WT/DS573/2  
 
15 February 2019  
(19-0899) Page: 1/3 
  Original: English  
 
TURKEY – ADDITIONAL DUTIES ON IMPORTS OF  AIR CONDITIONING MA CHINES  
FROM THAILAND  
REQUEST FOR THE ESTA BLISHMENT OF A PANEL  BY THAILAND  
The following communication, dated 14 February 2019 , from the delegation of Thailand  to the 
Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.  
 
_______________  
 
 
On 4 December 2018, the Government of the Kingdom of Thailand ("Thailand") requested 
consultations with the Government of the Republic of Turkey ("Turkey") pursuant to Articles 1 and 
4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU"), 
Article XXII:1 of the General Agreement on Tariffs  and Trade 1994 ("GATT 1994"), and  Article 14 of 
the Agreement on Safeguards  concerning the additional duty imposed by Turkey on imports of air -
conditioning machines from Thailand.  
Consultations were held on 8 January 2019 with a view to reaching a mutually satisfactory solution.  
However,  these consultations failed to resolve the dispute.  
Therefore, Thailand respectfully requests, pursuant to Article 6 of the  DSU, Article XXIII of the 
GATT  1994, and Article 14 of the Agreement on Safeguards, that the Dispute Settlement Body 
establish a pan el to examine this matter, with the standard terms of reference as set out in 
Article  7.1 of the DSU.  
Pursuant to Article 6.2 of the DSU, Thailand proceeds below to identify the specific measures at issue 
and to provide a brief summary of the legal basis o f the complaint.  
A. Identification of the measure  
The measure at issue is the additional duty of 9.27% imposed by Turkey on imports of air 
conditioning machines from Thailand under HS Code 8415.10 (the "Additional Duty").1  
On 3 August 2017, Turkey notifie d the Additional Duty to the Council for Trade in Goods and the 
Committee on Safeguards (the "Committee") as a proposed suspension of concessions and other 
obligations under Article 8.2 of the Agreement on Safeguards.2 The Additional Duty went into effect 
on 5 September 2017 for three years.  
The notification from Turkey clarifies that the Additional Duty applies to "Air -conditioning machines 
(of a kind designed to be fixed to a window, wall, ceiling or floor, self -contained or 'split -system')"3 
(the "Air Co nditioning Machines").  Turkey applies the Additional Duty to imports of Air Conditioning 
Machines from Thailand alone.   
                                                
1 G/L/1183 ; G/SG/N/12/TUR5 ; See Regulation 2017/10798 imposing the additional duty on imports 
from Thailand, as published in Turkey’s Official Journal on 22 November 2017,  
http://www.resmigazete.gov.tr/eskiler/2017/11/20171122 -3.pdf. 
2 G/L/1183; G/SG/N/12/TUR5.  
3 G/L/1183; G/SG/N/12/TUR5.  WT/DS573/2  
 
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  This request also concerns any modification, review, replacement or amendment to the Additional 
Duty, as well as any underlying report s, memoranda and other documents supporting the Additional 
Duty.  
B. Background  
In imposing the Additional Duty, Turkey purportedly acted in response to the extension of a 
safeguard measure adopted by Thailand on imports of non -alloy hot rolled steel flat p roducts in coils 
and not in coils (the "Steel Products").4 
Thailand's safeguard measure on the Steel Products was adopted on 7 June 2014, as a provisional 
measure.5  On 13 January 2015, Thailand notified the Committee of its decision to impose a definitive  
safeguard measure on the Steel Products for a period of three years.6 
On 19 June 2017, Thailand notified the Committee of its decision to extend its safeguard measure 
on the Steel Products.7 Thailand's extended safeguard measure is being applied in the fo rm of a 
tariff increase on these products for three years, from 7 June 2017 until 6 June 2020:8 
Extended Duration  Extended Safeguard Duty  
7 June 2017 – 6 June 2018  21.00% of C.I.F. price  
7 June 2018 – 6 June 2019  20.87% of C.I.F. price  
7 June 2019 – 6 June 2020  20.74% of C.I.F. price  
The three -year average safeguard duty on the Steel Products is thus 20.87%.  
Turkey's share of the Steel Products imported into Thailand in 2014 was 5.14%.  
The 3 August 2017 notification by Turkey of the Additional Duty asserts that the application by 
Thailand of the increased duty of 21% on the Steel Products would result in US $6.5 million in duty 
collection by Thailand from Turkey's exports of these products, "based on the export value in 2013; 
31 million US dollars".9  
According to Turkey, to maintain the equivalent level of concessions and other obligations under the 
GATT 1994, it was entitled to impose an  additional duty of 9.27% on imports of air conditioning 
machines from Thailand. It explained that this suspension  of concessions would affect US $70.1 
million worth of imports of Air Conditioning Machines from Thailand, based on 2013 import values, 
and would result in US $6.5 million in duty collection by Turkey.10 
Turkey thus relied on import data from 2013, the year  of the surge in imports that led to Thailand 's 
imposition of the safeguard measure on the Steel Products, without considering other information 
such as for example the three -year average of import value preceding the original measure. 
The application of a  three -year average safeguard duty of 20.87% on the Steel Products w ould 
result  in only US $3.2 million in duty collected by Thailand with regard to Turkish exports of these 
products, based on an average of the import value from June 2011 – May 2014, i.e., less than half 
of the US $ 6.5 million relied on by Turkey to dete rmine the level of concessions.  
                                                
