  
  
G/SG/N/8/ARM/3/Suppl.1  
G/SG/N/10/ARM/3/Suppl.1  
G/SG/N/11/ARM/3  
17 September  2019 
(19-5956) Page: 1/6 
Committee of Safeguards  Original:  English  
 
  
NOTIFICATION PURSUANT TO  ARTICLE 12.1( C)  
OF THE AGREEMENT ON SAFEGUARDS  
NOTIFICATION PURSUANT TO ARTICLE 9 , FOOTNOTE 2  
OF THE AGREEMENT ON SAFEGUARDS  
ARMENIA  
(Certain flat -rolled steel products)  
The following communication, dated 16 September 2019, is being circulated at the request of the 
delegation of Armenia.  
_______________  
With reference to the WTO document G/SG/N/6/ARM/3 according  to Article 12.1 (c) of the 
Agreement on Safeguards Armenia hereby notifies the Committee on Safegua rds that on 
6 August  2019 the Board of the Eurasian Economic Commission  (EEC) took a decision to apply a 
safeguard measure . 
The decision of the Board of the EEC No 137 of 6 August  2019 imposing a safeguard measure in the 
form of a special quota on imports of hot -rolled steel products imported into the customs territory 
of the Eurasian Economic Union was published on 8 August  2019 on the official website of the 
Eurasian Economic Union: http://docs.eaeunion.org/docs/ru -ru/01422667/clcd_08082019_137 . 
Public notice of the conclusion of a safeguard investigation on imports of hot-rolled steel products 
imported into the customs territory of the Eurasian Economic Union  was published on 8 August  2019 
on the official website of the Eurasian Economic Union : 
http://docs.eaeunion.org/docs/ru -ru/01422703/oa_08082019 . 
Report setting forth the findings a nd reasoned conclusions reached on all pertinent issues of fact 
and law was published on 8 August  2019 on the official website of the Eurasian Economic Union 
(http://eec.eaeunion.org/ru/act/trade/podm/investigations/PublicDocuments/SG10_report_final.pd
f). 
1. Provide evidence, citing relevant data and the applicable period of investigation of 
serious injury or threat thereof caused by increased imports  
The Department for Internal Market Defence of the Eurasian Economic Commission (hereinafter 'the 
DIMD ') has made an injury assessment for three product categories covered by the investigation, 
namely hot-rolled steel products , cold -rolled steel products and coated steel products  named 
together  'certain flat -rolled steel products '. The investigation covers the pe riod from  1 January  2015 
to 30 June 2018 (hereinafter 'period of investigation '). 
In the case of hot-rolled steel products , the analysis of economic indicators  has revealed that the 
Eurasian Economic Union (hereinafter 'the Union ') was losing its market share on the Union market 
to foreign producers, which had a negative impact on the Union industry 's prices . Indeed, the growth 
in costs per unit outpaced the price increase leading to a decline in the level of profitability.  G/SG/N/8/ARM/3/Suppl.1 • G/SG/N/10/ARM/3/Suppl.1 • G/SG/N/11/ARM/3  
- 2 - 
  It has  also been found t hat increased imports of hot-rolled steel products  into the Union market are 
expected to continue in the immediate future . Indeed, in addition to the risk of trade diversion posed, 
inter alia , by the measures under Section 232 of the Trade Expansion Act of  1962 adopted by the 
United States of America, several countries have steel capacity expansion plans while, first, demand 
on certain markets is likely to decrease and, second, the ability of third markets to absorb additional 
export s of steel is limited du e to the trade measures in place . At the same time, the Union market 
is attractive to suppliers of hot-rolled steel products  from third countries , in particular  in view of its 
size and prices.  
Increasing volumes of imports of hot-rolled steel products  will continue to take market share away 
from the Union industry and displace sales of the Union industry on the Union market . This will result 
in a decline in the levels of production by the Union industry, sales of the Union industry in the Union 
market and p rofits earned by the Union industry from such sales . In addition , if costs of production 
continue to increase, the price of the Union industry 's hot-rolled steel products  on the Union market 
will be prevented from increasing at a commensurate rate with cos ts and the level of profitability 
will further decline.  
