G/SG/N/8/COL/1  
28 March 2014  
(14-1960)  Page: 1/4  
Committee on Safeguards  Original: Spanish  
 
  NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON 
SAFEGUARDS ON FINDING SERIOUS INJURY OR THREAT 
THEREOF CAUSED BY INCREASED IMPORTS 
COLOMBIA  
(Steel Wire Rod) 
The following communication, dated 26 March 2014, is being circulated at the request of the 
delegation of Colombia. 
 
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Pursuant to Article 12.3 of the Agreement on Safeguards and Article 39 of Decree 152 of 1999 
(domestic legislator), Colombia is prepared to consult with those exporting Members that have a substantial interest. 
 
1  EVIDENCE OF SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED 
IMPORTS 
In order to analyse the impact that the imports had on the domestic industry in the first 
and second half of 2012 (critical period), the average for these periods was compared with the averages for the first and second halves of 2010 and 2011 (reference period). Thus, it was possible to observe the performance of the indust ry and of all of the economic and financial 
variables in the framework of the increase in imports in 2012. 
 The comparison between the critical period and the reference period revealed that imports of steel 
wire rod increased by 34.24%, causing serious injury  in terms of the domestic industry's economic 
and financial indicators. In particular:  
 The volume of production for the domestic market fell by 8.27%. 
 The volume of production in relation to Apparent Domestic Consumption (ADC) 
fell by 3.58%. 
 The volume of domestic sales fell by 28.85%. 
 Total imports in relation to the volume of production destined for the domestic market 
increased by 44.02 percentage points. 
 The final domestic sales inventory increased by 1.02%. 
 Installed capacity utilization decreased by 8.4 percentage points. 
 Productivity, measured in units per worker, decreased by 0.73%. 
 Direct employment fell by 7.32%. 
 Sales of domestic producers in relation to ADC fell by 16.14 percentage points. 
 Total imports in relation to ADC increased by 16.14 percentage points. 
 The gross profit margin fell by 9.18 percentage points. 
 The operating profit margin fell by 10.96 percentage points. 
 Net sales revenue decreased by 24.93%. 
 Gross profits fell by 60.87%. 
 Operating profit decreased by 89.82%. G/SG/N/8/COL/1 
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  2  ABSOLUTE INCREASE IN IMPORTS OR AN  INCREASE IN IMPORTS RELATIVE TO 
DOMESTIC PRODUCTION (SEE ALSO ARTICLE 2.1 FOR THE CONTEXT) 
The analysis of the increased imports was cond ucted on the basis of a comparison of the 
two halves of 2012 (critical period) with the performance of imports during the reference period 
(first half of 2010 to second half of 2011). 
 During the critical period, imports followed a growth  trend, increasing by 13.54% in the first half 
of 2012 and 2.57% in the second half of 2012, re sulting in an accumulated growth of 16.11% 
for the entire year – equivalent to an in crease of 13,803,707 kilogrammes with respect 
to the second half of 2011, for a total of 97,708,338 kilograms, a volume higher than that 
recorded in 2010 and 2011, while the prices of th e imports decreased by 11.99% in the two halves 
of 2012. 
 During the period of serious injury (critical period ), i.e. the first and second halves of 2012, total 
imports increased by 34.24%, equivalent to 24,611,000 kilograms, in comparison to the reference 
period, i.e. the first half of 2010 to the second half of 2011.  
Moreover, the sixth-monthly analysis points to sustained growth during each of the half-year 
periods examined, in particular during the se cond half of 2010 and the two halves of 2012. 
The second half of 2010 and the first half of 2011 showed increases of 61.56% and 13.7% respectively. 
 
In relative terms, total imports in relation to the volume of production destined for the domestic market increased by 44.02 percentage points. 
 
