WORLD TRADE  
ORGANIZATION   
G/SG/N/6/TUR/14/Suppl.1 
G/SG/N/7/TUR/10 G/SG/N/11/TUR/17 
24 June 2011 
 
(11-3126) 
Committee on Safeguards Original:   English 
 
 
 
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT  
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION  
(EXTENSION OF THE EXISTING MEASURE) AND THE REASONS FOR IT 
 
NOTIFICATION UNDER ARTICLE 12.4 OF THE AGREEMENT  
ON SAFEGUARDS BEFORE TAKING A PROVISIONAL  
SAFEGUARD MEASURE REFERRED TO IN ARTICLE 6 
 
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS 
 
TURKEY 
 
(Cotton Yarn) 
 
 
 The following communication, dated 23 June 2011,  is being circulated at the request of the 
Delegation of Turkey.   
 
_______________ 
 
 We enclose a notification pursuant to Article  12.1(a) of the Agreement on Safeguards, on 
initiation of a safeguard investigation to review th e safeguard measure that is being applied against 
imports of cotton yarn; a notification pursuant to Article 12.4 of the Agreement on Safeguards, before 
taking a provisional safeguard measure against import s of cotton yarn; 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 existing safeguard measure 
was notified with the document  G/SG/N/10/TUR/11, dated 22 August 2008.  
 
A. NOTIFICATION UNDER ARTICLE 12.1( A) OF THE AGREEMENT ON SAFEGUARDS ON INITIATION 
OF AN INVESTIGATION (EXTENSION  OF THE  EXISTING  MEASURE)  AND THE REASONS FOR IT   
1. The date when the investigation was initiated 
The Communiqué related to the investigation w as published in the Official Gazette 11 June 
2011.  2. The product subject to the investigation 
The product under investigation is cotton yarn (o ther than sewing) hereinafter referred to as 
"the product concerned". 
The product concerned is currently classified  under the code 52.05 within the Turkish 
Customs Tariff Schedule. G/SG/N/6/TUR/14/Suppl.1 
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  3. The reasons for the initiation of investigation 
The investigation was initiated upon an evalua tion of a safeguard petition from the domestic 
industry and on the basis of the evidence and the information contained therein. 
 
The information currently available indicates th at imports of the product concerned dropped 
by 27 per cent in 2009, and then increased by 58 per cent in 2010. While the ratio of imports to 
domestic production decreased after the safeguard measu re has been imposed in 2008, it has increased 
to the level of 39 % in 2010 from the level of 28 % in 2009. 
 
Imports Unit 2008 2009 2010 
Absolute tons 128,997 94,586 149,253 
Relative to Domestic 
Production % 35 28 39 
 
The information regarding the ge neral imports of the product conc erned reveals the fact that, 
although the volume of imports decreased in 2009, probably with the impact of the measure, it 
dramatically increased by 58 per cent in 2010.  4. Further information 
Those who fill out and send "Application Form fo r the Interested Party" to the competent 
authority within the period of 20 days after the promulgation of the related Communiqué are accepted 
as interested parties in the investigation. 
 The competent authority shall provide with a username and a password to each interested 
party.  The username of the interested party sha ll be the e-mail address specified in the "Application 
Form for the Interested Party".  Logging in with th e username and password, the interested parties are 
required to fill out "Online Questionnaire fo r the Interested Party", available at 
http://www.dtm.gov.tr/dtmithgozetim/index.cfm , within the period of 30 days after the promulgation 
of the related Communiqué.  Interested parties ma y ask for the technical assistance of the competent 
authority during filling out "Online Questionnaire for the Interested Party". 
 
