WORLD TRADE  
ORGANIZATION  G/SG/N/10/JOR/5/Suppl.1 
18 October 2005 
 (05-4758) 
Committee on Safeguards Original:   English 
  
 
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C) 
OF THE AGREEMENT ON SAFEGUARDS 
 
JORDAN 
 
(Insecticides put up in Jet Cans
) 
 
Supplement  
 
 
 The following communication, dated 12 October 2005, is being circulated at the request of the Delegation of Jordan.  
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 The Permanent Mission of the Hashemite Kingdom  of Jordan to the United Nations Office 
and other International Organiza tions in Geneva presents its compliments to the World Trade 
Organization/Committee on Safeguards, and has the hono ur to forward the enclosed notification in 
accordance with Article 12.1(c) of the Agreemen t on Safeguards, stipulating that the Council of 
Ministers has decided to impose a final safeguard s measure on imports of insecticides put up in jet 
cans, as recommended by the National Production Pr otection Directorate (NPPD) and the tariff 
council. G/SG/N/10/JOR/5/Suppl.1 
Page 2  
 
  In accordance with Article 12.1(c) of the Agre ement on Safeguards, Jordan hereby submits its 
notification that the Council of Ministers has decide d to impose a final safeguards measure on imports 
of Insecticides put up in jet cans, as recommende d by the National Production Protection Directorate 
(NPPD) and the tariff council.  
1. Evidence of serious injury or thr eat thereof caused by increased imports 
 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 prod ucts during the period of inves tigation (2001-2004).  NPPD has 
recommended the appropriate remedy to the Mini ster 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:  (a) Increased Imports 
 
 2001 2002 2003 2004 
Volume (in kilograms) 80,481.00 160,803.00 186,526.00 234,161.00 
Absolute increase (%) 0 99.9 131.8 191.0 
Annual increase (%) 0 99.9 15.997 25.5 
Market share (%) 27.8 50.44 54.2 56.2 
Ratio between imports and domestic 
production (%) 38.5 101.7 118.3 128.14 
Unit price (Dinar/kilogram) 2.040 2.042 2.932 2.262 
 
 The above table shows that the subject importe d product increased, in absolute terms, during 
POI, starting from the year 2002 when imports record ed an absolute increas e of 99.9 per cent, and 
continued to surge enormously in the following y ears until it reached an increased rate of 191 per cent 
in the year 2004,  which indicated that the increase in imports was sudden, sharp and recent. 
 
 Also, the table shows that the subject impor ted product increased significantly in relative 
terms.  As the sudden increase started in the year 2002 when it recorded a rate of 38.5 per cent, and 
then continued to mount significantly during POI until it reached a rate of 128.14 per cent in the year 
2004. 
 
 As regards market share, the table shows th at the subject imported product was continuously 
extending its share of the market as of the year 200 2, recording an increase of 50.44 per cent, 54.2 per 
cent and 56.2 per cent in the years 2002, 2003, 2004 in sequence.  (b) Serious Injury 
 
 The following table demonstrates the relevant economic indicators investigated in the domestic industry, in compliance with the current National Production Protection Law:  G/SG/N/10/JOR/5/Suppl.1 
 Page 3 
 
 
  
 2001 2002 2003 2004 
Capacity (in kg) 4,549,800.00 4,549,800.00 4,549,800.00 4,549,800.00 
Utilization rate of cap acity (%) 4.6 3.5 3.5 4 
Total domestic of production (in kg) 209,206.00 158,085.00 157,694.00 182,737.00 
Change in domestic production (%) - (24.4) (24.6) (12.7) 
Unit price of domestic sales (Dinar/kg) 2.085 1.847 1.795 1.863 
Net profit/loss on domestic sales (%) - (84.9) (78.5) (64.1) 
Total domestic of sales (in kg) 209,135.00 158,014.00 157,586.00 182,737.00 
Change in domestic sales (%) - (24.4) (24.6) (12.7) 
Market Share (%) 72.22 49.56 45.79 43.83 
Productivity (kg/hour) 87.17 65.87 65.71 76.14 
Change in productivity % 
(hour/productivity) - (24) (25) (13) 
 
 The above table shows that:  
- Market share significantly and seriously decreased during POI, falling gradually and 
enormously from 72.2 per cent in 2001 to 43.8 per cent in 2004.  This decrease occurred as a result of the significant decrease in the volume of  sales of the local industry in favour of like 
imports. 
 - Domestic industry's actual capacity maintained its level during POI, as the increase disabled 
the domestic industry from increasing its actual ca pacity above the ultimate rate of 4.6 per 
cent recorded in the year 2001, and in light of  the profound expansion of market size during 
the POI, it is obvious that domestic industry was not even able to slightly increase its capacity due to the huge flow of imports. 
 
- Production and sales gradually and significantly declined in production/sales of the domestic 
industry during the POI starting from the year 2002, as the decrease continued in 2003 and 
rose superficially in 2004 in light of the increa se of market size by 43 per cent in the same 
year. 
 - Productivity declined during the POI effective year 2002 by 24 per cent, as a result of the 
increase of imports.  This decline continued throughout the years 2003 and 2004 by 25 per 
cent and 13 per cent respectively. 
 - Domestic industry recorded sharp declines in net profit starting from the year 2002 and 
continued in the following years until it reached 64.1 per cent in 2004. 
 
 The overall assessment of the situation in the domestic industry indicated that the domestic 
industry has suffered serious injury.  (c) Causation  
 NPPD has thoroughly investigated the causality  factor between the increase in imports and 
injury in the domestic industry, and has determined  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 has timely coincided with the injury in the domestic 
industry, and that no other injury factors had esse ntially attributed to the injury, other than the 
increase in imports. 
 G/SG/N/10/JOR/5/Suppl.1 
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 2. Provide a precise description of the product involved  
 
 Product under investigation is Insecticides, Put up in jet cans provided for in the Jordanian 
tariff system under tariff heading 3808.101.  
3. Provide a precise description of the proposed measure  
 
 The Council of Ministers has decided to apply definitive safeguard measures for a period of 
three years, in the form of a specific tariff surc harge of 382 Jordanian fills  per imported kilogram, 
subject to annual liberalization of 42 fills. 
 
4. Provide the expected duration of the measure 
 
 Three years. 
 
5. For a measure with the duration of more than 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.  
6. 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:  
 - From 16 October 2005 to 15 October 2006 
 - From 16 October 2006 to 15 October 2007  - From 16 October 2007 to 15 October 2008   JD/KG:  
 - 382 Fills 
 - 340 Fills  - 298 Fills  
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