WORLD TRADE  
ORGANIZATION  G/SG/N/8/JOR/6/Suppl.1 
G/SG/N/10/JOR/6/Suppl.1
G/SG/N/11/JOR/2/Suppl.1
27 February 2007 
 (07-0831) 
Committee on Safeguards Original:   English 
  
 
 
NOTIFICATION UNDER ARTICLE 12.1(B) OF THE AGREEMENT ON  
SAFEGUARDS ON FINDING A SERIOUS INJURY OR THREAT  
THEREOF CAUSED BY INCREASED IMPORTS 
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS 
 
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
 
JORDAN
 
 
Supplement  
  
 The following communication, dated 20 February 2007, is being circulated at the request of 
the Delegation of Jordan
. 
 
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In accordance with article 12.1(C) of the Agr eement on Safeguards, Jordan hereby submits its 
notification that the Council of Ministries has decided to impose a final Safeguard Measure on 
Imports of Footwear, as recommended by the Nati onal Production Protection Directorate (NPPD) and 
the tariff council.  G/SG/N/8/JOR/6/Suppl.1 
G/SG/N/10/JOR/6/Suppl.1 G/SG/N/11/JOR/2/Suppl.1 
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  NOTIFICATION UNDER ARTICLE 12.1(C) OF THE AGREEMENT ON SAFEGUARDS ON 
FINDING OF SERIOUS INJURY OR THREAT THEREOF CAUSED BY INCREASED IMPORTS 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE2, OF THE AGREEMENT ON 
SAFEGUARDS 
1. Evidence of serious injury or threat thereof caused by increased imports 
The National Production Protection Directorate (NPPD) has determined that there was 
sufficient evidence that the increase of imports of the subject product had caused serious injury to the 
domestic industry producing like prod ucts during the period of inves tigation (2001-2005).  NPPD has 
recommended the appropriate remedy to the Mini ster of Industry and Trade who decided to 
recommend to the Council of Ministers the application of a safeguard measure. 
Serious Injury 
The following table demonstrates the relevant economic indicators investigated in the 
domestic industry, in compliance with the cu rrent National Production Protection Law:   
Year  2001 2002 2003 2004 2005 
Utilization rate of 
capacity (%)  22.5 19.9 19.9 19.1 15.6 
Change in domestic 
production (%) - (11.4) (11.2) (14.9) (30.4) 
Unit price of domestic 
sales(Dinar/kg) 9.955 11.081 9.322 11.098 9.366  
Change in profit (%) - 43.5 (59.7) (1) (89.6) 
Change in domestic 
sales (%) - (10.3) (0.2) (10.9) (28.7) 
Market Share (%) 8 5 4 3 2 
Change in Productivity 
(%) (kg/worker) - (8.3) 5.9 2.4 (13.5) 
 
The above table shows that: 
• Market share significantly and seriously decreased during POI, falling gradually and 
enormously from 8 per cent in 2001 to 2 per cen t  in 2005.  This decrease occurred as a result 
of the significant decrease in the volume of sales of the local industry in favor of like imports. 
 
• Domestic industry’s actual capacity decreased dur ing POI, as the increase in imports disabled 
the domestic industry from increasing its actual cap acity above the ultimate rate of 22.5 per 
cent recorded in the year 2001, and in light of the profound expansion of market size during 
the POI, its obvious that domestic industry was not even able to slightly increase its production capacity due to the huge flow of imports
 but recorded a sharp decline in capacity 
utilization as it reached 15.6 per cent in year 2005. 
 
• Production and sales gradually and significantly declined during the POI starting from the 
year 2002, as the decrease continued in 2003, 2004 and drastically declined in year 2005. 
 
• Productivity declined during the POI effective year 2002 by 8.3 per cent, as a result of the 
increase of imports.  This decline continued until it reached 13.5 per cent in 2005. 
  G/SG/N/8/JOR/6/Suppl.1 
 G/SG/N/10/JOR/6/Suppl.1  G/SG/N/11/JOR/2/Suppl.1 
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  • Domestic industry recorded sharp declines in profits starting from year 2003 and continued in 
the following years until it reached 89.6 per cent in 2005. 
 
