G/SG/N/8/ARE/1, G/SG/N/8/BHR/1  
G/SG/N/8/KWT/1, G/SG/N/8/OMN/1  
G/SG/N/8/QA T/1, G/SG/N/8/SAU/1  
 
17 January 2017  
(17-0289) Page: 1/3 
Committee on Safeguards  Original: English  
 
NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT ON  
SAFEGUARDS ON FINDIN G A SERIOUS INJURY O R THREAT  
THEREOF CAUSED BY IN CREASED IMPORTS  
BAHRAIN , KINGDOM OF ; KUWAIT , THE STATE OF ; OMAN, THE SULTANA TE OF; QATAR, THE STATE OF ; 
SAUDI ARABIA, KINGDOM OF ; AND UNITED ARAB EMIRATES  
(COOPERATION COUNCIL FOR THE ARAB STATES OF THE GULF "GCC")  
(Flat-rolled products of iron or non -alloy stee l) 
The following communication , dated 9 January 2017, is being circulated at the request of The 
Kingdom of Saudi Arabia as Pre sident of the GCC on behalf of the GCC M ember States: Bahrain, 
Kingdom  of; Kuwait, the State of; Oman , the Sultanate of ; Qatar , the State of ; Saudi Arabia, 
Kingdom of; and United Arab Emirates.  
 
_______________  
 
 
Pursuant to Article 12.1(b) of the WTO Agre ement on Safeguards, the Kingdom of Bahrain notifies 
the Committee on Safeguards that the GCC - Bureau of Technical Secretariat for Anti -Injurious 
Practices in International Trade  (TSAIP) hereafter referred as "the Investigating Authority" has 
found a preli minary determinations of serious injury caused by increased imports  on behalf of GCC 
member States .1 
 
1  THE PRODUCT SUBJECT TO THE INVESTIGATION  
The products covered by the investigation include:  
a. Flat-rolled products of iron or non -alloy steel, of a width  of 600 mm or more, clad, plated or 
coated. // -Painted, varnished or coated with plastics;  
b. Flat-rolled products of iron or non -alloy steel, of a width of 600 mm or more, clad, plated or 
coated. // -Other  
These products are imported, respectively, to GC C member countries under HS Code: 721070 
and 721090 . 
2  PROVIDE THE BASIS FO R: 
Making a preliminary determination, as provided for in Article 4, that increased imports have 
caused serious injury.  
The investigation  was initiated  on 9 June 20162, after receivin g of a documented safeguards 
application filed by Universal Metal Coating  Company  Ltd ( UNICOIL ) pursuant to the 
GCC Common Law on Antidumping, Countervailing Measures and Safeguard Measures and its 
                                                
1 A copy of the preliminary report issued by GCC -TSAIP  has been submitted electronically 
(in Arabic  only). To consult this document please contact Ms.  Budd (Hil ary.Budd@wto.org) or 
Ms. Richards  (Anne.Richards@wto.org) of the Rules Division.  
2 G/SG/N/6/BHR/1 -G/SG/N/6/KWT/1 -G/SG/N/6/OMN/1 -G/SG/N/6/QAT/1 -G/SG/N/6/SAU/1 - 
G/SG/N/6/ARE/1.  G/SG/N/8/ARE/1 • G/SG/N/8/BHR/1 • G/ SG/N/8/KWT/1 • G/SG/N/8/OMN/1 •  
G/SG/N/8/QAT/1 • G/SG/N/8/SAU/1  
 
