WORLD TRADE  
ORGANIZATION   
G/SG/N/8/THA/1/Suppl.2 
G/SG/N/10/THA/1 
G/SG/N/11/THA/1/Suppl.2 
8 August 2011 
 (11-3990) 
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 PURSUANT TO ARTICLE 9, FOOTNOTE 2, 
OF THE AGREEMENT ON SAFEGUARDS 
 
THAILAND 
 
(Glass Block) 
   The following communication, dated 3 August 2011, is being circulated at the request of the 
Delegation of Thailand. 
 
_______________ 
 
 
1.  Provide evidence, citing relevant data and th e applicable period of investigation of serious 
injury and threat thereof cau sed by increased imports. 
 1.1 Period of investigation:  
 The period of investigation is from 1 January 2007 to 30 September 2010.  
1.2 Unforeseen development: 
 
 Unpredictable and continual appreciation of Th ai currency (Baht) since Q1 of 2009 to Q3 of 
2010 was the substantial factor which resulted in th e increase in imports of the glass block under Thai 
Customs Tariff Code 7016.9000. The exchange ra te in Q3 of 2010 significantly changed when 
compared to that of the Q1 of 2009, from 35. 34 Baht/US Dollar to 31.63 Baht/US Dollar, or an 
appreciation of 10.50 per cent.  This situati on corresponded with the increases in imports. The 
imports volume in Q3 of 2010 increased from 1,494. 69 tons to 5,300.37 tons in Q1 of 2009, 
equivalent to a significant rise of 254.61 per cent.  The decreased value of the imports enabled the 
importers to import more glass block.  Such deve lopments caused serious injury to Thai domestic 
industry.    
1.3 Evidence of serious injury:   
 
 In order to make a determination of serious in jury to the Thai domestic industry of the like 
product, the evaluations of all relevant factors of an objective and quantifiable nature having a G/SG/N/8/THA/1/Suppl.2 
G/SG/N/10/THA/1 G/SG/N/11/THA/1/Suppl.2 
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  bearing on its situation and of other factors which ar e relevant for determinati on of serious injury or 
threat of serious injury, have been undertaken.    1) Analysis of conditions of Thai domestic industry   
 Tables 1 and 2 provide evidence on the conditions  of the domestic industry as a result of the 
continuing and significant increase in volume of imports during the period of investigation.  
 Table 1: Indicators of Serious Injury during the period from Q1 of 2007 to Q4 of 2008 
  Index:  Q1 of 2007 = 100 
DESCRIPTION Q1/2007 Q2/2007 Q3/2007 Q4/2007 Q1/2008 Q2/2008 Q3/2008 Q4/2008 
Exchange rate  
(Baht per US Dollar) 35.59 34.69 34.06 33.92 32.42 32.30 33.88 34.85 
Imports 
volume(Tons) 1,571.91 1,138.52 2,120.23 3,460.74 4,679.79 1,986.87 2,700.23 1,197.32 
Market share of 
Imports (%) 20.98 27.07 60.33 52.09 41.49 31.86 40.65 27.64 
Domestic sales 
volume 100.00 51.80 23.55 53.75 111.45 71.75 66.58 52.93 
Domestic sales  
value 100.00 55.64 28.04 63.36 113.27 72.24 65.36 53.57 
Production 100.00 90.30 90.75 83.31 88.27 82.81 90.29 88.36 
Productivity (%) 61.78 80.72 80.50 73.39 76.87 72.05 79.98 80.04 
Production 
capacity 100.00 101.11 102.22 102.22 100.00 101.11 102.22 102.22 
Actual capacity 
utilization (%) 50.16 44.80 44.53 40.88 44.27 41.08 44.31 43.35 
Employment 100.00 122.83 113.59 113.59 109.06 101.63 96.74 86.41 
Inventory 100.00 152.89 258.08 289.89 223.71 225.98 240.73 277.53 
Profit and Loss 
(with respect to glass block 
business) (100.00) (28.39) (3.91) (54.28) (40.44) (109.97) (46.57) (48.88) 
Sources : Bank of Thailand, Customs Department and que stionnaire responses of the domestic industry  G/SG/N/8/THA/1/Suppl.2 
 G/SG/N/10/THA/1 
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  Table 2: Indicators of Serious Injury during the period from Q1 of 2009 to Q3 of 2010   
 Index: Q1 of 2007 = 100 
DESCRIPTION Q1/2009 Q2/2009 Q3/2009 Q4/2009 Q1/2010 Q2/2010 Q3/2010 
Exchange rate  
(Baht per US Dollar) 35.34 34.72 33.97 33.31 32.90 32.38 31.63 
Imports volume  
(Tons) 1,494.96 2,805.97 2,782.50 3,332.31 4,185.32 5,439.34 5,300.37 
Market share of  
Imports (%) 23.65 44.28 54.27 61. 37 63.56 61.62 62.99 
Domestic sales  
volume 81.49 59.64 39.60 35. 43 40.52 57.22 52.60 
Domestic sales  
value 92.19 72.08 49.60 44. 26 49.93 67.99 65.13 
Production 66.14 76.52 82.45 91.04 91.00 113.20 121.09 
Productivity (%) 60.82 68.24 73.76 82. 00 76.22 73.08 72.92 
Production 
capacity 100.00 101.11 102.22 102.22 100.00 101.11 102.22 
Actual capacity 
utilization (%) 33.17 37.96 40.46 44. 67 45.64 56.16 59.42 
Employment 85.87 90.76 99.46 101.63 105.43 107.61 115.76 
Inventory 193.56 138.21 115.99 90.14 78.66 54.59 49.40 
Profit and Loss 
(with respect to 
glass block 
business) (126.80) (25.68) (50.58) (50.61) (42.29) (41.43) (19.81) 
Sources :  Bank of Thailand, Customs Department and questionnaire responses of the domestic industry 
 
