   
  
G/L/1356  
G/SG/N/12/EU/2  
 
7 April 2020 
(20-2772) Page: 1/4 
Council for Trade in Goods  
Committee on Safeguards  Original: English  
 
IMMEDIATE NOTIFICATI ON UNDER ARTICLE 12. 5 OF THE AGREEMENT  
ON SAFEGUARDS TO THE  COUNCIL FOR TRADE I N GOODS OF  
PROPOSED SUSPENSION OF CONCESSIONS AND O THER  
OBLIGATIONS REFERRED  TO IN PARAGRAPH 2  
OF ARTICLE 8 OF THE AGREEMENT  
ON SAFEGUARDS  
EUROPEAN UNION 
The following communication, dated 7 April 2020, is being circulated at the request of the delegation 
of the European Union.  
 
_______________  
 
 
Pursuant to Article 12.5 of the Agreement on Safeguards and in accordance with the agreed format 
for notifications (G/SG/1 1 July 1996; amended 19 October 2009 G/SG/1/Rev.1  - G/SG/N/6/Rev.1  - 
G/SG/89),  the European Union provides the immediate notification to the Council for Trade in Goods 
of the proposed suspension of concessions and other obligations referred to in paragraph 2 of 
Article  8. 
1. Which Member is proposing suspension of concessions and other obligations referred 
to in Article 8.2?  
The European  Union.  
2. Specify the measure, the product subject to the measure, the WTO document that 
notified the safeguard measure and the Member imposing the measure in relation to which 
the Member is proposing a suspension of concessions and other obligations refe rred to in 
Article 8.2 of the Agreement on Safeguards.  
On 24 January 2020, the United States of America ("United States") adopted safeguard measures 
in the form of a tariff increase on imports of certain derivative aluminium articles and certain 
derivative  steel articles (at rates of 10% and 25%, respectively) effective from 8  February 2020 and 
with an unlimited duration. Notwithstanding the United States' characterisation of these measures 
as security measures, they are safeguard measures.  
The United State s failed to notify the WTO Committee on Safeguards under Article 12.1(c) of the 
Agreement on Safeguards on taking a decision to apply safeguard measures.  
3. Describe the proposed suspension of concessions and other obligations referred to in 
Article  8.2 of the Agreement on Safeguards and the proposed date from which it will come 
into effect.  
The European Union provides this written notice in order to achieve the highest degree of legal 
certainty that in all the circumstances its rights to susp end the application of substantially equivalent 
concessions or other obligations pursuant to Article 8 of the Agreement on Safeguards are fully 
protected. The European  Union reserves the right to withdraw, modify, supplement or replace this 
notification an d/or make a further notification or notifications, should it deem that appropriate, 
including in light of any subsequent developments.  G/L/1356 • G/SG/N/12/EU/2  
 
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  The proposed suspension of substantially equivalent concessions and other obligations under the 
GATT 1994 to the trade of  the United States will take effect from 8  May 2020, accounting for the 
expiry of 30 days after this notification. The proposed suspension takes the form of an increase of 
the import duty on selected products originating in the United States, as specified in Annex I and 
Annex II. The substantially equivalent concessions or other obligations under GATT 1994 were 
calculated as indicated in Annex III.  
The European Union hereby reserves its right to exercise the proposed suspension as follows:  
- from 8  May 2020, as regards the products specified in Annex I; and  
- from 8  February  2023 or the fifth day following the date of the adoption by or notification to 
the WTO Dispute Settlement Body of a ruling that the United States' safeguard measures 
are inconsiste nt with the relevant provisions of the WTO Agreement on Safeguards if that is 
earlier, as regards the product specified in Annex II;  
until the United States' safeguard measures are lifted.  
ANNEX I  
CN code1 Description for information purposes  Additional ad valorem  duty 
9613 80 00  Lighters (excluding gas fueled pocket lighters, and fuses 
and primers for propellant powders and explosives)  20% 
3926 30 00  Fittings for furniture, coachwork and the like, of plastics 
(excluding building components for permanent 
mounting on parts of buildings)  7% 
ANNEX II  
CN code2 Description for information purposes  Additional ad valorem  duty 
9504 40 00  Playing cards  4.4%  
ANNEX III  
The substantially equivalent concessions or other obligations under the GATT 1994 were calculated 
as follows:  
1. The US measures affect at least US $44.65 million worth of EU exports of the relevant 
derivative aluminium articles and the relevant derivative steel articles to the United  States 
in 2019. The application of the US measures woul d result in theoretical additional duties 
collected of US $ 10.16 million in 2019 (Table 1).  
Therefore, a suspension of trade concessions in the form of an increase in import duties on 
the products listed in Annex I and Annex II and originating in the Unit ed States, up to a level 
which reflects and does not exceed the amount that would result from the application of the 
United States' measures to the imports of the relevant derivative aluminium articles and the 
relevant derivative steel articles from the Eu ropean Union into the United  States, represents 
 
1 The nomenclature codes are taken from the Combined Nomenclature as defined in Article 1(2) of 
Council Regulation (EEC) No 2658/87 of 23 July 1987 on the tariff and statistical nomenclature and on the 
Common Customs Tariff (OJ L 256, 7.9.1987, p. 1 –675) and as set out in Annex I thereto, which are valid at 
the time of publication of this Regulation and mutatis mutandis as amended by subs equent legislation, 
including most recently Commission Implementing Regulation (EU) 2017/1925 of 12 October 2017 amending 
Annex I to Council Regulation (EEC) No 2658/87 on the tariff and statistical nomenclature and on the Common 
Customs Tariff (OJ L 282, 31.10.2017, p. 1 –958).  
2 Ibid footnote 2.  G/L/1356 • G/SG/N/12/EU/2  
 
