G/SG/N/10/THA/2/Suppl.3  
G/SG/N/11/THA/2/Suppl.5  
 
4 March 2016  
(16-1281)  Page: 1/8  
Committee on Safeguards  Original: English  
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C) OF  
THE AGREEMENT ON SAFEGUARDS 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
THAILAND  
(Hot Rolled Steel Flat Products with Certain Amounts of Alloying Elements) 
Supplement 
The following communication, dated 2 March 2016, is being circulated at the request of the 
Delegation of Thailand. 
 
_______________ 
 
 
With reference to Thailand's notification on the initiation of a review pursuant to Article 7.2 of the Agreement on Safeguards regarding the extension of the safeguard measure (WTO Document 
G/SG/N/6/THA/2/Suppl.1-G/SG/N/14/THA/2) dated 27 July 2015 and the proposal to extend a 
measure under Article 12.1(b) of the Agreement on Safeguards (WTO Document G/SG/N/10/THA/2/Suppl.2-G/SG/N/11/THA/2/Suppl .4) dated 6 January 2016, Thailand hereby 
provides notification to the Committee on Safeguards pursuant to Article 12.1(c) and Article 9, 
footnote 2 of the Agreement on Safeguards, on its decision to extend a safeguard measure that is 
being applied against imports of hot-rolled steel flat products with certain amounts of alloying elements. 
 
Consistent with Article 12.2 of the Agreement on Safeguards,  this notification contains all pertinent 
information relating to the decision to extend the safeguard measure on product concerned. 
 
1  THE SAFEGUARD MEASURE CONTINUES TO BE NECESSARY TO PREVENT OR REMEDY SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED IMPORTS AND THERE IS EVIDENCE THAT THE INDUSTRY CONCERNED IS ADJUSTING  
a. Basic industry indicators 
Item 2011 2012 2013 2014 2014 
(Jan-Jun) 2015 
(Jan-Jun) 
Sales (MT)* 100 95.65 88.23 83.49 100 98.19 
Market share (%) 80 66 86 92 93 89 
Import Share (%) 20 34 14 8 7 11 
Consumption (MT)* 100 115.82 81.63 72.27 100 102.66 
Production (MT)* 100 89.78 88.79 83.40 100 92.87 
Capacity Utilisation (%) 40 36 36 34 33 31 
Productivity (%) 96 96 96 98 97 97 
Profit/Loss (million baht) (2,868) (7,573) (3,431) (2,677) (888) (2,844) 
Employment (number)* 100 90.82 89.00 95.08 100 105.02 
* Index: Year 2011 = 100, 2014 (Jan-Jun) = 100  
 G/SG/N/10/THA/2/Suppl.3 • G/SG/N/11/THA/2/Suppl.5 
 
- 2 - 
 
  In year 2011 and 2012, imports of product concer ned dramatically increased inflicting serious 
injury on the domestic industry. Notably the mark et share of the domestic industry dropped from 
80% in year 2011 to 66% in year 2012 and the domestic industry faced 2.5 folds losses in 2012 compared with the previous year. 
 
Following the imposition of provisional measures  on 27 February 2013, the domestic industry was 
able to regain market share in 2013 and 2014 which resulted in a reduction of losses and 
stabilizing sales and production at a reduced level even though the domestic consumption 
moderately declined. Most importantly, one of the domestic-industry companies, G Steel PCL., was able to resume its production in April 2014 after it temporary shut down since mid-2012 due to its huge losses caused by the surge of imports of the product concerned before the measure was 
imposed. 
 However, from January to June 2015, imports increased compared to the same period of 2014, 
and the market share of the domestic industry  declined even though consumption slightly 
expanded as imports increased both in absolute terms and relative to consumption. Although the 
sales slightly decreased the domestic industry encountered great losses compared with the same 
period in 2014, showing the devastation of its profit-making ability largely due to import prices 
that have remained well below those of the domestic industry.   The authorities also considered factors other than increased imports that might be causing serious 
injury of domestic industry including the decrease of domestic demand caused by the effect of the 
global economic slowdown and Thai political unrest, management ability of the domestic industry, productivity of domestic industry, investment in SS I UK of Sahaviriya Steel Industry PCL., etc., by 
segregating and analysing each injurious indicator that may be affected by these factors. The 
authorities analysed those injurious effect so that any injury caused by these factors was not attributed to the flux of imports. 
 