Interested parties may state, in the "Applicati on Form for the Interested Party", their request 
to be heard by the competent authority. 
 "Application Form for the Interested Party" and "Online Questionnaire for the Interested 
Party" are available in the web address below.  Also, the date and venue of the hearing and other 
announcements regarding the investigati on will be accessible on the same address. 
 
http://www.dtm.gov.tr/dtmweb/index.cfm?acti on=detay&yayinID=47&icerikID=132&dil=TR 
 
The address of the competent authority for correspondence is:  
 
 Undersecretariat for Foreign Trade 
 Directorate General for Impor ts, Department of Safeguards 
 Tel:  +90 312 222 65 00 / +90 312 204 77 03 / +90 312 204 77 17 
 Fax:  +90 312 212 87 65 / +90 312 212 87 11  G/SG/N/6/TUR/14/Suppl.1 
 G/SG/N/7/TUR/10 
 G/SG/N/11/TUR/17 
 Page 3 
 
 
   Web page:  http://www.dtm.gov.tr   E-mail:  korunma@dtm.gov.tr 
 
B. NOTIFICATION UNDER ARTICLE 12.4  BEFORE TAKING A PROVISI ONAL SAFEGUARD MEASURE  
1. The product subject to the propo sed provisional safeguard measure 
The product subject to the proposed provisional safeguard measure is cotton yarn (other than 
sewing). The product concerned is currently classi fied under the code 52.05 within the Turkish 
Customs Tariff Schedule. 
2. The proposed provisional safeguard measure 
It is proposed to impose a provisional safeguard measure in the form of additional duty of 12 
per cent (maximum 0,85 and minimum 0,29 US Dollars  per net kilogram) for the products classified 
with the codes of 5205.12, 5205.22, 5205.32 and 5205.42; and 17% (maximum 0,85 and minimum 
0,29 US Dollars per net kilogram) for the rest of  the products classified unde r the code of 52.05. 
 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 Official Gazette. 
 
4. The expected duration of the provisional safeguard measure 
The decision whether or not to extend the exis ting safeguard measure will be determined at 
the end of the investigation. Therefore, the provisi onal safeguard measure shall be applied during the 
investigation period. In any case, the provisional saf eguard measure shall last for 200 days at the 
most.  
 
5. The basis for: 
(i) Making a preliminary determination, as pr ovided for in Article 6, that increased 
imports have caused or are th reatening to cause serious injury 
The evidence relating to the serious injury on th e domestic industry as a result of the increase 
in imports of the product concerned had been no tified with the document G/SG/N/10/TUR/11, dated 
22 August 2008.  Accordingly, a safeguard measure against imports of cotton yarn for a period of 3 
years was put into force on 14 July 2008.  Inform ation on the changes in the level of imports and 
certain economic indicators of the domestic indus try that were recorded during the period the 
safeguard measure has been a pplied is provided below.  
 
CHANGE IN IMPORTS 
 
Change Unit 2008 2009 2010 
% -29 -27 58 
 
With the impact of the measure put into fo rce in 2008, imports of the product concerned 
dropped by 27% in 2009, but it sharply increased by 58% in 2010. 
 G/SG/N/6/TUR/14/Suppl.1 
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Imports/Production Unit 2008 2009 2010 
% 35 28 39 
 
While the ratio of imports to domestic productio n decreased after the safeguard measure has 
been imposed in 2008, it increased to the level of 39 % in 2010 from the level of 28 % in 2009. 
 
Market share (%) 2008 2009 2010 
Market share of imports 35 28 36 
 
 Similar to the ratio of imports to domestic production, after the imposition of the safeguard 
measure the market share of imports decreased to the level of 28% in 2009, however it increased to 
the level of 36% in 2010.  
  Based on import figures summarized above, impor t data of 2008 and 2009 reflect the impact 
of safeguard measure. However, imports of the concerned product increased sharply in 2010. As a 
result of this remarkable increase the ma rket share of imports increased as well. 
 
ECONOMIC INDICATORS OF THE DOMESTIC INDUSTRY  
 A preliminary analysis to assess the impacts of  the existing safeguards on the situation of the 
domestic industry was carried out. In this anal ysis, data submitted by 12 domestic producers 
(applicants), that constitute major proporti on of domestic production, were utilized.  
 
