WT/DS573/1  
G/L/1288  
G/SG/D63/1  
 
10 December 2018  
(18-7786) Page: 1/3 
  Original: English  
 
 
TURKEY – ADDITIONAL DUTIES ON  IMPORTS OF AIR COND ITIONING MACHINES  
FROM THAILAND  
REQUEST FOR CONSULTA TIONS BY THAILAND  
The following communication, received on  5 December 2018 , from the delegation of Thailand  to the 
delegation of Turkey , is circulated to the Dispute Settlement Body in accordance with Article  4.4 of 
the DSU.  
 
_______________  
 
 
Upon instructions from my authorities, and on behalf of the Government of the Kingdom of Thailand 
("Thailand"), I hereby request consultations with the Government of the Republic of Turkey 
("Turkey") pursuant to Articles 1 and 4 of the Understanding on Rules and Procedures Governing 
the Settlement of Disputes ("DSU"), Article XXII:1 of the General Agreement on Tariffs  and Trade 
1994 ("GATT 1994"), and Article 14 of the Agreement on Safeguards  concerning the additional duty 
imposed by Turkey on imports of air -conditioning machines from Thailand.  
A. Identification of the measure  
The measure at issue is the additional duty of 9.27% imposed by Turkey on imports of air 
conditioning machines from Thailand under HS Code 8415.10 (the "Additional Duty").1  
On 3 August 2017, Turkey notified the Additional Duty to the Council for Trade in Goods and the 
Committee on Safeguards (the "Committee") as a proposed suspension of conce ssions and other 
obligations under Article 8.2 of the Agreement on Safeguards.2 The Additional Duty went into effect 
on 5 September 2017 for three years.  
The notification from Turkey clarifies that the Additional Duty applies to "Air -conditioning machines 
(of a kind designed to be fixed to a window, wall, ceiling or floor, self -contained or 'split -system')"3 
(the "Air Conditioning Machines").  
Turkey applies the Additional Duty to imports of Air Conditioning Machines from Thailand alone.   
B. Background  
In imposing the Additional Duty, Turkey purportedly acted in response to the extension of a 
safeguard measure adopted by Thailand on imports of non -alloy hot rolled steel flat products in coils 
and not in coils (the "Steel Products").4 
                                                
1 G/L/1183 -G/SG/N/12/TUR 5.  
2 G/L/1183 -G/SG/N/12/TUR 5.  
3 G/L/1183 -G/SG/N/12/TUR 5.  
4 G/L/1183 -G/SG/N/12/TUR 5.  WT/DS573/1 • G/L/1288 • G/SG/D63/1  
 
- 2 - 
 
  Thailand's safeguard mea sure on the Steel Products was adopted on 7 June 2014, as a provisional 
measure.5 On 13 January 2015, Thailand notified the Committee of its decision to impose a definitive 
safeguard measure on the Steel Products for a period of three years.6 
On 19 June 20 17, Thailand notified the Committee of its decision to extend its safeguard measure 
on the Steel Products.7 Thailand's extended safeguard measure is being applied in the form of a 
tariff increase on these products for three years, from 7 June 2017 until 6 June 2020:8 
Extended Duration  Extended Safeguard Duty  
7 June 2017 – 6 June 2018  21.00% of C.I.F. price  
7 June 2018 – 6 June 2019  20.87% of C.I.F. price  
7 June 2019 – 6 June 2020  20.74% of C.I.F. price  
 
