WORLD TRADE  
ORGANIZATION  G/SG/N/7/TUR/1/Suppl.1 
29 July 2009 
 (09-3682) 
Committee on Safeguards Original:   English 
  
 
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT 
ON SAFEGUARDS BEFORE TAKING A PROVISIONAL 
SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6 
 
TURKEY 
 
(Motorcycles
) 
 
Supplement  
 
 
 The following communication, dated 21 July 2009, is being circulated at the request of the Delegation of Turkey.    
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We enclose a notification pursuant to Article 12.4 of the Agreement on Safeguards, before 
taking a provisional safeguard measure against imports  of motorcycles and a notification pursuant to 
Article 9, footnote 2 of the Agreement on Safeguards,  on taking a decision not to apply the measure to 
products originating in developing countries.  The initial application of the safeguard measure against 
imports of motorcycles were notified with the doc ument G/SG/N/10/TUR/7, da ted 6 February 2007.  
The initiation of an investigation to review the existing safeguard  measure was notified with the 
document G/SG/N/6/TUR/10/Suppl.1, dated 23 June 2009.    A. N
OTIFICATION UNDER ARTICLE 12.4  BEFORE TAKING A PROVISIONAL SAFEGUARD MEASURE  
 1. The product subject to the proposed provisional safeguard measure 
 
The product subject to the proposed provisional safeguard measure is classified under 
"motorcycles (including mopeds) and cycles fitted with an auxiliary motor (with reciprocating internal 
combustion piston engine of a cylinder capacity  not exceeding 380 cm³)" with Customs Codes 
8711.10.00.00.11, 8711.10.00.00.19, 8711.20.10.00.00, 8711.20.91.00.00, 8711.20.93.00.00, 
8711.20.98.00.00 and 8711.30.10.00.00.    
2. The proposed provisional safeguard measure 
 
It is proposed to impose provisional safeguard m easure in the form of form of specific duty, 
which will be implemented for the imports having CI F value lower than those shown in the threshold 
column of the table below.   G/SG/N/7/TUR/1/Suppl.1 
Page 2  
 
   
Customs code  
of the product Threshold 
(USD per piece)Fixed duty (USD per piece) 
8711.10.00.00.11 1.200 170 
8711.10.00.00.19 1.400 170 
8711.20.10.00.00 2.000 205 
8711.20.91.00.00 1.400 170 
8711.20.93.00.00 2.000 210 
8711.20.98.00.00 2.300 255 
8711.30.10.00.00 2.600 255 
 
3. Entry into force of the proposed  provisional safeguard measure 
 
The provisional safeguard measure is proposed to enter into force, with the publication of the 
approval of the Council of Ministers in the Offici al Gazette no later than 15 August 2009.   
 
4. The expected duration of the provisional safeguard measure 
 
 The decision whether or not to extend the exis ting safeguard measure will be made at the end 
of the investigation.  Therefore, the provisiona l safeguard measure shall be applied during the 
investigation period.  In any case, the provisional safeguard measure shall last for 200 days at the 
most.    
5. The basis for:   
 
(i) Making a preliminary determination, as provided for in Article 6, that increased 
imports have caused or are th reatening to cause serious injury 
 
The evidence relating to the serious injury suffered by the domestic industry as a result of the 
increase in imports of the product concerned had be en notified with the document G/SG/N/10/TUR/7, 
dated 6 February 2007.  Accordingly, a safeguard measure against imports of motorcycles for a period 
of 3 years was put into force on 5 February 2007, effective from 14 August 2006.  Information on the changes in the level of imports and certain econo mic indicators of the domestic industry that were 
recorded during the period the safeguard meas ure has been applied is provided below.   
 
CHANGE IN IMPORTS 
 
Imports Unit 2006 2007 2008 
Absolute Imports Pieces 609,365 33,378 23,686 
Change % - -94.5 -29.0 
 
 Imports of the product concerned declined by 95  per cent in 2007 and by 29 per cent in 2008.   
 
Unit 2006 2007 2008 Imports/Production % 2,861 60 34 
 
 The ratio of the imports to the domestic production of the product subject to measure has 
declined dramatically in 2007 and the decline continued in 2008.   
 