- 2 - 
 
  Rules of Implementation (Amended), in which it alleged tha t increased imports of the subject 
product had caused serious injury to the domestic industry producing similar products.  
The GCC -TSAIP (Investigating Authority) made a preliminary determination on the following:  
(a) Unforeseen Developments  
The GCC-TSAIP exam ined data on unforeseen developments either provided by the complainant or 
collected during the investigation and made the following determinations:  
 The increase rate in world steel production capacity mostly driven by increase in Chinese 
output;  
 Global E xcess steel supply (including the subject products);  
 Steel demand contracts in the world creating a gap between supply and demand 
resulting in excess steel supply;  
 Economic recession occurred in China had a negative impact on the other countries' 
economies  with excessive steel supply to switch their steel exports to GCC states 
market;  
 The deprecation of many currencies to record low against the dollar;  
 Trade remedies measures applied by many WTO members forces countries with excess 
capacities to export the excessive supply to the GCC states market where there are no 
trade measures in place;  
The GCC -TSAIP therefore concluded that the increase in imports of the product under 
investigation occurred as a result of unforeseen developments.   
(b) Increased Imports  
The investigation period covers 2012 to 2015 for the purpose of determining increased imports.  
 
(Base year 2012)  2012  2013  2014  2015  
Imports Volume (ton)  193,552.27  230,613.33  305,381.85  405,809.82  
Index  100 119.15  157.78  209.66  
Imports/production ratio  100 110.81  197.92  264.94  
 
The GCC -TSAIP considered as shown in the table above that the subject product is being imported 
into the GCC States market in such increasing quantities in absolute terms and relative to GCC 
production.  
 
The GCC -TSAIP made a prelim inary determination that recent, sudden, sharp and significant 
increase of the imports of the imported products occurred in the investigation period.  
(c) Serious Injury  
The investigation period for the purposes of determining serious injury covered the period 2012 
to 2015.   
The preliminary determinations of a serious injury analysis relates to the information submitted by 
UNICOIL –Universal Metal Coating Company Limited and United Metal Coating LLC whose collective 
production of the GCC like product constitutes the major proportion of the total GCC production of 
those products and they represent the GCC industry under the requirements of Article 4.1(C) of 
the Agreement on Safeguards and Article 3 of the GCC Common Law on Antidumping, 
Countervailing Measures and S afeguard Measures and its Rules of Implementation (Amended) . G/SG/N/8/ARE/1 • G/SG/N/8/BHR/1 • G/ SG/N/8/KWT/1 • G/SG/N/8/OMN/1 •  
G/SG/N/8/QAT/1 • G/SG/N/8/SAU/1  
 
- 3 - 
 
   
(Base year 2012)  2012  2013  2014  2015  
Production volume  100 107.53  79.72  79.14  
Capacity production  100 100 100 100 
Sales volume  100 105.84  79.35  72.62  
Market share of domestic sales  100 92.95 62.63  46.74  
Market share of imports  100 104.63  124.53  134.95  
Inventory volume  100 84.29  32.01  231.16  
Employment  100 102.21  86.72  81.18  
Losses  100 (- 11.86)  2.32 30.15  
 
In light of the above, there is sufficient evidence that the GCC industry is suffe ring a serious injury 
in the form of  decline in domestic sales, market share, production, employment, and increase in 
losses, in conjunction with the increase of imports.  
 
The GCC -TSAIP made a preliminary determination that the GCC industry is suffering se rious injury.  
(d) Causal Link between Increased Import and Serious Injury  
Based on the preliminary determinations, The GCC -TSAIP has examined the impact of other 
factors, other than the massive increase in imports that might cause serious injury to the GCC 
industry, such as trade restrictive practices, consumption, export performance and technology; 
However these factors did not contribute to the serious injury suffered by the GCC industry. 
Therefore, The GCC -TSAIP found that there is sufficient preliminary ev idence to the existence of 
the causal link between the serious injury caused to the GCC industry and the increase of imports 
of the product under investigation.  
(e) Preliminary determination  
The GCC -TSAIP determined the existence of:  
 Massive increase of imports of the products under investigation as result of unforeseen 
developments;  
 the serious injury to the GCC industry;  
 Causal link between the serious injury and the increase in imports.  
Based on the preliminary determination, the Permanent Committee  made decision to continue the 
investigation and not to impose provisional measures.  
 
 
__________