 (1) The increase in imports of glass block 
 
 Glass block was imported into Thailand in in creased quantities both in absolute terms and 
relative to domestic production.  Further, during the investigation period, the increase in imports 
volume of glass block was recent, sudden, sharp and significant.  
 
 (2) Domestic market share of the increased imports of glass block 
  The domestic industry began to lose its share of domestic market significantly since Q2 of 2009 in which the market share of the imports was 44.28% (rising sharply from 23.65% in Q1) and 
the increased imports took over the domestic market share by holding more than 60% of the market 
share during the first three quarters of 2010 (63.56%, 61.62% and 62.99%, respectively)  
 (3) Level of sales 
 
 The domestic industry's domestic sales show a significant decline since Q1 of 2008 in which 
it reached the lowest level in Q4 of 2009. 
 G/SG/N/8/THA/1/Suppl.2 
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   Despite a slight rebound of domestic sales volum e during the first three quarters of 2010 due 
to the increased imports, the sales volume was still at a very low level. 
 
 (4) Production 
  After the significant drop in production in Q1 of 2009, with an intention to reach economy of scale, in order to lower its unit cost of producti on, the domestic industry have continuously increased 
the production of glass block and reached the highest level in Q3 of 2010. 
  (5) Productivity 
  The productivity remains quite constant, w ith no significant fluctuation, during the 
investigation period. 
 
 (6) Capacity utilization 
 
 The domestic industry's capacity utilization was below 50% during Q2 of 2007 to Q1 of 2010.  
In addition, due to the increase in imports, the dom estic industry could not reach a higher level of 
utilization.  
 
 (7) Employment 
 
 Despite the lay-off in Q2 and Q4 of 2008, the employment remained quite constant during the 
investigation period. 
 
 (8) Profitability 
 
 Even though the domestic industry can reduce its loss, but due to the increase in imports 
which had taken more than 60% of the domestic market share, especially in 2010, the domestic 
industry could not increase its domestic sales to the e xpected level.  Therefore, the overall glass block 
business was still in loss.  
  After evaluating all relevant factors, in accordance with the Thai Safeguards Act and the 
WTO Agreement on Safeguards, having a bearing on the situation of the Thai domestic industry, there 
is a serious injury as evidenced by  the sharp increase in imports of glass block in absolute and relative 
terms, the continuous rise of the market share of  the imports, a significant decrease in domestic sales, 
a constantly low level of capacity utilization, and losses in overall operation of glass block business. 
 
 2) Causation analysis 
 
 In order to examine the existence of a cau sal link between the increase in imports and the 
serious injury, and ensure that injury caused by othe r factors is not attributed to increased imports, the 
injurious effects of factors considered to be causi ng injury have been distinguished from each other.  
The injurious effects have been attributed to th e factors which are causing them, and, after having 
attributed injury to all causal factors present, it has been determined whether increased imports are a 
cause of serious injury.  
  (1) Effect of increased imports 
  Despite the imposition of anti-dumping measures to remedy the injury on the domestic industry from unfair trade, the domestic industry con tinues to be affected by increased imports.  The  G/SG/N/8/THA/1/Suppl.2 
 G/SG/N/10/THA/1 
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  serious injury is caused by the increased volume of imports and the sale of imports at low price, 
within which the domestic industry could not operate  as planned, as shown by the decline in domestic 
sales and the loss of its market share to increased imports. 
 