4 G/L/1183; G/SG/N/12/TUR5.  
5 G/SG/N/7/THA/3/Suppl.1; G/SG/N/11/ THA/3/Suppl.1.  
6 G/SG/N/8/THA/3 -G/SG/N/10/THA/3 -G/SG/N/11/THA/4.    
7 G/SG/N/8/THA/3/Suppl.2 ; G/SG/N/10/THA/3/Suppl.2.    
8 G/SG/N/8/THA/3/Suppl.2 ; G/SG/N/10/THA/3/S uppl.2.    
9 G/L/1183 ; G/SG/N/12/TUR5.  
10 G/L/1183 ; G/SG/N/12/TUR5.  WT/DS573/2  
 
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  Moreover, Turkey's Additional Duty will apply until 4 September 2020, even though Thailand's 
extended safeguard measure on the Steel Products will expire on 6 June 2020.  
C. Legal basis of the complaint  
The Additional Duty imposed by Turkey is inconsistent with the obligations of Turkey  under the 
GATT  1994 and the Agreement on Safeguards.  
In particular, Thailand considers that the safeguard measure fails to co mply with the following 
provisions:  
a. Articles 8.2 and 12.3 of the Agreement on Safeguards and Article XIX:3 and XIX:2 of the 
GATT 1994 because Turkey is not an "affected exporting Member " with a " substantial 
interest " in the safeguard measure on the Steel Products, given the low level of imports 
from Turkey as a share of total imports of the Steel Products covered by Thailand 's 
safeguard measure. Turkey was thus not entitled to suspend the application of substantially 
equivalent concessions or other obligations under the GATT 1994 by imposing the Additional 
Duty on Air Conditioning Machines from Thailand.  
b. Article 8.2 of the Agreement on Safeguards and Article XIX:3 of the GATT 1994 because 
even assuming that Turkey had the right to suspend concessions, quod non , the Additional 
Duty exceeds what constitutes "substantially equivalent" concessions, among other s since 
Turkey unduly relied exclusively on import levels for the year preceding the imposition for 
the measure and maintains the Additional Duty even after the expiry of Thailand 's safeguard 
measure.  
c. Article I:1 of the GATT 1994 because Turkey discriminat es between Air Conditioning 
Machines  originat ing in Thailand and  the like products originating in other WTO Members by 
imposing the Additional Duty only on imports from Thailand.  
d. Article II.1(a) and II:1(b) of the GATT 1994 because Turkey has not ensured that Air 
Conditioning Machines from Thailand are exempt from ordinary customs duties and all other 
duties or charges of any kind imposed on or in connection with the importation of Air 
Conditioning Machines.  In particular, Turkey acted in violation of Article II:1(a) of the 
GATT  1994, because by imposing the Additional Duty, Turkey fails to accord treatment no 
less favourable to products originating in Thailand than that provided for in Turkey's schedule 
of concessions. The Additional Duty imposed by Turkey  is inconsistent with Article II:1(b) of 
the GATT 1994 because Turkey imposes ordinary customs duties in excess of those set forth 
in Turkey's schedule or in the alternative fails to exempt products from Thailand from all 
other duties or charges of any kin d imposed on or in connection with importation in excess 
of those imposed on the date of the GATT 1994 or those directly and mandatorily required 
to be imposed thereafter by legislation in force in Turkey on that date . 
D. CONCLUSION  
Turkey 's Additional Dut y nullifies or impairs benefits accruing to Thailand, directly or indirectly, under 
the cited agreements.  
Therefore, Thailand respectfully requests, pursuant to Article 6 of the  DSU, Article XXIII of the 
GATT  1994, and Article 14 of the Agreement on Safegu ards, that the Dispute Settlement Body 
establish a panel to examine this matter, with the standard terms of reference as set out in 
Article  7.1 of the DSU.  
Thailand further asks that this request for the establishment of a panel be placed on the agenda of 
the next meeting of the Dispute Settlement Body to be held on 25 February 2019 . 
__________