WORLD TRADE  
ORGANIZATION  G/SG/N/8/TUR/9 
G/SG/N/10/TUR/9 
G/SG/N/11/TUR/9 
18 March 2008 
 (08-1207) 
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 
 
TURKEY 
 
(Travel Goods, handbags a nd similar containers)
 
  The following notification, dated 13 March 2008, is being circulation at the request of the 
Delegation of Turkey.   
 
_______________ 
 
  In light of the agreed format for notifications (G/SG/W/1, 23 February 1995), Turkey 
provides notification to the Committee on Safeguards of  findings of serious injury or threat thereof 
caused by increased imports and notification of proposed safeguard measures.     On June 5, 2007, Turkey initiated an investiga tion relating to serious injury or threat thereof 
to domestic producers of products like or directly  competing with the imported product.  The 
initiation of the investigation has been  notified to the Committee on Safeguards.
1   
  Consistent with Article 12.3 of the Agreement on Safeguards , Turkey is prepared to consult 
with those Members having a substantial inter est as exporters of the product concerned.   
  
                                                     
 
1 G/SG/N/6/TUR/12.   G/SG/N/8/TUR/9 
G/SG/N/10/TUR/9 G/SG/N/11/TUR/9 
Page 2 
  
  I. EVIDENCE OF SERIOUS INJURY OR THREAT THEREOF CAUSED BY 
INCREASED IMPORTS 
A. EVIDENCE
 OF SERIOUS  INJURY 
 In order to make a determination of serious in jury to the domestic industry of the like product, 
an evaluation of all relevant factors of an objec tive and quantifiable nature having a bearing on the 
situation of the industry has been undertaken.  The following evaluation has been based upon data 
provided by the chosen sample of the applicant firms.   The data given for the year 2007 is projected.   
 1. Consumption 
Total consumption 
(index 2002=100) 2002 2003 2004 2005 2006 2007 
Group A 100 130 276 855 1.139 1.297 
Group B1 100 140 389 570 526 644 
Group B2 100 113 219 304 302 302 
Group C 100 113 194 355 419 544 
 
Consumption of the product concerned increased significantly especially in the years of 2004 
and 2005.    
2. Capacity and capacity utilization 
Index 2002=100 2002 2003 2004 2005 2006 2007 
Capacity 100 157 157 157 157 157 Group A CU (%) 44 36 33 31 27 26 
Capacity 100 115 81 90 73 54 Group B1 CU (%) 80 75 70 88 82 74 
Capacity 100 100 161 161 173 171 Group B2 CU (%) 87 119 96 69 45 47 
Capacity 100 100 100 100 100 100 Group C CU (%) 39 33 46 81 73 61 
 
There has not been a significant increase on the capacity in any group of the products 
concerned.  The capacity increases in small quantitie s are investments made with the purpose to raise 
productivity.  Capacity utilization decreased in 200 6 in all groups of the product concerned.   
 
3. Production 
Production 
(index 2002=100) 2002 2003 2004 2005 2006 2007 
Group A 100 128 119 112 98 93 
Group B1 100 104 75 102 82 60 
Group B2 100 137 177 128 89 92 
Group C 100 84 118 210 189 158  G/SG/N/8/TUR/9 
 G/SG/N/10/TUR/9 
 G/SG/N/11/TUR/9 
 Page 3 
  
  The production indexes of the product concerne d decreased in 2006 compared to 2002 except 
group C.   4. Employment 
Employment 
(index 2002=100) 2002 2003 2004 2005 2006 2007 
Group A 100 262 238 203 208 210 
Group B1 100 96 95 93 91 88 
Group B2 100 120 132 168 170 170 
Group C 100 89 88 84 75 62 
 
 Employment in the production of the product concerned has not changed dramatically in 
recent years. However, the employment indexes of the groups B1 and C decreased in 2006.  
5. Domestic sales volume 
Domestic sales 
(index 2002=100) 2002 2003 2004 2005 2006 2007 
Group A 100 144 136 126 108 102 
Group B1 100 103 75 101 82 61 
Group B2 100 93 92 58 53 54 
Group C 100 169 119 110 43 39 
 
