WORLD TRADE  
ORGANIZATION  G/SG/N/8/TUR/2 
G/SG/N/10/TUR/2 
G/SG/N/11/TUR/2 
15 July 2005 
 (05-3149) 
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 
 
(Certain Voltmeters and Ammeters) 
   The following notification, dated 13 July 2005, is being circulated at the request of the 
Delegation of Turkey. 
 
_______________ 
 
 
  This notification is made pursuant to th e provisions of Articles 9 (Footnote 2), 12.1(b) 
and 12.1(c) of the Agreement on Safeguards to  inform the Committee on Safeguards that the 
safeguard investigation on imports of Certain Voltm eters and Ammeters into Turkey carried out by 
the Turkish authorities has been concluded.  While the investigation has been terminated with no 
measure imposed on the imports of the goods under certa in tariff classifications, the imports of the 
goods under certain other tariff classifications will be subject to a measure as stated in the enclosure. 
  Please find enclosed specific information w ith regards to the investigations and the 
notification of findings of serious injury or th reat thereof caused by increased imports and of 
safeguard measures against the imports of the said product. G/SG/N/8/TUR/2 
G/SG/N/10/TUR/2 G/SG/N/11/TUR/2 
Page 2 
  
  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. 
 
(1) On 17 July 2004, Turkey initiated an investigati on relating to serious injury or threat thereof 
to domestic producers of products like or direc tly competing with the imported product.  The 
initiation of the investigation has been  notified to the Committee on Safeguards.
1  
 
(2) Consistent with Article 12.3 of the Agreement on Safeguards , Turkey is prepared to consult 
with those Members having a substantial inte rest as exporters of the product concerned. 
 (3) The investigation has been concluded with safeguard measure for the products classified 
within the Turkish Customs Tariff Schedule 9030 39 91 00 00 and 9030 39 99 00 13; and 
with no safeguard measure for the products cl assified within the Turkish Customs Tariff 
Schedule 9030 39 30 00 14, 9030 39 30 00 11 and 8504 31 39 00 00.  
 
 
VOLTMETERS 
 
Evidence of serious injury or threat thereof caused by increased imports 
 
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.  Th e petitioner and supporter of the investigation have 
constituted major proportion of domestic production. Hence, the following evaluation has been based 
upon data provided by the applicant companies.  
 
1. Capacity Utilization  
 2000  2001  2002  2003  2004  
Capacity Utilization 
(%) 30 27 14 8 11 
 
 Capacity utilization, between 2000-2003, fell fro m 30% to 8% and there is slight increase in 
2004 as to previous year. 
 
2. Production  
 2000  2001  2002  2003  2004  
Production 
(quantity index)  100 89 46 27 38 
 
                                                      
1 G/SG/N/6/TUR/5  G/SG/N/8/TUR/2 
 G/SG/N/10/TUR/2 
 G/SG/N/11/TUR/2 
 Page 3 
  
  Quantity index figures of domestic production for the years 2001-2004 are 89, 46, 27 and 38. 
In other words production fell by 62% in 2004 as to 2000. 
 
3. Employment 
 
 2000  2001  2002  2003  2004  
Employment 
(Index) (end of period)  100 63 62 52 41 
 
 The data shows 59% decrease in em ployment level between 2000-2004.   
 4. Domestic Sales Volume  
 2000  2001  2002  2003  2004  
Domestic sales  
(quantity index)  100 79 46 32 43 
 
 Domestic sales of the product concerned fell by 57% in 2004 comparing with the year 2000.   5. Market share 
 
