ______  
 
 
We enclose a notification pursuant to Article 12.1(c) and Article 9, footnote 2 of the 
Agreement on Safeguards, on taking a decision to extend a safeguard measure that is being 
applied against imports of wallpaper and similar wallcoverings and  non-application of the 
safeguard measure to developing countries. The initial safeguard measure was notified with the 
document G/SG/N/8/TUR/15 -G/SG/N/10/TUR/15 -G/SG/N/11/TUR/20, dated 26 June 2015.  The 
initiation of a review pursuant to Article 7.2 regarding the extension of a safeguard measure was 
also notified with documents G/SG/N/6/TUR/20/Suppl.1, dated 9 March 2018.  
 
 Consistent with Article 12.3 of the Agreement on Safeguards , Turkey is ready to hold 
consultations with those Members having a substantial interest as exporters of the product 
concerned.  
 
1  NOTIFICATION UNDER A RTICLE 12.1(C) OF TH E AGREEMENT O N SAFEGUARDS UPON 
TAKING A DECISION TO  EXTEND A SAFEGUARD M EASURE  
1.1  Evidence that the safeguard measure continues to be necessary to prevent or 
remedy serio us injury or threat thereof caused by increased imports  
 The investigation has been conducted by Turkish Investigating Authority. The yearly figures 
between 2013 and 2017 were examined.  Following figures on economic indicators of domestic 
producers are ba sed on the data submitted by 5 domestic producers which produce approximately 
90% of total domestic production.  
 
(i) Consumption  
In calculating the size of the domestic market, domestic sales figures of above -mentioned 
domestic producers and import figure s in the related period are summed up. The annual 
consumption amount of the product concerned that is calculated by taking the import figures into 
consideration is shown in the following table.  
 G/SG/N/10/TUR/15/Suppl.1 • G/SG/N/11/TUR/20/Suppl.1  
 
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Consumption  2013  2014  2015  2016  2017  
Index  100 119,93  115,94  64,78  77,11  
 
In the investigation period (IP), it can be seen that consumption amount increased until 
2015, which is the year the original safeguard measure was taken, and afterwards it began to fall 
and ended up with 23 points decrease in comparison with that of the base year.  
 
(ii) Market Share  
Market Share  2013  2014  2015  2016  2017  
Imported Products  100 97 92 34 27 
Domestic Products  100 133 188 834 914 
 
According to the calculations based on statistics, market share of domestic products shows 
an increase throughout the IP. Accordingly, market share of imported products decreased between 
2013 and 2017.  
 
(iii) Production  
Production  2013  2014  2015  2016  2017  
Index  100 122,08  148,98  524,44  529,62  
 
The annual production amount of the domestic producers shows an increase from 2013 
onwards. However, the last year amount of production increased only 1 % in comparison to 2016.  
 
(iv) Capacity and Capacity Utilization  
Capacity  2013  2014  2015  2016  2017  
Kapasite Index  100 100,00  104,43  171,17  197,66  
Capacity 
Utilization Index  100 122,08  142,66  306,38  267,94  
 
The capacity and capacity utilization rate concerning domestic producers are given in the 
tables above. According to these tables, particularly in 2016, there is an increase in domestic 
production capacity. With the effects of the increasing production, an increase in the capacity 
utilization rate is observed from the year 2013 onwards.  
 
(v) Domestic Sales  
Domestic Sales  2013  2014  2015  2016  2017  
Index  100 159,69  217,83  540,37  704,67  
 
In parallel with the production, the domestic sales show an increasing trend from 2013 
onwards. This rate of increase reached its top point in 2016 with 148 %. Domestic sales index 
increased 705 points which was 100 in 2013.  
 
(vi) Employment  
Employment  2013  2014  2015  2016  2017  
Index   100 118,97  163,79  287,93  332,76  
 
The overall personnel number employed by the related domestic firms begins to increase 
decently from the year 2015 onwards,  which is the year the original safeguard measure was taken,  
in parallel with the increasing capacity.  
 
(vii) Productivity  
Productivity  2013  2014  2015  2016  2017  
Index  100 102,62  90,96  182,14  159,16  G/SG/N/10/TUR/15/Suppl.1 • G/SG/N/11/TUR/20/Suppl.1  
 
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When the productivity indicators that describe the annual production amount performed by 
one worker are examined, we can see that they show an increase of 82% in 2016 in comparison to 
that of 2013, however, have a decreasing trend with the effects of low capacity u tilization rates 
in 2017.  
 
(viii) End of Period Inventories  
Inventories  2013  2014  2015  2016  2017  
Index  100 45,11  176,81  687,82  856,56  
 
The end of period stocks decreased in 2014 but have an increasing course from the year 
2015 onwards It is understood that the wallpaper sector tends to make stocks due to its 
characteristics such as changing needs of end users and the difference between supply and 
demand in certain periods.  
 
