WORLD TRADE  
ORGANIZATION  G/SG/N/14/TUR/2 
G/SG/N/11/TUR/6/Suppl.1 
15 January 2010 
 (10-0200) 
Committee on Safeguards Original:   English 
   
NOTIFICATION UNDER ARTICLE 12.1(C) OF THE  
AGREEMENT ON SAFEGUARDS 
(EXTENSION OF THE EXISTING MEASURE) 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2 
OF THE AGREEMENT ON SAFEGUARDS 
 
TURKEY 
 
(Footwear
) 
 
 
 The following notification, dated 14 January 2010,  is being circulated at the request of the 
Delegation of Turkey.  
_______________ 
  
 We enclose a notification pursuant to Article 12.1(c) and Article 9, Footnote 2 of the Agreement on Safeguards, on taking a decision to ex tend a safeguard measure that is being applied 
against imports of footwear and non-application of safeguard measur e to developing countries.  The 
introduction of the existing safeguard measure wa s notified with the document G/SG/N/8/TUR/6, 
G/SG/N/10/TUR/6, G/SG/N/11/TUR/6, dated 12 July 2006. 
  Consistent with Article 12.3 of the Agre ement on Safeguards, Turkey is ready to hold 
consultations with those Members having a substan tial interest as exporters of the product concerned. 
 1. Evidence that the safeguard measure continue s to be necessary to prevent or remedy 
serious injury or threat thereof caused by  increased imports and that the industry 
concerned is adjusting 
 Pursuant to Article 7, paragraphs 2 and 3 of the Agreement on Safeguards, a safeguard 
measure should not be applied for a period exceeding four years, unless it is extended.  The period 
may be extended provided that th e competent authorities of the importing Member have determined 
that the safeguard measure continu es to be necessary to prevent or remedy serious injury and that 
there is evidence that the industry is adjusting.   The investigation conducted by Turkish inv estigating authorities examined past 5 years 
including the period before the safeguard measure was taken (from 2005 to the first half of the year 
2009). 
 G/SG/N/14/TUR/2 
G/SG/N/11/TUR/6/Suppl.1 Page 2 
 
 
  2005 2006 2007 2008 2009 
(First half) Domestic production 
(million pairs) 156 173 162 151 80 
 
 The domestic production of footwear increas ed in 2006 and started to decrease beginning 
with the year 2007 to the end of 2008.  The domest ic production increased in the first six months 
period of 2009.  
 
2005 2006 2007 2008 2009 
(First half) Domestic consumption 
(million pairs) 138 156 142 138 74 
 
 The consumption of footwear decreased in years following 2006.  Data available shows a 
slight increase in the consumption in the first six months period of 2009. 
 
2005 2006 2007 2008 2009 
(First half) Domestic sales 
 (million pairs) 110 122 111 102 55 
 
 In parallel with the fall in consumption figures following 2006, the domestic sales of the 
domestic producers decreased until the end of 2008.  The domestic sales increased in the first half of 
2009, again in parallel with the change in consumption.   
2005 2006 2007 2008 2009 
(First half) Market share 
 (per cent) 79 78 78 74 74 
 
 The share of the domestic industry in the market has continuously decreased.  From 2005 to 
2008, it decreased 5 percentile point.  In the first half  of 2009, the market share stayed the same on the 
previous year's level.  
2005 2006 2007 2008 2009 
(First half) Capacity utilization rate 
 (per cent) 41 45 42 39 39 
 
 The capacity utilization rate in the domestic  production of footwear started to decrease 
following 2006 with the decrease in the production.   
2005 2006 2007 2008 2009 
(End of first 
half) Employment 
 (workers) 
370,000 388,000 375,000 366,000 372,000 
 
 While the employment in the domestic footw ear production continued its downward trend in 
years following 2006, the employment figures showed an important recovery at the end of first six month period of 2009.   
2005 2006 2007 2008 2009 
(First half) Productivity 
 (index) 100 106 106 101 104 
  G/SG/N/14/TUR/2 
 G/SG/N/11/TUR/6/Suppl.1  Page 3 
 