 2000  2001  2002  2003  2004  
Market share 
(Index)  100 86 34 19 17 
 
 There is a dramatic decline in market share of the domestic industry,  falling by 83% in 2004 
comparing with the year 2000. The substantial fa lls demonstrate the increasing market share of 
imports in this period.   
 6. Price of the like product and undercutting  
 2000  2001  2002  2003  2004  
Unit Prices of 
Domestic sales (YTL/Kg-Real) 15,38 14,88 14,94 10,58 6,27 
Unit Prices of 
Total Imports (YTL/Kg-Real) 16,68 13,09 6,47 3,86 3,50 
Price undercutting 
(%) -8 12 57 63 44 
 G/SG/N/8/TUR/2 
G/SG/N/10/TUR/2 G/SG/N/11/TUR/2 
Page 4 
  
 1.  The recalculated average unit prices of total imports (CIF import prices + customs 
duty + other expenses) show a re ducing trend betw een 2000-2004.  
 Based on a comparison of average selling prices charged by the domestic producer and 
recalculated import prices, domestic prices were undercut by 12% and 63% throughout the four-year 
period examined.  7. Profit and loss  
 2000  2001  2002  2003  2004  
Net profit/loss (%)  Profit Profit Profit Loss Loss 
 
 The domestic industry was profitable for the years between 2000 and 2002. For last two years under consideration the data of domestic industry shows loss.  8. Stocks 
 
 2000  2001  2002  2003  2004  
Closing stocks 
(quantity index)  100 203 167 79 162 
 
 The stock levels of the domestic industry varied  in the five-year period under consideration.  
 9.  Productivity  
 2000  2001  2002  2003  2004  
Productivity 
(kg/employee - index)  100 142 74 52 93 
 
 Productivity of the product concerned show ed varied trend during the period under 
consideration. 
 
10.  Conclusion   Increase in Imports:  The imports of produc ts under consideration have increased by 
707% between 2000 and 2004 in absolute terms, 1,979% relative to domestic sales and 2,348% 
relative to domestic production.  The market share of imports reached its hi ghest level in 2004 as 87% 
while it was 25% in 2000.  
  It is concluded that the product concerned is  being imported in quantities that have increased 
suddenly, sharply and significantly in the period  under consideration both in absolute terms and 
relative to domestic sales and production. 
  G/SG/N/8/TUR/2 
 G/SG/N/10/TUR/2 
 G/SG/N/11/TUR/2 
 Page 5 
  
  Serious Injury on Domestic Producers: Domestic production has declined by 62%, domestic 
sales have decreased by 57%, domestic producers have  lost market share significantly, which was 
75% in 2000.  
 
 Capacity utilization has fallen to level of 11%  in 2004. Employment has also fallen sharply, 
59%, in the period under consideration.    Domestic prices were undercut by 12% and 44% throughout the 4 year-period examined by 
the investigating authority. 
  Taking account of the negative changes in the economic factors examined, it is considered 
that the domestic industry has suffered serious injury. No other factors, contributed to the injury apart 
from the increase in imports, were identified.  
 
 There is also coincidence in time between the increase in imports and injury to the domestic 
producers.  Therefore it is concluded that there is a clear substantial link between increased imports and serious overall impairment  of the domestic producers. 
 
Information on whether there is an absolu te increase in imports or an increase in 
imports relative to domestic production 
 
  The investigation was conducted in accordance w ith the requirements of Turkish Legislation 
on Safeguard Measures and the procedures prescrib ed by the WTO Agreement on Safeguards and 
Article XIX of GATT 1994.  
 
