G/SG/N/7/ECU/3  
23 October 2014  
(14-6128)  Page: 1/4  
Committee on Safeguards  Original: Spanish  
 
  NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON SAFEGUARDS 
BEFORE TAKING A PROVISIONAL SAFEGUARD MEASURE 
REFERRED TO IN ARTICLE 6 
ECUADOR  
(Wood and Bamboo Flooring and Accessories Thereof) 
The following communication, dated 20 October 2014, is being circulated at the request of the 
delegation of Ecuador. 
 
_______________ 
 
 
Pursuant to Article 12.4 of the WTO Agreement on  Safeguards, the Republic of Ecuador hereby 
notifies the decision to apply a provisional sa feguard measure to imports of wood and bamboo 
flooring and accessories thereof. 
 The initiation of this investigation was notified in documents G/SG/N/6/ECU/9 of 
2 September 2014 and G/SG/N/6/ECU/9/Corr.1 of 9 September 2014. 
 1  PRODUCT SUBJECT TO TH E PROPOSED PROVISIONAL SAFEGUARD MEASURE 
The products under investigation and subject to the provisional safeguard measure are wood and 
bamboo flooring and accessories thereof, classifi ed under the following tariff subheadings of 
Ecuador's National Customs Tariff:  
Table No. 1 
Product Tariff 
subheading Product description 
WOOD AND 
BAMBOO 
FLOORING 
AND 
ACCESSORIES 
THEREOF 4409.10.10 - - Strips and friezes for parquet flooring, not assembled 
4409.10.20 - - Moulded (beaded) wood 
4409.10.90 - - Other 
4409.21.00 - - Of bamboo 
4409.29.10 - - - Strips and friezes for parquet flooring, not assembled 
4409.29.20 - - - Moulded (beaded) wood 
4409.29.90 - - - Other 
 G/SG/N/7/ECU/3 
- 2 - 
  2  PROPOSED PROVISIONAL SAFEGUARD MEASURE 
The measure consists of the application of a specific  tariff of US$1.50 per kg of imports, as follows: 
 
Table No. 2 
Tariff 
subheading Product description Unit Safeguard 
4409.10.10 - - Strips and friezes for parquet flooring, not assembled kg US$1.50 
4409.10.20 - - Moulded (beaded) wood kg US$1.50 
4409.10.90 - - Other kg US$1.50 
4409.21.00 - - Of bamboo kg US$1.50 
4409.29.10 - - - Strips and friezes for parquet flooring, not assembled kg US$1.50 
4409.29.20 - - - Moulded (beaded) wood kg US$1.50 
4409.29.90 - - - Other kg US$1.50 
 
3  PROPOSED DATE OF INTRODUCTION OF THE PROVISIONAL SAFEGUARD MEASURE 
Within the next few days. 
 
4  EXPECTED DURATION OF THE PROVISIONAL SAFEGUARD MEASURE, IF ANY DECISION 
ON THE DURATION OF THE MEASURE HAS BEEN MADE 
A maximum of 200 calendar days.  
 