 The domestic industry had increased production efficiency of new furnaces to their full 
capacity and the production cost per unit, thus , resulting in an enhancement of decreased 
competitiveness.  However, the increased volume of imports continuing at a high level, make it 
impossible to increase the volume of domestic sales.  The domestic industry also needs to export at 
lower prices in order to have cash flow and to re duce costs and expenses in  inventory management 
which leads to the loss in overall operation of glass block. 
 
 (2) Effects from factors other than increased imports and attribution of injurious effects  
 
 Factors other than increased importation of glass block that might have caused serious injury 
to the domestic industry were examined. These factors were competition conditions, domestic 
industry's administration and  management (operati on), and its productivity.  It was found that they 
were not the causes of serious injury suffered by  the domestic industry.  There was no evidence 
demonstrated that the domestic industry lacked  competitiveness, administration and management 
skills and productivity which could impact its performance.    
 
 Based on the above evaluation, despite the f act that the domestic industry has continually 
made several adjustments in order to compete with the imports, including its efforts made to deal with 
the invasion of the imports, that is, the improvement of efficiency of production for the purpose of 
lowering production cost, the adoption of policies to control its expenses and financial costs and the 
effort directed towards its sales and inventory ma nagements, it was found that the domestic industry's 
performance still suffered losses.    
 (3) Conclusion 
 
  Therefore, the serious injury suffered by th e domestic industry is attributed to the increased 
and low-priced imports of glass block.  This cond ition made the domestic industry unable to carry out 
its set plan successfully, resulting in the decline in the domestic industry's sales volume, capacity 
utilization and domestic market share.  The dom estic industry was unable to cover its operating 
expenses due to the decreased per-unit profits comp ared with the production cost, resulting in losses 
in its overall performance.   2. Provide information on whether there is an  absolute increase in imports or an increase 
in imports relative to domestic production.   
 
2.1 Increased imports in absolute terms    The importation of glass block, correspondi ng to the continuous appreciation of Thai 
currency (Baht), has continually increased. In partic ular, during the period from Q3 of 2009 to Q2 of 
2010, the imports had clearly and sharply increased from 2,782.50 tons to 3,332.31, 4,185.32 and 
5,439.34 tons, respectively.  It stood at 5,300.37 tons in Q3 of 2010, an increase by 90.49 per cent 
from the same period of the previous year.  
2.2 Increased imports relative to domestic production  
  When compared the imports volume with domestic industry's production, it was found that 
the imports in relation to the domestic productio n have continually increased during the period G/SG/N/8/THA/1/Suppl.2 
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  between Q2 of 2007 to Q1
 of 2008 from 22.93 per cent to 96.41 per cent.  From Q2 of 2009 to Q3 of 
2010, it is evident that the imports  in relation to the domestic produc tion have increased significantly 
and continually.  In particular, the ratio over th e period from Q1 to Q3 of 2010 was at 83.63, 87.37 
and 79.58 per cent, respectively.  
  Therefore, based on the above examination , it is apparent that as a result of the unpredictably 
constant rise of the value of Thai currency (Bah t), glass blocks classified under Thai Customs Code 
7016.9000 have been imported into  Thailand in such increased qua ntities in absolute and relative 
terms.   
 
3.  Provide the precise description of the product concerned.  
 
  Glass block classified under the Thai Custom Tariff Code 7016.9000.   
4.  If the final measure replaces a provisional measure, or if a final measure is extended, a 
Member is encouraged to provide a written description of any part of the imported 
product that will no longer be subject to  the measure and the Harmonized System 
numbers under which it enters at least at 6-digi t level, and at a sub-national level, if 
practicable.  
  Not applicable. 
 
5.  Provide precise description of the proposed measure.  
 
 The definitive safeguard measure will be applied in the form of tariff incr eases which will be 
calculated at the ad valorem rate of 35% of c.i.f.  price or specific rate of 11.23 baht per piece, 
whichever is higher. The measure shall be progressively liberalized as indicated in Item 9 below.   
 
6.  Provide proposed date of introduction of the measure.  
 The definitive safeguard measure is scheduled to enter into force on the day following the 
publication of the Notification of the Committee on Safeguard Measures of Thailand imposing the 
definitive safeguard measure in the Royal Gazette.   
 
7.  Provide expected duration of the measure.   
  The expected duration of the safeguard measure adopted will be effective until 
14 January 2014.   
8.  For a measure with a duration of more than  three years, provide the proposed date for 
the review (under Article 7.4) to be held not later than the mid-term of the measure, if 
such a date for the review ha s already been scheduled.  
 
 Not applicable  
 
9.  If the expected duration is over one ye ar, provide expected timetable for progressive 
liberalization of the measure. 
 