 The investigating authority found that the va lue of Turkish Lira a ppreciated unexpectedly 
since 2002. According to the data circulated by th e Central Bank of the Republic of Turkey, Turkish 
Lira appreciated by 22% in real terms in the period of December 2002-December 2004.  The real 
value gain of Turkish Lira speeded up the imports and lessened the competitive power and 
profitability of the domestic industry.  The incr eased imports in significant quantities consequently 
eroded the domestic industry’s market share.  More over, the depreciation of US dollar against euro 
gave more advantage to the countries that u se US dollar as the trade settlement currency.  
 In addition Turkey applies relatively low custom  rate as 2.1% for the countries other than EU, 
EFTA, developing countries and least developed countries.  
 As it is well known far eastern countries have huge  export capacity for the product concerned.  
 As a result of the relatively low custom rate, huge export capacity in exporting countries and 
appreciated Turkish Lira are the main reasons of the increased imports.  
 An examination has been undertaken based on data for the period 2000 to 2004, focusing on 
imports in the most recent period for which reliabl e data are available, to establish whether the 
product concerned is imported into Turkey in such greatly increased quantities, absolute or relative to 
total domestic production, and/or on su ch terms or conditions as to cause, or threaten to cause, serious 
injury to the domestic industry. 
  The table below shows the development of imports for the years 2000-2004. The imports 
figures are the figures for imports of voltmeters.  
 G/SG/N/8/TUR/2 
G/SG/N/10/TUR/2 G/SG/N/11/TUR/2 
Page 6 
  
 1.  Volume of Imports 
 
 2000  2001  2002  2003  2004  
Total imports (Kg)  4,071 5,343 15,255 20,086 32,857 
 
  Imports of product concerned increased in abso lute terms between 2000  and 2004.  In other 
words imports increased by 707% and reached  at 32,857 kg while it was 4,071 kg in 2000. 
   
 2000  2001  2002  2003  2004  
Total imports 
(quantity index)  100 131 375 493 807 
Domestic 
Production 
(quantity index)  100 89 46 27 38 
Imports/ 
Production  33% 47% 287% 762% 808% 
  
 Imports of the product under investigation al so grew relative to production between 2000 and 
2004. Imports/production ratio increased by 808%  and reached its highest level in 2004.  
2.  Market share of imports 
 
 2000  2001  2002  2003  2004  
2. Market 
share 
of imports  25% 35% 74% 85% 87% 
 
 The market share of imports has showed an upward trend between 2000-2004 and increased 
from 25% to 87% in the mentioned period.   
3.  Import prices 
 
 2000  2001  2002  2003  2004  
US $/Kg  25 16 10 13 13 
 
 The average prices of the total imports are 25, 16, 10, 13 and 13 between 2000-2004.  
  G/SG/N/8/TUR/2 
 G/SG/N/10/TUR/2 
 G/SG/N/11/TUR/2 
 Page 7 
  
 Precise description of the product involved 
 
 The product concerned is classified within the Turkish Customs Tariff Schedule 9030 39 91 
00 00 of which heading is voltmeters. 
 
Description of the proposed measure 
 
 It is proposed to impose definitive safeguard measure in the form of quantitative restriction 
for three years.  The quota level for the first year is 11,200 kg.  If the CIF import price of the product 
concerned is higher than 80 US $ per kg or tota l import volume is lower than gross 50 kg for per 
import declaration, the imports will not  be subject to quota implementation. 
 
 
AMMETERS 
  
 Evidence of serious injury or threa t thereof caused by increased imports 
 
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.  Th e petitioner and supporter of the investigation have 
constituted major proportion of dom estic production.  Hence, the fo llowing evaluation has been based 
upon data provided by the applicant companies.   
1. Capacity Utilization 
 
 2000  2001  2002  2003  2004  
Capacity 
Utilization (%)  29 22 17 10 14 
 
 Capacity utilization, between 2000-2003, fell from 29% to 10% and there is a slight increase 
in 2004 as to previous year. 
2. Production 
 
 2000  2001  2002  2003  2004  
Production 
(quantity index)  100 76 58 36 49 
 
 Quantity index figures of domestic production for the years 2001-2004 are 76, 58, 36 and 49. 
In other words production fell by 51% in 2004 as to 2000. 
 G/SG/N/8/TUR/2 
G/SG/N/10/TUR/2 G/SG/N/11/TUR/2 
Page 8 
  
 3. Employment 
 
 2000  2001  2002  2003  2004  
Employment 
(Index) (end of period)  100 63 62 52 41 
 
 The data shows 59% decrease in em ployment level between 2000-2004.   
 
