. /.  WORLD TRADE  
ORGANIZATION  G/SG/N/6/MAR/5 
31 August 2009 
 (09-4069) 
Committee on Safeguards Original:   French 
  
NOTIFICATION UNDER ARTICLE 12.1(A) OF THE AGREEMENT 
ON SAFEGUARDS ON INITIATION OF AN INVESTIGATION 
AND THE REASONS FOR IT 
 
MOROCCO 
 
(Polyvinyl Chloride (PVC)
) 
   The following communication, dated 27 August 2009,  is being circulated at the request of the 
delegation of Morocco. 
 
_______________ 
 
  The Permanent Mission of the Kingdom of Morocc o to the United Nations Office at Geneva 
and other international organizations  in Switzerland presents its compliments to the Secretariat of the 
World Trade Organization and, in accordance with Article 12.1(a) of the Agreement on Safeguards, 
has the honour to transmit herewith a notificati on from the Moroccan Ministry of Foreign Trade 
concerning the initiation of an investigation into the substantial increase in imports of polyvinyl 
chloride, both in relation to domestic production a nd in absolute terms, "which are causing or 
threatening to cause serious injury to domestic production". 
 
 After examining the request made by the nati onal polyvinyl chloride (PVC) industry for the 
application of safeguard measures against imports of  PVC, the Ministry of Foreign Trade decided to 
initiate an investigation in acco rdance with the provisions of  the Agreement on Safeguards. 
  Pursuant to Article 12.1(a) of the above-men tioned Agreement and on the basis of the format 
adopted by the Committee on Safeguards for no tifications submitted under the Agreement on 
Safeguards (G/SG/N/6, 7 February 1995), the Kingdom of Morocco hereby notifies that the Ministry of Foreign Trade has initiated a safeguards investigation as follows:  
1. Date of initiation of the investigation 
• The Ministry of Foreign Trade decided to initiate the investigation on 
10 August 2009. 
• An announcement by the Ministry of Forei gn Trade was made available to the public 
on the Ministry website (www.mce.gov.ma
) and published in L'Opinion , the most 
widely circulated daily newspaper in Morocco, on 12 August 2009 (issue No. 15885, page 10). 
 2. Product subject to the investigation 
 The product subject to the investigation is pol yvinyl chloride (PVC) used in the manufacture 
of tubes, connectors, cables, window sections, rolle r shutters, joints, technical packaging, bottle 
making, shoes, etc. G/SG/N/6/MAR/5 
Page 2  
 
   
 The product is classified under the following headings:   - Raw polyvinyl chloride (PVC), under tariff heading 3904.10.90.00 of Morocco's 
customs tariff, presented in the form of lumps, granules, flakes, powder (including 
moulding powder) not mixed with any ot her substances and not containing 
plasticizers or additives. 
  -  Polyvinyl chloride (PVC) in compound form, under tariff heading 3904.21.90.00 of 
Morocco's customs tariff, presented in the form of lumps, granules, flakes, powder 
(including moulding powder) mixed with chemical additives such as stabilizers, 
colorants etc., but not containing plasticizers. 
  -  Polyvinyl chloride (PVC) in compound form, under tariff heading 3904.22.90.00 of 
Morocco's customs tariff, presented in the form of lumps, granules, flakes, powder 
(including moulding powder) containing plasticizers and possibly mixed with 
chemical additives such as st abilizers, colorants, etc. 
 
3. Reasons for the initiation of the investigation 
 The investigation was initiated by the Mini stry of Foreign Trade following a request 
submitted by the National Electrolysis and Petrochemi cal Company (SNEP) on behalf of the domestic 
polyvinyl chloride (PVC) industry and on the basis of the information and evidence contained in that 
request.   The Ministry of Foreign Trade has evidence of a substantial increase in imports of the product 
being investigated, both in relation to domestic production and in abso lute terms, which are causing or 
threatening to cause serious injury to the domestic industry. 
  There has been a massive increase in PVC imports  both in absolute terms and in relation to 
domestic production.  Imports  during the first quarter of 2009 increased by 434 per cent compared to 
the same period in 2008.  As a result,  they have reached 78 per cent of  total imports recorded in 2008.  
In relation to domestic production, the share of imports reached 145 per cent of domestic production 
during the first quarter of 2009 compared to 35 per cent for the same period in 2008, representing an 
increase of 110 percentage points.   This increase is due to an unexpected change  in circumstances arising as a result of the 
international economic crisis wh ich has caused the fall in global demand for PVC, especially in 
Europe and the United States of America. 
  According to the SNEP, this increase in impor ts has caused serious injury to the domestic 
industry (SNEP), resulting in a drop in sales of PVC in terms of volume (-17 per cent) and value 
(-38 per cent) in the first quarter of 2009 compared to the same period in 2008, which has in turn 
resulted in a fall in profits.  In its request, the SNEP at tests that its clients have diverted their orders in 
favour of imports. 
  Accordingly, the Ministry of Foreign Trade decided to initiate a safeguards investigation. 
 
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