G/SG/Q2/IND/24  
 
31 August 2016 
(16-4598) Page: 1/2 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(B) OF THE A GREEMENT ON  
SAFEGUARDS  ON F INDING A SERIOUS INJ URY OR THREAT  
THEREOF  CAUSED BY INCREASED IMPORTS  
 
NOTIFICATION OF A PR OPOSAL TO IMPOSE A M EASURE  
 
NOTIFICATION PURSUAN T TO ARTICLE 9, FOOT NOTE 2  
OF THE AGREEMENT ON  SAFEGUARDS  
QUESTIONS POSED BY THE UNITED STATES REGARDING  
THE NOTIFICATION S OF INDIA1  
The following communication, dated 25 August 2016, is being circulated at the request of the 
Delegation of the United States . 
 
_______________  
 
 
The United States thank s India for its notification regarding the investigation of Hot -Rolled Flat 
Sheets and Plates (Excluding Hot Rolled Flat Products in Coil Form) of Alloy or Non -Alloy Steel 
Having Nominal Thickness Less Than or Equal to 150 mm and Nominal Width of Greater T han or 
Equal to 600 mm, and poses the following questions:  
 
Question 1  
 
In February of this year, India imposed a minimum import price on steel products, which was 
extended in August for an additional two months.  Please clarify how the minimum import price  
imposed by India was taken into consideration for purposes of establishing serious injury to India 's 
domestic industry.  
 
Question 2  
 
With regard to the market share table on page 2, please clarify what is meant by "sales of other 
Indian producers. " Were t hese other producers treated as part of the domestic industry for 
purposes of India 's analysis of serious injury?  If not, please explain why.  
 
Question 3  
 
The Indian domestic industry seems to have decreased production at the same time that it was 
increasi ng its number of employees, which would inherently seem to lead to a decrease in 
productivity per employee unrelated to imports.  Please clarify how the decrease in productivity per 
employee is related to imports of subject merchandise and not a direct resu lt of increased hiring 
while reducing production.  
 
Question 4  
 
India notes that its domestic industry 's adjustment plan includes "expansion of production 
capacities which will enable {it} to adjust to the international competition. " Please clarify, in ligh t 
of the decline in India 's domestic industry 's capacity utilization identified in India 's notification, 
                                                
1 G/SG/N/6/IND/42  (and G/SG/N/6/IND/42/Corr.1 ) and G/SG/N/8/ IND/28/Suppl.1 -
G/SG/N/10/IND/19/Suppl.1 -G/SG/N/11/IND/14/Suppl.3 . G/SG/Q2/IND/24  
 
- 2 - 
 
  how an expansion of production capacities will enable India 's domestic industry to adjust to 
international competition.  
 
Question 5  
 
Article 9.1 of the  WTO Agreement on Safeguards ( "Agreement ") provides for special treatment for 
a developing country if its market share is less than 3 percent and developing countries in the 
aggregate account for less than 9 percent.  Footnote 2 to Article 9.1 provides that  "[a] Member 
shall immediately notify an action taken under paragraph 1 of Article 9 to the Committee on 
Safeguards. " Most Members comply with the footnote 2 obligation by providing a list of the 
developing countries excluded from a measure in the notifica tion itself, and developing countries 
generally see this as a vital transparency step, as notifications are often the best method to know 
whether a measure will be applied to them.  
 
India's notification attempts to provide this transparency by directing de veloping countries to the 
relevant customs notification from 5 February 2016, without any further details about how to 
access the notification.2 Please explain how Members, including developing country Members, can 
use the information in India 's notificati on to identify which developing countries are excluded from 
India's safeguard measures.  
 
Question 6  
 
As indicated in footnote 2, there is an Internet webpage that posts the relevant customs 
notification so as to determine which developing countries are exc luded from the measure.  The 
United States notes, however, that the notification is identified as "to be published ". Please 
confirm that the notification has actually been published.  
 
 
__________  
                                                
2 For the benefit of developing country Members, the referenced  notification can be found at: 
http://www.cbec.gov.in/htdocs -cbec/customs/cs -act/notifications/notfns -2016/cs -nt2016/csnt19 -2016 
(accessed 16 August 2016).