  
  
G/SG/N/8/MAR/7  
G/SG/N/10/MAR/7  
G/SG/N/11/MAR/7/Suppl.1  
13 May 2020 
(20-3576) Page: 1/4 
Committee on Safeguards  Original:  French  
 
  
NOTIFICATION UNDER A RTICLE 12.1(B) OF TH E AGREEMENT ON SAFEG UARDS  
ON FINDING A SERIOUS  INJURY OR THREAT TH EREOF  
CAUSED BY INCREASED IMPORTS  
 
NOTIFICATION UNDER A RTICLE 12.1(C) OF  
THE AGREEMENT ON SAF EGUARDS  
 
NOTIFICATION UNDER A RTICLE 9, FOOTNOTE 2, OF  
THE AGREEMENT ON SAF EGUARDS  
MOROCCO  
Hot-Rolled Sheets  
The following communication, dated 1 2 May 2 020, is being circulated at the request of the delegation 
of Morocco . 
 
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Morocco hereby confirms the results of the preliminary determination in the safeguards investigation 
concerning  imports of hot -rolled sheets, as notified in document G/SG/N/7/MAR/4 -
G/SG/N/11/MAR/7 on the application of a provisional safeguard measure . 
The above -mentioned provisional safeguard measure was published in Official Journal 
(Bulletin  Officiel ) No. 6823 of 2 1 October 2 019 in the form of Joint Order of the Minister of Industry, 
Investment, Trade and the Digital Economy /Minister of the Economy and Finance No. 3033.19 of 
4 Safar  1441 ( 3 October  2019).  
In light of the foregoing, Morocco hereby submits its notification concerning the application of a 
definitive safeguard measure to imports of hot -rolled sheets, in accordance with Article 12.1(c) of 
the Agreement on Safeguards . 
In accordance with Article 12.1(b) and 12.1(c) of the Agreement on Safeguards, Morocco hereby 
notifies a finding of serious injury or threat thereof to the domestic industry producing hot -rolled 
sheets, and the definitive safeguard measure proposed . This noti fication contains all pertinent 
information relating to the proposed safeguard measure, in accordance with Article 12.2 of 
the Agreement on Safeguards, and an offer to consult with Members having a substantial interest 
as exporters of the product concerned , in accordance with Article 12.3 of the Agreement . G/SG/N/8/MAR/7 • G/SG/N/10/MAR/7 • G/SG/N/11/MAR/7/Suppl.1  
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  1  Determination of serious injury or threat thereof caused by increased imports  
1.1  Determination of serious injury  
Overview of indicators pertaining to the domestic hot -rolled sheet industry  
Index 2014=100  2014  2015  2016  2017  2018  
Volume of imports (tonnes ) 74,488 128,576 128,408 81,542 107,213 
Volume of production  100 112 160 153 123 
Share of imports in relation to domestic 
production  100 155 109 73 118 
Market share of imports  100 142 112 76 118 
Sales (tonnes ) 100 99 132 149 108 
Productivity (tonnes/employee)  100 117 206 174 145 
Capacity utilization rate  100 112 160 153 123 
Profits and losses (MAD  thousand ) -100 -81 -5 15 -13 
Number of employees  100 96 78 88 85 
Source :  Foreign Exchange Board and data from the domestic industry . 
➢ Market share : The market share held by imports rose sharply by 42 index points 
between 2014 and 2015 . Imports then fell between 2015 and 2017 . However, the 
market share of imports experienced a considerable rise of 42 index points between 
2017 and 2018 . Accordingly, this increase was accompanied by a fall in the market 
share of domestic production, meaning  that the domestic industry once again lost sales 
volume to imports, despite efforts to reca pture market share in 2016 and 2017 . 
