WORLD TRADE  
ORGANIZATION  G/SG/N/7/TUR/4 
29 July 2009 
 (09-3686) 
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 
 
(Footwear)
 
   The following communication, dated 21 July 2009, is being circulated at the request of the 
Delegation of Turkey.   
 
_______________ 
 
  We enclose a notification pursuant to Article  12.4 of the Agreement on Safeguards, before 
taking a provisional safeguard measure against imports of certain footwear 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 certain footwear was notifie d with the document G/SG/N/10/TUR/6, dated 
12 July 2006.  The initiation of an investigation to review the exis ting safeguard measure was notified 
with the document G/SG/N/6/TUR/6 /Suppl.1, dated 11 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 saf eguard measure is classified within the 
Turkish Customs Tariff Schedule 64.02, 64.03 and 64.04.    
2. The proposed provisional safeguard measure 
 
It is proposed to impose provisional safeguard me asure in the form of specific duty, which 
will be implemented as follows.  The duty  shall be collected as a security.   
 
Customs Code Specific Duty (USD/Pair) 
64.02 (1)(2) 1,70 
64.03 (1) (2) 2,55 
64.04 (1) (2) 1,70 
 
(1) 6402.19;  6403.12;  6403.19;  6404.11 subheadings are excluded from the measure.   
(2) For the products under following subheadings, the duty will be 1,20 USD/pair;  6402.99.50;  
6402.99.91;  6403.51.11;  6403.51.91;  6403.59.31;  6403.59.50.00.11;  6403.59.50.00.12;  6403.59.50.00.13;  6403.59.91;  6403.91.11;  6403.91.91;  6403.99.31;  6403.99.50;  6403.99.91;  
6404.19.10.00.11;  6404.19.10.00.12;  6404.19.10.00.13;  6404.19.90.00.13;  6404.20.10.   G/SG/N/7/TUR/4 
Page 2  
 
  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 10 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/8/TUR/6, 
dated 12 July 2006.  Accordingly, a safeguard measure  against imports of certain footwear for 3 years 
was put into force on 10 August 2006.  Information on  the changes in the leve l of imports and certain 
economic indicators of the domestic industry that were recorded during the period the safeguard 
measure has been applied is provided below.    CHANGE IN IMPORTS  
Imports Unit 2006 2007 2008 
Absolute Imports Pairs 34,199,593 31,261,885 36,025,987 
Change % - -9 15 
 
 The imports of the products concerned declined in 2007 by 9 per cent.  However, in 2008, the 
imports have increased by 15 per cent to a leve l even higher than its level in 2006.   
 
Unit 2006 2007 2008 Imports/Production % 20 19 24 
 
 The ratio of imports to domestic production h as experienced a slight decrease in 2007 and it 
grew again in 2008 from 19 per cent to 24 per cent.   
 
Unit 2006 2007 2008 Market Share of 
Imports % 22 22 26 
 
 The market share of the imported footwear stay ed the same in 2006 and 2007.  In 2008, this 
ratio grew by 4 per cent.   
  Based on the import figures that are summarized above, it is concluded that imports of the product concerned decreased in the year following the first year the measure was initiated.  However, 
imports have increased by 15 per cent in 2008.  Furthermore, the ratio of imports to domestic 
production and market share of imports have increased in 2008.    G/SG/N/7/TUR/4 
 Page 3 
 
 
  ECONOMIC INDICATORS OF THE DOMESTIC INDUSTRY 
 
A preliminary analysis to assess the impacts of the existing safeguard measure on the 
situation of the domestic industry was carried out.  In this analysis, data submitted by 5 footwear 
producer and exporter associations and their member  companies, that constitute major proportion of 
domestic production, were utilized.   
 