5  THE BASIS FOR: 
i. Making a preliminary determination, as provided for in Article 6, that increased 
imports have caused or are threatening to cause serious injury; and 
 In the period under review (2010-2013), imports recorded a significant increase 
of 117% in value and 71.8% in kilogrammes. Imports reached a value of US$2.6 million in 2013. 
 As a result of competition from imported  products, production in 2013 corresponded 
to 11% of installed capacity. 
 The share of the domestic industry in the Ecuadorean market was 58% in 2010. 
This share has plummeted, accounting for barely 40% in 2013, as against 60% held 
by imports. 
 The workforce was reduced by 21 people or 17% during the investigation period. 
 Productivity was at its lowest level in 2013, down 15.4% in terms of value and 19.5% in 
terms of volume. 
 Wood flooring production sector profits have shown a downward trend since 2012, 
a trend that gained momentum in 2013 with losses amounting to US$302,000. 
 For the above reasons, the preliminary conclusion is that there is a causal link between 
the significant increase in imports and the serious injury suffered by the domestic industry, given that it has been demonstrated that 2013 was the most critical year for 
the applicants as well as the year when imports peaked. 
ii. Determining that there are critical circumstances where delay would cause damage 
which it would be difficult to repair. 
 Imports totalled 65,600 kg in the first fi ve months of 2010 and surged to almost 
257,000 kg in 2014, i.e. a growth of 291%. G/SG/N/7/ECU/3 
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   Taking 2010 as the reference year, the increa se in 2014 is 499% in c.i.f. value terms. 
 The market share shrank from 58% to 40% in 2014. 
 The gross profit margin was negative in 2013 (18.34%). 
 Capacity utilization declined from 17% to 11% in 2013. 
 Employment levels decreased 17% in the period under consideration. 
 Productivity was at its lowest level in 2013, down 15.4% in terms of value and 19.5% in 
terms of volume. 
6  OFFER OF CONSULTATIONS UNDER ARTICLE 12.4 
In accordance with Article 12.4 of the Agreemen t on Safeguards, the Republic of Ecuador is 
prepared to hold consultations on the provisional safeguard measure, once the measure has been adopted, with those Members have a substantial interest as exporters of the product concerned. 
 G/SG/N/7/ECU/3 
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  NOTIFICATION TO THE COMMITTEE ON SAFEGUARDS OF NON-APPLICATION OF 
A SAFEGUARD MEASURE TO DEVELOPING COUNTRIES UNDER ARTICLE 9.1 
OF THE AGREEMENT ON SAFEGUARDS 
The Republic of Ecuador hereby notifies the non- application of a provisional safeguard measure to 
imports of wood and bamboo flooring and accessories thereof originating in developing country 
Members, in accordance with Article 9.1 and Ar ticle 9, footnote 2, of the WTO Agreement on 
Safeguards. 
 
1  PROPOSED PROVISIONAL SAFEGUARD MEASURE 
The measure consists of the application of a specific  tariff of US$1.50 per kg of imports, as follows: 
 
Table No. 1 
Tariff 
subheading Product description Unit Safeguard 
4409.10.10 - - Strips and friezes for parquet flooring, not assembled kg US$1.50 
4409.10.20 - - Moulded (beaded) wood kg US$1.50 
4409.10.90 - - Other kg US$1.50 
4409.21.00 - - Of bamboo kg US$1.50 
4409.29.10 - - - Strips and friezes for parquet flooring, not assembled kg US$1.50  
4409.29.20 - - - Moulded (beaded) wood kg US$1.50 
4409.29.90 - - - Other kg US$1.50 
 
2  PRODUCT SUBJECT TO TH E PROPOSED PROVISIONAL SAFEGUARD MEASURE 
The products under investigation and subject to the provisional safeguard measure are wood and 
bamboo flooring and accessories thereof, classifi ed under the following tariff subheadings of 
Ecuador's National Customs Tariff: 
Table No. 2 
Product Tariff 
subheading Product description 
WOOD AND 
BAMBOO 
FLOORING AND 
ACCESSORIES 
THEREOF 4409.10.10 - - Strips and friezes for parquet flooring, not assembled 
4409.10.20 - - Moulded (beaded) wood 
4409.10.90 - - Other 
4409.21.00 - - Of bamboo 
4409.29.10 - - - Strips and friezes for parquet flooring, not assembled 
4409.29.20 - - - Moulded (beaded) wood 
4409.29.90 - - - Other 
 
3  COUNTRIES NOT SUBJEC T TO THE MEASURE 
Imports of wood and bamboo flooring and accesso ries thereof originating in the developing 
countries listed in the table below are exempt from the provisional safeguard measure. 
 
Table No. 3 
COUNTRY % share (tonnes) 
Brazil 1.76% 
Chile 0.66% 
Mexico 0.30% 
Colombia 0.11% 
Panama 0.00% 
Total  2.81% 
 
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