 Domestic sales of four groups of the product concerned have decreased compared to 2005.    
6. Market share of the domestic products 
Market share 
(%) 2002 2003 2004 2005 2006 2007 
Group A 48 42 37 38 36 35 
Group B1 52 27 43 40 25 11 
Group B2 32 29 34 31 12 15 
Group C 80 79 77 69 66 61 
 
 Domestic producers' market share has decre ased especially from the beginning of 2005 in all 
groups of the product concerned.   G/SG/N/8/TUR/9 
G/SG/N/10/TUR/9 G/SG/N/11/TUR/9 
Page 4 
  
  7. Price undercutting 
Price 
undercutting Travel goods Bags Wallets Other 
Containers 
2007 38% 9% 40% 33% 
  The final sales prices of the imported products undercut the prices of domestic products in the 
ratio of 38 per cent for travel bags, 9 per cent fo r bags, 40 per cent for wallets and 33 per cent for 
other containers.    8. Profitability 
Profitability 2002 2003 2004 2005 2006 2007 
Average real profit rates (%) 5,05 1,11 2,70 1,09 1,80 2,04 
 
Average real profit rates of all groups of the product concerned have fluctuated in a belt of 
ratio with maximum 2 per cent since 2003.    9. Stocks 
Closing stocks 
(index 2002=100) 2002 2003 2004 2005 2006 2007 
Group A 100 121 195 210 235 247 
Group B1 100 290 162 437 637 814 
Group B2 100 91 109 82 104 101 
Group C 100 107 111 134 218 254 
 
The inventories in all groups of  the product concerned have in creased. Especially the rate of 
increase in the stocks of group B1 is significant.    
10. Productivity 
Productivity of factors 
(index 2002=100) 2002 2003 2004 2005 2006 2007 
Group A 100 160 171 181 209 221 
Group B1 100 107 107 129 160 214 
Group B2 100 95 95 97 104 286 
Group C 100 89 109 98 105 276 
 
 The productivity of the factors of all the groups of the product concerned has increased during 
the period subject to investigation.   
 
11. Conclusion 
 The data show negative developments for capac ity utilization rate, production, domestic sales, 
market share and closing stocks in recent years.    G/SG/N/8/TUR/9 
 G/SG/N/10/TUR/9 
 G/SG/N/11/TUR/9 
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   Imports have indicated a sharp and substan tial increase most remarkably in 2004 and 2005 
and 2006.    
 Taking account of all of these factors, inves tigating authority concludes that the domestic 
industry has suffered serious injury caused by increase in imports.    B. C
AUSATION ANALYSIS  
In order to examine the existence of a causal link between increased imports and the serious 
injury, and in order to ensure that  injury caused by other factors is not attributed to increased imports, 
the investigating authority analyzed th e effects of the following factors:   
 
1. Analysis of causation factors 
- Effect of increased imports:   
Imports have been on an increasing trend in th e period under examination.  Imports of the 
products under group A have increased most promin ently in years 2004 and 2005 with increase rates 
of 131 per cent and 204 per cent.  Imports of this group are 581 thousand pieces in 2002 and 
9.4 million pieces in 2007.  As for the group B1 th e imports have increased continuously throughout 
the period under investigation.  Especially in 2003 and 2004 significant increases occurred in this 
group.  The increasing rate was 117 per cent in 200 4.  In group B2 imports have increased from 
636 thousand pieces in 2002 to 2.5 million pieces in 2006 and maintained this volume in 2007.  The 
most significant increase in imports was in 2004 with th e rate of 80 per cent respectively.  In group C, 
imports have increased from 359 thousand pieces to 2.5 million pieces between 2002-2006 periods and in 2007 the increasing rate is 49 per cent respectively.    
There has been an important price undercutting with the rates of changing from 9 per cent to 
40 per cent of the products concerned.    
For the foregoing reasons, the investigating aut hority concludes that there is a correlation 
between the increase in imports at low prices and th e serious injury suffered by the domestic industry, 
and that the increase in imports has had injurious effects.   
- Other Factors 
 
(a) Effect of changes in consumption:  Demand for the product concerned has not 
decreased significantly throughout the period under consideration.    
(b) Effect of competition between the domest ic producers:  Competition in the domestic 
market has not created an injurious effect.    
(c) Changes in production technology:  The production technology used by the domestic 
industry is the same with the technology used by foreign producers.    
(d) Alternative products and changes in cons umer preferences:  There is no product, 
which can be a substitute for the product concerned.  Therefore, changes in u ser preferences have not 
been identified.    
(e) Lack of production capacity:  The dom estic industry has adequate production 
capacity to meet domestic demand.    G/SG/N/8/TUR/9 
G/SG/N/10/TUR/9 G/SG/N/11/TUR/9 
Page 6 
  
  (f) Changes in financial costs:  The investig ating authority determined that changes in 
financial costs did not contribute to the in jury suffered by the domestic industry.   
 