The DIMD  has therefore concluded that the Union industry will imminently become seriously injured 
if no measures are taken . The DIMD  has also concluded that there is a causal link between  increased  
imports of hot -rolled steel products and  the threat of serious injury  to the Union industry . 
The DIMD  has found that cold -rolled steel products and coated steel products are not being imported 
in such increased quantities as to cause or threaten to cause serious injury to the Union industry.  
2. Provide information on whether there is an absolute increase in imports or an 
increase in imports relative to domestic production (pl ease see also Article 2.1 for 
the context)  
The DIMD has analyz ed import data covering the period of investigation, i.e. the perio d from 
1 January , 2015 to 30 June, 2018 for each  three product categories covered by the investigation, 
namely hot -rolled steel  products, cold -rolled steel products and coated steel products . The DIMD 
has analyzed data for each year of the period of the investigation, as well as for the period 
1 July 2017 - June 30 2018 compared with the period 1 July 2016 - 30 June 2017. 
The DIMD  has not found evidence of an absolute increase in imports or an increase in imports relative 
to domestic production concerning cold -rolled steel products and coated steel products.  
In the case o f hot-rolled steel products , imports increased in absolute terms by 25,6% from 2015 
to 2017 and  by 25,9% in the period 1 July 2017 - 30 June 2018 compared with the period 
1 July 2016 - 30 June 2017. 
In relation to domestic production  imports  increased by 6,1% between 2015 and 2017 a nd by 6,5% 
in the period 1 July 2017 - 30 June 2018 compared  with the period 1 July 2016 - 30 June 2017. 
The DIMD  concludes that there has been a sudden, sharp and recent increase in imports both in 
absolute and relative terms (to domestic production ) for hot -rolled steel products.  
3. Provide the precise description of the product involved.  Provide the Harmonized 
System numbers under which the product enters at least at a 6 -digit HS level, and 
at a sub -national level (e.g. 8 -digit HS, 9 -digit HS or 10 -digit HS) if practicable  (The 
HS codes will be provided for reference purposes only)  
The product s covered by the measu re are hot -rolled steel products  (hot-rolled carbon steel and  alloy 
steel in sheets and coils). 
Hot-rolled steel products are classified under the following codes within the Common Commodity 
Nomenclature of Foreign Economic Activity of the Eurasian Economic Union (CN of FEA EAEU) : 7208 
10 000 0, 7208 25 000 0, 7208 26 000 0, 7208 27 000 0, 7208 36 000 0,  
7208 37 000 0, 7208 38 000 0, 7208 39 000 0, 7208 40 000 0, 7208 51 200 1, 7208 51 200 9,  
7208 51 910 0, 7208 51 980 0, 7208 52 100 0, 7208 52 910 0, 7208 52 990 0, 7208 53 100 0,  
7208 53 900 0, 7208 54 000 0, 7208 90 200 0, 7208 90 800 0, 7211 13 000 0, 7211 14 000 0,  G/SG/N/8/ARM/3/Suppl.1 • G/SG/N/10/ARM/3/Suppl.1 • G/SG/N/11/ARM/3  
- 3 - 
  7211 19 000 0, 7225 30 100 0, 7225 30 300 0, 7225 30 900 0, 7225 40 120 1, 7225 40 120 9,  
7225 40 150 1, 7225 40 150 9, 7225 40 400 0, 7225 40 600 0, 7225 40 900 0, 7226 91 200 0,  
7226 91 910 0, 7226 91 990 0.  
The codes of CN of FEA EAEU are  given for information purposes only.  
4. If the final measure replaces a provisional measure, or if a final measure is 
extended, a Member is encouraged to provide a written description of any part of 
the imported product that will no longer be subject to t he measure and the 
Harmonized System numbers under which it enters at least at a 6 -digit level, and at 
a sub -national level (e.g., 8 -digit, 9 -digit or 10 -digit level) if practicable1 
Not applicable . 
5. Provide precise description of the proposed measure  
The measure is a quota on imports of hot -rolled steel products with an out -of-quota duty of 20 %. 