 
   The productivity index improved in 2006 and 2007.   It deteriorated in 2008 and the index 
increased again in the first half of 2009.   
2005 2006 2007 2008 2009 
(First half) Profitability 
 (per cent) 1.3 4 3 1 3 
 
 Falling almost every year following 2006, the profits of the domestic footwear producers experienced an increase in first six months period of 2009.   The investigation revealed that the domestic producers implemented significant new projects 
in order to facilitate the adjustment of the domes tic industry.  Namely, the introduction of a new high 
school specifically targeted to obtain trained pe rsonnel in Istanbul, initiation of a design program in 
Istanbul University, holding a Training Conference in  Istanbul, the introduction of a special course for 
footwear and bags design in Izmir Economy Univer sity are among the measures of adjustment the 
domestic industry had taken for edu cation and training.  The applicant parties has lead way in the 
industry by taking measures for the promotion of the domestic products and new designs, such as 
Turkish Leather labelling and logo project, the prom otion of international fairs in Turkey and 
participation to other fairs, Is tanbul Fashion Days project, designe r contests with several universities 
in Istanbul, a special footwear design project called "Shoemaker".  Furthermore, the domestic 
producers actively took part in the preparation and the introduction of Sector Strategy for Leather 
Products, a project supported by sector institutions wi th an aim to improve the competitiveness of the 
enterprises by enhancing the capacities and the productivities. 
  In summary, it is understood in the investigati on domestic footwear producers have started to 
plan and introduce the adjustment  measures starting with the years 2002 and 2003 when they have 
been subject to the pressures of imports in the fi rst place.  It is also among the findings of the 
investigation that those measures were aimed at  the improvement the productivity and creating new 
designs and strategies of marketing in the domestic footwear industry. 
  However, subsequently, a substantial and c ontinuous increase of imports resulted in a 
decrease of the market share of domestic industry in consumption.  As a consequence, the main 
economic indicators of the domestic industry were affected: decrease in the figures of production, 
sales, capacity utilization rate and employment. Starting with the end of the year 2008, the economic 
indicators of the domestic producers showed certain tr ends in recovery. Within the first six months 
period of 2009, production, employment and domes tic sales increased; and there were also signs of 
improvement in productivity and prof itability figures. It is conclude d based on the data gathered and 
the examinations conducted within the context of the investigation that the domestic producers of 
footwear were adjusting.  
 
 As a result, it was concluded that the requirements for the extension of the safeguard 
measure were met. 
 
2. Information on absolute increase in imports 
 The information currently available indicates that after the introduction of the safeguard 
measure, imports of footwear dropped by 9 per cent in 2007, whereas the imports rose by 15 per cent in 2008.  In the first half period of the year 2009, footwear imports decreased according to the level of 
the corresponding period of the year 2008.   G/SG/N/14/TUR/2 
G/SG/N/11/TUR/6/Suppl.1 Page 4 
 
 
  Imports Unit 2005 2006 2007 2008 2008/6 2009/6 
Absolute 
Imports  Pairs 28,507,632 34,199,593 31,261,885 36,025,987 20,610,118 18,766,541 
 
 In general, the prices of the imported foot wear decreased from after the imposition of the 
safeguard measure.  3. Description of the product subject to the safeguard measure 
 The product subject to the safeguard measure is  certain footwear, which currently classified 
within the Turkish Customs Tariff Schedule 64.02,  64.03 and 64.04 with certain exclusions. 
 
4. WTO document that notified the initial application of the measure 
 The introduction of the existing safeguard  measure was notified with the document 
G/SG/N/8/TUR/6, G/SG/N/10/TUR/6, G/SG /N/11/TUR/6, dated 12 July 2006. 
 
