WORLD TRADE  
ORGANIZATION  G/SG/N/8/JOR/7 
G/SG/N/10/JOR/7 
G/SG/N/11/JOR/3 
22 July 2009 
 (09-3598) 
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 UNDER ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
 
JORDAN 
 
(Ceramic Tiles)
 
   The following communication, dated 20 July 2009, is being circulated at the request of the 
Delegation of Jordan.   
 
_______________ 
 
 
 In accordance with Article 12.1(b) of the Agr eement on Safeguards, Jordan hereby submits its 
notification on finding serious injury caused by increased imports of (Ceramic Tiles provided for under Jordanian tariff headings of 6907,909 and 6908,909).    
1. & 2. Provide evidence of serious injury or threat thereof caused by increased imports and, 
provide information on whether there is an absolute increase in imports or an increase 
in imports relative to domestic production 
 
 The National Production Protection Directorate (NPPD) has determined that there was sufficient evidence that the increase of imports of  the subject product had caused injury to the 
domestic industry producing like products during the period of investigation (2003-2008).   
 
 NPPD has recommended the appropriate remedy to the Minister of Industry and Trade who 
decided to recommend to the Council of Ministers the application of a safeguard measure.     The following are the conclusions reached by NPPD:   G/SG/N/8/JOR/7 
G/SG/N/10/JOR/7 G/SG/N/11/JOR/3 
Page 2 
  
  (a) Increased Imports 
 
Year 2003 2004 2005 2006 2007 2008 
Volume  
(in 
kilograms) 79,283,149 107,221,801 147,835,001 220,095,146 215,198,319 257,376,934
Absolute 
increase 
(base year) - 35% 86% 178% 171% 225% 
Absolute 
increase 
(year to 
year) - 35% 38% 49% (2%) 20% 
 
• The above table shows that imports had actually  increased, in absolute terms when compared 
to the year 2003 during the Period of Investigation (POI), starting from the year 2004 when imports increased by 35 per cent, and continued to increase massively in the following years as imports increased by 86 per cent in 2005, and by 178 per cent, 171 per cent in the 
years 2006 and 2007, until it reached 225 per cent in the year 2008.   
 
• Also the above table shows that imports ha d actually increased in absolute terms when 
comparing year to year. Imports increased by 35 per cent in the year 2004, and by 38 per cent in the year 2005, and by 49 per cent in the year 2006.  Imports recorded a very slight decrease in the year 2007 by 2 per cent, and continued to increase by 20 per cent in the year 2008.   
 
Year 2003 2004 2005 2006 2007 2008 
Relative Increase 
(imports to domestic 
production) 149% 207% 224% 412% 554% 652% 
 
• Imports increased significantly also in relative te rms.  The above table indicates that imports 
as a percentage of domestic production recorded very high rates during the POI.  This rate 
increased from 149 per cent in 2003 to 207 per cent in the year 2004, and increased to 224 per cent, 412 per cent, 554 per cent in the years 2005, 2006 and 2007 until it reached 652 per cent 
in the year 2008.   
  NPPD demonstrates that the increase in imports was sudden, sharp and recent both in absolute 
term and relative to domestic production.    
(b) Serious Injury 
 
Year 2003 2004 2005 2006 2007 2008 
Utilization rate of Capacity 
(%) 66 56 70 62 54 68 
Change in domestic  
production % - (5) 25 (2) (29) (29) 
Change in Gross Profit (%) - (35) (39) (121) (76) (77) 
Change in domestic sales % - 11 19 11 26 (20) 
Market Share (%) 33 29 24 17 19 11 
Change in Productivity % - (18) 10 (10) (27) (21)  G/SG/N/8/JOR/7 
 G/SG/N/10/JOR/7 
 G/SG/N/11/JOR/3 
 Page 3 
  
  Year 2003 2004 2005 2006 2007 2008 
Change in Employment (%) - 16 13 9 (3) (11) 
Change in stock (%) - (14) 13 14 (53) (36) 
 
• Market share of the domestic industry declined significantly and seriously during the 
POI, falling from 33 per cent in 2003 to 11 per cent in 2008.  The domestic industry lost 
significant market share to the increasing imports.  Imports were continuously extending 
its share of the market and affecting nega tively domestic producers' sales by diminishing 
their market share.  Market share of im ports increased from 67 per cent in the year 2003 
to 89 per cent in the year 2008.   
 