In fact, the domestic industry currently has 7.9 million tons total production capacity which is more than enough to meet the domestic de mand. Moreover, it maintains productivity 
(output/input) at the 96% - 98% level. Therefore, the lack of capability to supply the domestic 
demand is not the reason for the need of importation. In addition, the product concerned which 
had received special exemption i.e. for cold rolling process; for the automobile industry; for hardening process and as special grade steels granted to certain importers already precluded from 
this analysis by names of exempted importers. 
 In view of the clearly established coincidence in  time between, on the one hand, the level of 
imports at low prices and, on the other hand, the domestic industry's loss of sales volume and 
decreasing profitability, it is concluded that the safeguard measure continues to be necessary to prevent or remedy serious injury or threat thereof caused by increased imports.   
b. Condition of imports 
As imports increased in 2015, the ability to mainta in market share in spite of the measures in 
force was undermined largely due to import prices of product concerned that were well below 
those of the domestic industry.  As a result, the domestic industry continued to face losses in 
2013-2014 and these tripled during January to June 2015 when imports started to increase once more. 
 
 2011 2012 2013 2014 2014 
(Jan-Jun) 2015 
(Jan-Jun)  
Import Share (%) 20 34 14 8 7 11 
Profit/Loss (million baht) (2,868) (7,573) (3,431) (2,677) (888) (2,844) 
 
c. Unforeseen developments 
The unforeseen development issues were explaine d in the disclosure of finding of the initial 
investigation. In particular, the significant increase of imports was attributable to the adverse 
effects of the steel products' oversupply situations in many countries, which were the world steel 
producers, combined with the global economic slowdown resulting from the Euro-Zone crisis 
causing the reduction of world steel usage's demand. As a result, excessive amount of steel 
products were exported from those major steel producer countries, especially from the People's G/SG/N/10/THA/2/Suppl.3 • G/SG/N/11/THA/2/Suppl.5 
 
- 3 - 
 
  Republic of China, to any other possible markets, in this case, Thailand, at the undercutting prices 
which were well below the prices of Thai domestic industry, in order to absorb the oversupply products available in their home countries and to utilize their excess capacities. 
In addition, the increase in imports volumes was attributable to the effects of Thailand's 
obligations incurred under WTO as Thailand under took to apply 5% MFN tariff rate to all WTO 
Members for the product concerned. 
It was concluded that increased imports of product concerned were the result of unforeseen 
developments mentioned above and of the effect of Thailand's obligations incurred under WTO, in 
accordance with the Agreement on Safeguards and Article XIX:1(a) GATT 1994. 
d. Evidence that the industry  concerned is adjusting 
The Committee on Safeguard Measure of Thailand appointed the working group of steel industry 
experts to closely monitor the adjustment plan in phase I and evaluated the achievement of the 
domestic industry. This working group will al so monitor the adjustment plan in phase II. 
1. Initial Adjustment Plan for 2013 - 2015  (Phase I) 
Since February 2013 until September 2015 when the safeguard measure was in force, the 
domestic industry exercised several programs aiming at the overall cost reduction, product development and production efficiency in order to increase its competitiveness. The programs 
included: 
a. Increase production efficiency including new machine installation, with the investment of 
over 240 million baht, for higher production within a shorten time; 
b. Cost reduction programs: the domestic industry exercised 25 cost reduction programs by 
investing over 87 million baht in the machine and equipment resulting in a cost 
reduction of over 1.3 billion baht; 
c. Product development: the domestic industry invested over 340 million baht for 
installation of new machine to produce thicker and wider products to meet customer 
specifications and expand new market segments. At this stage, focusing on product quality, several items of domestic products were accepted by the automobile industry as 
its approved source. 
2. Adjustment Plan for 2016 - 2019 (Phase II) 
After the huge investment in Phase I and several programs being underway, this second phase 
involves the continuous implementation of the programs in Phase I by lowering the production 
cost, increasing production efficiency, development of new product standards and grades to meet 
wider customers' expectation, improving the co mpetency of human resources especially in 
production control and improving customer satisfaction. 
In sum, Phase II of the adjustment plan, which is the continuation of Phase I plan, involves the 
investment by the domestic industry over 1 billion baht which will result in cost reduction of almost the same level but which will improve the ov erall competency of the domestic industry. 
e. Public interests 
During the course of the investigation, concern has been expressed that measure was against the 
public interest in that the safeguard measure will increase cost of production of the down steam productions. As a result, those products would not be able to compete with low price finished 
products from the People's Republic of China. G/SG/N/10/THA/2/Suppl.3 • G/SG/N/11/THA/2/Suppl.5 
 