(iv) Profitability  
Profitability  2013  2014  2015  2016  2017  
Index  100 67,80  109,35  86,95  37,07  
 
The rates relating to the profitability of domestic producers are given in the table above. 
According to these values during the investigation period, the domestic producers remain positive 
in terms of profitability but have a decreasing course until the last year of IP.  
 
(x) Conclusion  
With the introduction of the safeguard measure in 2015, total consumption of wallpaper has 
decreased considerably and domestic production has entered an upward trend. As a result, relative 
import s decreased and domestic market share increased. Nevertheless, increased production has 
not caught up with the amount of consumption in the past, and there has been a contraction in the 
sector.  
 
It has been seen that profitability has been decreasing for t he last three years with the 
increase of wallpaper production and producer in the country. The biggest reason for this situation 
is increased costs. In parallel with the increase in prices of raw materials used in production and 
basic inputs (labor, energy , etc.) in the production, the newly established companies’ increasing 
financial and research and development costs are among the main reasons for the decrease in 
profitability.  
 
In this context, it is understood that the domestic wallpaper industry is in the process of 
adaptation within the framework of the external dependency on input, the resources allocated for 
the R&D for the fashionable products, the establishment of new factories and the financing costs 
due to the capacity increase.  
 
1.2  Information on i mports in absolute term and relative to domestic production  
The data related to the products concerned and have been imported since 2013 are shown 
annually in the following tables.   
 
(i) General View of Imports  
Period  Annual Imports  Change  
Volume (kg)  Value ($)  UP ($/kg)  Volume (kg)  Volume (%)  
2013 9.949.480  49.139.506  4,94     
2014 11.577.499  56.232.518  4,86 1.628.019  16,36  
2015 10.626.132  49.005.107  4,61 -951.367  -8,22 
2016 2.201.958  13.147.193  5,97 -8.424.174  -79,28  
2017 2.073.434  13.487.546  6,50 -128.524  -5,84 
 G/SG/N/10/TUR/15/Suppl.1 • G/SG/N/11/TUR/20/Suppl.1  
 
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  As seen in the table above, in the investigation period imports of product concerned from all 
countries followed a decreasing trend in terms of quantity and value after 2015, which is the year 
the original measure was taken. Imports in 2017 decreased by 5.84% to 2,073 tons according to 
that of previous year.  
 
It is understood that within the scope of the investigation, imports of product concerned 
have increased in unit price due to the specific safeguard measure which is currently ap plied.  
 
(ii) Imports Relative to Domestic Production  
Through the overall production, figures obtained based on the production figures of domestic 
producers whose data have been used in the scope of the investigation; we can calculate the 
relative import ra te in proportion to the domestic production. The import data is shown in the 
following table.  
 
Imports/Production  2013  2014  2015  2016  2017  
Index  100 95 72 4 4 
 
 As it is seen in the table above, the domestic production rate of imports has been on a 
steady decline, and it is understood that after 2015 when the original safeguard measure is taken, 
there has been a decline in imports from all countries. The index, which stood at 100 in 2013, 
declined by 96% to four in 2017.  
 
1.3  Precise description of the p roduct involved  
The HS based codes under the Turkish Customs Tariff Schedule and description of the product 
concerned are listed in the table below.   
 
HS Based Code  Description of the Product  
4814.20.00.00.00  Wallpaper and similar wallcoverings, consisting of paper coated or covered, on the  
face side, with a grained, embossed, coloured, design -printed or otherwise  
decorated layer of plastics  
4814.90.10.00.00  Wallpaper and similar wallcoverings, consisting of  grained, embossed, surface - 
coloured, design -printed or otherwise surface -decorated paper, coated or covered  
with transparent protective plastics  
4814.90.70.10.00  Wallpaper and similar wall coverings, consisting of paper covered, on the face side,  
with plaiting material, whether or not bound together in parallel strands or woven  
 
1.4  Description of any part of the imported product that will no longer be subject to the 
measure in the extension  
Not applicable.  
 
1.5  Precise description of the proposed measure  
 The safeguard measure is proposed to be extended for 3 years until 7 November 2017 
(7 November 2017 is included) in the form of variable duty which will be implemented as shown in 
the table below.  
 