The overall assessment of the situation in the domestic industry indicated that the domestic 
industry has suffered serious injury . 
2. Information on whether there is an absolu te increase in imports or an increase in 
imports relative to domestic production 
2005  2004  2003  2002  2001  Year  
10483127 8430702 6700277 5404742 3351553 Volume in kilograms 
212.8 151.5 99.9 61.3 - Absolute increase (%) 
24.3 25.8 23.7 61.3 - Annual increase (%) 
98 97 96 95 92 Market share (%) 
4413.5 2900.6 2211.3 1787.2 981.7 Relative increase (%) 
1.971 1.742 1.844 1.854 2.204 Unit price (Dinar/Kg) 
 
The above table shows that the subject importe d product increased, in absolute terms, during 
POI, starting from the year 2002 when imports record ed an absolute increas e of 61.3 per cent, and 
continued to surge enormously in the following years until it reached an increase rate of 212.8 per 
cent in the year 2005.  Which indicate that the in crease in imports was sudden, sharp, and recent. 
In addition, the table shows that the subject  imported product increased significantly relative 
to domestic production.  As the sudden increase star ted in the year 2002 when it recorded a rate of 
1787.2 per cent, and then continued to mount si gnificantly during POI until it reached a rate of 
4413.5 per cent in the year 2005. 
As regard market share, the table shows that  the subject imported product was continuously 
extending its share of the market as of the year 2002, recording a market share of 95 per cent, 96 per 
cent, 97 per cent and 98 per cent in the years 2002, 2003, 2004, 2005 in sequence. 
Causation 
NPPD has thoroughly investigated the causality  factor between the increase in imports and 
injury in the domestic industry, and has determined  that there is clear evidence of a casual link 
between the recent growth of imports of products  under investigation and the injury caused to the 
domestic industry.  NPPD determined that the in crease in imports had timely coincided with the 
injury in the domestic industry, and that no other injury factors had essentially attributed to the injury, other than the increase in imports 
3. Provide a precise description of the product involved 
The product under investigation is Footwear; th e products concerned were classified within 
Jordan customs Tariff System Headings:   
6401 - Waterproof footwear with outer soles and uppers  of rubber or of plastics, the uppers of which 
are neither fixed to the sole nor assembled by stitc hing, riveting, nailing, screwing, plugging or similar 
processes. 
 6402 - Other footwear with outer soles and uppers of rubber or plastics. 
 G/SG/N/8/JOR/6/Suppl.1 
G/SG/N/10/JOR/6/Suppl.1 G/SG/N/11/JOR/2/Suppl.1 
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  6403 - Footwear with outer soles of rubber, plasti cs, leather or composition leather and uppers of 
leather.  
6404 - Footwear with outer soles of rubber, plasti cs, leather or composition leather and uppers of 
textiles materials.  6405 - Other footwear. 
 4. Provide a precise description of the proposed measure 
The Council of ministries has decided to appl y definitive safeguard measure for a period of 
three years, in the form of a specific tariff surcharg e per pair subject to annua l liberalization as shown 
in the table below.  
H. S CODE  1. YEAR  2. YEAR  3. YEAR  
6401 1 JD 0.95 JD 0.90 JD 
6402 1.50 JD 1.45 JD 1.40 JD 
64022 0.50 JD 0.45 JD 0.40 JD 
6403 4.50 JD 4.25 JD 4 JD 
6404 1.5 JD 1.45 JD 1.40 JD 
64042 4.5 JD 4.25 JD 4 JD 
6405 1.50 JD 1.45 JD 1.40 JD 
64051 4.50 JD 4.25 JD 4 JD 
 
 
The subheadings (640212, 640312) ar e excluded from the measure.   
5. Provide proposed date of introduction of the measure 
The date of introduction the measure is 19/2/2007.   
6. Provide the expected duration of the measure 
The expected duration of the measure is three years.   
7. For the measure with the duration of more th an three years, provide the proposed date 
for this review (under article 7.4) to hold not later than mid-term of the measure, if such 
a date for review has already been scheduled 
Not applicable.   
8. If the expected duration is over one year, pr ovide the expected timetable for progressive 
liberalization of the measure  G/SG/N/8/JOR/6/Suppl.1 
 G/SG/N/10/JOR/6/Suppl.1  G/SG/N/11/JOR/2/Suppl.1 
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  The proposed measure is to be progressively liberalized as follows:   
H. S CODE  1st. YEAR  2nd. YEAR  3rd. YEAR  
6401 1 JD 0.95 JD 0.90 JD 
6402 1.50 JD 1.45 JD 1.40 JD 
64022 0.50 JD 0.45 JD 0.40 JD 
6403 4.50 JD 4.25 JD 4 JD 
6404 1.5 JD 1.45 JD 1.40 JD 
64042 4.5 JD 4.25 JD 4 JD 
6405 1.50 JD 1.45 JD 1.40 JD 
64051 4.50 JD 4.25 JD 4 JD 
 