- 4 - 
 
  In this respect, the authorities conclude 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 variety of quality products at a reasonable price. 
 
2  INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE IN IMPORTS OR AN 
INCREASE IN IMPORTS RELATIVE TO DOMESTIC PRODUCTION 
See points 1.a and 1.b above. 
 3  PRECISE DESCRIPTION OF THE PRODUCTS CONCERNED 
The products concerned are hot rolled steel flat products with certain amounts of alloying elements 
such as boron, chromium, etc., in coils and not in  coils, with or without patterns in relief, of a 
thickness of 0.9 – 50.0 mm. and a width 100 – 3,048 mm. The products concerned are currently classified under the Thai Customs Tariff Code at 36 subheadings: 7225.30.90.011, 
7225.30.90.012, 7225.30.90.013, 7225.30.90.014, 7225.30.90.021, 7225.30.90.022, 
7225.30.90.023, 7225.30.90.024, 7225.30.90.090, 7225.40.90.011, 7225.40.90.012, 7225.40.90.013, 7225.40.90.014, 7225.40.90.021, 7225.40.90.022, 7225.40.90.023, 
7225.40.90.024, 7225.40.90.090, 7226.91.10.011, 7226.91.10.012, 7226.91.10.013, 
7226.91.10.014, 7226.91.10.021, 7226.91.10.022, 7226.91.10.023, 7226.91.10.024, 7226.91.10.090, 7226.91.90.011, 7226.91.90.012, 7226.91.90.013, 7226.91.90.014, 7226.91.90.021, 7226.91.90.022, 7226.91.90.023, 7226.91.90.024, 7226.91.90.090, 
originating in or exported from various countries. 
 4  IF THE FINAL MEASURE REPLACES A PROVISIONAL MEASURE, OR IF A FINAL 
MEASURE IS EXTENDED, A MEMBER IS ENCOURAGED TO PROVIDE A WRITTEN 
DESCRIPTION OF ANY PART OF THE IMPORT ED PRODUCT THAT WILL NO LONGER BE 
SUBJECT TO THE MEASURE 
Not applicable. 
5  PRECISE DESCRIPTION OF THE EXTENDED MEASURE It was concluded that the safeguard measure continues to be necessary to prevent or remedy 
serious injury or threat thereof caused by increase imports while the domestic industry is 
adjusting. 
 The extended safeguard measure would be applied in the form of a tariff increase for three years 
starting from 27 February 2016 until 26 February 2019.  
 In accordance with the relevant provisions of the Thai Safeguard Measures on Increased Imports 
Act B.E.2550 (2007), which refer to Thailand's obligations under Article XIX of the GATT 1994 and 
the WTO Agreement on Safeguards, the Committ ee on Safeguard Measures of Thailand has 
decided to impose a safeguard duty which continues to be progressively liberalized during the period of its vali dity as follows: 
 
