G/SG/Q2/IND/20  
 
28 October 2015  
(15-5699)  Page: 1/2  
Committee on Safeguards  Original: English  
 
 NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT ON 
SAFEGUARDS ON INITIATION OF AN INVESTIGATION AND 
THE REASON FOR IT 
 
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT ON SAFEGUARDS 
BEFORE TAKING A PROVISIONAL SAFEGUARD MEASURE  
REFERRED TO IN ARTICLE 6 
QUESTIONS POSED BY UKRAINE REGARDING 
THE NOTIFICATION OF INDIA1 
(Hot-rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more) 
The following communication, dated 26 October 2015, is being circulated at the request of the 
Delegation of Ukraine. 
 
_______________ 
 
 
On 7 September 2015 India initiated a safeguard investigation on hot rolled flat products of non-alloy and other alloy steel in coils of a width of 600 mm or more.  
On 28 September 2015 India notified the Commi ttee on Safeguards about the imposition of 
provisional safeguard measures starting from 14 September 2015.  
Question 1.  According to the non-confidential version of the Application for initiation of the 
investigation, there was a 42% decrease in imports of the product under consideration in the period 2013-14, as compared to 2011-12. Imports increased only by 14% in 2014-15, as 
compared to 2011-12. 
 Such a slight increase in imports in 2014-15 could not be considered as sharp enough and significant enough to cause or threaten to cause serious injury. 
 
Besides, the Ukrainian Government would like to emphasize that the Applicant's approach of showing the increase in imports based on an annualized forecast for 2015-2016 contradicts the 
principles and provisions of the Agreement on Sa feguards. According to Article 2 of the Agreement 
on Safeguards, it should be determined that the product concerned is being imported in such increased quantities as to cause or threaten to ca use serious injury to the domestic industry. This 
provision does not stipulate any kind of forecast for the imports development. 
 Would India please explain how the initiation  of this investigation and application of 
provisional safeguard duties based on the forecasted data on imports complies with 
Article 2.1 of the Agreement on Safeguards? 
 
                                               
1 G/SG/N/6/IND/41, G/SG/N/7/IND/10–G/SG/N/11/IND/14, and G/SG/N/7/IND/10/Suppl.1–
G/SG/N/11/IND/14/Suppl.1. G/SG/Q2/IND/20 
 
- 2 - 
 
  Question 2.  According to the Application, the Indian industry indicators showed positive trends 
during 2011-2015:   
 total domestic sales increased by 32.5% in 2014-2015, as compared to the same period of 
2011-2012;  
 domestic sales of the Applicant increased by 22.6% in 2014-2015, as compared to the same 
period of 2011-2012;  
 total production increased by 34.7% in 2014-2015, as compared to the same period of 
2011-2012;  
 production of the Applicant increased by 26. 2% in 2014-2015, as compared to the same 
period of 2011-2012; 
 market share of all Indian producers increase d by 3 percent points, i.e. from 81% to 84%, 
in 2014-2015, as compared to the same period of 2011-2012; 
 capacity of Applicant increased by 25% in 2014- 2015, as compared to the same period of 
2011-2012. 
 
In light of the positive development of the afore-mentioned indicators, a determination that the 
domestic industry is suffering serious injury within the meaning of the Agreement on Safeguards does not seem warranted.  
 
Taking into account foregoing facts, woul d India please explain how the provisional 
measures on hot rolled flat products complies  with Articles 2.1, 4.1(a), 4.2(a), 4.2(b) 
and 6 of the Agreement on Safeguards? 
 Question 3.  On 28 September 2015 India notified the WTO of its intention to impose a provisional 
safeguard duty starting from 9 September 2015 (Notification G/SG/N/7/IND/10-
G/SG/N/11/IND/14). 
 On the same date (28 September 2015), India noti fied to the WTO the imposition of provisional 
safeguard measures starting from 14 September 2015 (Notification G/SG/N/7/IND/10/Suppl.1-
G/SG/N/11/IND/14/Suppl.1). This is deemed to be  a procedural violation of the Agreement on 
Safeguards which requires that the WTO be notified before the introduction of duties. 
 
Moreover, pursuant to Article 12.4 of the Agreement on Safeguards: " A Member proposing to 
apply or extend a safeguard measure shall provid e adequate opportunity for prior consultations 
with those Members having a substantial interest ". 
 
On 28 September 2015, India notified to the WTO its offer to conduct consultations on the proposed provisional safeguard measures and on th e same date India notified the imposition of 
provisional safeguard measures starting from 14 September 2015. Apparently, no consultations 
were provided before the introduction of the measures.   
Therefore, India violated Article 12.4 of the Agre ement on Safeguards by introducing provisional 
safeguard measures on 14 September 2015, i.e. before notifying the WTO and before offering consultations.  
Would India please identify what specific step s will be taken in the future to ensure that 
such delays do not occur again?  
Therefore, Ukraine would appreciate receiving de tailed answers to the above questions and calls 
upon India to abolish the safeguard measures on imports of hot rolled flat products because they are inconsistent with the Agreement on Safeguards. 
 
 
__________