The three -year average safeguard duty on the Steel Products is thus 20.87%.  
Turkey's share of the Steel Products imported into Thailand in 2014 was 5.14%.  
The 3 August 2017 notification by Turkey of the Additional Duty asserts that the application by 
Thailand of the increased duty of 21% on the Steel Products would result in US $6.5 million in duty 
collection by Thailand from Turkey's exports of these products, "based on the export value in 2013; 
31 million US dollars".9  
According to Turkey, to maintain the equivalent level of concessions and other obligations under the 
GATT 1994, it was entitled to impose an  additional duty of 9.27% on imports of air conditioning 
machines from Thailand.  It explained that this suspension of concessions would affect US $7 0.1 
million worth of imports of Air Conditioning Machines from Thailand, based on 2013 import values, 
and would result in US $6.5 million in duty collection by Turkey.10 
Turkey thus relied on import data from 2013, the year of the surge in imports that led to Thailand’s 
imposition of the safeguard measure on the Steel Products, rather than on a three -year average of 
import value preceding the original measure. The applicat ion of a three -year average safeguard duty 
of 20.87% on the Steel Products should result in only US $3.2 million in duty collected by Thailand 
with regard to Turkish exports of these products, based on an average of the import value from June 
2011 – May 20 14, i.e., less than half of the US $ 6.5 million relied on by Turkey to determine the 
level of concessions.  
Moreover, Turkey's Additional Duty will apply until 4 September 2020, even though Thailand's 
extended safeguard measure on the Steel Products will expire on 6 June 2020.  
C. Legal basis of the complaint  
The Additional Duty appears to be inconsistent with Turkey's obligations under the GATT 1994 and 
the Agreement on Safeguards, including but not limited to the following:  
a. Turkey is not an "affected" WTO  Member with a " substantial interest " in the safeguard 
measure on the Steel Products, and thus was not entitled to suspend the application of 
substantially equivalent concessions or other obligations under the GATT 1994 by imposing 
the Additional Duty on A ir Conditioning Machines from Thailand. Turkey is in violation of 
Articles 8.2 and 12.3 of the Agreement on Safeguards and Article XIX:3 and XIX:2 of the 
                                                
5 G/SG/N/7/THA/3/Suppl.1 -G/SG/N/11/ THA/3/Suppl.1.  
6 G/SG/N/8/THA/3 -G/SG/N/10/THA/3 -G/SG/N/11/THA/4.    
7 G/SG/N/8/THA/3/Suppl.2 -G/SG/N/10/THA/3/Suppl.2.    
8 G/SG/N/8/THA/3/Suppl.2 -G/SG/N/10/THA/3/Suppl.2.    
9 G/L/1183 -G/SG/N/12/TUR 5.  
10 G/L/1183 -G/SG/N/12/TUR 5.  WT/DS573/1 • G/L/1288 • G/SG/D63/1  
 
- 3 - 
 
  GATT 1994  because only affected exporting Members are free to suspend substantially 
equivalent concess ions. 
b. The Additional Duty exceeds what constitutes "substantially equivalent" concessions, and 
thus in any case Turkey has acted in violation of Article 8.2 of the Agreement on Safeguards 
and Article XIX:3 of the GATT 1994.  
c. Turkey discriminates between Air Conditioning Machines  originat ing in Thailand and  the like 
products originating in other WTO Members by imposing the Additional Duty only on imports 
from Thailand, in violation of Article I:1 of the GATT 1994.  
d. Turkey has not ensured that Air Conditioning Machines from Thailand are exempt from 
ordinary customs duties and all other duties or charges of any kind imposed on or in 
connection with the importation of Air Conditioning Machines, in violation of Article II.1(a) 
and (b) of the GATT 1994.  
The Additio nal Duty thus appears to nullify or impair the benefits accruing to Thailand directly or 
indirectly under the GATT 1994 and the Agreement on Safeguards .  
This request also concerns any modification, review, replacement or amendment to the Additional 
Duty, as well as any underlying reports, memoranda and other documents supporting the Additional 
Duty.  
Thailand reserves the right to raise additional factual and legal issues, and to address additional 
measures and claims regarding the above matter, in the cour se of the consultations and in any 
request for the establishment of a panel.  
Thailand looks forward to receiving Turkey's reply to this request and to determining  a mutually 
acceptable date and venue for consultations.  
 
__________