• Production declined during the POI starting from the year 2004 by 5 per cent, and 
increased by 25 per cent in 2005, but continued to decline in the years 2006, 2007 and 2008 compared to year 2003.   
 
• Domestic industry recorded a sharp declin e in gross profit throughout the POI when 
compared to the year 2003, as gross profit decreased in the years 2004, 2005, 2006, 2007 and 2008 by 35 per cent, 39 per cent, 121 per cent, 76 per cent and 77 per cent 
respectively.   
 
• Domestic sales increased by 11 per cent, 19 per cent, 11 per cent and 26 per cent in the 
years 2004, 2005, 2006 and 2007 compared to year 2003 although the domestic market grew by 27 per cent, 63 per cent, 123 per cent and 124 per cent respectively.  In the year 2008 domestic sales declined by 20 per cent although domestic market expanded by 
144 per cent compared to year 2003.   
 
• Domestic industry's actual capacity utilization fluctuated during the POI.  Capacity 
utilization of domestic producer which was a bout 66 per cent in 2003 declined to 56 per 
cent in the year 2004, then increased to 70 per cent in the year 2005, and decreased to 
62 per cent, 54 per cent in the years 2006 and 2007.  Capacity utilization maintained in the year 2008 at the level recorded in the year 2003.   
 
• Productivity, in terms of kilograms produced per person employed, declined 
significantly during the POI when compared to the year 2003.  After a decline of 18 per cent in the year 2004, productivity increased by 10 per cent in the year 2005, but it continued to decrease rapidly by 10 per cent, 27 per cent and 21 per cent in the following years respectively.  It is observed that the domestic industry has lost 
production and obviously lost productivity.   
 
• Employment increased slightly during years 2004, 2005 and 2006 but started to decline 
gradually in years 2007 and 2008 by 3 per cent and 11 per cent respectively.   
 
• The closing stocks of domestic producer which decreased in the year 2004 by 14 per 
cent, increased by 13 per cent and 14 per cent in the years 2005 and 2006.  However, the 
closing stock at the end of December 2007 and 2008 decreased due to a decrease in 
domestic production.   
  Taking into account all the above factors, N PPD concludes that the overall assessment of the 
situation in the domestic industry shows that dom estic industry has suffered from serious injury 
caused by the increase of imports.   G/SG/N/8/JOR/7 
G/SG/N/10/JOR/7 G/SG/N/11/JOR/3 
Page 4 
  
  (c) Causation 
 
NPPD has thoroughly investigated the causality factor between the increase in imports and 
injury in the domestic industry, and has determin ed that there is clear evidence of a casual link 
between the recent growth of imports of product unde r investigation and the injury caused to domestic 
producer.  NPPD determined that the increase coincide d with the injury in the domestic industry, and 
that no other injury factors had essentially attributed to the injury, other than the increase in imports.   
 3. Provide a precise description of the product involved 
 
 Product under investigation is Ceramic Tiles pr ovided for in the Jordanian tariff headings 
of 6907,909 and 6908,909.    
 Porcelain stoneware – which cannot be cons idered "like product or directly competitive 
product" will be excluded from the appli cation of the safeguard measure.   
 
4. Provide a precise description of the proposed measure 
 
 The proposed definitive safeguard measure is to impose, in addition to the applied tariff duty, 
a specific surcharge of 250 Jordanian fills per squa re meter for a period of three years less one day 
and subject to annual liberalization of 50 fills.    
5. Provide proposed date of introduction of the measure 
  In accordance with article (25) of the Regul ation on Safeguards of National Production, the 
date of introduction of the measure is the date of  publishing the decision of the Council of Ministers 
to impose the safeguard measure in two daily local newspapers.     The date of introduction of the measure sh all be notified to the Committee on Safeguards 
once the decision is published in two daily local newspapers.   
 