(g) Effect of changes in export performance:  The effect of variations in the level of 
exports has also been examined.  Since domestic sales constituted major proportion of total sales 
during the period under examination, it is conclude d that there is no link between the changes in 
exports and the injurious effects observed.    2. Conclusion on causation 
 After having examined the injurious effects of the other known factors, the investigating 
authority has reached the conclusion that there is a genuine and substantial causal link between 
increased imports and serious injury to the domestic industry.    II. INFORMATION ON WHETHER THERE IS AN ABSOLUTE INCREASE IN 
IMPORTS OR AN INCREASE IN IMPORTS RELATIVE TO DOMESTIC PRODUCTION 
An analysis of the increase in imports to Tu rkey of the product concerned has been carried 
out over the period from 2002 to 2007, both in absolu te terms, and relative to domestic production.  
Imports of the product concerned increa sed considerably in that period. 
1. Volume of imports 
Imports  
(thousand pieces) 2002 2003 2004 2005 2006 2007 
Group A 581 843 1.945 5.921 8.143 9.421 
Group B1 3.696 7.856 17.076 26.338 32.789 43.939 
Group B2 636 753 1.354 1.965 2.484 2.402 
Group C 359 426 799 1.977 2.558 3.800 
 
Imports have been on an increasing trend in th e period under examination.  Imports of the 
products under group A have increased most prominently in years 2004 and 2005.  As for the group B1 the imports has increased continuously throughout the period under investigation.  
Especially in 2003 and 2004 significant increases occu rred in this group.  In group B2 the most 
significant increase in imports was in 2004.  In  group C imports have increased from 359 thousand 
pieces to 2.5 million pieces between 2002-2006 periods a nd in 2007 the increasing rate is 49 per cent 
respectively.    
Imports /Production (%) 2002 2003 2004 2005 2006 2007 
Group A 108% 138% 170% 163% 178% 186% 
Group B1 92% 270% 133% 150% 304% 774% 
Group B2 213% 245% 194% 223% 733% 567% 
Group C 25% 27% 30% 45% 52% 64% 
  G/SG/N/8/TUR/9 
 G/SG/N/10/TUR/9 
 G/SG/N/11/TUR/9 
 Page 7 
  
   Relative to domestic production, imports increased in the period of 2002-2006 and the 
increasing rate reached to its highest level in 2006 with increases of 15 points for group A, 154 points 
for group B1, 510 points for group B2 and 7 points for group C.   
 
2. Market share of imports 
Market share of imports 
(%) 2002 2003 2004 2005 2006 2007 
Group A 52% 58% 63% 62% 64% 65% 
Group B1 48% 73% 57% 60% 75% 89% 
Group B2 68% 71% 66% 69% 88% 85% 
Group C 20% 21% 23% 31% 34% 39% 
 
 The market shares of imports throughout the pe riod under investigation have increased in all 
groups of the product concerned.  The most significant increases between 2002-2005 occurred in groups B1 and C.  Especially in groups B1 a nd B2 there were important increases in 2006.   
 