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  an appropriate suspension of the application of substantially equivalent trade concessions in 
line with the Agreement on Safeguards.  
Table 1  
Products3 2019 US 
imports from 
the EU  Additional US duty to 
imports from the EU  2019 theoretical 
additional duty 
collected  
7614.10.50  $ 0.01  million  10% $ 0.001 million  
7614.90.20  $ 3.63  million  10% $ 0.36 million  
7614.90.40  $ 0.05  million  10% $ 0.005 million  
7614.90.50  $ 0.13  million  10% $ 0.01 million  
7317.00.30  $ 0.02  million  25%  $ 0.01 million  
7317.00.5503; 7317.00.5505; 
7317.00.5507; 7317.00.5560;  
7317.00.5580; 7317.00.6560  $ 19.40  million  25% $ 4.85 million  
8708.10.30  $ 19.99 million  23%4 $ 4.60 million  
8708.29.21  $ 1.43  million  23%5 $ 0.33 million  
Total  $ 44.65  million   $ 10.16 million  
 Source:  Global Trade Atlas  
2. The total amount of additional ad valorem  duties of a maximum rate of 7% and 20% in 
Annex I reflects the United States' tariff increase of:  
- estimated 23%6 on imports of bumper stampings of aluminium, comprising parts 
and accessories of the motor vehicles of headings 8701 to 8705 and of bumper 
stampings of steel, comprising parts and accessories of the motor vehicles of 
headings 8701 to 87057, from the European Union, and  
- estimated 23%8 on imports of body stampings of aluminium for tractors suitable for 
agricultural use and of body stampings of ste el for tractors suitable for agricultural 
use9, from the European Union.  
These are the products for which the United  States' safeguard measures have not been taken 
as a result of an absolute increase in imports.  
3. The total amount of additional ad valorem  duties of a maximum rate of 4.4% on imports of 
the product listed in Annex II and originating in the United States reflects the United  States' 
tariff increase of 10% on imports of the remaining derivative aluminium articles and of 25% 
 
3 Products referred to by Proclamation 9980 of January 24, 2020, Adjusting Imports of Derivative 
Aluminum Articles and Derivative Steel Articles Into the United States, Federal Register vol. 85, no. 19, 
January 29,  2020 (https://www.whitehouse.gov/presidential -actions/proclamation -adjusting -imports -
derivative-aluminum -articles -derivative -steel-articles -united -states/ ). 
4 Subheading 8708.10.30 comprises both bumper  stampings of aluminium , comprising parts and 
accessories of the motor vehicles of headings 8701 to 8705,  and bumper  stampings of steel, compris ing parts 
and accessories of the motor vehicles of headings 8701 to 8705 . Thus, it is not possible to determine the US 
import volumes from the world  per product before the start of the application of the duties  by the United 
States . The two products are su bject to additional 10% and 25% ad valorem  rate of duty, respectively. For the 
purposes of estimating the theoretical duty collected in 2019, a 23% duty is applied based on the 
approximated share during the period  2015-2019 of aluminium and products thereo f in total EU exports to the 
United States of steel, iron, aluminium and articles thereof, as described in HS chapters 72, 73 and 78 . 
5 Subheading 8708.29.21  comprises both body stampings of aluminium  for tractors suitable for 
agricultural use and body stampings of steel for tractors suitable for agricultural use. Thus, it is not possible to 
determine the US import volumes from the world  per product before the start of the application of the duties  
by the United States. The two products are subject to additional 10% and 25% ad valorem  rate of duty, 
respectively. For the purposes of estimating the theoretical duty collected in 2019,  a 23% duty is applied based 
on the approximated share during the period  2015-2019 of aluminium and products thereof in total EU exports 
to the U nited States of steel, iron, aluminium and articles thereof, as described in HS chapters 72, 73 and 78.  
6 Ibid footnote 4.  
7 Ibid footnote 3.  
8 Ibid footnote 5.  
9 Ibid footnote 3.  G/L/1356 • G/SG/N/12/EU/2  
 
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  on imports of the remai ning derivative steel articles10 from the European  Union. These are 
the products for which, on the basis of  the information currently available to the European 
Union, there may have been an absolute increase in imports.  
Table 2  
 EU proposed additional ad valorem  
duties to EU imports from the US  Theoretical additional 
duty collected  
Annex I  
Rebalancing on two products  20% and 7%  $ 4.33 million  
Annex II  
Rebalancing for remaining 
products  4.4%  $ 5.15 million  
Total   $ 9.48 million  
 Source:  Eurostat COMEXT  
4. On the basis of  the Global Trade Atlas statistics for 2019 the products of subheadings 
8708.10.30 and 8708.29.21 are not being imported into the United States from the world in 
increased absolute quantities. In fact, these imports did not even increase in the period 
2015-2019.  
Table 3  
US imports from the world not subject to an absolute increase  
Reference period  8708.10.30  
('000 units)  8708.29.21  
('000 units)  
2015 17 618  1 682  
2016 12 987  1 714  
2017 10 970  751 
2018 12 224  1 234  
2019 11 286  950 
 Source:  Global Trade Atlas  
__________  
 
10 Ibid footnote 3.  