WORLD TRADE  
ORGANIZATION  G/SG/N/14/TUR/1 
G/SG/N/11/TUR/4/Suppl.1 15 January 2010 
 
(10-0199) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.1(C) OF THE  
AGREEMENT ON SAFEGUARDS 
(EXTENSION OF THE EXISTING MEASURE) 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
 
TURKEY 
 
(Steam smoothing irons
) 
 
  The following notification, dated 14 January 2010,  is being circulated at the request of the 
Delegation of Turkey.    
_______________ 
 
  We enclose a notification pursuant to Article 12.1(c) and Article 9, Footnote 2 of the Agreement on Safeguards, on taking a decision to ex tend a safeguard measure that is being applied 
against imports of steam smoothing irons and  non-application of safeguard measure to developing 
countries.  The introduction of the existing safe guard measure was notified with the document 
G/SG/N/8/TUR/4-G/SG/N/10/TUR/4-G/SG/N /11/TUR/4, dated 12 July 2006. 
  Consistent with Article 12.3 of the Agre ement on Safeguards, Turkey is ready to hold 
consultations with those Members having a substantia l interest as exporters of the product concerned.   
 1. Evidence that the safeguard measure continue s to be necessary to prevent or remedy 
serious injury or threat thereof caused by  increased imports and that the industry 
concerned is adjusting 
 Pursuant to Article 7, paragraphs 2 and 3 of the Agreement on Safeguards, a safeguard 
measure should not be applied for a period exceeding four years, unless it is extended.  The period 
may be extended provided that th e competent authorities of the importing Member have determined 
that the safeguard measure continu es to be necessary to prevent or remedy serious injury and that 
there is evidence that the industry is adjusting.   The investigation conducted by Turkish inves tigating authority examined the period from the 
year 2006 to January-July of 2009.  Information rela ting to certain indicators of the domestic industry 
is provided below.  Domestic industry comprise s five domestic producers that represent major 
proportion of total production of the like product. In order to maintain confidentiality of the 
information submitted by the applicant companies,  figures relating to profitability are shown by 
indexes.  G/SG/N/14/TUR/1 
G/SG/N/11/TUR/4/Suppl.1 Page 2 
 
 
  1.1. Consumption 
   
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Consumption  
(Pieces) 2,872,965 1,798,846 2,982,041 1,361,842 1,110,008 
 
  Consumption of the product concerned, wh ich was approximately 2.9 million pieces in 2006, 
decreased by 37 per cent in 2007.  Thereafter, c onsumption rose by 66 per cent in 2008, reaching its 
highest level in the period analyzed. There was a de crease of 11 per cent in consumption in the first  
6-month period of 2009.  1.2 Production 
 
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Production  
(Pieces) 346,542 279,305 502,284 191,216 354,099 
 
 After a fall of 19 per cent in 2007, domestic production of steam irons increased by 80 per 
cent in 2008.  In the first half of 2009, production ro se further by 85 per cent, compared with the same 
period of 2008.     
 
1.3 Domestic sales  
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Domestic sales  
(Pieces) 313,081 269,286 481,497 181,595 349,143 
 
 Domestic sales of the producers followed a parallel trend to production and reached its peak 
in 2008.  An increase of 92 per cent was recorded in domestic sales in the first 6-month period of 
2009.  1.4 Capacity and capacity utilization ratio (CUR)  
 2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Capacity (Pieces) 2,466,200 2,366,200 2,130,900 1,065,450 1,246,950 
CUR  (%) 14 12 24 18 28 
 
 Total domestic production capacity of steam irons  decreased by 4 per cent and 10 per cent in 
2007 and 2008, respectively.  Domestic producers incr eased their capacity in the first half of 2009 by 
17 per cent.  Capacity utilization ratio started to increase in 2008 and reached its highest level in the 
first half of 2009 with 28 per cent.    G/SG/N/14/TUR/1 
 G/SG/N/11/TUR/4/Suppl.1  Page 3 
 
 
  1.5 End of period inventories 
 
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Inventories  
(Pieces) 13,602 8,015 20,447 17,634 19,400 
 
 Having fallen by 41 per cent in 2007, end of pe riod inventories reached its peak in 2008.  
There was a slight decrease in inventories at the end of June 2009.  1.6 Employment  
2006 2007 2008 2008         
(1-6) 2009        
(1-6) 
Employment  
(Workers) 89 91 110 101 124 
 
 Employment in the domestic industry started to increase in 2007.  In January-June of 2009, a 
total of 124 workers were employed in the production of steam irons.   1.7 Labour productivity  
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Productivity  
(Pieces per worker) 3,894 3,069 4,566 1,893 2,856 
 
 Having dropped by 21 per cent in 2007, labour productivity in the production of steam irons increased notably in 2008.  Compared with its leve l in the same period of 2008, productivity increased 
by 51 per cent in the first half of 2009.   
1.8 Profits 
 
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Profitability  
(Index – %) 100 81 93 120 93 
 
 Profitability index declined from 100 in 2006 to 81 in 2007.  The index grew by 12 points in 
2008 and remained this level in the first half of 2009. 
 