Consistent with the obligations under Article 9.1 of the Agreement on Safeguards, the measure 
applies to imports from all sources  other than originating in devel oping and least -developed 
countries benefitting from the Unified System of Tariff Preferences (USTP) of the Eurasian Economic 
Union, except for the Republic of Korea (see the list o f developing and least -developed countries in 
Annex  below).  
Shares of imports from developing and least -developed countries, except for the Republic of Korea, 
individually do not exceed 3 % and collectively do not account for more than 9 %. 
In order to comply with bilateral obligations under the Treaty on a Free Trade Area bet ween Members 
of the Commonwealth of Independent States (CIS), Republic of Moldova, Uzbekistan and Tajikistan 
are also excluded from the scope of the measure.  
The quota allocation is as follows.  
Product concerned  
(CN of FEA EAEU)  Quota Volume ( tones) 
Armenia  Belarus  Kazakhstan  Kyrgyz 
Republic  Russian 
Federation  
7208 10 000 0, 7208  25 000 0, 
7208 26 000 0, 7208  27 000 0, 
7208 36 000 0, 7208  37 000 0, 
7208 38 000 0, 7208  39 000 0, 
7208 40 000 0, 7208  51 200 1, 
7208 51 980 0, 7208  52 100 0, 
7208 52 910 0, 7208  52 990 0, 
7208 53 100 0, 7208  53 900 0, 
7208 54 000 0, 7208  90 200 0, 
7208 90 800 0, 7211  13 000 0, 
7211 14 000 0, 7211  19 000 0, 
7225 30 100 0, 7225  30 300 0, 
7225 30 900 0, 7225  40 120 1, 
7225 40 120 9, 7225  40 150 1, 
7225 40 150 9, 7 225 40 600 0, 
7225 40 900 0, 7226  91 200 0, 
7226 91 910 0,       7226 91 990 0 14 699 227 633 5 913 2 357 334 993 
7208 51 200 9, 7208  51 910 0, 
7225 40 400 0 829 36 640 6 116 329 698 249 
 
6. Provide proposed date of introduction of the measure  
The measure shall become effective on 1 December  2019. 
                                                
1 The HS codes will be provided for reference purposes only.  G/SG/N/8/ARM/3/Suppl.1 • G/SG/N/10/ARM/3/Suppl.1 • G/SG/N/11/ARM/3  
- 4 - 
  7. Provide expected duration of the measure  
The measure  will be in force for 1 year.  
8. For a measure with a duration of more than three years, provide the proposed date 
for the review (under Article 7.4) to be held not later than the mid -term of the 
measure, if such a date for the review has already been scheduled  
Not applicable . 
9. If the expected duration is over one year, provide expected timetable for progressive 
liberalization of the meas ure 
Not applicable . 
10. If the notification relates only to a finding of serious injury or threat thereof, and 
does not relate to a decision to apply or extend a safeguard measure : 
(i) provide the deadlines for interested parties to comment or any other 
procedures relevant to the decision to apply the measures, and  
(ii) provide information regarding procedures for prior consultation with those 
Members having a substantial interest as exporters of the product concerned.  
Not applicable . 
11. If the mea sure is being extended, also provide:  
(i) evidence that the industry concerned is adjusting and that the safeguard 
measure continues to be necessary to prevent or remedy serious injury;  
(ii) reference to the WTO document that notified the initial applicati on of the 
measure;  
(iii) duration of the measure from initial application till the date at which it will be 
extended;  and, 
(iv) precise description of the measure in place prior to the date of extension (in 
this context, please note that the last sentence of Article 7.4 states that : "A 
measure extended under paragraph 2 shall not be more restrictive than it was 
at the end of the initial period, and should continue to be liberalized.")  
Not applicable . 
12. If the notification relates to a decision to apply or  extend a safeguard measure, 
Members are encouraged to provide the following information:  
(i) The major exporting Members of imports of the product involved.  
The major exporting Members of hot-rolled steel products  are Ukraine, the European Union, Republic 
of Korea, Japan.  
(ii) If there are any exporting Members to which the measure does not apply for 
any reason other than the application of Article 9.1, the names of such 
exporting Members and reasons for non -applic ation of the measure.  