➢ Sales : Following a rise between 2016 and 2017, sales in 2018 dropped by 42 index 
points compared to 2017, and 24 points compared to 2016 . 
➢ Production : Hot-rolled sheet production fell by seven points between 2016 and 201 7, 
and 30 points between 2017 and 2018, despite a rise in 2015 and 2016 in relation to 
2014 (12 index points and 60 index points respectively) . 
➢ Productivit y: Productivity in the hot -rolled sheet industry rose until 2016 due to an 
increase in production and  a reduction in the size of the workforce between 2014 and 
2016. However, it subsequently fell by 16 % between 2016 and 2017, and by 17% 
between 2017 and 2018 . 
➢ Capacity utilization rate : During the investigation period, the production capacity 
utilization rate did not exceed that of 2016 (160 index points) . The rate dropped steeply 
from 2017 onwards, and deteriorated most significantly between 2017 and 2018 . 
➢ Employment : Domestic industry employment trends were unstable . Employment fell 
in the 2014-2016 period, edged up in 2017, then fell again in 2018 . 
➢ Profitability : The domestic industry obtained negative results  in the 2014 -2016 period 
and in 2018 . Profitability improved in 2016 and 2017, but deteriorated considerably in 
2018; the industry wa s able to develop in favourable conditions and make a passing 
profit, only to experience negative performance once again in 2018 . 
In short, the analysis of various injury factors shows that the domestic industry is in an extremely 
fragile position . Most no tably, the Ministry definitively concludes  that the considerable deterioration 
of the domestic industry's position between 2017 and 2018 indicates the start of a significant overall 
impairment in the position of the domestic industry . 
1.2  Determination of the existence of a threat of serious injury  
The analysis of the various injury factors above shows that the domestic industry's situation 
fluctuated considerably in the 2014 -2018 period , with a marked deterioration between 2017 and 
2018 when imports of the product concerned significantly increased . This considerable deterioration 
of the domestic industry 's position  between 2017 and 2018 indicates the start of a significant overall 
impairment in the position of the domestic industry . G/SG/N/8/MAR/7 • G/SG/N/10/MAR/7 • G/SG/N/11/MAR/7/Suppl.1  
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  Furthermore, the Ministry's projections show a 24 % increase in imports between 2017 and 2019 , 
and indicate a strong likelihood that  import s will continu e to increase in the near futur e. The Ministry 
therefore considers  that the rise in imports, both confirmed and projected,  will contribute to a 
significant overall impairment in the position of the domestic industry . 
In this light , when examining the position of the domestic industry du ring the most recent past in 
the context of data concerning injury factors  for the entire investigative period  and import trend 
projections, the Ministry concluded that serious injury to the domestic industry would occur in the 
near future unless a safeguard measure were introduced . 
2  Determination of the existence of a massive increase in imports  
2.1  Absolute increase in imports  
In absolute terms, imports of hot -rolled sheets increased  by 44 % during the 2014 -2018 review 
period, rising  from 74,488 tonnes in 2014 to 107,213 tonnes in 2018 . 
 
