G/SG/N/10/MAR/3/Suppl.3  
G/SG/N/11/MAR/2/Suppl.3  
G/SG/N/14/MAR/1/Suppl.1  
22 December 2015  
(15-6840)  Page: 1/4  
Committee on Safeguards  Original: French  
 
  NOTIFICATION UNDER ARTICLE 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS 
(EXTENSION OF THE EXISTING MEASURE) 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
MOROCCO  
(Wire Rods and Reinforcing Bars) 
Supplement 
The following communication, dated 17 December 2015,  is being circulated at the request of the 
delegation of Morocco. 
 
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 Pursuant to Article 12.1(c) of the Agreement on Safeguards, Morocco hereby notifies the extension 
of the safeguard measure on imports of wire rods and reinforcing bars. 
 1  DESCRIPTION OF THE PRODUCT SUBJ ECT TO THE SAFEGUARD MEASURE 
The products subject to the safeguard measure are wire rods with a diameter of 
5.5 to 14 millimetres and reinforcing bars with a diameter ranging from 5.5 to 40 millimetres. 
These products are imported under Moroccan Harmonized System tariff subheadings 7213.91.90.00 (wire rods) and 7214.20.90.00 and 7214.99.91.00 (reinforcing bars). 
 
2  DESCRIPTION OF THE PROPOSED MEASURE 
The safeguard measure consists of an additional sp ecific duty of DH 0.55/kg applicable to imports 
in excess of the quotas of 121,000 tonnes for wire rods and 72,600 tonnes for reinforcing bars. 
 3  PROPOSED DATE OF INTRODUCTION OF THE MEASURE 
The definitive safeguard measure will enter into force on the day immediately following that on 
which the order imposing this measure is published in Morocco's Official Journal. 
 4  EXPECTED DURATION OF THE MEASURE 
The Moroccan Ministry of Foreign Trade (MCE) plans to renew the safeguard measure for an 
additional duration of three years, i.e. until 31 December 2018.  
5  EXPECTED TIMETABLE FOR PROGRESSIVE LIBERALIZATION OF THE MEASURE 
The level of the quota will continue to increa se by 10% each year in order to meet the 
liberalization requirement, in accordance with Article 65 of Law No. 15-09 on trade defence measures and Article 7.4 of the WTO Agreement on Safeguards. 
 G/SG/N/10/MAR/3/Suppl.3 • G/SG/N/11/MAR/2/Suppl.3 • G/SG/N/14/MAR/1/Suppl.1 
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  Table 1: Annual quota levels for wire rods and reinforcing bars 
(In tonnes) 
 From the date of the entry 
into force of the measure 
until 31 December 2016 From 1 January 2017 to 
31 December 2017 From 1 January 2018 to 
31 December 2018 
Wire rods 121,000 133,100 146,410 
Reinforcing bars 72,600 79,860 46 
 
6  EVIDENCE THAT THE SAFEGUARD MEASURE CONTINUES TO BE NECESSARY TO 
REMEDY OR PREVENT SERIOUS INJURY AND THAT THE INDUSTRY CONCERNED IS ADJUSTING 
In order to determine whether the safeguard meas ure continues to be necessary to remedy or 
prevent serious injury and whether the Moroccan  industry is adjusting in accordance with 
Article 69 of Law No. 15-09 and Article 7.2 of the WTO Agreement on Safeguards, the MCE examined whether the safeguard measure was sti ll needed to remedy serious injury. In this 
connection, it examined wire rod and reinforcing bar import trends and the Moroccan industry's 
economic indicators. The MCE then examined wh ether the safeguard measure continued to be 
necessary to prevent serious injury. The examinatio n focused, for that purpose, on the foreseeable 
and imminent behaviour of the imports and their effects on the Moroccan wire rod and reinforcing 
bar industry after the lifting of the safeguard me asure. The MCE also examined this industry's 
restructuring programme. 
 