1.9 Market share  
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Market share  (%) 
11 15 16 13 31 
 
 Market share of the domestic products improve d significantly during the period concerned. 
Market share reached 31 per cent in the first 6-month period of 2009. 
 G/SG/N/14/TUR/1 
G/SG/N/11/TUR/4/Suppl.1 Page 4 
 
 
  1.10 Prices 
  A market survey was conducted within the inv estigation in order to compare the price levels 
of the imported and domestic products.  In the surv ey, the products were classified according to 
various technical features such as power consumpti on, sole plate material, water tank capacity, anti-
drip, anti-lime and self-clean.  The upper segment covers 94 imported and 8 domestic products while 
the medium segment comprises 16 imported and 13 dom estic products and the lower segment consists 
of 22 imported and 27 domestic  products.  Average price levels at the retail stage are shown in the 
table below. 
 
Price/Segment Upper Medium Lower 
Domestic product 
(TL per piece) 115 64 48 
Imported product       
(TL per piece) 124 63 40 
 
 The domestic products have, on average, lower unit prices than the imported products in the 
upper and medium segments of the market.  However,  the price levels of the imported and domestic 
products are close to each other in these two segment s of the market.  On the other hand, the domestic 
products are sold with higher unit prices than the imported products in the lower segment of the 
market.  Therefore, the imported products woul d probably create negative affects on the domestic 
products in case the safeguard measure ceases to apply.  1.11 Actions taken by the domestic producers 
 
 In order to adjust to the competition in th e domestic market, domestic producers took several 
actions during the period the safeguard measure has been applied.  Therefore, during this period,  
 
− Domestic producers manufactured a total of 58 models of steam irons. 
 
− Domestic producers filed applications for the registration of patents or utility models 
certificates of 11 models of steam irons. 
 
− Working capital of domestic producers incr eased by 1.8 million Turkish Liras. 
 
− Domestic producers invested in fixed capital and machinery and equipment relating to 
the production of steam irons by 1.8 million TL. 
 
− Domestic producers' R&D expenditures with regard to the production of steam irons 
amounted to approximately 0.5 million TL. 
 1.12 Conclusion   Economic indicators of the domestic producers signa l to a deterioration in 2007.  However the 
industry started to recover in 2008 and the reco very continued in the January-June of 2009.  
Accordingly, market share of the domestic products  increased from 15 per cent in 2006 to 31 per cent 
in the first 6 month period of 2009.   G/SG/N/14/TUR/1 
 G/SG/N/11/TUR/4/Suppl.1  Page 5 
 
 
   Also, the market survey conducted within the investigation shows that the imported products 
have price advantages in the lower segment of the ma rket.  Hence, it is clear that the non-application 
of the safeguard measure would leave the domestic  producers exposed to the negative impacts caused 
by a further fall of the import prices. 
 
 Furthermore, domestic producers have implemented several measures to adapt themselves to the competition with the imported products.  Part icularly, the producers have concentrated on 
introduction on new models during the period concerned.   However, taking into account the results of 
the market survey along with the fact that importe d products still take major share of the market, the 
investigating authority found out that the producers were in need of an extra period during which the 
safeguard measure shall remain in force.   As a result, it was concluded that the requireme nts for the extension of the safeguard measure 
were met. 
 
2. Information on absolute increase in imports 
2006 2007 2008 2008         
(1-6) 2009         
(1-6) 
Imports  
(Pieces) 2,559,884 1,529,560 2,500,544 1,180,247 760,865 
 
 Having dropped by 40 per cent in 2007, imports of steam irons rose significantly in 2008. Imports fell by 36 per cent in the first 6-month period of 2009, compared with the same period in 2008. 
 
3. Description of the product subject to the safeguard measure 
 The product subject to the safeguard measure is classified under "steam smoothing irons" 
with HS Code 8516.40.10.00.00.    4. WTO document that notified the initial application of the measure 
 The introduction of the existing safeguard  measure was notified with the document 
G/SG/N/8/TUR/4-G/SG/N/10/TUR/4-G/SG/N /11/TUR/4, dated 12 July 2006. 
 