4. Domestic Sales Volume  
 2000  2001  2002  2003  2004  
Domestic sales  
(quantity index)  100 60 54 38 48 
 
 Domestic sales of the product concerned fell by 52% in 2004 comparing with the year 2000.  
 
5. Market share  
 2000  2001  2002  2003  2004  
Market share 
(Index)  100 100 42 20 16 
 
 There is a dramatic decline in market share of the domestic industry,  falling by 84% in 2004 
comparing with the year 2000. The substantial fa lls demonstrate the increasing market share of 
imports in this period.   
 
6. Price of the like product and undercutting 
 
 2000  2001  2002  2003  2004  
Unit Prices of 
Domestic sales 
(YTL/Kg-Real) 14,34 15,03 14,14 9,22 5,85 
Unit Prices of 
Total Imports 
(YTL/Kg-Real) 82,87 95,07 8,13 3,23 2,97 
Price undercutting 
(%) -478 -532 43 65 49 
 
 The recalculated average unit prices of total imports (CIF import prices + customs duty + 
other expenses) show a reduc ing trend between 2000-2004.   G/SG/N/8/TUR/2 
 G/SG/N/10/TUR/2 
 G/SG/N/11/TUR/2 
 Page 9 
  
  
 Based on a comparison of average selling prices charged by the domestic producer and recalculated import prices, domestic prices were undercut by 43% and 65% throughout the 3 year 
period examined by the investigating authority.  
 7. Profit and loss  
 2000  2001  2002  2003  2004  
Net profit/loss (%)  Profit Profit Profit Loss Loss 
 
 The domestic industry was profitable for the years between 2000 and 2002. For last two years under consideration the data of domestic industry shows loss.  8. Stocks  
 2000  2001  2002  2003  2004  
Closing stocks 
(quantity index)  100 168 134 129 54 
 
 The stock levels of the domestic industry varied  in the five-year period under consideration.  
 
9.  Productivity  
 2000  2001  2002  2003  2004  
Productivity 
(kg/employee-index)  100 121 94 69 121 
 
 Productivity of the product concerned s hows varied trend during the period under 
consideration.  
10.  Conclusion 
  Increase in Imports:  The imports of produc ts under consideration have increased by 
5,340% between 2000 and 2004 in absolute terms, 13,850% relative to domestic sales and 11,860% 
relative to domestic production.  The market share of imports reached its hi ghest level in 2004 as 85% 
while it was 4% in 2000.  
 
 It is concluded that the product concerned is  being imported in quantities that have increased 
suddenly, sharply and significantly in the period  under consideration both in absolute terms and 
relative to domestic sales and production.  
 Serious Injury on Domestic Producers: Domestic production has declined by 51%, domestic 
sales have decreased by 52%, domestic producers have  lost market share significantly, which was 
96% in 2000.   G/SG/N/8/TUR/2 
G/SG/N/10/TUR/2 G/SG/N/11/TUR/2 
Page 10 
  
