G/SG/N/8/THA/1/Suppl.6  
G/SG/N/10/THA/1/Suppl.4  
G/SG/N/11/THA/1/Suppl.5  
 
8 August 2013  
(13-4221)  Page: 1/7  
Committee on Safeguards  Original: English  
 
 NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON SAFEGUARDS ON 
FINDING A SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)OF  
THE AGREEMENT ON SAFEGUARDS 
 
NOTIFICATION PURSUANT TO AR TICLE 9, FOOTNOTE 2 OF  
THE AGREEMENT ON SAFEGUARDS 
THAILAND 
(Glass Block) 
Supplement 
The following communication, dated 5 August 2013, is being circulated at the request of the 
Delegation of Thailand. 
 
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With reference to Thailand’s Notification of the initiation of a safeguard investigation 
(WTO Document G/SG/N/14/THA/1) dated 8 January 2013, and the proposal to extend a measure G/SG/N/8/THA/1/Suppl.5-G/SG/N/10/T HA/1/Suppl.3), Thailand hereby provides notification to the 
Committee on Safeguards pursuant to Article 12.1(c) of the Agreement on Safeguards, 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 glass block and non-application of safeguard 
measure to developing countries. 
 1  NOTIFICATION UNDER ARTICLE 12.1(C) OF THE AGREEMENT ON SAFEGUARDS UPON TAKING A DECISION TO EXTEND A SAFEGUARD MEASURE 
1.1  Evidence that the safeguard measure continues to be necessary to prevent or 
remedy serious injury or threat thereof caused by increased imports and that the 
industry concerned is adjusting. 
a. Basic Industry indicators 
 
MT unless otherwise stated 2009 2010 2011 2012 
Production 100 143 163 185 
Capacity Utilization  100 140 156 157 
Sales 100 87 139 155 
Stocks 100 104 91 207 
Productivity 100 102 104 118 
Employment (numbers) 100 118 147 137 
Consumption* 100 141 124 141 
Market share 100 62 112 110 
 * Consumption = Sales + Imports.  
 G/SG/N/8/THA/1/Suppl.6 • G/SG/N/10/TH A/1/Suppl.4 • G/SG/N/11/THA/1/Suppl.5 
 
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  Following the imposition of measures in January 2011, the domestic industry was able to increase 
production substantially which resulted in improvements in capacity utilization rates, productivity and employment.  
In spite of these improvements, domestic sales have been unable to follow the rate of increase in 
production since the imposition of measures with output rising by 85 percentage points compared with domestic sales in the order 55 percentage points. This has resulted in an increase in stocks 
and this increase would have been far greater if it were not for exports to third markets. 
 Although installed capacity is sufficient to meet domestic demand, the market share of the domestic industry has not reached levels that could reasonably have been expected with the 
imposition of measures. In this respect, although there was a significant increase in market share 
in 2011, this increase is partly attributable to the overall decline in consumption; and by 2012, the market share of the domestic declined even thou gh consumption expanded in the order of 17% as 
imports increased both in absolute terms and relative to consumption. 
 In this respect, it is concluded that the domestic industry has not adequately benefited from an 
increase in domestic sales that would have enabled the industry to fully remedy the injury suffered 
and this is considered to attributable to:  
 the spike in the increase in imports in 2010 just prior to the application of measures in a 
significant quantity of which was carried over into 2011-2012. 
 Imports have remained at high levels with a further increase witnessed in 2012. In fact, 
imports in 2012 had again increased in the order of 17.75%. 
 
b. Condition of imports  
 
As imports have remained high in 2011 with increases witnessed in 2012, and further significant 
increases in the first quarter of 2013 this ability to maintain market share in spite of the measures in force is largely due to prices that have remained below those of the domestic industry. As result, the domestic industry has continued to face losses in 2009-2011 with only a modest return 
to profitability in 2012. 
 
Thai baht 2009 2010 2011 2012 
Profit/loss on domestic sales (100) (54) (80) Profit 
 c. Evidences that the Industry concerned is adjusting  
 
The adjustment plan of the domestic industry is in two phases:  
i) The first phase focuses on improving product perception, distribution and marketing 
channels. The intention of this phase has been to distinguish the overall quality of the product concerned domestic industry from imports so that the choice of the consumer is not just linked to 
price. Within this phase, there is evidence of several programs and initiatives that have been 
undertaken and are being actively implemented by the domestic industry to include:  
 In view of the increasing importance to marketing of environmental and social issues in 
Thailand, the company is embracing a wide range of initiatives to include supporting social 
programs as well as to implement policies to protect air, water, land; and a dissemination program to ensure that the market is awar e of the social and environmental standards 
being adopted. 
 Quality products is a theme that has been accentuated in the past two years and this is 
supported by quality benchmarking and encouraging innovation through process and 
knowledge development programs. 
 Marketing drive programs to stimulate demand for glass blocks over other alternatives. 
 Improvements in product delivery and produc t presentation to include warehousing and 
distribution centers. 
 