Unit 2006 2007 2008 Market Share of 
Imports % 97 39 27  G/SG/N/7/TUR/1/Suppl.1 
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   The market share of imports of the product subject to measure decreased in 2007 after the 
measure was taken, and the decline in th e market share continued in 2008.   
  Based on the figures relating to imports that  are summarized above, it is concluded that 
imports of the product concerned decreased in the year following the firs t year the measure was 
initiated and also in 2008.  The ratio of imports to domestic production and market share of imports 
have parallel tendency with the amount of imports.    ECONOMIC INDICATORS OF THE DOMESTIC INDUSTRY  
A preliminary analysis to assess the impacts of  the existing safeguards on the situation of the 
domestic industry was carried out.  In this analysis , data submitted by 8 domestic producers, that 
constitute major proportion of domes tic production, were utilized.   
 
(i) Consumption 
Consumption Unit 2006 2007 2008 
Quantity Pieces 626,337 85,479 88,632 
Change % - -86 4 
 
 Consumption of the product concerned decrea sed 86 per cent in 2007.  However, domestic 
consumption increased 4 per cent in 2008.    
(ii) Production 
 
Production Unit 2006 2007 2008 
Quantity Pieces 21,299 55,830 68,820 
Change % - 162 23 
 
 There was a significant increase of 162 per cent in production in 2007 and 23 per cent 
in 2008.   
 
(iii) Capacity and Capacity Utilization Rate (CUR) 
 
Capacity Unit 2006 2007 2008 
Quantity Pieces 165,462 381,312 472,948 
CUR % 13 15 15 
 
 Total production capacity of the domestic industry increased between the years 2006 
and 2008.  Capacity utilization ratio has re mained stable during years 2007 and 2008.   
 
(iv) Domestic Sales 
 
Domestic Sales Unit 2006 2007 2008 
Quantity Pieces 16,972 52,101 64,946 
Change % - 207 25 
 
 Domestic sales of the producers increased by 207 per cent in 2007 and 25 per cent in 2008.   G/SG/N/7/TUR/1/Suppl.1 
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  (v) End of Period Inventories 
Inventories Unit 2006 2007 2008 
Quantity Pieces 9,204 12,172 15,595 
Change % - 32 28 
 
 Inventories of the product concerned incr eased 32 per cent and 28 per cent respectively 
in 2007 and 2008.   
 
(vi) Employment 
 
Employment Unit 2006 2007 2008 
Labor  Number of Workers 427 582 846 
Change % - 36 45 
 
 Number of direct workers employed in the domestic industry rose by 36 per cent in 2007.  
The employment further increased in 2008 with a ratio of 45 per cent.    
(vii) Productivity 
 
Productivity Unit 2006 2007 2008 
Labor 
Productivity Piece/Worker Index 
(2006=100) 100 200 170 
 
 Labor productivity index increased from 100 to 200 in 2007 and remained at a similar level 
in 2008.   
 
(viii) Profits 
 
Profitability Unit 2006 2007 2008 
Profit % 5 6 11 
 
Domestic manufacturers have increased their pr ofitability ratio, which was 5 per cent in 2006, 
to 6 per cent and 11 per cent respectively in years 2007 and 2008.    CONCLUSION 
 
It was determined, in the preliminary analys is, that imports of the product concerned 
decreased notably in the second and third year afte r the safeguard measure was initiated.  Hence, it 
would be fair to say that the measure was effective in safeguarding the domestic producers of the product concerned.    
Besides, there have been positive developmen ts in certain economic indicators of the 
domestic industry, particularly, production, domestic sales, capacity utilization rate, employment and 
profitability, during the application period of the safeguard measure.    
Therefore it could be concluded that the app lied safeguard measure is helping the domestic 
producers to overcome the injurious effects arising from imports.    G/SG/N/7/TUR/1/Suppl.1 
 Page 5 
 
 
   (ii) Determining the existence of critical circumstances where delay would cause damage 
which it would be difficult to repair 
 
The safeguard measure that is currently be ing applied against imports of the product 
concerned came into force on 15 August 2006 and will come to an end on 14 August 2009.  The 
investigation to review this measure was i nvestigation was initiated on 17 June 2009.   
 
Concerning the required examinations that shoul d be carried out within the context of a 
safeguard investigation, it has been understood that  the current investigation will not be completed 
until the end of the 3-year application period of the existing safeguard measure.   
 