6.1  The safeguard measure continues to be ne cessary to remedy or prevent serious 
injury 
In order to determine whether the safeguard measure continues to be necessary to remedy 
serious injury, the MCE examined the domestic industry's economic indicators, namely production, 
production capacity, rate of capacity utilization, sales, production costs, profitability, inventories, 
productivity and employment. A slight, but nevertheless very fragile, improvement in the situation 
of the Moroccan wire rod and reinforcing bar industry was observed. 
 
Table 2: Overview of indicators* of serious injury suffered by the domestic wire rod and 
reinforcing bar industry 
Index: 2011 = 100; 2014 (first half) = 100 
  2011 2012 2013 2014 2014 
(first half) 2015 
(first half)  
Imports (tonnes) Wire rods 72,846  134,146  183,021  165,035  85,970 75,207 
Reinforcing bars 32,973  65,480  179,698  136,996  54,357 52,109 
Imports/ 
Production  Wire rods 100  314 616 526 100 102 
Reinforcing bars 100  250 800 600 100 89 
Production 
(tonnes) Wire rods 100  59 41 43 100 86 
Reinforcing bars 100  92 83 80 100 103 
Production capacity Wire rods 100  97 97 97 100 100 
Reinforcing bars 100  102 116 116 100 120 
Rate of capacity 
utilization Wire rods 100  60 42 44 100 86 
Reinforcing bars 100  89 71 69 100 86 
Sales (tonnes)  Wire rods 100  56 36 41 100 104 
Reinforcing bars 100  96 86 82 100 109 
Turnover 
(DH thousand)  Wire rods 100  53 35 37 100 95 
Reinforcing bars 100  94 83 76 100 98 G/SG/N/10/MAR/3/Suppl.3 • G/SG/N/11/MAR/2/Suppl.3 • G/SG/N/14/MAR/1/Suppl.1 
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    2011 2012 2013 2014 2014 
(first half) 2015 
(first half)  
Average price (DH/T)  Wire rods 100
 94 96 90 100 91 
Reinforcing bars 100  96 97 91 100 90 
Production costs 
(DH/T)  Wire rods 100  100.12  91.14  88.47  100 94.13 
Reinforcing bars 100  99.92  92.16  92.96  100 89.57 
Results 
(DH thousand)  Wire rods 100  -67 65 27 100 53 
Reinforcing bars 100  -124 15 15 100 76 
Profitability  Wire rods 100  -133 167 67 100 67 
Reinforcing bars 100  -100 18 21 100 100 
Final inventories 
(tonnes) Wire rods 100  115 94 91 100 30 
Reinforcing bars 100  89 83 104 100 212 
Productivity 
tonne/employee Wire rods 100  61.43  45.71  51.43  100 90.91 
Reinforcing bars 100  105.86  97.07  93.95  100 99.62 
Employment Wire rods 100  95.84  89.89  84.83  100 96.13 
Reinforcing bars 100  86.48  85.16  85.42  100 104.01 
* Source: Data compiled from Foreign Exchange Boar d statistics and results of  a survey for domestic 
producers. 
 