ii) A second phase involves the upgrading of production technologies. This phase was initially intended for 2012, but has been delayed, as the ability of the domestic industry to raise capital 
has been impaired due to the losses sustained on  domestic sales and the possibility that the 
measure in force would be terminated at the three-year term. G/SG/N/8/THA/1/Suppl.6 • G/SG/N/10/TH A/1/Suppl.4 • G/SG/N/11/THA/1/Suppl.5 
 
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  The upgrading of technology is essential as it will assist in lowering costs and allow the domestic 
industry to compete without the need for protection beyond the extension of these measures. This second phase is set to be implemented in 2013 and there is evidence that the Industry is securing 
loans; the production site is being accommodated for these changes; and that negotiations are 
underway for purchases of several new machines. 
 1.2  Information on whether there is an absol ute increase in imports or an increase in 
imports relative to domestic production 
MT 2009 2010 2011 2012 2012 
(Jan-
April) 2013 
(Jan-
April) % difference 
2012/2013 
(Jan-April) 
Total 
Import 10,415.74 21,529.71 10,957.34 12,901.89 3,440.15 6,431.64 86.96 % 
Indices 100 207 105 124  185*   
* Estimate the whole year trend based on four months actual (January-April 2013).   
 
The imports have increased in absolute terms during the overall period concerned.  
 2009 2010 2011 2012 
Total imports 100 207 105 124 
Production 100 143 163 185 
 Prior to the imposition of measures imports significantly increased relative to production, but this increase was later reversed during the period 2011-2012.  
1.3  Conclusion 
The investigation concludes that the imports have still increased in absolute term during the 
year 2009–2012, and the domestic industry has continued to suffer serious injury since the 
imposition of measures. Although there is an  improvement in 2012, and the benefit of the 
first phase of the adjustment plan are being realiz ed in 2012, it is concluded that the extension of 
measures are necessary to provide further protection in order to remedy the injury being incurred; 
as well as to allow for the second phase of the ad justment to proceed and to restore the long term 
competitiveness of the domestic industry.  Furthermore, if measures were to be terminated, it is likely that there would be a further surge in 
imports bearing in mind that Thailand remains a natural outlet for regional suppliers that have a 
substantial interest and in the event, the continued viability of the domestic industry would likely be at stake. 
 
During the course of the investigation, concern has been expressed that measures are against the public interest in that the domestic industry is the sole supplier of the domestic goods in Thailand 
and that the measures have the effect of limiting the choice of supply and encouraging increases 
in prices.  In this respect, the Authority concludes 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 wide choice between domestic and third 
country suppliers. 
 
1.4  Provide precise descript ion of the product involved 
The product concerned is glass block, which is currently classified under the Thai Customs Tariff 
Code 7016.9000. 
 1.5  If the final measure replaces a provis ional measure, or if a final measure is 
extended, a Member is encouraged to provid e a written description of any part of the 
imported product that will no longer be subject to the measure. 
Not applicable. 
 G/SG/N/8/THA/1/Suppl.6 • G/SG/N/10/TH A/1/Suppl.4 • G/SG/N/11/THA/1/Suppl.5 
 
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  1.6  Description of the measure 
The extended safeguard measure shall be applied in the form of tariff increases at the ad valorem 
rate of 27.5% on c.i.f. or a specific rate of 8.73 baht per piece, whichever is higher, for the first year. The measure will be progressively liberalized in the second year and the third year as 
indicated in Item 10 below. 
 
1.7  Date of introduction of the measure 
The measure will come into force on 15 January 2014. 
 
1.8  Expected duration of the measure 
The expected duration of the measure is three years. 
 
1.9  Proposed date for the review 
Not applicable.   
 
1.10  Timetable for the proposed progre ssive liberalization of the measure. 
Rate to apply whichever is higher Period of application 
27.50% on c.i.f. 8.73 baht/piece 15 Jan 2014 -14 Jan 2015 
26.00% on c.i.f. 8.23 baht/piece 15 Jan 2015 -14 Jan 2016 
24.50% on c.i.f. 7.73 baht/piece 15 Jan 2016 -14 Jan 2017 
 
1.11  Information related to the extension of a safeguard measure 
a. Evidences that the industry concerned are serious injury and adjusting. Therefore, the 
safeguard measure continues to be necessary to prevent or remedy serious injury is provided 
under A. 1. c) mentioned above.  
b. Reference to the WTO document that notified the initial application of the measure. 
 The relevant WTO document is G/SG/N/8/THA/1/Suppl.2 - G/SG/N/10/THA/1 - 
G/SG/N/11/THA/1/Suppl.2. 
 c. Duration of the measure from initial application till the date at which it will be extended.  
The initial safeguard measure was applied from 15 January 2011 and will expire on 
14 January 2014. Thailand intends to extend the measure for three more years until 14 January 2017. 
 
d. Precise description of the measure in place prior to the date of extension.  
Duty of 29% of c.i.f. price or 9.23 baht per piece, whichever is higher, during 15 January 2013 – 
14 January 2014.  1.12  Information relating to exporting Members 
a. The main exporting countries to Thailand are China, Indonesia, Iran with a combined share 
of imports of 84.81%.    
b. There are no exporting Members to which the measure does not apply for any reason other 
than the application of Article 9.1.    G/SG/N/8/THA/1/Suppl.6 • G/SG/N/10/TH A/1/Suppl.4 • G/SG/N/11/THA/1/Suppl.5 
 
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  1.13  Members are encouraged to attach, in  an electronic form, publicly available 
document(s) containing the relevant deci sion(s) made by the competent authority 
Not applicable. 
 