(i) Consumption 
Consumption 2008 2009 2010 
Unit (tons) 368,633 335,526 410,884 
 
 Consumption of the product concerned decreased  nearly 9% in 2009 in terms of consumption 
figure of the previous year. However, domestic  consumption increased 22% in 2010 in comparison 
with the consumption in 2009. 
 
(ii) Production 
Production 2008 2009 2010 
Unit (tons) 366,238  342,701  387,704  
 
 Domestic production has decreased 6% in 2009 in  comparison with the figure of the previous 
year. However, it increased %13 in 2010 in  terms of the domestic production in 2009. 
  G/SG/N/6/TUR/14/Suppl.1 
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  (iii) Capacity and Capacity Utilization Rate (CUR) 
  2008 2009 2010 
Capacity (tons)  487,887 490,663 485,886 
Capacity Utilization 
Rate  (%) 75 70 80 
 
 The yearly production capacity of the domes tic industry has fallowed a fluctuating trend 
between 2008 and 2010. Despite the limited increase  in 2009, the capacity of domestic industry has 
decreased in 2010. Regarding the capacity utilizati on ratio, it has decreased to 70% in 2009 from 75% 
in 2008; it increased to level of 80% in 2010. 
 
(iv) Domestic Sales 
Domestic sales 2008 2009 2010 
Unit (tons) 239,636 240,940 261,631 
 
 Domestic sales of the domestic industry increased after the imposition of safeguard measure in 2008. It has increased 8.6% in 2010 in terms of the figure in the previous year. 
 
(v) End of Period Inventories 
Inventories 2008 2009 2010 
Unit (tons) 45,872 30,731 26,259 
 
Inventories of the domestic industr y decreased between 2008 and 2010. 
(vi) Employment 
Employment 2008 2009 2010 
Persons 19,690 18,337 22,121 
 
While the number of direct workers of app licants decreased in 2009, it increased in 2010. 
CONCLUSION 
 
It was determined, in the preliminary analys is that imports of the product concerned 
decreased notably in 2008 and 2009 after the impositi on of the safeguard measure. Hence, at first 
glance, the measure could be regarded as effectiv e in safeguarding the domestic industry of the 
product concerned. However, the imports increased sharply in 2010 by 58% in terms of imports in 
2009. 
 
Besides, there have been positive developmen ts in certain economic indicators of the 
domestic industry, particularly, production, domestic sales, capacity utilization ratio, inventories and 
employment during the implementation period of th e safeguard measure, absolute imports of the 
product concerned, market share of imports and ra tio of imports to domestic production increased in 
2010, 
 G/SG/N/6/TUR/14/Suppl.1 
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  Therefore it could be concluded that the safeguard measure has enabled the domestic 
producers to overcome the injurious effects arising from  imports particularly in the first two years of 
the measure. 
  (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 entered into force on 14 July 2008  and came to an end on 14 July 2011.  
 
It was determined that imports of th e product concerned decreased in 2008 and 2009. 
Domestic industry increased market share in 2008 and 2009. Moreover, preliminary figures reveal 
that certain figures relating to domestic industr y show positive trend during the period that the 
safeguard measure has been implemented.  
 However imports suddenly increased by 58% in 2010 in comparis on with 2009. This 
considerable increase in imports  caused loss of market shares of the domestic industry and 
deterioration of the ratio of im ports to domestic production in favor  of imported products in 2010.  
 
Therefore, bearing in mind that a sudden and significant increase in the imports of the product 
concerned in 2010 could negatively affect the re covery period of the domestic industry, the 
provisional safeguard measure is proposed to elimin ate uncertainty that could come out with the 
ongoing investigation on the necessity of the extens ion of the current measure. To achieve this 
objective, the provisional measure shall be collected as a security. 
 