5. Duration of the measure from initial application of the measure 
 The initial safeguard measure was applied from 10 August 2006 to 9 August 2009.  Turkey 
now intends to extend the safeguard measure for 3 more years.  The measure to be extended is 
expected to be in force from 10 August 2009 to 9 August 2012.  
6. Precise description of the measure in place prior to the date of extension  
 As a safeguard measure, a specific duty was put into force in imports of footwear by the 
Council of Ministers decision published in the O fficial Gazette of 11/7/2006, no. 26225.  The 
additional financial liability rates are given in the table below. 
 
Specific Duty (USD/Pair) 
Customs Code  11 Aug 2006 to 
11 Aug 2007   11 Aug 2007 to 
11 Aug 2008   11 Aug 2008 to 
11 Aug 2009   
64.02 (1)(2) 2.00  1.90  1.80  
64.03 (1) (2) 3.00  2.85  2.70  
64.04 (1) (2) 2.00  1.90  1.80  
 (1) 6402.19; 6403.12; 6403.19; 6404.11 subheadings were excluded from the measure.  
(2) For the products under following subheadings, the duty was USD 1.20/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/14/TUR/2 
 G/SG/N/11/TUR/6/Suppl.1  Page 5 
 
 
  7. Description of the extended measure 
 The safeguard measure will be extended for more 3 years, in the form of a specific duty, as 
follows:  
Specific Duty (USD/Pair) 
Customs Code  11 Aug 2009 to 
11 Aug 2010   11 Aug 2010 to 
11 Aug 2011   11 Aug 2011 to 
11 Aug 2012   
64.02 (1)(2) 1.70 1.65  1.60  
64.03 (1) (2) 2.55 2.50  2.45  
64.04 (1) (2) 1.70 1.65  1.60  
 
(1) 6402.19; 6403.12; 6403.19; 6404.11 subheadings are excluded from the measure.  (2) For the products under following subheadi ngs, the duty will be USD 1.20/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.  
8. Progressive liberalization of the measure 
 The measure will be progressively liberalized, at  regular intervals, at the beginning of each 
period of application. 
  The duty rate will be lowered by  5 cents for each following term.  
 
9. Developing countries to which the measure is not applied under Article 9, Footnote 2 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;  Ghana;  Ga mbia;  Georgia;  Greenland;  Guinea;  Equatorial 
Guinea;  Guatemala;  Guinea-Bissau;  Guyana;  Gibraltar;  Guam;  Honduras;  Haiti;  Heard Island 
and McDonald Islands;  India;  Ira q;  Iran (Islamic Republic of);  Ja maica;  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;  Macao;  Mayotte;  Mexico;  Montserrat;  Namibia;  Niger;  Nigeria;  Nicaragua;  Nepal;  Nauru;  Netherlands Antilles;  New Caledoni a;  Niue Island;  Norfolk Island;  Northern G/SG/N/14/TUR/2 
G/SG/N/11/TUR/6/Suppl.1 Page 6 
 
 
  Mariana Islands;  Oman;  Panama;  Peru;  Papua New Guinea;  Philippines;  Pakistan;  Palau;  
Paraguay;  Pitcairn;  Qatar;  Russian Federation;  Rwanda;  Samoa;  Saudi Arabia;  Solomon Islands;  
Seychelles;  Sudan;  Sierra Leone;  Senegal;  Somalia;  Suriname;  Sao Tomé and Principe; 
El Salvador; Syrian Arab Republic; Swaziland; South Africa; South Georgia and South Sandwich 
Islands;  St Helena and depe ndencies;  St Pierre and Miquelon;  Taji kistan;  Thailand;  Togo;  Tunisia;  
Tonga;  East Timor;  Trinidad and Tobago;  Turkme nistan;  Tuvalu;  Tanzania;  Tokelau;  Turks and 
Caicos Islands;  Ukraine;  United Arab Emirates;  United States Minor outlying islands;  Uganda;  
Uruguay;  Uzbekistan;  St Vincent;  Vanuatu;  Viet nam; Virgin Islands of US;  Wallis and Futuna 
Islands;  Yemen;  Zambia and Zimbabwe.   
 
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