6.2  Determination as to whether the safeguar d measure continues to be necessary to 
prevent serious injury 
In order to determine whether the safeguard measure continues to be necessary to prevent 
serious injury, the MCE examined the risk that imports would continue to increase in the coming years due to factors such as the following:  
 Global (in particular European) over-capacity; 
 The threat posed by Chinese exports; 
 Measures taken by a number of countries that put further pressure on the international 
market; and 
 The dramatic fall in the price of iron ore. 
Having examined the above factors, Morocco conclu ded that there is a real and imminent risk of 
imports of wire rods and reinforcing bars increasing once the safeguard measure is lifted, most 
notably due to the over-capacity of European and Chinese producers.  6.3  Domestic industry adjustment plan 
The Moroccan wire rod and reinforcing bar industry  has provided evidence showing that it has 
instituted a structural adjustment plan aimed at increasing the competitiveness of the Moroccan steel sector. However, other adjustment measures are being implemented, which require the 
application of the safeguard measure for an additional period. 
 In light of the above-mentioned evidence, Morocco concludes that the safeguard measure 
continues to be necessary to remedy or prevent serious injury to the domestic wire rod and 
reinforcing bar industry and that the Moroccan wi re rod and reinforcing bar industry is making 
adjustments to improve its competitiveness.  
7  REFERENCE TO THE WTO DOCUMENT THAT NOTIFIED THE INITIAL APPLICATION OF 
THE MEASURE 
The WTO document containing the most recent Article 12.1(c) notification is 
document G/SG/N/8/MAR/3/Suppl.1 – G/SG/N/10/MAR/3 – G/SG/N/11/MAR/2/Suppl.1, dated 
20 December 2013, and the amendment thereto, published on 26 May 2014 in document G/SG/N/8/MAR/3/Suppl.1/Corr.1 – G/SG/N/10/MAR/3/Corr.1 – G/SG/N/11/MAR/2/Suppl.1/Corr.1. 
 G/SG/N/10/MAR/3/Suppl.3 • G/SG/N/11/MAR/2/Suppl.3 • G/SG/N/14/MAR/1/Suppl.1 
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  8  THE DURATION OF THE MEASURE FROM IN ITIAL APPLICATION UNTIL THE DATE ON 
WHICH IT WILL BE EXTENDED 
Morocco applied a provisional safeguard measure to imports of wire rods and reinforcing bars, 
which entered into force on 30 May 2013. This measure was applied definitively, for a period of 
two years, on 21 March 2015 and should expire on 31 December 2015. Morocco now intends to 
extend this safeguard measure until 31 December 2018.  
9  DEVELOPING COUNTRIES TO WHICH TH E MEASURE IS NOT APPLIED UNDER 
ARTICLE 9.1 OF THE AGREEMENT ON SAFEGUARDS 
Albania; Angola; Antigua and Barbuda; Argentina; Armenia; Kingdom of Bahrain; Bangladesh; 
Barbados; Belize; Benin; Plurinational State of Bolivia; Botswana; Brazil; Brunei Darussalam; 
Burkina Faso; Burundi; Cabo Verde; Cambodia; Cameroon; Central African Republic; Chad; Chile; 
China; Colombia; Congo; Democratic Republic of  the Congo; Costa Rica ; Côte d'Ivoire; Cuba; 
Djibouti; Dominica; Dominican Republic; Ecuador; El Salvador; Fiji; Former Yugoslav Republic of 
Macedonia (FYROM); Gabon; Gambia; Georgia; Ghana; Grenada; Guatemala; Guinea; 
Guinea-Bissau; Guyana; Haiti; Honduras; Hong Kong, China; India; Indonesia; Jamaica; Jordan; Kenya; Republic of Korea; State of Kuwait; Kyrgyz Republic; Lao People's Democratic Republic; 
Lesotho; Macao, China; Madagascar; Malawi; Malaysia; Maldives; Mali; Mauritania; Mauritius; 
Mexico; Republic of Moldova; Mongolia; Montenegro; Mozambique; Myanmar; Namibia; Nepal; Nicaragua; Niger; Nigeria; Oman; Pakistan; Panama; Papua New Guinea; Paraguay; Peru; Philippines; Qatar; Rwanda; Saint Lucia; Saint Kitts and Nevis; Saint Vincent and the Grenadines; 
Samoa; Kingdom of Saudi Arabia; Senegal; Si erra Leone; Singapore; Solomon Islands; 
South Africa; Sri Lanka; Suriname; Swaziland; Chinese Taipei; Tajikistan; Tanzania; Thailand; Togo; Tonga; Trinidad and Tobago; Tunisia; Uganda; United Arab Emirates; Uruguay; Vanuatu; 
Bolivarian Republic of Venezuela; Viet Nam; Yemen; Zambia; Zimbabwe. 
 
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