 As the expected duration  of the definitive safeguard measure proposed is over one year, so the 
measure shall be progressive ly liberalized as follows: 
   G/SG/N/8/THA/1/Suppl.2 
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  Duration Duty 
The date the definitive  measure enter into 
force – 14 January 2012  35 % of c.i.f.. price or  11.23 baht per piece, 
whichever is higher 
15 January 2012-14 January 2013 32 % of c.i.f.. price or 10. 23 baht per piece, 
whichever is higher 
15 January 2013-14 January 2014 29 % of c.i.f.. price or 9.23 baht per piece, 
whichever is higher 
 10.  If the notification relates only to a finding  of serious injury or threat thereof, and does 
not relate to a decision to appl y or extend a safeguard measure: 
 
 Not applicable  
11.  If the measure is being extended, also provide: 
 
 Not applicable 
 12.  If the notification relates to a decision to apply or extend a safeguard measure, 
Members are encouraged to provide the following information: 
  (i)  The major exporting Members of  imports of the product involved. 
 
 Imports of the product concerned are mainly  exported from China, Indonesia and Czech 
Republic . 
 
 (ii) If there are any exporting Member s to which the measure does not apply for 
any reason other than the application of Ar ticle 9.1, the name of such exporting 
Members and reasons for non application of the measure. 
  Not applicable.  
 
13. Pursuant to Article 9.1, footnote 2, of the Agreement on Safeguards, the following developing 
countries shall be excluded from the measure as their exports are less than 3 per cent of total 
imports of the glass block to Thailand.   
 
 Consistent with Article 7.4 of the WTO Agr eement on Safeguards, the definitive safeguard 
measure will not be applied against a product originat ing in a developing country Member as long as its 
share of imports of the product concerned in the impo rting Member does not exceed 3 per cent.  The list of 
developing countries excluded from th e definitive measure is attached.   
 G/SG/N/8/THA/1/Suppl.2 
G/SG/N/10/THA/1 G/SG/N/11/THA/1/Suppl.2 
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  ATTACHMENT 
 
List of Developing Countries and Separa te Customs Territories Excluded from the  
Imposition of Definitive Safeguard Measure on Glass Block 
 
 
East & Southern 
Africa West Africa North Africa South Asia 
Angola 
Botswana Burundi Comoros Congo. Dem. Rep. Djibouti Eritrea Ethiopia Kenya Lesotho Madagascar Malawi Mauritius Mayotte Mozambique Namibia Reunion Rwanda Seychelles Somalia South Africa Sudan Swaziland Tanzania Uganda Zambia Zimbabwe Benin 
Burkina Faso Cameroon Cape Verde Central African Rep. Chad Congo, Rep. Cote d' Ivoire Gabon Gambia, The Ghana Guinea Guinea, Bissau Liberia Mali Mauritania Niger Nigeria Sao Tome & Principe Senegal Sierra Leone Togo Algeria 
Egypt, Arab Rep. Libya Morocco Tunisia Afghanistan 
Bangladesh Bhutan British Indian Ocean Territory East Timor India Maldives Nepal Pakistan Sri Lanka  
  G/SG/N/8/THA/1/Suppl.2 
 G/SG/N/10/THA/1 
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  Europe & Central Asia Middle East Americas East Asia & Pacific 
Albania 
Armenia Azerbaijan 
Belarus 
Bosnia & Herzegovina Bulgaria Georgia Kazakhstan Kosovo Kyrgyz Republic Lithuania Macedonia, FYR Moldova Montenegro Romania Russian Federation Serbia Tajikistan Turkey Turkmenistan Ukraine Uzbekistan Yugoslavia, Fed. Rep. Iraq 
Jordan Lebanon 
Syrian Arab Rep. 
West Bank & Gaza Yemen, Rep. Anguilla  
Antigua & Barbuda Argentina 
Belize 
Bolivarian Republic of 
Venezuela 
Bolivia, Plurinational State of 
Brazil British Virgin Is. Chile Colombia Costa Rica Cuba Dominica Dominican Rep. Ecuador El Salvador Falkland Is. (Malvinas) French Guiana Grenada Guadaloupe Guatemala Guyana Haiti Honduras Jamaica Martinique Mexico Montserrat Nicaragua Norfolk Is. Panama Paraguay Peru St. Helena St. Kitts & Nevis St. Lucia St. Pierre & Miquelon St. Vincent & the Grenadines Suriname Uruguay American Samoa 
Cambodia Chinese Taipei  
Christmas Is. 
Cocos (Keeling) Is. Cook Is. Fiji Johnston Is. Kiribati Korea, Dem. Rep. Lao PDR Malaysia Marshall Islands Micronesia, Fed. Sts. Midway Is. Mongolia Myanmar Nauru Niue Palau Pitcairn Is. Papua New Guinea Philippines Samoa Solomon Islands Tokelau Tonga Tuvalu Vanuatu Viet Nam Wake Is. Wallis & Futuna Is.  
 
 
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