At the same time, a comparison between the refe rence period and the critical period showed 
that the applicant's sales and those of ot her domestic producers decreased by 12.43 
and 3.71 percentage points respectively, while total imports rose from 45.43% during the 
reference period to 61.57% during the critical period, increasing their market share by 16.14 
percentage points and displacing domestic production.  
3  DESCRIPTION OF THE PRODUCT INVOLVED 
The product affected by the definitive safeguard measure is steel wire rod, commercially known as 
"alambrón trefilable" (drawable wire rod), which is classified in the National Customs Tariff 
(Decree 4927 of 2011, as amended by Decree 33 2 of 19 February 2014) under tariff subheadings 
7213.91.10.10, 7213.91.90.10 and 7227.90.00.11.  
PRODUCTS SUBHEADING DESCRIPTION (ADAPTED TEXT) 
 
   
Steel 
wire 
rod 7213.91.10.10 Bars and rods, hot-rolled, in irregularly wound coils, of iron 
or non-alloy steel, of circular cross-section measuring less 
than 14 mm in diameter, containing by weight less than 
0.12% of chromium, nickel, copper and molybdenum taken 
together, and less than 0.45% of carbon. 
7213.91.90.10 Other bars and rods, hot-rolled, in irregularly wound coils, 
of iron or non-alloy steel, of circular cross-section 
measuring less than 14 mm in diameter, containing by weight less than 0.45% of carbon. 
7227.90.00.11 Other bars and rods, hot-rolled, in irregularly wound coils, 
of boron alloy steel, containing by weight less than 0.45% 
of carbon.  
 It should be pointed out that the investigation that was initiated
1 with respect to tariff 
subheadings 7213.20.00.00, 7213.91.10.00, 7213.91.90.00, 7213.99.00.10, 7213.99.00.90 
and 7227.90.00.10. However, in the course of the investigation it was decided: 
                                               
1 Initiating Resolution (Resolución de Apertura) No . 160 of 17 July 2013 published in Colombian Official 
Journal No. 48.856 of 19 July 2013 and notified to the WTO Committee on Safeguards on 26 July 2013 (document G/SG/N/6/COL/4). G/SG/N/8/COL/1 
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   By Decree 046 of 14 January 2014, to exclude from the application of the provisional 
safeguard measure introduced by Decree 2 213 of 8 October 2013 tariff subheadings 
7213.20.00.00, 7213.99.00.10 and 7213.99.00.90; 
 
 By Decree 322 of 19 February 2014, to sp lit tariff subheadings 7213.91.10.00, 
7213.91.91.00 and 7227.90.00.10 in order to differentiate between different types of steel wire rod according to their carbon content, and hence to continue applying the provisional 
safeguard measure adopted by Decree 2213 of 2013 to the items under split tariff 
subheadings 7213.91.10.00, 7213.91.90.00 and 7227.90.00.10 corresponding to steel wire rod with a low carbon content, i.e. less than 0.45%. 
 
Accordingly, in its final stage, the investigation concerned only part of tariff subheadings 
7213.91.10.00, 7213.91.90.00 and 7227.90.00.10.  
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 AND THE HARMONIZED SYSTEM NUMBERS UNDER WHICH IT 
ENTERS AT LEAST AT A 6-DIGIT LEVEL, AND AT A SUB-NATIONAL LEVEL (E.G., 8-DIGIT, 9-DIGIT OR 10-DIGIT LEVEL) IF PRACTICABLE 
October 9 2013 saw the entry into force of Decree 2213, of 8 October 2013, adopting for a period 
of 200 calendar days a provisional safeguard measure of 21.29% on imports of steel wire rod 
classified under tariff subheadings 7213.20.00.00, 7213.91.10.00, 7213.91.90.00, 7213.99.00.10, 7213.99.00.90 and 7227.90.00.10. 
 