(i) Consumption 
 
Consumption Unit 2006 2007 2008 
Quantity Pairs 156,443,135 141,855,152 138,194,739 
Change % - -9 -3 
 
 Consumption of the product concerned went down by 9 per cent in 2007 and continued this 
trend in 2008 with 3 per cent.    
(ii) Production 
 
Production Unit 2006 2007 2008 
Quantity Pairs 173,000,000 162,000,000 151,000,000 
Change % - -6 -7 
 
 The quantity of domestic production has decre ased in the 2006-2008 period by rates of 6 per 
cent in 2007 and 7 per cent in 2008.   
 
(iii) Capacity and Capacity Utilization Rate (CUR) 
 
Capacity Unit 2006 2007 2008 
Quantity Pairs 385,000,000 385,000,000 385,000,000 
CUR % 45 42 39 
 
 Total production capacity of the domestic footwear industry stayed the same in the period 
between 2006 and 2008.  However, with the decreas e in the production, the capacity utilization rate 
fell from 45 per cent in 2006 to 39 per cent in 2008.    
(iv) Domestic Sales 
 
Domestic Sales Unit 2006 2007 2008 
Quantity Pairs 122,243,542 110,593,267 102,168,752 
Change % - -9 -8 
 
 Domestic sales of the producers decreased by  9 per cent in 2007.  The same negative trend 
continued in 2008 with a decrease of 8 per cent.    
(v) Employment 
 
Employment Unit 2006 2007 2008 
Labor Direct 
Worker 294,000 283,000 278,000 
Change % - -4 -2 
 G/SG/N/7/TUR/4 
Page 4  
 
   The number of workers employed in the domestic footwear industry fell by 4 per cent 
in 2007.  The employment figures in sector continued to decrease in 2008 by 2 per cent.    
(vi) Productivity 
 
Productivity Unit 2006 2007 2008 
Labor Productivity Production 
per worker 588 572 543 
 
 Labor productivity fell by 3 per cent and 5 per cent in 2007 and 2008, respectively.   
 
(vii) Profits 
 
Profits Unit 2006 2007 2008 
Profitability % 4 3 1 
 
 Profitability declined in the sector from 4 per cent in 2006 to 1 per cent in 2008.   
 CONCLUSION  
In the preliminary analysis, the investigating au thority has concluded that the imports of the 
product concerned decreased significantly in the second calendar year after the safeguard measure 
was initiated.  However, the imports again increas ed in 2008 with a significant rate despite the 
existing safeguard measure.     Furthermore, the existence of the negative de velopments in the economic indicators of the 
domestic industry suggests that the domestic industr y still suffers from the serious injury caused by 
the increased imports of footwear.    
 (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 10 August 2006 and will come to an end on 9 August 2009.  The 
investigation to review this measure was i nvestigation was initiated on 4 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 investigation for the extension of the measure 
will not be completed until the end of the 3-year app lication period of the existing safeguard measure.   
 
Also, it was determined that imports of the product concerned increased notably in 2008 
despite the current safeguard measure.  Moreover, preliminary figures reveal that certain figures 
relating to domestic industry r ecovered 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 coul d negatively affect the recovery process of the 
domestic industry, the provisional safeguard me asure is proposed to eliminate any possible 
uncertainty that could come out with on-going inv estigation for reviewing the need for the extension 
of the current safeguard measure.  To achieve this objective, the provisional measure shall be 
collected as a security.     G/SG/N/7/TUR/4 
 Page 5 
 
 
  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. NOTIFICATION 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 describ ed 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;  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;  Gh ana;  Gambia;  Georgia;  Greenland;  Guinea;  
Equatorial Guinea;  Guatemala;  Guinea-Bissau;  Guyana;  Gibraltar;  Guam;  Honduras;  Haiti;  
Heard Island and McDonald Islands;  India;  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;  Nether lands 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; Sw aziland; South Africa; 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 Vin cent;  Vanuatu;  Virgin Islands of US;  Wallis and 
Futuna Islands;  Yemen;  Zambia and Zimbabwe.    
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