Extended Duration Exte nded Safeguard Duty 
27 February 2016 – 26 February 2017 41.67% of C.I.F. price 
27 February 2017 – 26 February 2018 40.42% of C.I.F. price 
27 February 2018 – 26 February 2019 39.21% of C.I.F. price 
 
The measure will not be applied against the products concerned originating in or exported from 
any developing country as long as its share of imports of the products concerned into Thailand does not exceed 3%. In this regard, as the list of developing countries whose share of imports of the products concerned into Thailand does not exceed 3% has remained unchanged since the last 
WTO notification under Article 9 footnote 2 (WTO Document G/SG/N/10/THA/2/Suppl.1-
G/SG/N/11/THA/2/Suppl.3 dated 6 November 2014), the list of developing countries excluded from the measure remains the same and is attached in the Annex below. 
 
In addition, the exemption from the imposition of  the extended safeguard measure will be granted 
to certain importers importing the products concerned into Thailand for cold rolling process; for the G/SG/N/10/THA/2/Suppl.3 • G/SG/N/11/THA/2/Suppl.5 
 
- 5 - 
 
  automobile industry; for hardening process and as  special grade steels; and, import for export, 
i.e., the imported products that are intended  to be manufactured, further processed or 
incorporated into a finished product that will be exported from Thailand under the Industrial Estate 
Authority of Thailand Act; or, the Investment Promotion Act; or, the Customs Act. 
 
6  PROPOSED DATE OF INTRODUCTION OF THE MEASURE 
The measure is expected to come into effect on 27 February 2016. 
 
7  EXPECTED DURATION OF THE MEASURE 
The measure would be effective from 27 February 2016 until 26 February 2019. 
 
8  PROPOSED DATE FOR THE REVIEW 
Not applicable. 
 
9  INFORMATION RELATED TO THE EX TENSION OF A SAFEGUARD MEASURE 
i. Evidence that the industry concerned is ad justing and that the safeguard measure continues 
to be necessary to prevent or remedy seriou s injury is provided under 1 a) and d) as 
mentioned above. 
 ii. Reference to the WTO document that notified the initial application of the measure:  
- Initiation of the original investigation, G/SG/N/6/THA/2 (4 December 2012);  
- Imposition of provisional measures, G/SG/N/7/THA/2-G/SG/N/8/THA/2-
G/SG/N/11/THA/2 (13 February 2013); 
- Proposed definitive measure G/SG/N/7/THA/2/Suppl.2-G/SG/N/8/THA/2/Suppl.2-
G/SG/N/11/THA/2/Suppl.1 (2 August 2013); 
- Imposition of definitive measure G/ SG/N/8/THA/2/Suppl.3-G/SG/N/10/THA/2- 
G/SG/N/11/THA/2/Suppl.2 (25 September 2013); 
- Notifications under Article 9 footnote 2, G/SG/N/7/THA/2/Suppl.1- 
G/SG/N/8/THA/2/Suppl.1 (24 June 2013) and G/SG/N/10/THA/2/Suppl.1- G/SG/N/11/THA/2/Suppl.3 (6 November 2014). 
iii. Duration of the measure from initial application till the date at which it will be extended; 
 
27 February 2013 (provisional measure) - 26 February 2019. 
iv. Precise description of the measure in place prior to the date of extension: 
 
