G/SG/N/8/ZAF/8  
9 November  2020 
(20-7963)  Page: 1/3 
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  
SOUTH AFRICA 
The following communication, dated 6 November 2020 , is being ci rculated at the request of the 
delegation of South Africa . 
 
_______________  
 
 
Pursuant to Article 12.1(b) of the Agreement on Safeguards, the Government of South Africa hereby 
gives notification upon making a finding of serious injury . 
1  THE PRODUCT SUBJECT TO THE INVESTIGA TION  
The subject product  is described as U, I, H, L and T sections of iron or non -alloy steel, not further 
worked than hot -rolled, hot -drawn or extruded, of a height of 80 mm or more and other angles, 
shapes and sections of iron or non -alloy steel, not fur ther worked than hot -rolled, hot -drawn or 
extruded st eel products (structural steel) , imported under tariff subheading s 7216.31, 7216.32, 
7216.33, 7216.40, 7216.50 and 7228.70 . 
2  PROVIDE THE BASIS FOR:  
(i) Making a preliminary determination, as provided for in Article 6, that increased imports have 
caused serious injury.  
The International Trade Administration Commission of South Africa  (the Commission)  initiated an 
investigation pursuant to an application by Highveld Structural Mill (Pty) Ltd (Highveld Structura l 
Mill) and ArceloMittal S outh Africa Limited (AMSA) ( Applicant) in order to determine whether 
increased imports have caused serious injury to the SACU  industry, within the meaning of the 
Agreement on Safeguards, in connection with U, I, H, L and T section s of iron or non -alloy steel, not 
further worked than hot -rolled, hot -drawn or extruded, of a height of 80 mm or more and other 
angles, shapes and sections of iron or non -alloy steel, not further worked than hot -rolled, hot -drawn 
or extruded steel products  (structural steel).  
The Commission made a preliminary determination on the following:  
(a) Unforeseen Developments  
The Commission made a preliminary determination on the following unforeseen developments:  
• The unprecedented steep rate of increase in steel production capacity;  
• The significant market downturns in emerging (and other) economies resulting in 
contraction of demand for steel;  
• Record export volumes by countries with excess capacity, fuelled by excess steel 
supply;  G/SG/N/8/ZAF/8  
- 2 - 
  • Recent trade measures by other co untries worsen the situation of increased imports 
into the SACU where there are no trade measures in place;  
• The oversupply of steel (including the subject products) has led to a deterioration in the 
financial situation of steelmakers globally and also the SACU ; and 
• Despite slowing demand growth and the existing excess capacity, there are several new 
investment projects underway and planned (especially in current net -importing 
countries) in the steel industry that will result in global steelmaking capacity t o continue 
to expand and causing the SACU to expect further increases of imports of the subject 
products.  
The Commission made a preliminary determination that there are unforeseen developments and 
that these unforeseen developments and the effect of the ob ligations incurred under the GATT 1994  
led to the surge of imports of the subject product.  
(b) Increased Imports  
The data evaluation for the purposes of determining increased imports covered the period  
01 January  2014 to 31 December  2019. 
The Commission made a preliminary determination that a reversal in the trend of import volumes 
has taken place, with the volume of imports decreasing significantly in recent years . The 
requirements set out by the  World Trade Organisation  (WTO) and the Amen ded Safeguard 
Regulations (SGR)  with regard to a surge in imports, are therefore not met . 
(c) Serious Injury  
The data evaluation for the purposes of determining serious injury co vered the period 
01 January  2014 to 31 December  2019. 
The injury analysis relates to information submitted by Highveld for the period 0 1 January  2014 to 
31 July 2015 and by  AMSA for the period 0 1 March  2017 to 3 1 December  2019. AMSA represent s 
100 per cent  of the SACU  industry by production volume.  
The SACU industry experienc ed serious injury in the form of decline in sales volume, decline in 
output, decline in productivity, decline in market share and a decline in capacity utilization when 
analyzing serious injury inf ormation for the period 0 1 January  2014 to 3 1 December  2019. 
The Commission made a preliminary determination that the SACU industry experienced  serious 
injury  during the period of investigation . 
(d) Causal Link between Increased Import and Serious Injury  
The C ommission  made a preliminary determination that the serious injury experienced by the SACU 
industry can be attributable to factors other than the alleged surge in the volume of imports and 
that these factors sufficiently detract from the causal link betwee n the increased imports and the 
injury experienced by the industry.  
(e) Preliminary determination  
The Commission made a preliminary determination that the events cited by the Applicant can be 
regarded as unforeseen developments . The Commission made a preliminary determination that a 
reversal in the trend of import volumes has taken place, with the volume of imports decreasing 
significantly in recent years . The requirements set out by the WTO and the SGR with regard to a 
surge in im ports, are therefore not met.  
The Commission further made a preliminary determination that although the SACU industry 
experienced serious injury during the period of investigation, the injury experienced by the Applicant 
can be attributed to factors other  than the increase in imports and these factors sufficiently detract 
from the causal link between the imports and the injury experienced by the industry.  G/SG/N/8/ZAF/8  
- 3 - 
  The Commission therefore made a preliminary determination to recommend to the Minister of Trade, 
Indust ry and Competition that the investigation be terminated.  
__________