5. Duration of the measure from initial applicatio n till the date at which it will be extended 
 The initial safeguard measure was applied from 10 August 2006 to 9 August 2009.  Turkey 
now intends to extend the safeguard measure for 3 more years.  The measure to be extended is 
expected to be in force from 10 August 2009 to 9 August 2012.  
6. Precise description of the measure in place prior to the date of extension  
 According to the Council of Ministers d ecision published in the Official Gazette of 
11/7/2006, no. 26225, a specific duty was applied as  a safeguard measure.  The duty was USD 5 per 
piece in the first year, USD 4.5 per piece in the sec ond year and USD 4 per piece in the third year. 
 G/SG/N/14/TUR/1 
G/SG/N/11/TUR/4/Suppl.1 Page 6 
 
 
  7. Description of the extended measure 
 It is proposed to impose a specific duty as a safeguard measure for an additional period of 
three years.  The duty will be USD 3.5 per piece in the first year, USD 3.25 per piece in the second year and USD 3 per piece in the third year. 
 
8. Progressive liberalization of the measure 
 The measure will be progressively liberalized, at regular intervals as explained under 
Heading 7 above. 
 
9. The developing countries to which the measure is not applied under Article 9.1 of the 
Agreement on Safeguards 
 The developing countries in the list below are excluded from the measure as they export less 
than 3 per cent of imports to Turkey.  
 Afghanistan; Algeria; Antigua and Barbuda; A ngola; Argentina; American Samoa; Anguilla; 
Antarctica; Aruba; Azerbaijan; Barbados; Banglad esh; Burkina Faso; Bahrain; Burundi; Benin;  
Bolivarian Republic of Venezuela; Brunei Darussalam ; Bolivia; Brazil; Bahamas; Bhutan; Botswana;  
Belize; Bermuda; Bouvet Island; British Virgin Is lands; British Indian Ocean Territory; Democratic 
Republic of Congo; Central Africa n Republic; Congo; Côte d'Ivoire; Cameroon; Chad; Colombia;  
Costa Rica; Cuba; Cape Verde; Cayman Islands; Chile; Christmas Islands; Cocos Islands; Cook 
Islands; Djibouti; Dominica; Dominican Republic; Ec uador; Egypt; Eritrea; Ethiopia; Fiji; Federated 
States of Micronesia; Falkland Islands; French Polynesia; French Southern Territories; Gabon;  Grenada; Ghana; Gambia; Georgia; Greenland; Guinea; Equatorial Guin ea; Guatemala; Guinea-
Bissau; Guyana; Gibraltar; Guam; Honduras; Haiti; Heard Island and McDonald Islands; India;  
Indonesia; Iraq; Iran (Islamic Republic of); Jamaica; Jordan; Kazakhstan; Kenya; Cambodia; Kiribati;  
Comoros; St Kitts and Nevis; Kuwait; Kyrgyzstan; Laos; Lebanon; St Lucia; Sri Lanka; Liberia;  
Lesotho; Libyan Arab Jamahiriya; Morocco; Madagascar; Marshall Islands; Mali; Moldova;  
Mongolia; Mauritania; Mauritius; Malaysia; Mald ives; Malawi; Mozambique; Macao; Mayotte;  
Mexico; Montserrat; Namibia; Niger; Nigeria; Ni caragua; Nepal; Nauru; Netherlands Antilles; New 
Caledonia; Niue Island; Norfolk Island; Northern  Mariana Islands; Oman; Panama; Peru; Papua New 
Guinea; Philippines; Pakistan; Palau; Paraguay; Pit cairn; Qatar; Russian Federation; Rwanda; Samoa;  
Saudi Arabia; Solomon Islands; Seychelles; Sudan;  Sierra Leone; Senegal; Somalia; Suriname;  Sao 
Tomé and Principe; El Salvador; Syrian Arab Re public; Swaziland; South Africa; South Georgia and 
South Sandwich Islands; St Helena and dependencies; St Pierre and Miquelon; Tajikistan; Thailand;  
Togo; Tunisia; Tonga; East Timor; Trinidad and To bago; Turkmenistan; Tuvalu; Tanzania; Tokelau;  
Turks and Caicos Islands; Ukraine; United Arab Emirates; United States Minor outlying islands;  
Uganda; Uruguay; Uzbekistan; St Vincent; Vietna m; Vanuatu; Virgin Islands of US; Wallis and 
Futuna Islands; Yemen; Zambia and Zimbabwe  
__________