In view of the exclusion under Decree 046 of 20 14 of three of the six investigated subheadings 
(7213.20.00.00, 7213.99.00.10 and 7213.99.00.90), and the differentiation introduced under 
Decree 332 of 2014 with regard to the remaining three subheadings (7213.91.10.00, 
7213.91.90.00 and 7227.90.00.10), for purposes of the final stage of the investigation and for the adoption of the definitive safeguard meas ure, the following products were excluded:  
 
PRODUCT  SUBHEADING  DESCRIPTION (ADAPTED TEXT)  
Steel wire 
rod  7213.20.00.00 Bars and rods, hot-rolled, in irregularly wound coils, of iron 
or non-alloy steel, of free-cutting steel. 
7213.91.10.20 Bars and rods, hot-rolled, in irregularly wound coils, of iron 
or non-alloy steel, of circular cross-section measuring less 
than 14 mm in diameter, containing by weight less than 0.12% of chromium, nickel, copper and molybdenum taken 
together, and containing by weight 0.45% or more of 
carbon, but less than 0.6%. 
7213.91.10.30 Bars and rods, hot-rolled, in irregularly wound coils, of iron 
or non-alloy steel, of circular cross-section measuring less 
than 14 mm in diameter, containing by weight less than 0.12% of chromium, nickel, copper and molybdenum taken 
together, and containing by weight 0.6% or more of carbon. 
7213.91.90.20 Other bars and rods, hot-rolled, in irregularly wound coils, 
of iron or non-alloy steel, of circular cross-section 
measuring less than 14 mm in diameter, containing by 
weight 0.45% or more of carbon, but less than 0.6%.  
7213.91.90.30 Other bars and rods, hot-rolled, in irregularly wound coils, 
of iron or non-alloy steel, of circular cross-section 
measuring less than 14 mm, containing by weight 0.6% or 
more of carbon. G/SG/N/8/COL/1 
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  PRODUCT  SUBHEADING  DESCRIPTION (ADAPTED TEXT)  
Steel wire 
rod 
(cont.)  7213.99.00.10 Other bars and rods, hot-rolled, in irregularly wound coils, 
of iron or non-alloy steel, containing by weight less than 
0.12% of chromium, nickel, copper and molybdenum taken 
together. 
7213.99.00.90 Other bars and rods, hot-rolled, in irregularly wound coils, 
of iron or non-alloy steel. 
7227.90.00.12 Other bars and rods, hot-rolled, in irregularly wound coils, 
of boron alloy steel, containing by weight 0.45% or more 
but less than 0.6% of carbon. 
7227.90.00.13 Other bars and rods, hot-rolled, in irregularly wound coils, 
of boron alloy steel, containing by weight 0.6% or more of 
carbon.  
7227.90.00.90 Other bars and rods, hot-rolled, in irregularly wound coils, 
of boron alloy steel.  
 
5  DESCRIPTION OF THE PROPOSED MEASURE 
Not available.  
 
6  PROPOSED DATE OF INTRODUCTION OF THE MEASURE 
Not available.  
 
7  EXPECTED DURATION OF THE MEASURE  
Not available.  
 
8  FOR A MEASURE WITH A DURATION OF MORE THAN THREE YEARS, PROVIDE THE 
PROPOSED DATE FOR THE REVIEW (UNDER AR TICLE 7.4) TO BE HELD NOT LATER THAN 
THE MID-TERM OF THE MEASUR E, IF SUCH A DATE FOR THE REVIEW HAS ALREADY BEEN 
SCHEDULED. 
Not applicable.  
 9  IF THE EXPECTED DURATION IS OVER ONE YEAR, PROVIDE EXPECTED TIMETABLE FOR 
PROGRESSIVE LIBERALIZATION OF THE MEASURE 
Not available.  
 
10  IF THE NOTIFICATION RELATES ONLY TO A FINDING OF SERIOUS INJURY OR 
THREAT THEREOF, AND DOES NOT RELATE TO A DECISION TO APPLY OR EXTEND A 
SAFEGUARD MEASURE: 
 
(i) provide the deadlines for interest ed parties to comment or any other 
procedures relevant to the decision to apply the measures, and 
 
(ii) provide information regarding proced ures for prior consultation with those 
members having a substantial intere st as exporters of the product 
concerned. 
 
Countries having a substantial interest as exporters will be contacted through the Mission of Colombia in Geneva for consultations.  
 
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