   
  
G/L/1482  
G/SG/281  
 
15 May 2023 
(23-3404) Page: 1/2 
Council for Trade in Goods  
Committee on Safeguards  
  Original: English  
 
 
IMMEDIATE NOTIFICATION TO THE COUNCIL FOR TRADE IN GOODS  
OF THE RESULTS OF THE CONSULTATIONS UNDER ARTICLE 12.3  
JOINT COMMUNICATION OF INDONESIA AND TÜRKIYE  
Yarns From Nylon and Other Polyamides  
The following communication, dated  and received on 12 May 2023, is being circulated a t the request 
of the delegation s of Indonesia and Türkiye . 
 
_______________  
 
Pursuant to paragraph 5 of Article 12 of the Agreement on Safeguards, Türkiye and Indonesia hereby 
provide the immediate notification to the Council for Trade in Goods of the results of the consultations 
under paragraph 3 of Article 12.  
 
1. The provision unde r which consultations were held:  
 
Consultations were held under Article 12.3.  
 
2. Reference to the WTO document that notified the safeguard action regarding which 
consultations were held under Article 12.3:  
 
Documents G/SG/N/6/TUR/25/Suppl.1 - G/SG/N/14/TUR/12, G/SG/N/8/TUR/17/Suppl.1 - 
G/SG/N/10/TUR/17/Suppl.1 - G/SG/N/11/TUR/24/Suppl.1 and G/L/1473 - G/SG/279 contain 
notifications from Türkiye  concerning the safeguard measure on yarns from nylon and other 
polyamides.  
 
3. The Members involved in the consultations and the dates of consultations between 
Members:  
 
Türkiye  and Indonesia conducted five -time consultations on 18 November 2022, 30 November 2022, 
9 December 2022, 14 December 2022 and 16 March 2023.  
 
4. Progress of the  Consultation  
 
During the first consultation, these concerns were raised by Indonesia: (1) request for the exclusion 
of Indonesia under Article 9.1 of the Agreement due to the low market share of Indonesia (0.83 %) 
during the POI; (2) the necessity of the e xtension of the current Safeguard Measure under 
articles  7.1 and 7.2 of the Agreement; (3) whether the procedures for the extension of Safeguard 
Measures is in conformity with Articles 2,3,4 and 5 of the Agreement; (4) request of compensation 
under Article 8.1 and 8.2 of the Agreement with a value calculated bas ed on the loss of potential 
exports; (5) Indonesia reserves its rights for suspension under Article 8.2 and 8.3 of the Agreement; 
and (6) Indonesia's willingness to find a mutual solution on these issues. Türkiye  rejected Indonesia's 
request to be excluded  from the Extension of Safeguard Measure, arguing that according to Türkiy e's 
practice Indonesia can not be excluded since Indonesia's share for the product concerned exceeded 
3% during the original safeguard investigation, even though Indonesian share was  below 1% during 
the extension investigation. However, Türkiye is willing to find a mutual solution with Indonesia.  
 G/L/1482 • G/SG/281  
 
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  During the second and third consultations, the consultations were focused on: (1) the necessity of 
the extension of the Safeguard Measure a rticles 7.1 and 7.2 of the Agreement; (2) the existence of 
Serious Injury or Threat of Serious Injury under Articles 4.1 and 4.2 of the Agreement; (3) Indonesia 
suggested that the calculation methodology for compensation should be based on historical trade  
data and the effect on trade of the safeguard measure. Türkiye added that compensation to be 
calculated based on the duty to be collected and should not be based on potential exports from 
Indonesia to  Türkiye calculated by taking into account economic ind icators such as inflation rate, 
domestic sales increase, consumption increase rate; and (4) finding a mutual solution on these 
issues. On the third consultation, Indonesia was willing to accommodate Türkiye 's suggested 
methodology for calculating the value  of the compensation and will present the new value of 
compensation on the fourth consultation.  
 
On the fourth consultation, using the methodology suggested by Türkiye , Indonesia came up with a 
request for compensation with an amount of USD 314,900 in the form of lowering the import duty 
equivalent to such amount. Indonesia also welcomes any alternative amount and form of 
compensation from the Türkiye to be discussed in the fifth consultation.  
 
On the fifth consultation, Indonesia reiterated that its primar y goal is to strengthen the trade 
relationship between Indonesia and Türkiye and secure market access of Indonesia's yarns made of 
nylon or other polyamides products into Türkiye. The Government of Indonesia also expressed its 
willingness to find a middle ground with the Türkiye and request compensation for the extension of 
the Safeguard Measures to the amount of USD 314,900 in the form of zeroing or at least lowering 
the import duty equivalent to that particular amount for product Staple fibers of viscose rayon 
(HS Code 550410); however, Indonesia welcomes any options from Türkiye’s side as alternatives 
for the compensation form as long as it is equivalent to the requested amount. Indonesia also 
encouraged Türkiye to continue and move forward with the lndon esia- Türkiye CEPA negotiation, 
which has been postponed for some time.  
 
Türkiye responded that due to the recent earthquakes affecting Türkiye territory, it could not grant 
the request for compensation from Indonesia or any other alternative form of compe nsation, as this 
would hinder economic recovery following the earthquakes, and kindly asked for Indonesia's 
consideration regarding this situation. In light of the situation, no agreement on the request for 
compensation was reached, and both parties decide d to end the consultation for compensation.  
 
5. The results of the consultations:  
 
Türkiye and Indonesia hereby notify the final results of the consultations conducted under 
Article  12.3 of the WTO Agreement on Safeguards (the Agreement) regarding the extensi on of the 
safeguard measure on yarns from nylon and other polyamides products originally applied by Türkiye. 
Türkiye and Indonesia have completed series of Consultations under Articles 12.3, 8.1 and 8.2 of 
the Safeguard Agreements in good faith. Both parti es declared their intention to engage further in 
future economic cooperation.  
 
__________  