6. Offer of consultations under Article 12.4 
Consistent with Article 12.4 of the Agreement on Safeguards, Turkey is ready to consult on 
the provisional safeguard measure with those Memb ers having a substantial interest as exporters of 
the product concerned.  
C. 
NOTIFICATION UNDER ARTICLE 9, FOOTNOTE 2 UPON TAKING  A DECISION NOT TO APPLY THE 
PROVISIONAL SAFEGUARD MEASURE TO CERTAI N 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 will be applied to the products descr ibed in paragraph 1 of the notification under 
Article 12.4 above. 
 
3. The developing countries to which the meas ure 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. 
  G/SG/N/6/TUR/14/Suppl.1 
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  Afghanistan; Albania; Algeria; Antigua and Ba rbuda; Angola; Argentina; American Samoa; 
Anguilla; Antarctica; Aruba; Azerbaija n; Barbados; Bangladesh;  Burkina Faso;  Bahrain;  Burundi;  
Benin;  Belarus;  Bolivarian Re public of Venezuela;  Brunei Darussal am;  Bolivia, Plurinational State 
of;  Brazil;  Bahamas;  Bhutan;  Botswana;  Belize;  Bermuda;  Bouvet Island;  British Virgin Islands;  
British Indian Ocean Territory;  Cambodia;  Demo cratic Republic of Congo;  Central African 
Republic;  Congo;  Côte d'Ivoire;  Cameroon;  Chad;  Colombia;  Comoros;  Costa Rica;  Cuba;  Cape 
Verde;  Cayman Islands;  Chile; Christmas Isla nds;  Cocos Islands;  Cook Islands;  Djibouti;  
Dominica;  Dominican Republic;  Ecuador;  Eritrea;  Ethiopia;  Fiji;  Federated States of Micronesia;  
Falkland Islands;  French Polynesia;  French Sout hern Territories;  Gabon;  Grenada;  Ghana;  
Gambia;  Georgia;  Greenland;  Guinea;  Equatorial  Guinea;  Guatemala;  Guinea-Bissau;  Guyana;  
Gibraltar;  Guam;  Honduras;  Haiti;  Heard Isla nd and McDonald Islands; Indonesia;  Iraq;  Iran 
(Islamic Republic of);  Jamaica;  Jordan;  Kazakhs tan;  Kenya,  Kiribati;  St Kitts and Nevis;  
Kingdom of Saudi Arabia;  Kuwait;  Kyrgyzstan;  Laos ;  Lebanon;  St Lucia;  Sri Lanka;  Liberia;  
Lesotho;  Libyan Arab Jamahiriya;  Morocco;  Madagascar;  Marshall Is lands;  Mali;  Moldova;  
Mongolia;  Mauritania;  Mauritius;  Malaysia;  Mald ives;  Malawi;  Mozambique;  Macao;  Mayotte;  
Mexico;  Montserrat; Myanmar; Namibia;  Niger;  Ni geria;  Nicaragua;  Nepal;   Nauru;  Netherlands 
Antilles;  New Caledonia;  Niue Island;  Norfolk Is land;  Northern Mariana Islands;  Oman; Panama;  
Peru;  Papua New Guinea;  Philippines;  Pakistan;  Palau;  Paraguay;  Pitcairn;  Qatar;  Russian 
Federation;  Rwanda;  Samoa;  ;  Solomon Islands;  Seychelles;  Sudan;  Sierra Leone;  Senegal;  
Somalia;  South African Republic; Suriname;  Sao Tomé and Principe;  El Salvador; Swaziland;  
South Georgia and South Sandwich Is lands;  St Helena and dependenci es;  St Pierre and Miquelon;  
Tajikistan; Thailand; Togo;  Tunisia;  Tonga;  East Timor;  Trinidad and Tobago; Tuvalu;  Tanzania;  
Tokelau;  Turks and Caicos Islands;  Ukraine;  United Arab Emirates;  United States Minor outlying 
islands;  Uganda;  Uruguay; St Vincent; Vanuatu;  Virg in Islands of USA;  Wa llis and Futuna Islands;  
Yemen;  Zambia;  and Zimbabwe. 
 
 
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