In order to comply with bilateral obligations under the Treaty on a Free Trade Area between Members 
of the Commonwealth of Independent States (CIS), Republic of Moldova, Uzbekistan and Tajikistan 
are also excluded from the scope of th e measure.  G/SG/N/8/ARM/3/Suppl.1 • G/SG/N/10/ARM/3/Suppl.1 • G/SG/N/11/ARM/3  
- 5 - 
  13. Members are encouraged to attach, in an electronic form, publicly available 
document(s) containing the relevant decision(s) made by the competent authority . 
This document may be in the original language of the Member, even when the 
language is not one of the official languages of the WTO . The document will neither 
be translated nor circulated to the Committee, but will be made available by the 
Secretariat to Members requesting it  
The decision of the Board of the EEC No 137 of 6 August  2019 im posing a safeguard measure in the 
form of a special quota on imports of hot -rolled steel products imported into the customs territory 
of the Eurasian Economic Union was published on 8 August  2019 on the official website of the 
Eurasian Economic Union : (http://docs.eaeunion.org/docs/ru -ru/01422667/clcd_08082019_137 ). 
Public notice of the conclusion of a safeguard investigation on imports of hot -rolled steel products 
imported into the customs territory of the Eurasian Economic Union was published on 8 August  2019 
on the official website of the Eurasian Economic Union : 
(http://docs.eaeunion.org/docs/ru -ru/01422703/oa_08082019 ). 
Report setting forth the findings and reasoned conclusions reached on all pertinent issues of fact 
and law was published on 8 August  2019 on the official website of the Eurasian Economic Union 
(http://eec.eaeunion.org/ru/act/trade/podm/investigations/PublicDocuments/SG10_report_final.pd
f). G/SG/N/8/ARM/3/Suppl.1 • G/SG/N/10/ARM/3/Suppl.1 • G/SG/N/11/ARM/3  
- 6 - 
  ANNEX  
List of developing and least -developed countries, Members of WTO  
Afghanistan  
Albania  
Angola  
Antigua and Barbuda  
Argentina  
Bahrain  
Bangladesh  
Barbados  
Belize  
Benin  
Bolivarian Republic of Venezuela  
Botswana  
Brazil  
Brunei Darussalam  
Burkina Faso  
Burundi  
Cabo Verde  
Cambodia  
Cameroon  
Central African Republic  
Chad 
Chile 
China  
Colombia  
Congo  
Costa Rica  
Côte D'Ivoire  
Croatia  
Cuba 
Democratic Republic of the Congo  
Djibouti  
Dominica  
Dominican Republic  
Ecuador  
Egypt  
El Salvador  
Eswatini  
Fiji 
Gabon  
Gambia  
Ghana  
Grenada  
Guatemala  
Guinea  
Guinea -Bissau  
Guyana  
Haiti 
Honduras  
Hong Kong, China  
India 
Indonesia  
Jamaica  
Jordan  
Kenya  
Kingdom of Saudi Arabia  
Lao People 's Democratic Republic  
Lesotho  Liberia  
Madagascar  
Malawi  
Malaysia  
Maldives  
Mali 
Mauritania  
Mauritius  
Mexico  
Mongolia  
Montenegro  
Morocco  
Mozambique  
Myanmar  
Namibia  
Nepal  
Nicaragua  
Niger  
Nigeria  
North Macedonia  
Oman  
Pakistan  
Panama  
Papua New Guinea  
Paraguay  
Peru 
Philippines  
Plurinational State of Bolivia  
Qatar  
Rwanda  
Saint Kitts and Nevis  
Saint Lucia  
Saint Vincent and the Grenadines  
Samoa  
Senegal  
Seychelles  
Sierra Leone Singapore  
Solomon Islands  
South Africa  
Sri Lanka  
Suriname  
Tanzania  
Thailand  
The State of Kuwait  
Togo 
Tonga  
Trinidad and Tobago  
Tunisia  
Turkey  
Uganda  
United Arab Emirates  
Uruguay  
Vanuatu  
Viet Nam  
Yemen  
Zambia  
Zimbabwe  
__________  