It was determined that imports of the produc t concerned decreased 95 per cent in 2007 and 
29 per cent in 2008 during the duration of the curr ent safeguard measure.  Moreover, preliminary 
figures reveal that certain figures relating to dom estic industry show positive trend during the period 
the safeguard measure has been implemented.   
 
Therefore, bearing in mind that a sudden and significant increase in the imports of the product 
concerned after the end of the 3-year period, simila r to the increase recorded in years 2005 and 2006, 
could negatively affect the recovery period of  the domestic industry, the provisional safeguard 
measure is proposed to eliminate uncertainty that  could come out with the ongoing investigation on 
the necessity of the extension of the current measu re.  To achieve this objective, the provisional 
measure shall be collected as a security.   
 
6. Offer of consultations under Article 12.4 
 
 Consistent with Article 12.4 of the Agreement on Safeguards, Turkey is prepared to consult 
on the provisional safeguard measure with those Memb ers having a substantial interest as exporters of 
the product concerned.    B. N
OTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 UPON TAKING A DECISION NOT TO APPLY THE 
PROVISIONAL SAFEGUARD MEASURE TO CERTAIN PRODUCTS ORIGINATING IN DEVELOPING 
COUNTRIES  
 
1. The measure 
 
It is proposed to impose provisional safegua rd measure in the form of specific duty as 
described in the notification under Article 12.4 above.   
 
2. The product subject to the measure 
 
The measure applies to the products described  in paragraph 1 of the notification under 
Article 12.4 above.    3. 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;  Angola;  Argentina;  American Samoa;  
Anguilla;  Antarctica;  Aruba;  Azerbaijan;  Barb ados;  Bangladesh;  Burkina Faso;  Bahrain;  
Burundi;  Benin;  Belarus;  Bolivarian Republic of Venezuela;  Brunei Darussalam;  Bolivia;  Brazil;  
Bahamas;  Bhutan;  Botswana;  Belize;  Berm uda;  Bouvet Island;  Br itish Virgin Islands;  G/SG/N/7/TUR/1/Suppl.1 
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  British Indian Ocean Territory;  Democratic Republic  of Congo;  Central African Republic;  Congo;  
Côte d'Ivoire;  Cameroon;  Chad;  Colombia;  Cost a Rica;  Cuba;  Cape Verde;  Cayman Islands;  
Chile;  Christmas Islands;  Cocos Islands;  Cook Isla nds;  Djibouti;  Dominica;  Dominican Republic;  
Ecuador;  Egypt;  Eritrea;  Ethiopia;  Fiji;  Fede rated States of Micronesia;  Falkland Islands;  
French Polynesia;  French Southern Territories;  Gabon;  Grenada;  Ghana;   Gambia;  Georgia;  
Greenland;  Guinea;  Equatorial Guinea;  Guatemal a;  Guinea-Bissau;  Guyana;  Gibraltar;  Guam;  
Honduras;  Haiti;  Heard Island and McDonald Islands;  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;  Maldives;  Malawi;  Mozambique;  Maca o;  Mayotte;  Mexico;  Montserrat;  Namibia;  
Niger;  Nigeria;  Nicaragua;  Nepal;  Nauru;  Ne therlands Antilles;  New Caledonia;  Niue Island;  
Norfolk Island;  Northern Mariana Islands;  Oman; Panama;  Peru;  Papua New Guinea;  Philippines;  
Pakistan;  Palau;  Paraguay;  Pitcairn;  Qatar;  Ru ssian Federation;  Rwanda;  Samoa;  Saudi Arabia;  
Solomon Islands;  Seychelles;  Sudan;  Sierra Le one;  Senegal;  Somalia;  Suriname;  Sao Tomé and 
Principe;  El Salvador;  Syrian Arab Republic ; Swaziland;  South Geor gia and South Sandwich 
Islands;  St Helena and dependencies;   St Pierre and Miquelon;  Tajikistan;  Togo;  Tunisia;  Tonga;  
East Timor;  Trinidad and Tobago;  Turkmenistan;  Tuvalu;  Tanzania;  Tokelau;  Turks and Caicos 
Islands;  Ukraine;  United Arab Emirates;  United States Minor outlying islands;  Uganda;  Uruguay;  
Uzbekistan;  St Vincent;  Vietnam;  Vanuatu;  Virg in Islands of US;  Wallis and Futuna Islands;  
Yemen;  Zambia;  and Zimbabwe.   
 
  
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