Duty of 42.95% of c.i.f. price during 27 February 2015 - 26 February 2016. 
10  INFORMATION RELATING TO EXPORTING MEMBERS 
a. The main exporting countries to Thailand are the People's Republic of China, the 
Republic of Korea, Japan and the Republic of India. 
b. There are no exporting Members to which the measure does not apply for any reason 
other than the application of Article 9.1. 
11  PUBLIC HEARING AND PRIOR CONSULTATI ON WITH THOSE MEMBERS HAVING A 
SUBSTANTIAL INTEREST AS EXPORT ERS OF THE PRODUCT CONCERNED  
The public hearing was held on 13 January 2016 at the Department of Foreign Trade (DFT), 
Ministry of Commerce of Thailand and the prior consultations were scheduled to be held, upon G/SG/N/10/THA/2/Suppl.3 • G/SG/N/11/THA/2/Suppl.5 
 
- 6 - 
 
  request, for the interested parties with substantial interest on 14-15 January 2016 at the DFT. 
However, only the Government of India requested a time slot for prior consultation with DFT on Friday 15 January 2016 and the opportunity for consultation was granted even though the appointment was later cancelled by India. Therefore, there were no consultations between 
Thailand and any Members who have substantial interest as exporters of the product concerned. 
 12  FURTHER INFORMATION 
The Committee on Safeguard Measure of Thailand's notification on the extension of safeguard 
measure was published in the Royal Thai Government Gazette on 26 February 2016.  
_______________ 
 
 G/SG/N/10/THA/2/Suppl.3 • G/SG/N/11/THA/2/Suppl.5 
 
- 7 - 
 
  ANNEX 
LIST OF DEVELOPING COUNTRIES AND SEPARATE CUSTOMS TERRITORIES EXCLUDED FROM 
THE IMPOSITION OF EXTENDED SAFEGUARD  MEASURE ON HOT ROLLED STEEL FLAT 
PRODUCTS WITH CERTAIN AMOUNTS OF ALLOYING ELEMENTS SUCH AS BORON, 
CHROMIUM, ETC., IN COILS AND NOT IN COILS 
No. Developing Countries exempted from 
the Imposition of Safeguard Measure No. Developing Countries exempted from 
the Imposition of Safeguard Measure  
1. The Republic of Angola  51. The Arab Republic of Egypt  
2. The Republic of Botswana  52. The Great Socialist People's Libyan Arab 
Jamahiriya  
3. The Republic of Burundi  53. The Kingdom of Morocco  
4. The Union of the Comoros  54. The Republic of Tunisia  
5. The Democratic Republic of the Congo  55. The Islamic Republ ic of Afghanistan  
6. The Republic of Djibouti  56. Th e People's Republic of Bangladesh  
7. The State of Eritrea  57. The Kingdom of Bhutan  
8. The Federal Democratic Republic of 
Ethiopia  58. British Indian Ocean Territory  
9. The Republic of Kenya  59. The De mocratic Republic of Timor-Leste  
10. Kingdom of Lesotho  60. The Republic of Maldives  
11. The Republic of Madagascar  61. The Democratic Republic of Nepal  
12. The Republic of Malawi  62. The Islamic Republic of Pakistan  
13. The Republic of Mauritius  63. The Democratic Socialist Republic of Sri Lanka  
14. Mayotte  64. The Republic of Albania  
15. The Republic of Mozambique  65. The Republic of Armenia  
16. The Republic of Namibia  66.  The Republic of Azerbaijan  
17. La Réunion  67. The Republic of Belarus  
18. The Republic of Rwanda  68. Bosnia   &Herzegovina  
19. The Republic of Seychelles  69. The Republic of Bulgaria  
20. Somalia  70. Georgia  
21. The Republic of South Africa  71. The Republic of Kazakhstan  
22. The Republic of Sudan  72. The Kingdom of Kosovo  
23. Kingdom of Swaziland 73. The Kyrgyz Republic  
24. The United Republic of Tanzania  74. The Republic of Lithuania  
25. The Republic of Uganda  75. The Republic of Macedonia  
26. The Republic of Zambia  76. The Republic of Moldova  
27. The Republic of Zimbabwe 77. Montenegro  
28. The Republic of Benin  78. The Republic of Romania  
29. Burkina Faso  79. The Republic of Serbia  
30. The Republic of Cameroon  80. The Republic of Tajikistan  
31. The Republic of Cape Verde  81. Turkmenistan  
32. Central African Republic  82. Ukraine  
33. The Republic of Chad  83. The Republic of Uzbekistan  
34. The Republic of the Congo 84. The Soci alist Federal Republic of Yugoslavia  
35. The Republic of Cote d'Ivoire  85. The Islamic Republic of Iran  
36. The Republic of Gabon  86. The Republic of Iraq  
37. The Republic of Gambia  87. Hashemite Kingdom of Jordan  
38. The Republic of Ghana  88. The Republic of Lebanon  
39. The Republic of Guinea  89. The Syrian Arab Republic  
40. The Republic of Guinea-Bissau  90. West Bank   &Gaza  
41. The Republic of Liberia  91. The Republic of Yemen  
42. The Republic of Mali  92. Anguilla  
43. Islamic Republic of Mauritania  93. Antigua  & Barbuda  
44. The Republic of Niger  94. The Republic of Argentina  
45. Federal Republic of Nigeria  95. Belize  
46. The Democratic Republic of Sao Tome & 
Principe  96. The Plurinational State of Bolivia  
47. The Republic of Senegal  97. Th e Federative Republic of Brazil  
48. The Republic of Sierra Leone  98. British Virgin Islands  
49. The Republic of Togo  99. The Republic of Chile  
50. The People's Democratic Republic of Algeria  100. The Republic of Colombia  
 G/SG/N/10/THA/2/Suppl.3 • G/SG/N/11/THA/2/Suppl.5 
 