2014  2015  2016  2017  2018  
Import s (tonne s) 74,488 128,576 128,408 81,542 107,213 
Trend  - 72.61% -0.13% -36.50% 31.48% 
Source :   Data from the Foreign Exchange Board . 
2.2  Increase in imports  in relative terms compared to domestic production  
Following a significant increase between 2014 and 2015, the share of imports in relation to domestic 
production of the like product fell in 2017 to a level below that of 2014, 2015 and 2016 . However, this 
share grew significantly , in index terms,  to 118 in 2018 from 73 in 2017 , a net increase of 62 %. Between 
2014 and 2018, the share o f imports in relation to domestic production increased by 18.2 %. In light of  
the decreases  in 2017 and 2016, the cumulative increases in 2015 and more recently that of 2018 
justify  an increase in imports in relative terms compared to domestic production.  
(Index 2014=100)  2014  2015  2016  2017  2018  
Share of imports in relation to domestic production  100 155 109 73 118 
Source :   Data from the Foreign Exchange Board and the domestic industry . 
3  Unforeseen developments  
The Ministry 's definitive view is that the massive increase in imports of hot-rolled sheets  does not 
result from an unforeseen development , but from a confluence of unforeseen developments, namely 
problems pertaining to significant overcapacity in steel products, which resulted in expo rts being 
diverted to Morocco . This situation reached its peak  in 2015 and has been accentuated by an 
unprecedented accumulation of trade defence measures, most notably those applied in the steel 
products sector as of 2018 . 
4  Causal link  
In accordance with t he requirements of Article 54 of Law No. 15-09 and Article 46 of its implementing 
decree, the Ministry examined the correlation between the increased imports and the threat of 
serious injury, as well as the effects of factors other than the massive increase in  imports which  may 
cause or threaten to cause serious injury to the domestic industry . 
As a result,  the Ministry's definitive conclusion is that there is a causal link between the massive 
increase in imports of hot -rolled sheets and the threat of serious injury to the domestic industry, 
and that this causal link is not affected by the existence of other injury factors . The analysis of other 
factors shows that their effect does not break  this causal link . G/SG/N/8/MAR/7 • G/SG/N/10/MAR/7 • G/SG/N/11/MAR/7/Suppl.1  
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  5  Description of the product subject to the safeguard measure  
The products subject to the safeguard measure are hot -rolled steel sheets, whether or not in coils . 
These products are imported under the following Moroccan tariff headings and subheadings : 72.08, 
72.11.13, 72.11.14, 72.11.19, 72.25.30, 72.25.40, 72.26.20.00.11, 72.26.20.00.21, 
72.26.20.00.30, 72.26.20.00.40, 72.26.20.00.51, 72.26.20.00.52, 72.26.20.00.59, 72.26.91, 
72.26.99.90.91 and 72.26.99.90.99.  
6  Description of the proposed measure  
The saf eguard measure consists of an additional ad valorem  duty of 25 %. 
7  Proposed date of introduction of the measure  
The definitive safeguard measure will enter into force on the day immediately following the date of 
publication, in Morocco's Official Journal, of  the joint order imposing the measure . The measure has 
not yet entered into force . 
8  Expected duration of the measure  
The expected duration of the proposed measure is three years . 
9  Expected timetable for progressive liberalization of the measure  
In order to satisfy the requirement for the progressive liberalization of the measure following the 
first year of its application in accordance with Article  65 of Law No. 15-09, the additional ad valorem  
duty of 25 % will be reduced by 1 percentage point each year . 
10  Developing countries excluded from the safeguard measure under Article 9.1 of 
the Agreement on Safeguards  
Albania ; Angola ; Antigua and Barbuda ; Argentina ; Armenia ; Bahrain, Kingdom of ; Bangladesh ; 
Barbados ; Belize; Benin; Bolivia; Botswana ; Brazil; Brunei Darussalam ; Burkina Faso ; Burundi ; 
Cabo Verde ; Cambodia ; Cameroon ; Central African Republic ; Chad; Chile; Colombia ; Congo; 
Costa Rica; Côte d'Ivoire ; Cuba; Democratic Republic of the Congo ; Djibouti ; Dominica ; 
Dominican  Republic ; Ecuador ; El Salvador ; Fiji; Gabon; Gambia ; Georgia ; Ghana; Grenada ; 
Guatemala ; Guinea ; Guinea -Bissau; G uyana ; Haiti; Honduras ; India; Indonesia ; Jamaica ; Jordan ; 
Kazakhstan ; Kenya; Kuwait ; Kyrgyz Republic ; Lao People's Democratic Republic ; Lesotho ; 
Madagascar ; Malawi; Malaysia ; Maldives ; Mali; Mauritania ; Mauritius ; Mexico; Moldova, Republic of ; 
Mongolia ; Montenegro ; Mozambique ; Myanmar ; Namibia ; Nepal; Nicaragua ; Niger; Nigeria ; Oman; 
Pakistan ; Panama ; Papua New Guinea ; Paraguay ; Peru; Philippines ; Qatar; Rwanda ; Saint Lucia; 
Saint Kitts and Nevis ; Saint Vincent and the Grenadines ; Samoa ; Saudi Arabia, Kingdom of ; Senegal ; 
Sierra Leone ; Singapore ; Solomon Islands ; South Africa ; Sri Lanka ; Suriname ; Swaziland ; 
Tajikistan ; Tanzania ; Thailand ; The Former Yugoslav Republic of Macedonia (FYROM) ; Togo; Tonga; 
Trinidad and Tobago ; Tunisia ; Uganda ; United Arab Emirates ; Uruguay ; Vanuatu ; 
Venezuela,  Bolivarian Republic of ; Viet Nam ; Yemen ; Zambia ; Zimbabwe . 
11  Offer of consultations under Article 12.3  
In accordance with Art icle 12.3 of the Agreement on Safeguards, Morocco is ready to consult on the 
proposed safeguard measure with those Members having a substantial interest as exporters of the 
products concerned.  
 
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