  Capacity utilization has fallen to level of 14% in 2004.  Employment has also fallen sharply, 
59%, in the period under consideration.   
 Domestic prices were undercut between 43% and 65% throughout the 3 year-period examined 
by the investigating authority.    Taking account of the negative changes in the factors examined, it is considered that the 
domestic industry has suffered serious injury.  No other factors, contributed to the injury apart from 
the increase in imports, were identified.  
  There is also coincidence in time between the increase in imports and injury to the domestic 
producers.  Therefore it is concluded that there is a clear substantial link between increased imports and serious overall impairment  of the domestic producers. 
Information on whether there is an absolute increase in imports or an increase in imports 
relative to domestic production  
 The investigation was conducted in accordance w ith the requirements of Turkish Legislation 
on Safeguard Measures and the procedures prescrib ed by the WTO Agreement on Safeguards and 
Article XIX of GATT 1994.  
 The investigating authority found that the va lue of Turkish Lira a ppreciated unexpectedly 
since 2002.  According to the data circulated by the Central Bank of the Republic of Turkey, Turkish 
Lira appreciated by 22% in real terms in the period of December 2002-December 2004.  The real 
value gain of Turkish Lira speeded up the imports and lessened the competitive power and 
profitability of the domestic industry.  The incr eased imports in significant quantities consequently 
eroded the domestic industry’s market share.  More over, the depreciation of US dollar against euro 
gave more advantage to the countries that u se US dollar as the trade settlement currency.  
 In addition Turkey applies relatively low custom  rate as 2.1% for the countries other than EU, 
EFTA, developing countries and least developed countries.  
 As it is well known far eastern countries have huge  export capacity for the product concerned.  
 As a result of the relatively low custom rate, huge export capacity in exporting countries and 
appreciated Turkish Lira are the main reasons of the increased imports.  
 An examination has been undertaken based on data for the period 2000 to 2004, focusing on 
imports in the most recent period for which reliabl e data are available, to establish whether the 
product concerned is imported into Turkey in such greatly increased quantities, absolute or relative to 
total domestic production, and/or on su ch terms or conditions as to cause, or threaten to cause, serious 
injury to the domestic industry. 
  The table below shows the development of imports for the years 2000-2004.  The imports figures are the figures for imports of bleaching earth-acid activated clays.   G/SG/N/8/TUR/2 
 G/SG/N/10/TUR/2 
 G/SG/N/11/TUR/2 
 Page 11 
  
 1.  Volume of Imports 
 
 2000  2001  2002  2003  2004  
Total imports 
(Kg)  1,129 554 18,806 36,218 61,421 
 
 Imports of product concerned increased drama tically in absolute terms between 2000 and 
2004. In other words imports increased by 5,340%  and reached at 61,421 kg while it was 1,129 kg in 
2000. 
  
 2000  2001  2002  2003  2004  
Total imports 
(quantity index)  100 49 1,666 3,208 5,440 
Domestic 
Production (quantity index)  100 76 58 36 49 
Imports/ 
Production  5% 3% 147% 531% 598% 
 
 Imports of the products under investigation also grew relative to production between 2000 
and 2004.  Imports/production ratio increased and reached its highest leve l by 598% in 2004.  
2.  Market share of imports 
 
 2000  2001  2002  2003  2004  
Market share 
of imports  4% 4% 59% 81% 85% 
 
 The market share of imports showed an upward trend between 2000 and 2004 increased from 
4% to 85% in the mentioned period.   3.  Import prices 
 
 2000  2001  2002  2003  2004  
US $/Kg  125 118 12 11 11 
 
 The average prices of the total imports are 125, 118, 12, 11 and 11 between 2000-2004.  
 G/SG/N/8/TUR/2 
G/SG/N/10/TUR/2 G/SG/N/11/TUR/2 
Page 12 
  
 Precise description of the product involved 
 
 The product concerned is classified within the Turkish Customs Tariff Schedule 9030 39 99 
00 13 of which heading is ammeters. 
 
 Description of the proposed measure 
 
 It is proposed to impose definitive safeguard measure in the form of quantitative restriction 
for three years.  The quota level for the first year is 14,200 kg.  If the CIF import price of the product 
concerned is higher than 80 US $ per kg or tota l import volume is lower than gross 50 kg for per 
import declaration, the imports will not  be subject to quota implementation. 
 
