G/SG/N/8/MAR/5  
G/SG/N/10/MAR/5  
G/SG/N/11/MAR/5  
16 June 2016  
(16-3292)  Page: 1/5  
Committee on Safeguards  Original: French  
 
  NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON SAFEGUARDS 
ON FINDING A SERIOUS INJURY OR THREAT THEREOF 
CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION UNDER ARTICLE 12.1(C) OF  
THE AGREEMENT ON SAFEGUARDS 
 
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2, OF  
THE AGREEMENT ON SAFEGUARDS 
MOROCCO  
(Paper in Rolls and Reams) 
The following communication, dated 14 June 2016, is being circulated at the request of the 
delegation of Morocco. 
 
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Having concluded its investigation on imports of paper in rolls and reams, Morocco hereby submits its notification under Article 12.1(b) of the Agreement on Safeguards before taking a safeguard measure. 
 
As stated in WTO document G/SG/N/6/MAR/9 of 11 June 2015, the Ministry of Foreign Trade of 
Morocco (hereinafter referred to as the "MDCCE") launched an safeguard investigation following 
the receipt of a petition filed by the company Me d Paper on behalf of the domestic industry for 
paper in rolls and reams, requesting that a safeguard measure be applied to imports of these products. 
 
1. Description of the products subject to the safeguard measure 
 The products under investigation are paper in rolls and paper in reams belonging to the family of 
paper of a kind used for writing, printing or other graphic purposes. The paper concerned is made 
mainly from bleached pulp or from pulp obtained by a mechanical or chemi-mechanical process and weighs no more than 150 g/m². 
 
Imports of paper in rolls and paper in reams are classified under tariff headings 4802.55.90.00 and 4802.57.90.00 respectively. 
 
2. Massive increase in imports 
 An analysis of the data on consumer imports prov ided by the Foreign Exchange Board showed that 
imports of paper in rolls experienced a massive increase of 97% in 2011 in relation to 2010, 
followed by a decrease of 12% in 2012. The same  data showed how imports increased once again 
in 2013 and 2014, rising by 100% between the first half of 2014 and the same period in 2015. 
Imports of paper in reams rose by 71% in 2011 in relation to 2010 and continued to increase 
in 2012 and 2013, after which they decreased by 3% in 2014 and by 30% in the first half of 2015 
in relation to the same period in 2014. In spit e of this decline, the level of imports remains 
significant in relation to previous years. 
 G/SG/N/8/MAR/5 • G/SG/N/10/MAR/5 • G/SG/N/11/MAR/5 
- 2 - 
  Table 1: Imports in absolute terms and in relation to production 
 2010 2011  2012  2013  2014  2014 
(first half) 2015 
(first half) 
Imports (tonnes) Paper in 
rolls 10,863 21,396
 18,925  25,246  26,196  9,688 19,403  
Paper in 
reams  4,276 7,305  9,532  12,956  12,524  7,395 5,081  
Imports/Prod
uction (Index 2010=100; first half of 2014=100) Paper in 
rolls 100 200
 336 1,432  3,189  100  383  
Paper in 
reams  100 220  636 894 2,045  100  106  
Source: Data compiled from Foreign Exchan ge Board statistics and Med Paper data. 
 
From the evidence above, it was concluded that the volume of imports of paper had increased significantly in absolute terms and in relation to production. 
 
3. Unforeseen developments 
 
The MDCCE examined the data on unforeseen deve lopments provided by Med Paper and presented 
in the investigation initiation report. These developments are based on the fact that the massive increase in imports of paper in rolls and reams is due to the effects of the drop in the demand for 
paper and its consumption, most notably in Europe. 
 Studies by COFACE
1 and Ernst & Young show that, over and above the effects of the 2008 crisis, 
the decline in the consumption of paper since 2010 has had a particularly severe impact on the 
European paper industry due to over-capacity resu lting from investments made in anticipation of 
an opposite trend. This over-capacity of Europe an production has resulted in products being 
offloaded onto a number of countries, including Morocco. 
 
The MDCCE therefore concluded that imports of pa per in rolls and reams experienced abnormally 
high growth as a result of unforeseen developments. 
 
4. Evidence of injury caus ed by increased imports 
Table 2: Indicators of injury to Med Paper 
Index 2010=100; 2014 (first half)=100 
 2010 2011 2012 2013 2014 First half 
 2014 2015 
Imports Paper in 
rolls  10,863 21,396 18,925 25,246 26,196 9,688 19,403 
Paper in 
reams  4,276 7,305 9,532 12,956 12,524 7,395 5,081 
Imports/ 
Production % Paper in 
rolls  100 200 336 1432 3189 100 383 
Paper in 
reams 100 220 636 894 2045 100 106 
Market share of 
imports (%) Paper in 
rolls  100 134 153 182 193 100 107 
Paper in 
reams 100 122 133 146 150 100 103 
Sales (tonnes) Paper in 
rolls  100 77 28 5 1 100 71 
Paper in 
reams 100 83 67 32 15 100 14 
                                               