1.14  In accordance to section 19 of Thai law (The  Safeguard Measures on Increased Imports Act. 
B.E.2550 (2007)), a public hearing was held for interested parties directly concerned by this proceeding on 9 May 2013, 09.30 hr. at Department of Foreign Trade, Ministry of Commerce, 
Thailand. 
 1.15 In accordance to article 12.3 of the Agreemen t on Safeguards, those interested parties with 
substantial interest were invited for prior consultations. Consultation have been held with 
exchanges of views on those issues laid out under article 12.3. 
 2  NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 OF THE AGREEMENT ON 
SAFEGUARDS 
2.1  The measure The safeguard measure as described in 6 above 
 
2.2  The product subject to the measure 
The measure is applied to the product as described in 4 above. 
 
2.3  Developing countries to which the meas ure is not applied under article 9.1 of the 
Agreement on Safeguards. 
The developing countries which are excluded from  the measure as they export less than 3% of 
imports to Thailand are listed below. 
  
 
  G/SG/N/8/THA/1/Suppl.6 • G/SG/N/10/TH A/1/Suppl.4 • G/SG/N/11/THA/1/Suppl.5 
 
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  ANNEX 
 
LIST OF DEVELOPING COUNTRIES AND SEPARATE CUSTOMS  
TERRITORIES EXCLUDED FROM THE SAFEGUARD  
MEASURE ON GLASS BLOCK 
 
 
East & Southern 
Africa West Africa North Africa South Asia 
Angola 
Botswana Burundi Comoros Congo. Dem. Rep. Djibouti Eritrea Ethiopia Kenya Lesotho Madagascar Malawi Mauritius Mayotte Mozambique Namibia Reunion Rwanda Seychelles Somalia South Africa Sudan Swaziland 
Tanzania 
Uganda Zambia Zimbabwe Benin 
Burkina Faso Cameroon Cape Verde Central African Rep. Chad Congo, Rep. Cote d' Ivoire Gabon Gambia, The Ghana Guinea Guinea, Bissau Liberia Mali Mauritania Niger Nigeria Sao Tome & Principe Senegal Sierra Leone Togo Algeria 
Egypt, Arab Rep. Libya Morocco Tunisia Afghanistan 
Bangladesh Bhutan British Indian Ocean Territory East Timor India Maldives Nepal Pakistan Sri Lanka  
 G/SG/N/8/THA/1/Suppl.6 • G/SG/N/10/TH A/1/Suppl.4 • G/SG/N/11/THA/1/Suppl.5 
 
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  Europe & Central Asia Middle East Americas East Asia & Pacific 
Albania 
Armenia Azerbaijan 
Belarus 
Bosnia & Herzegovina Bulgaria Georgia Kazakhstan Kosovo Kyrgyz Republic Lithuania Macedonia, FYR Moldova Montenegro Romania Serbia Tajikistan Turkey Turkmenistan Ukraine Uzbekistan Yugoslavia, Fed. Rep. Iraq 
Jordan Lebanon 
Syrian Arab Rep. 
West Bank & Gaza Yemen, Rep. Anguilla  
Antigua & Barbuda Argentina 
Belize 
Bolivia Brazil British Virgin Is. Chile Colombia Costa Rica Cuba Dominica Dominican Rep. Ecuador El Salvador Falkland Is. (Malvinas) French Guiana Grenada Guadaloupe Guatemala Guyana Haiti Honduras Jamaica Martinique Mexico 
Montserrat 
Nicaragua Norfolk Is. Panama Paraguay Peru St. Helena St. Kitts & Nevis St. Lucia St. Pierre & Miquelon St. Vincent & the Grenadines Suriname Uruguay Venezuela American Samoa 
Cambodia Chinese Taipei  
Christmas Is. 
Cocos (Keeling) Is. Cook Is. Fiji Johnston Is. Kiribati Korea, Dem. Rep. Lao PDR Marshall Islands Micronesia, Fed. Sts. Midway Is. Mongolia Myanmar Nauru Niue Palau Pitcairn Is. Papua New Guinea Philippines Samoa Solomon Islands Tokelau Tonga 
Tuvalu 
Vanuatu Viet Nam Wake Is. Wallis & Futuna Is.  
 
  
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