6. Provide the expected duration of the measure 
 
 Three years less one day.   
 7. For a measure with the duration of more th an three years, provide the proposed date 
for this review (under Article 7.4) to hold not later than mid-term of the measure, if such a date for review has already been scheduled 
 
 Not applicable.    8. If the expected duration is over one year, provide the expected timetable for progressive 
liberalization of the measure 
 
 The proposed measure is to be progressively liberalized as follows:    
H. S CODE First Year Second Year Third Year less  
one day 
6907.909 0.250 JD 0.200 JD 0.150 JD 
6908.909 0.250 JD 0.200 JD 0.150 JD  G/SG/N/8/JOR/7 
 G/SG/N/10/JOR/7 
 G/SG/N/11/JOR/3 
 Page 5 
  
  NOTIFICATION UNDER ARTICLE 9.1 F OOTNOTE 2 OF THE AGREEMENT ON 
SAFEGUARDS ON NON-APPLICATION OF SAFEGUARDS MEASURE TAKEN BY 
JORDAN TO THE IMPORTS ORIGINATING IN DEVELOPING COUNTRIES 
 
 
1. Specify the measure 
 
 The Safeguard measure is describ ed in the Jordan's notificati on under Article 12.1(b) of the 
Safeguard Agreement.   
 
2. Specify the product subject to the measure 
 
 Product subject to the measure is described in the Jordan's notification under Article 12.1(b) 
of the Safeguard Agreement.   
 
3. Specify the developing countries to which th e measure is not applied under Article 9.1 of 
the Agreement on Safeguards 
 
 The developing countries concerned are the following:   
 
Afghanistan Albania Antigua and Barbuda 
Angola Argentina Algeria 
American Samoa Anguilla Armenia 
Aruba Azerbaijan Barbados 
Bangladesh Burkina Faso Bahrain Kingdom of 
Burundi Benin Belarus 
Brunei Darussalam Bolivia Brazil 
Bahamas Bhutan Botswana 
Belize Bermuda Buvet Island 
British Virgin Islands British Indian O cean Territory Bosnia and Herzegovina 
Central African Republic  Congo Côte d'Ivoire 
Cameroon Cambodia Chad 
Colombia Costa Rica Cuba 
Cape Verde Cayman Islands Chile 
Chinese Taipei Christmas Islands Cocos Islands 
Cook Islands Comoros Croatia 
Djibouti Democratic Republic of Congo Dominica 
Dominican Republic East Timor Ecuador 
El Salvador Eritrea Equatorial Guinea  
Ethiopia Fiji Federated States of Micronesia 
Falkland Islands French Polynesi a French Southern Territories 
Former Yugoslav Republic of 
Macedonia (FYROM)  Gabon  Grenada 
Ghana The Gambia  Georgia  
Greenland Guinea Guatemala 
Guinea-Bissau Guyana Gibraltar 
Guam Honduras Haiti 
Heard Island and McDonald 
Islands Hong Kong, China India G/SG/N/8/JOR/7 
G/SG/N/10/JOR/7 G/SG/N/11/JOR/3 
Page 6 
  
  Indonesia  Iraq Iran 
Israel Jamaica Kazakhstan 
Kenya Kiribati Korea, Democratic Republic 
Kuwait Kyrgyz Republic Laos PDR 
Latvia Lebanon Lithuania  
Liberia Lesotho Libyan Arab Jamahiriya 
Madagascar Marshall Islands Mali 
Malaysia Moldova Mongolia 
Mauritania Mauritius Maldives 
Malawi Midway Is. Micronesia, Fed Sts 
Martinique Mozambique Macao, China 
Mayotte Myanmar Mexico 
Montserrat Morocco Namibia 
Niger Nigeria Nicaragua 
Nepal Nauru  Netherlands Antilles 
New Caledonia Niue Island Norfolk Island 
Northern Mariana Islands Oman Qatar 
Palestinian National Authority Panama Peru 
Papua New Guinea  Philippines Pakistan 
Palau Paraguay Pitcairn 
Reunion Russian Federation Rwanda 
Samoa Saudi Arabia Saint Lucia 
Serbia & Montenegro St Kitts and Nevis St Vincent 
Solomon Islands Seychelles Sudan 
Sierra Leone Singapore Sri Lanka 
Senegal Somalia South Africa 
Suriname Sao Tomé and Principe Swaziland 
South Georgia and South 
Sandwich Islands Slovenia  Slovakia 
St Helena and dependencies St Pierre and Miquelon Tajikistan 
Thailand Togo Tunisia 
Turkey Tonga Trinidad and Tobago 
Turkmenistan Tuvalu Tanzania 
Tokelau Turks and Caicos Islands Ukraine 
United States Minor outlying 
islands Uganda Uruguay  
Uzbekistan Vanuatu Vietnam 
Venezuela  Virgin Islands of USA Wallis and Futuna Islands 
Wake Is Yemen Yugoslavia, Fed. Rep. 
Zambia  Zimbabwe  
 
  
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