1 See pp. 3 and 5 of the COFACE study on the paper and paperboard sector throughout the world and in 
France: http:// http://www.coface.fr  G/SG/N/8/MAR/5 • G/SG/N/10/MAR/5 • G/SG/N/11/MAR/5 
- 3 - 
   2010 2011 2012 2013 2014 First half 
 2014 2015 
Sales value (DH 
thousands) Paper in 
rolls  100 70 25 5 1 100 76 
Paper in 
reams 100 78 63 29 15 100 15 
Production Paper in 
rolls  100 98 52 16 8 100 52 
Paper in 
reams 100 78 35 34 14 100 65 
Productivity 
(tonne/ employee) Paper in 
rolls  100 103 653 21 10 100 56 
Paper in 
reams 100 92 49 47 21 100 73 
Employment 
(persons) Paper in 
rolls  100 96 79 78 78 100 93 
Paper in 
reams 100 84 71 71 68 100 89 
Utilization rate Paper in 
rolls  100 98 52 16 8 100 52 
Paper in 
reams 100 77 35 33 14 100 65 
Inventories 
(tonnes) Paper in 
rolls  100 215 176 6 8 100 75 
Paper in 
reams 100 77 119 4 42 100 196 
Price (DH/T) Paper in 
rolls  100 91 90 95 101 100 103 
Paper in 
reams 100 94 94 90 96 100 105 
Cost (DH/T) Paper in 
rolls  100 99 101 108 110 100 101 
Paper in 
reams 100 100 102 108 111 100 101 
Results (DH 
thousands) Paper in 
rolls  100 -709 -628 -112 -8 100 -38 
Paper in 
reams 100 140 83 -149 -29 100 -7 
Consumption Paper in 
rolls  100 146 114 128 125 100 188 
Paper in 
reams 100 140 168 208 195 100 67 
Source:  Data compiled from Foreign Exchange Board statistics and Med Paper data. 
 
4.1. Rate and amount of the increase in imports 
 As outlined above, imports of paper in rolls experienced a massive increase in absolute terms and 
in relation to domestic production during the investigation period. 
 4.2. Sales and turnover 
 
The volume of sales of paper in rolls and reams fell dramatically from 2011 onwards, as imports increased massively. While sales fell, turnover sh owed a sharp downward trend, plummeting by 
99% for paper in rolls and 85% for paper in reams between 2010 and 2014. Turnover continued to 
fall in the first half of 2015. 
 4.3. Market share 
 
Imports have absorbed a sizeable share of the local market to the detriment of the domestic 
industry. This situation is, to all intents and purp oses, destroying the domestic industry, and puts 
imports, mainly European ones, in a monopoly position in the domestic market. 
 G/SG/N/8/MAR/5 • G/SG/N/10/MAR/5 • G/SG/N/11/MAR/5 
- 4 - 
  4.4 Production 
 Production of paper in rolls and reams fell sharpl y from 2011 onwards. Indeed, production of paper 
in rolls fell by 92% between 2010 and 2014, and continued to fall, dropping by 48% in the first 
half of 2015 compared to the same period in 2014. Production of paper in reams fell by 85% 
between 2010 and 2014 and by 35% in the first half of 2015 compared with the same period in 2014. 
 
4.5. Productivity and employment  In view of this critical situation, Med Paper was forced to reduce its workforce through 
redundancies and the non-replacement of retirees. The decline in production and the difficulties 
involved in maintaining manning levels have had a negative impact on the level of productivity.  
4.6. Production capacity utilization rate 
 The rate of capacity utilization fell sharply as of 2011 following the decline in production. For paper 
in rolls, the utilization rate dropped by 92.17% between 2011 and 2014 and by 69.6% between 
the first half of 2014 and the same period in 2015. The utilization rate for paper in reams followed the same downward trend, falling by 85.79% between 2011 and 2014 and by 35.01% in the 
first half of 2014 in relation to the same period in 2015. 
 
4.7. Inventories  
Massive imports of paper in rolls and reams, togeth er with the decline in Med Paper's sales of both 
rolls and reams, led to a very high build-up of st ocks, with a 116% rise in 2011 compared to 2010. 
Regarding paper in reams, the stock level follow ed the same trend, increasing by 18% between 
2010 and 2012. As a result, Med Paper was obliged to drastically reduce its production in order to 
avoid further indebtedness and ensure  the continuity of its activity. 
 4.8. Prices and production costs 
 
After having fallen in 2011, Med Paper's sales prices rose slightly, particularly in 2014 and the first half of 2015, thereby establishing a correlation  with the trend in production costs (see below). 
 
The cost of producing paper in rolls and reams ro se during the investigation period, except for 
in 2011, when a fall was recorded. 
 