III. PRECISE DESCRIPTION OF THE PRODUCT INVOLVED 
 The products concerned are travel bags, hand ba gs and other containers that are currently 
classified within the Turkish Customs Tariff Sc hedule under the subheading 42.02.  These products 
have been divided into 4 groups according to features such as their supply chains, functions, 
characteristics, economic life, and consumer percep tions and demand.  Group A consist of trunks, 
suitcases, vanity cases and travelling-bags;  Group B1  and B2 consist of ex ecutive-cases, briefcases, 
toilet bags, rucksacks, handbags, s ports bags, wallets and purses of  sheeting of plastics, textile 
materials, and vulcanised fibre being in group B1 and of other materials being in Group B2;  Group C 
consist of spectacle cases, binocular cases, camera cases, musical instrument cases, gun cases, 
holsters, insulated food or beverages bags, map-ca ses, cigarette cases, tobacco-pouches, tool bags, 
bottle-cases, jewellery boxes, powder boxes, cutlery cases and similar containers.   
 IV. DESCRIPTION OF THE PROPOSED MEASURE 
 It is proposed to impose definitive safegua rd measure in the form of fixed duty of 
3 US Dollars/Kilograms and maximum 5 US Dollars/Pieces for the first year, 2,90 US Dollars/Kilograms and maximum 4,75 US Dollars/Pieces for the second year and 2,80 US Dollars/Kilograms and maximum 4,50 US Dollars/Pieces for the third year.   
 Below is the list of Developing Countries exclude d from the measures as they export less than 
3 per cent of imports to Turkey (Article 9.1 of the Agreement on Safeguards ) 
 
Afghanistan;  Algeria;  Antigua and Barbuda;  Angola;  Argentina;  American Samoa;  
Anguilla;  Antarctica;  Aruba;  Azerbaijan;  Barb ados;  Bangladesh;  Burkina Faso;  Bahrain;  
Burundi;  Benin;  Bolivarian Republic of Venezuela;  Brunei Darussalam;  Bolivia;  Brazil;  Bahamas;  
Bhutan;  Botswana;  Belize;  Bermuda;  Bouvet Isla nd;  British Virgin Islands;  British Indian Ocean 
Territory;  Democratic Republic of Congo;  Cent ral African Republic;  Congo;  Côte d'Ivoire;  
Cameroon;  Chad;  Colombia;  Costa Rica;  Cuba;  Cape Verde;  Cayman Islands;  Chile;  Christmas 
Islands;  Cocos Islands;  Cook Isla nds;  Djibouti;  Dominica;  Dominican Republic;  Ecuador;  Egypt;  
Eritrea;  Ethiopia;  Fiji;  Federated States of Micronesia;  Falkland Islands;  French Polynesia;  French 
Southern Territories;  Gabon;  Grenada;  Ghana;  Ga mbia;  Georgia;  Greenland;  Guinea;  Equatorial G/SG/N/8/TUR/9 
G/SG/N/10/TUR/9 G/SG/N/11/TUR/9 
Page 8 
  
  Guinea;  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;  Maurita nia;  Mauritius;  Malaysia;  
Maldives;  Malawi;  Mozambique;  Macao;  Mayotte;  Mexico;  Montserrat;  Namibia;  Niger;  Nigeria;  Nicaragua;  Nepal;  Nauru;  Netherlands  Antilles;  New Caledonia;  Niue Island;  Norfolk 
Island;  Northern Mariana Islands;  Oman;  Pana ma;  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 African; South Georgia and South 
Sandwich Islands;  St Hele na and dependencies;  St Pierre and Miquelon;  Tajikistan;  Thailand;  
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 Vincen t;  Vietnam;  Vanuatu;  Virgin Islands of the US;  
Wallis and Futuna Islands;  Yemen;   Zambia;  and Zimbabwe.   
 
V. PROPOSED DATE OF INTRODUCTION OF THE MEASURE 
The investigation report was published in the Turkish Official Gazette on 7 March 2008.  
Application of the measure is pending ap proval of the Council of Ministers.   
 
VI. EXPECTED DURATION OF THE MEASURE 
 The expected duration of the proposed measure is three years.   
 
VII. PROPOSED DATE FOR THE REVIEW  
 Not applicable.   
 
VIII.  EXPECTED TIMETABLE FOR PROGRESSIVE LIBERALIZATION OF THE 
MEASURE 
 In order to facilitate adjustment, the proposed  measure will be subject to liberalization on a 
regular basis following its imposition, thereby en suring that there is an incentive for domestic 
producers to progressively undertake the necessary rest ructuring and adjustment.  The timetable for 
progressive liberalization of the prop osed measure is shown below.   
 
Period Fixed Duty 
1st year 3 USD/Kg. Max. 5 USD/Pcs. 
2nd year 2,90 USD/Kg. Max. 4,75USD/Pcs. 
3rd year 2,80 USD/Kg. Max. 4,50 USD/Pcs. 
 
IX. INFORMATION RELATING TO THE EXTENSION OF A SAFEGUARD MEASURE 
 Not applicable.   
  
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