Turkish Customs 
Tariff Code  Description of  
the Product  1st Period  
(6.8.2018 -
5.8.2019)  2nd Period  
(6.8.2019 -
5.8.2020)  3rd Period  
(6.8.2020 -
5.8.2021)  
4814.20.00.00.00  Wallpaper and similar 
wallcoverings, consisting 
of paper coated or 
covered, on the face side, 
with a grained, 
embossed, coloured, 
design -printed or 
otherwise  
decorated layer of plastics  3,75 USD/Kg  3,5 USD/Kg  3,25 USD/Kg  G/SG/N/10/TUR/15/Suppl.1 • G/SG/N/11/TUR/20/Suppl.1  
 
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  Turkish Customs 
Tariff Code  Description of  
the Product  1st Period  
(6.8.2018 -
5.8.2019)  2nd Period  
(6.8.2019 -
5.8.2020)  3rd Period  
(6.8.2020 -
5.8.2021)  
4814.90.10.00.00  Wallpaper and similar 
wallcoverings, consisting 
of grained, embossed, 
surface -coloured, design -
printed or otherwise 
surface -decorated paper, 
coated or covered with 
transparent protective 
plastics  3,75 USD/Kg  3,5 USD/Kg  3,25 USD/Kg  
4814.90.70.10.00  Wallpaper and similar  wall 
coverings, consisting of 
paper covered, on the 
face side, with plaiting 
material, whether or not 
bound together in parallel 
strands or woven  3,75 USD/Kg  3,5 USD/Kg  3,25 USD/Kg  
 
1.6  Proposed date of introduction of the measure  
The measure will come into force in 6 August 2018 with the publication of the approval of 
the Council of Ministers after the procedures are concluded.  
 
1.7  Expected duration of the measure  
The expected duration of the proposed measure is three years.  
 
1.8  Proposed date for the review  
Not a pplicable.  
 
1.9  Expected timetable for progressive liberalization of the measure  
 The measure is proposed to be liberalized annually as stated in the Section 1.5.  
 
1.10  If the notification relates only to a finding of serious injury or threat thereof, and 
does not relate to a decision to apply or extend a safeguard measure:  
 Not applicable.  
 
1.11  Information relating to the extension of a safeguard measure  
(i) Evidence that the safeguard measure continues to be necessary to prevent or remedy 
serious injury or threat thereof:  
When import unit prices made under the tariff quota which was opened after safeguard 
measure from countries with a significant share in world wallpaper production were examined, it 
was determined that imports from the mentioned countries cut price s of domestic production 
by 30%.  
Considering the fact that world export prices of the largest other wallpaper suppliers are on 
the average 4,5 USD/Kg level, termination of the measure will likely affect negatively the recently 
established domestic producer s working with high rate of wastage.   
In this respect, it has been determined that the safeguard measure continues to be 
necessary to prevent and remedy serious injury, taking into account that there is a delicate 
balance between import and domestic produ ct prices on the market.  G/SG/N/10/TUR/15/Suppl.1 • G/SG/N/11/TUR/20/Suppl.1  
 
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  (ii) Evidence that the industry concerned is adjusting:  
It is understood that there has been a sharp decline in import figures with the initiation of 
safeguard measures in the investigation period, and it is also understood that domestic producers 
have recovered to some extent in economic indicators. Following safeguard measures, production, 
domestic sales, capacity and employment increased, and import market share declined 
considerably.  
 
In terms of industrial costs derived from the increasing exchange rate due to the use of 
imported raw materials; and of commercial costs due to new factory establishment, capacity 
increase and increase in R&D spending, it is observed that there has been a significant increase in 
costs of productio n. 
 
It has been found that domestic producers have been  endeavoring to adapt to a competitive 
environment in which safeguard measures will not be implemented in the future. Most of the 
companies that started production activities especially after 2015 onwa rds, expanded their product 
ranges by developing new and different wallpaper products, established R&D units which were 
absent in the past and carried out some improvements within the company in order to increase 
quality standards.  
 
It is known that effort s are being made by the companies in the sector to supply the raw 
materials from domestic producers, which are needed by the wallpaper sector. It is considered that 
the safeguard measure should be continued in order to make the paper and paint production i n 
Turkey, which are the most important raw materials in terms of added -value and to develop the 
subsidiary industry branches more easily.  
 
It is determined that the domestic industry is in the process of adapting to the market 
conditions in light of the in formation given above.  
 
(iii) Reference to the WTO document that notified the initial application of the measure:  
 
 The introduction of the definitive safeguard measure was notified in the document 
numbered  G/SG/N/8/TUR/15 -G/SG/N/10/TUR/15 -G/SG/N/11/TUR/20 , dated 26 June 2015.  
 
(iv) Duration of the measure from initial application till the date at which it will be extended:  
 
 The safeguard measure is initiated on 6 August 2015 and will be in force till 5 August 2018. 
Turkey now intends to extend the safeguard measure until 5 August 2021.  
 