4.9. Results  Med Paper's financial result showed significant losses for paper in rolls in 2011 and 2012. In 2013 
and 2014 and the first half of 2015, the domestic in dustry's situation improved slightly, with the 
result showing less of a deficit than in the previous two years following the slight rise in Med Paper's sales prices. The financial situation for paper in reams was, however, profitable 
until 2013, when the massive increase in imports of that product occurred. The result for paper in 
reams showed a considerable loss in 2013, and continues to show losses for 2014 and the first half of 2015. 
 
4.10. Consumption  The domestic consumption of paper in rolls dro pped by 22% in 2012 in relation to 2011; at the 
same time, Med Paper's sales fell by 64%, while imports fell by only 11.54%. The rise in domestic 
consumption at the beginning of 2013 did not have a positive effect on Med Paper's sales, which instead continued to fall to the benefit of imports, which increased. 
 
5. Causal link  
The MDCCE has examined the correlation between th e increase in imports and the serious injury 
suffered, as well as the impact of factors other than the massive increase in imports that are likely to cause serious injury to the domestic indust ry, notably consumption, production costs, and 
technology. It was concluded that the massive increase in imports of paper in rolls and reams is 
the cause of the serious injury suffered by the domestic industry. G/SG/N/8/MAR/5 • G/SG/N/10/MAR/5 • G/SG/N/11/MAR/5 
- 5 - 
  6. Precise description of the proposed measure 
 The proposed safeguard measure entails the application of an additional ad valorem  duty of 25% 
to imports of paper in rolls and reams. Excluded  from the measure are imports of paper in rolls 
and reams destined for the production of printing industry products referred to in Article 1 of the 
Dahir of 3 May 1952 (8 chaabane 1371) establishing the customs regime for certain printing industry products. 
 
7. Proposed date of introduction of the measure  The safeguard measure will enter into force on the date of publication of the joint order imposing 
the measure in Morocco's Official Journal. 
 8. Expected duration of the measure 
 
The safeguard measure will be applied for a period of four years.  
9. Expected timetable for progressive lib eralization of the definitive measure 
 The safeguard measure will be dismantled following the first year of its application in accordance with the following timetable: 
 
Table: Timetable for dismantling the safeguard measure 
Year Additional ad valorem  duty 
From the date of the entry into force of the 
measure until 31 December 2016 25% 
From 1 January to 31 December 2017 22.5% 
From 1 January to 31 December 2018 20% 
From 1 January to 31 December 2019 17.5% 
From 1 January to 30 June 2020 15% 
 
10. Developing Members exempt from the measure in accordance with Article 9.1 of 
the Agreement on Safeguards 
 The following developing countries are exempt from the measure: 
 
Albania; Angola; Antigua and Barbuda; Argentina; Armenia; Kingdom of Bahrain; Bangladesh; Barbados; Belize; Benin; Bolivia; Botswana; Br azil; Brunei Darussalam; Burkina Faso; Burundi; 
Cabo Verde; Cambodia; Cameroon ; Central African Republic; Chad; Chile; China; Chinese Taipei; 
Colombia; Congo; Costa Rica; Côte d'Ivoire; Cuba; Democratic Republic of the Congo; Djibouti; Dominica; Dominican Republic; Ecuador; Egypt; El  Salvador; Fiji; Former Yugoslav Republic of 
Macedonia (FYROM); Gabon; the Gambia; Georgia; Ghana; Grenada; Guatemala; Guinea; 
Guinea-Bissau; Guyana; Haiti; Honduras; Hong Kong, China; India; Indonesia; Jamaica; Jordan; Kenya; Republic of Korea; Kuwait; Kyrgyz Republ ic; Lao People's Democratic Republic; Lesotho; 
Macao, China; Madagascar; Malawi; Malaysia; Maldives; Mali; Mauritania; Mauritius; Mexico; 
Republic of Moldova; Mongolia; Montenegro; Mozambique; Myanmar; Namibia; Nepal; Nicaragua; 
Niger; Nigeria; Oman; Pakistan; Panama; Papua New Guinea; Paraguay; Peru; Philippines; Qatar; Rwanda; Saint Lucia; Saint Kitts and Nevis; Saint Vincent and the Grenadines; Samoa; Kingdom of 
Saudi Arabia; Senegal; Sierra Leone; Singapor e; Solomon Islands; South Africa; Sri Lanka; 
Suriname; Swaziland; Tajikistan; Tanzania; Thailand; Togo; Tonga; Trinidad and Tobago; Tunisia; Turkey; Uganda; United Arab Emirates; Uruguay; Vanuatu; Bolivarian Republic of Venezuela; 
Viet Nam; Yemen; Za mbia; and Zimbabwe. 
 11. Offer of consultations under Article 12.3  
In accordance with Article 12.3 of the Agreement on Safeguards, Morocco is ready to consult on 
the safeguard measure with those Members having a substantial interest as exporters of the products concerned. 
 
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