- 8 - 
 
  No. Developing Countries exempted from 
the Imposition of Safeguard Measure No. Developing Countries exempted from 
the Imposition of Safeguard Measure  
101. The Republic of Costa Rica  133. The Kingdom of Cambodia  
102. The Republic of Cuba  134. Chinese Taipei  
103. The Commonwealth of Dominica  135. Christmas Islands  
104. Dominican Republic  136. Cocos (Keeling) Islands  
105. The Republic of Ecuador  137. Cook Islands  
106. The Republic of El Salvador  138. The Republic of Fiji  
107. Falkland Islands (Malvinas)  139. The Republic of Indonesia  
108. French Guiana  140. Johnston Islands  
109. Grenada  141. The Republic of Kiribati  
110. Guadaloupe  142. The Democratic People's Republic of Korea  
111. The Republic of Guatemala  143. The Lao People's Democratic Republic  
112. The Cooperative Republic of Guyana  144. Malaysia  
113. The Republic of Haiti  145. The Republic of the Marshall Islands  
114. The Republic of Honduras  146. The Federated States of Micronesia  
115. Jamaica  147. Midway Islands  
116. Martinique  148. Mongolia  
117. The United Mexican States  149. The Republic of the Union of Myanmar  
118. Montserrat  150. The Republic of Nauru  
119. The Republic of Nicaragua  151. Niue  
120. Norfolk Island  152. The Republic of Palau  
121. The Republic of Panama  153. Pitcairn Islands  
122. The Republic of Paraguay  154. Papua New Guinea  
123. The Republic of Peru  155. The Republic of the Philippines  
124. Saint Helena  156. Independent State of Samoa  
125. The Federation of Saint Kitts   &Nevis  157. Solomon Islands  
126. Saint Lucia  158. Tokelau  
127. Saint Pierre   &Miquelon  159. The Kingdom of Tonga  
128. Saint Vincent   &the Grenadines  160. Tuvalu  
129. The Republic of Suriname  161. The Republic of Vanuatu  
130. The Republic of Uruguay  162. The Socialist Republic of Vietnam  
131. The Bolivarian Republic of Venezuela  163. Wake Island  
132. American Samoa  164. Wallis   &Futuna Island  
 
 
__________