G/SG/N/6/EGY/10  
G/SG/N/7/EGY/9  
G/SG/N/11/EGY/8  
 
15 October 2014  
(14-5899)  Page: 1/5  
Committee on Safeguards  Original: English  
 
 NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT  
ON SAFEGUARDS ON INITIATI ON OF AN INVESTIGATION  
AND THE REASONS FOR IT 
 
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT  
ON SAFEGUARDS BEFORE TAKING A PROVISIONAL  SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS 
E
GYPT 
(Steel Rebar) 
The following communication, dated 14 October 2014, is being circulated at the request of the 
Delegation of Egypt. 
 
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T he  Arab  R ep ub lic  of Eg y p t, he re b y wis he s  to notify the Committee on Safeguards pursuant to 
Article 12.1(a) of the Agreement on Safeguards concerning the initiation of a safeguard 
investigation on the imports of Steel Rebar, pursuant to Article 12.4 of the Agreement on 
Safeguards, before taking a provisional safeguard measure against imports of Steel Rebar; and a notification pursuant to Article 9, footnote 2 of the Agreement on Safeguards, on taking a decision 
not to apply the measure to products originating in developing countries.  
 1  NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON SAFEGUARDS ON 
INITIATION OF AN INVESTIGATION AND THE REASONS FOR IT 
1. The Date When the Investigation Was Initiated 
 The investigation was initiated further to an approval of the Minister of Industry, Trade and  small & 
medium enterprises dated 14 October 2014. 
 2. The Product subject to the Investigation 
 
Steel Rebar. The product concerned is classified under HS tariff item numbers: 72 13 and 72 14 within the Egyptian Customs Tariff Schedule.  
3. The Reasons for Initiation of Investigation 
 The investigation was initiated following an evalua tion of a safeguard petition from the domestic 
industry and on the basis of the evidence  and the information contained therein. 
 The investigation was initiated after examination of a properly documented safeguard petition filed 
by Chamber of Metallurgical Industries on beha lf of "the Domestic Industry". The Domestic 
Industry alleged that the significant increase in imports of the product concerned has caused 
serious injury to the domestic industry producin g the like products. There has been recent sharp G/SG/N/6/EGY/10 • G/SG/N/7/EGY/9 • G/SG/N/11/EGY/8 
 
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  increase in imports of the product concerned either in absolute terms or relative to domestic 
production.  Accordingly, it was established that there was sufficient evidence in the application to justify the 
initiation of the investigation in order to determine whether or not the increase of imports had 
caused serious injury to the domestic industry.  
4. Further Information 
 Interested parties must make themselves known to the Investigating Authority within a period of 30 days after the initiation of the investigation.  
 
Any information, which the interested parties may wish to submit to the Investigating Authority, should be submitted in writing; and any request for a hearing should be submitted within 30 days 
following the initiation of the investigation. 
 2  NOTIFICATION UNDER ARTICLE 12.4 BEFORE TAKING A PROVISIONAL SAFEGUARD 
MEASURE 
1. The Product Subject to the Prop osed Provisional Safeguard Measure 
 The product subject to the proposed provisional safeguard measure is Steel Rebar. The product is 
currently classified under the HS tariff item num bers "72.13, 72.14" within the Egyptian Customs 
Tariff Classification.   
2. The Proposed Provis ional Safeguard Measure 
 It is proposed to impose a provisional safeguard measure in the form of additional duty 7.3% of 
the CIF value and not less than 290 L.E/ton. 
 3. Entry into Force of the Prop osed Provisional Safeguard Measure  
 
The provisional safeguard measure is proposed to enter into force, with the publication of the 
decree of the Minister of Industry, Trade and smal l & medium enterprises in the Egyptian Official 
Gazette. 
 
4. The Expected Duration of th e Provisional Safeguard Measure 
 
The provisional safeguard measure shall be applied for 200 days from the date of publication in the 
Egyptian Official Gazette.   5. The Basis for: 
 
5.1. Making a preliminary determination, as provided for in Article 6 of the Agreement 
on Safeguards that increased imports are caus ing or threatening to cause serious injury 
as follows: 
 Increase in Imports 
 
Thousand tons 
(Base year) 2011 2012 2013 Jan-Aug 2011 Jan-Aug 2014  
Imports 
Volume/Ton 260 573 207 174 539 
Index % 100 220 80 100 310 
Imports 
volume/Domestic Production % 6 11 4 7 16 
Index 100 183 66 100 229 
 G/SG/N/6/EGY/10 • G/SG/N/7/EGY/9 • G/SG/N/11/EGY/8 
 
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  The data currently available indicates that imports of the product concerned increased in absolute 
terms by 120% in 2012 when compared to 2011 . And in 2013, during the application of the 
preventive provisionals measures 6.8% the volu me of imports decreased by 20% when compared 
to the base year 2011. The volume of imports has increased in the first eight months of 2014 
significantly by 210% when compared to the same period of the base year 2011. 
 The volume of imports increased in relative terms to domestic production in the same way of the 
increase in imports in absolute terms, by 83 % in 2012, then decreased by 34% in 2013, when 
compared to the base year 2011, and during the first eight months of 2014 increased by large and surprising amount to 129% compared to the similar period of 2011.  
Serious injury 
 
In order to make a preliminary determination of serious injury to the domestic industry producing 
the like or directly competitive product, an evaluation of all relevant factors on an objective and 
quantifiable basis having a bearing on its situation has been undertaken.  
(1)  Domestic Sales 
 
Base year 2011 2012 2013 Jan-Aug 
2011 Jan-Aug 
2014 
Change in Sales Volume 100 124 114 100 123 
 
The domestic industry's sales were increased by 14% in 2013 when compared to 2011, the domestic industry sales increased by 23% in the first eight months of 2014 when compared to the 
same period of 2011 . 
 (2)  Market Share 
 
Base year 2011 2012 2013 Jan-Aug 
2011 Jan-Aug 
2014 
Change in Market Share of the Domestic Industry - 4 (3) - (6) 
Change in Market 
Share of Imports - 4 (1) - 6 
 
The market share of the domestic industry fell by 3% in 2013 when compared to the year base 
of 2011. It decreased by 6% in the first eight months of 2014 compared with the same period 
of 2011. At the same time, the market share of im ports increased with the same percent lost by 
the domestic industry. It increased by 6% in the first eight months of 2014 compared with the same period of 2011. 
 