 Below is the list of Developing Countries excl uded from the measures as they export less 
than 3% of imports to Turkey (Article 9.1 of the Agreement on Safeguards)  
Afghanistan; Algeria; American Samoa; Angol a; Anguilla; Antarctica; Antigua and Barbuda; 
Argentina; Aruba; Azerbaijan; Bahamas; Bahrain;  Bangladesh; Barbados; Belarus; Belize; Benin; 
Bermuda; Bhutan; Bolivia; Botswa na; Bouvet Island; Brazil; British Indian Ocean Territory; British 
Virgin Islands; Brunei Darussalam; Burkina Faso ; Burundi; Cambodia; Cameroon; Cape Verde; 
Cayman Islands; Central African Republic; Chad; Chile; Christmas Islands; Cocos Islands; Colombia; 
Comoros; Congo; Cook Islands; Costa Rica; Côte d'Ivoire; Cuba; Democratic Republic of Congo; 
Djibouti; Dominica; Dominican Republic; East Timo r; Ecuador; Egypt; El Salvador; Equatorial 
Guinea; Eritrea; Ethiopia; Falkland Islands; Federate d States of Micronesia; Fiji; French Polynesia; 
French Southern Territories; Gabon; Gambia; Georgia;  Ghana; Gibraltar; Greenland; Grenada; Guam; 
Guatemala; Guinea; Guinea-Bissau; Guyana; Haiti; Heard Island and McD onald Islands; Honduras; 
India; Indonesia; Iran (Islamic Republic of); Iraq;  Jamaica; Jordan; Kazakhstan; Kenya; Kiribati; 
Kuwait; Kyrgyzstan; Laos; Lebanon; Lesotho; Liberi a; Libyan Arab Jamahiriya; Macao; Madagascar; 
Malawi; Maldives; Malaysia; Ma li; Marshall Islands; Mauritania;  Mauritius; Mayotte; Mexico; 
Moldova; Mongolia; Montserrat; Morocco; Mozambi que; Namibia; Nauru; Nepal; Netherlands 
Antilles; New Caledonia; Nicaragua; Niger; Nigeria; Niue Island; Norfolk Island; Northern Mariana 
Islands; Oman; Pakistan; Palau; Panama; Papua New Guinea; Paraguay; Peru; Philippines; Pitcairn; 
Qatar; Russian Federation; Rwanda; Samoa; Sa o Tome and Principe; Saudi Arabia; Senegal; 
Seychelles; Sierra Leone; Solomon Islands; So malia; South Africa; South Georgia and South 
Sandwich Islands; Sri Lanka; St. Hele na and Dependencies; St. Kitts and Nevis; St. Lucia; St. Pierre 
and Miquelon; St. Vincent; Sudan; Suriname; Swaz iland; Syrian Arab Republic; Tajikistan; Tanzania; 
Thailand; Togo; Tokelau; Tonga; Trinidad and To bago; Tunisia; Turkmenistan; Turks and Caicos 
Islands; Tuvalu; Uganda; Ukraine; United Arab Emirates; United States Minor Outlying Islands; 
Uruguay; Uzbekistan; Vanuatu; Venezuela; Vietnam;  Virgin Islands of USA; Wallis and Futuna 
Islands; Yemen; Zambia and Zimbabwe  
 
Proposed date of introduction of the measures
 
 
The date of introduction of the proposed measure is 12 August 2005.          
Expected duration of the measures 
 
 The expected duration of the proposed measure is three years. 
 
Proposed date for the review  
 
 Not applicable.  G/SG/N/8/TUR/2 
 G/SG/N/10/TUR/2 
 G/SG/N/11/TUR/2 
 Page 13 
  
  
Expected timetable for progressive liberalization of the measures 
 
In order to induce adjustment, the quota level will be subject to liberalization on a regular 
basis following its imposition, thereby ensuring that  there is a strong incentive for domestic producer 
to progressively undertake the necessary restructurin g and adjustment.  The timetable for progressive 
liberalization of the proposed measure for voltmeters and ammeters is shown below.  
 
 1
st year (period)  2nd year (period)  3rd year (period)  
Voltmeters 11,200 kg. 11,760 kg. 12,348 kg. 
Ammeters 14,200 kg. 14,910 kg. 15,655.5 kg. 
 
Information relating to the extension of a safeguard measure 
 
 Not applicable. 
 
__________