- 1st. Year from 19 February 2007 to 18 February 2008 - 2nd.Year from 19 February 2008 to 18 February 2009 - 3rd. Year from 19 February 2009 to 18 February 2010 
 
 
NOTIFICATION UNDER ARTICLE 9.1 F OOTNOTE 2 OF THE AGREEMENT ON 
SAFEGUARDS ON NON-APPLICATION OF SAFEGUARD MEASURE TAKEN BY JORDAN TO THE IMPORTS ORIGINATING IN DEVELOPING COUNTRIES 
1. Safeguard measure  
The Safeguard measure is described in the Jord an’s notification under Article 12.1(c) of the 
Safeguard Agreement. 
2. Product subject to the measure 
Product subject to the measure is described in the Jordan’s notification under Article 12.1(c) 
of the Safeguard Agreement. 
3. Developing countries to which the measure is not applied under Article 9.1 of the 
agreement on Safeguard 
The developing countries concerned are the following: 
 
Afghanistan 
Albania Antigua and Barbuda 
Angola 
Argentina Algeria American Samoa Anguilla 
Armenia 
Aruba Azerbaijan Barbados Bangladesh Burkina Faso Bahrain Kingdom of 
Burundi Benin 
Belarus 
Brunei Darussalam Bolivia Brazil Bahamas 
Bhutan 
Botswana Belize Bermuda Buvet Island British Virgin Islands G/SG/N/8/JOR/6/Suppl.1 
G/SG/N/10/JOR/6/Suppl.1 G/SG/N/11/JOR/2/Suppl.1 
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  British Indian Ocean Territory 
Bosnia and Herzegovina Bulgaria 
Central African Republic 
Congo Côte d'Ivoire Cameroon Cambodia 
Chad 
Colombia Costa Rica Cuba Cape Verde 
Cayman Islands 
Chile Chinese Taipei Christmas Islands Cocos Islands Cook Islands 
Comoros 
Czech Republic Djibouti Democratic Republic of Congo Dominica 
Dominican Republic 
East Timor Ecuador El Salvador Egypt Eritrea 
Equatorial Guinea  
Ethiopia Fiji Federated States of Micronesia Falkland Islands 
French Polynesia 
French Southern Territories Former Yugoslav Republic of Macedonia (FYROM) Gabon Grenada 
Ghana 
The Gambia Georgia  Greenland Guinea 
Guatemala 
Guinea-Bissau Guyana Gibraltar Guam Honduras 
Haiti Heard Island and McDonald Islands 
Hong Kong, china 
India Indonesia  Iraq Iran 
Israel 
Jamaica Kazakhstan Kenya Kiribati 
Kuwait 
Kyrgyz Republic Laos PDR Latvia Lebanon Lithuania  
Liberia 
Lesotho Liechtenstein Libyan Arab Jamahiriya Morocco 
Madagascar 
Marshall Islands Mali Malaysia Moldova Mongolia 
Mauritania 
Mauritius Maldives Malawi Midway Is. 
Micronesia, Fed Sts 
Martinique Mozambique Macao Mayotte Myanmar 
Mexico 
Montserrat Namibia Niger Nigeria 
Nicaragua 
Nepal New Zealand Nauru  Netherlands Antilles  G/SG/N/8/JOR/6/Suppl.1 
 G/SG/N/10/JOR/6/Suppl.1  G/SG/N/11/JOR/2/Suppl.1 
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  New Caledonia 
Niue Island Norfolk Island 
Northern Mariana Islands 
Oman Qatar Panama Peru 
Papua New Guinea  
Philippines Pakistan Palau Paraguay 
Pitcairn 
Poland Reunion Romania Russian Federation Rwanda 
Samoa 
Saudi Arabia Saint Lucia St Kitts and Nevis St Vincent 
Solomon Islands 
Seychelles Sudan Sierra Leone Singapore Sri Lanka 
Senegal 
Somalia South Africa Suriname Sao Tome and Principe Swaziland 
South Georgia and South Sandwich Islands Slovenia  
Slovakia 
St Helena and dependencies St Pierre and Miquelon Tajikistan Thailand 
Togo 
Tunisia Turkey Tonga Trinidad and Tobago 
Turkmenistan 
Tuvalu Tanzania Tokelau Turks and Caicos Islands Ukraine 
United States Minor outlying islands 
Uganda Uruguay  Uzbekistan United Arab Emirates 
Vanuatu 
Vietnam Venezuela  Virgin Islands of USA Wallis and Futuna Islands Wake Is 
Yemen 
Yugoslavia, Fed. Rep. Zambia  Zimbabwe.  
 
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