(3)  Production and Capacity Utilization 
 
Base year 2011 2012 2013 Jan-Aug 
2011 Jan-Aug 
2014 
Change in Production 100 126 121 100 132 
Change in Capacity Utilization  - (5) (8) - (1) 
 
The Production increased by 21% in 2013 when comp ared to 2011, it increased by 32% in the first 
eight months of 2014 when compared to the same period of 2011.   
The Capacity utilization decreased by 8% in 2013 wh en compared to 2011, it decreased by 1% in 
in the first eight months of 2014 when compared to the same period of 2011.   G/SG/N/6/EGY/10 • G/SG/N/7/EGY/9 • G/SG/N/11/EGY/8 
 
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  (4)  Workers and Worker's Productivity 
 
Base year 2011 2012 2013 Jan-Aug 
2011 Jan-Aug 
2014 
Change in Workers 100 118 120 100 125 
Change in Productivity 100 106 101 100 106 
 
The number of Workers increased by 20% in 2013 when compared to 2011, it increased by 25% in 
the first eight months of 2014 when compared to the same period of 2011 . 
 The Worker's productivity increased by 1% in 2013 when compared to 2011, and finally increased by 6% in the first eight months of 2014 when compared to the same period of 2011   
 
(5)  Profit and Loss  
Base year 2011 2012 2013 Jan-Aug 
2011 Jan-Aug 
2014 
Change in  profit &  Losses 100 (151) (124) 100 (212) 
 
The Domestic industry's profit decreased by 24% in 2013 when compared to 2011, the profit 
decreased by 112% and turn into losses in the first eight months of 2014 when compared to the 
same period of 2011.  
 
(6)  Inventory 
 
Base year 2011 2012 2013 Jan-Aug 
2011 Jan-Aug 
2014 
Change in inventory 100 106 108 100 266 
 
The quantity of inventory increased by 8% in  2013 when compared to the year base 2011. It 
increased by a large and sharp amount to 166% du ring the first eight months of 2014 compared to 
the same period of 2011, coincided with the la rge, sharp and sudden increase of imports. 
 CONCLUSION  
There has been a significant and sudden increase  in the volume of imports of the product 
concerned in both absolute and relative terms duri ng the first eight months of 2014. In spite of the 
increase in production and sales of the domestic industry during the same period, this was 
accompanied by a decrease in the industry's capacity utilisation. The increase in employment and 
productivity does not fit the increase in production and production capacity. Also the increase in sales of the domestic industry in that period di d not lead to increase the market share of the 
domestic industry. The increase in sales was accompanied with a decline in the market share of 
the domestic industry in spite of the large increase in the size of the overall market. 
 Causation 
 
For the foregoing reasons, the preliminary conclusion is that there is a correlation between the significant increase in imports and the serious injury suffered by the domestic industry. 
 
5.2 Determining the Existence of Critical  Circumstances Where Delay Would Cause 
Damage, Which Will Be Difficult to repair 
 
A preliminary determination has been made that critical circumstances exist in which delay would cause damage that would be difficult to repair.   
As indicated above, the serious injury suffered by  the domestic industry has worsened during the 
the first eight months of 2014 with the ever continuing increase in the volume of imports. Given the rate of increase of imports and the situation of the domestic industry, it is considered that the 
delay would cause damage, which will be difficul t to repair in the absence of a provisional 
safeguard measure.   G/SG/N/6/EGY/10 • G/SG/N/7/EGY/9 • G/SG/N/11/EGY/8 
 
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  6. Offer of Consultations under Article 12.4 
 Consistent with Article 12.4 of the Agreement on Safeguards, Egypt is prepared to consult on the provisional safeguard measure with those Members having a substantial interest as exporters of 
the subject products. 
 3  NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 UPON TAKING A DECISION NOT TO 
APPLY THE PROVISIONAL SAFEGUARD MEASURE TO CERTAIN PRODUCTS ORIGINATING 
IN DEVELOPING COUNTRIES 
Developing Countries Exempted from the Safeguard Measure 
 
Imports from developing country Members shall not be subject to the proposed provisional 
safeguard measure as long as each Member's imports individually do not exceed 3% of total imports into Egypt. In addition, the share of th e Members with less than 3% import share do not 
collectively account for more than 9% of total imports into Egypt.  
 The Address of the Competent Authority for correspondence is: 
 
Ministry of Industry , Trade and Small & Medium Enterprises Trade Agreements and Foreign Trade Sector International Trade Policies Department (Antidumping, subsidy and safeguard body) 
El Maleya Towers - Tower No. 6 - 9th floor 
Extension of Ramses St. - Naser City - Cairo Tel: (202) 23422479 
Fax: (202) 23420784 
E-mail: tas@tas.gov.eg
 
Website: http://www.tas.gov.eg 
 
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