(v) Precise description of the measure in place prior to the date of extension  
 
 The measure in place prior to the date of extension is a specific duty, which was put into 
force on imports of wallpaper and similar wa llcoverings by the Council of Ministers decision 
published in the Official Gazette dated 7 July 2015, no. 29409. The level of duties is identified in 
the table below.   
 G/SG/N/10/TUR/15/Suppl.1 • G/SG/N/11/TUR/20/Suppl.1  
 
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  Turkish Customs 
Tariff Code  Description of The 
Product  1st Period  
(6.8.2018 -
5.8.2019)  2nd Period  
(6.8.2019 -
5.8.2020)  3rd Period  
(6.8.2020 -
5.8.2021)  
4814.20.00.00.00  Wallpaper and similar 
wallcoverings, consisting 
of paper coated or 
covered, on the face side, 
with a grained, 
embossed, coloured, 
design -printed or 
otherwise  
decorated layer of plastics  
5 USD/Kg  4,5 USD/Kg  4 USD/Kg  
4814.90.10.00.00  Wallpaper and similar 
wallcoverings, consisting 
of grained, embossed, 
surface -coloured, design -
printed or otherwise 
surface -decorated paper, 
coated or covered with 
transparent protective 
plastics  
4814.90.70.10.00  Wallpaper and similar wall 
coverings, consisting of 
paper covered, on the 
face side, with plaiting 
material, whether or not 
bound together in parallel 
strands or woven  
 
1.12  Information relating to exporting members  
(i) The major exporting Members of imports of the product involved:  
 
 The main exporter to Turkey for the product concerned is the Germany. Germany has 
23% import share in 2017.  
(ii) There are no exporting members to which the measure does not apply for any reason other 
than the application of Article 9.1  
 
1.13  Members are encouraged to attach, in an electronic form, publicly available 
document(s) containing the relevant decision(s) made by the competent authority.   
 The official documents regarding the investigation an d the final decision are available in the 
link below.  
 
https://www.ekonomi.gov.tr/portal/url/buk  
 
2  NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2 OF THE AGREEM ENT ON 
SAFEGUARDS  
2.1  The measure  
 It is pro posed to impose safeguard measure as described in Section 1.5.  
 
2.2  The product subject to the measure  
 The measure is applied to the product described in Section 1.3.  
 
2.3  Developing countries to which the measure is not applied under article 9.1 of the 
Agreement  on Safeguards.  
 The developing countries which are excluded from the measure as they e xport in quantities 
less than 3%  of imports to Turkey are listed below.  
 G/SG/N/10/TUR/15/Suppl.1 • G/SG/N/11/TUR/20/Suppl.1  
 
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   Afghanistan, Angola, Antigua and Barbuda, Argentina, Albania, Azerbaijan, Bangladesh, 
Barbados, Belarus, Belize, Benin, Bolivia (Plurinational State of), Bosnia and Herzegovina, 
Botswana, Brazil, Burkina Faso, Burundi, Bhutan, Algeria, Djibouti, Cook Islands, Chad, 
Democratic Republic of the Congo, Dominican Republic, Dominica, Ecuador, Equ atorial Guinea, 
El Salvador, Indonesia, Eritrea, Ethiopia, Morocco, Fiji, Côte d'Ivoire, Philippines, State of 
Palestine, French Polynesia, Gabon, Gambia, Ghana, Guinea, Guinea -Bissau, Grenada, Guatemala, 
Guyana, South Africa, South Sudan, Georgia, Haiti, India, Honduras, Iraq, Iran, Jamaica, 
Cambodia, Cameroon, Cabo Verde, Montenegro, Kazakhstan, Kenya, Kyrgyzstan, Kiribati, 
Colombia, Comoros, Congo, Kosovo, Costa Rica, Democratic People's Republic of Korea, Cuba, Lao 
People's Democratic Republic, Lesotho,  Liberia, Libya, Lebanon, Madagascar, The Former Yugoslav 
Republic of Macedonia, Malawi, Maldives, Malaysia, Mali, Marshall Islands, Mozambique, Mexico, 
Egypt, Micronesia (Federated States of), Mongolia, Republic of Moldova, Montserrat, Mauritania, 
Mauriti us, Myanmar, Namibia, Nauru, Nepal, Niger, Nigeria, Nicaragua, Niue, Central African 
Republic, Uzbekistan, Pakistan, Palau, Panama, Papua New Guinea, Paraguay, Peru, Rwanda, 
Russian Federation, Samoa, Sao Tome and Principe, Senegal, Seychelles, Serbia, Sie rra Leone, 
Solomon Islands, Somalia, Sri Lanka, Saint Kitts and Nevis, Saint Lucia, Saint Vincent and the 
Grenadines, Sudan, Suriname, Swaziland, Chile, Tajikistan, United Republic of Tanzania, Thailand, 
Timor -Leste, Togo, Tonga, Trinidad and Tobago, Tunis ia, Tuvalu, Turkmenistan, Uganda, Ukraine, 
Oman, Uruguay, Jordan, Vanuatu, Venezuela (Bolivarian Republic of), Viet Nam, Yemen, Zambia, 
Zimbabwe.  
 
__________