  
  
G/SG/N/10/MAR/4/Suppl.4  
G/SG/N/11/MAR/4/Suppl.5  
22 December  2021 
(22-9577) Page: 1/4 
Committee on Safeguards  Original:  French  
 
  
NOTIFICATION UNDER ARTICLE  12. 1(C) OF THE AGREEMEN T 
ON SAFEGUARDS  (EXTENSION OF THE EXISTING MEASURE ) 
NOTIFICATION PURSUANT TO ARTI CLE 9, FOOTN OTE 2 , 
OF THE AGREEMENT ON SAFEGUARDS  
MOROCCO  
(Cold-Rolled Sheets and Plated or Coated Sheets ) 
Suppl ement 
The following communication, dated and received on 2 1 December 2 021, is being circulated at the 
request of the delegation of Morocco . 
 
_______________  
 
 
Pursuant to Article 12.1(c) of the Agreement on Safeguards, Morocco hereby notifies the extension 
of the safeguard measure on imports of cold -rolled sheets and plated or coated sheets.  
1  DESCRIPTION OF THE PRODUCT SUBJECT TO THE SAFEGUARD MEASURE  
The products under investigation are cold -rolled sheets, neither plated nor coated, and plated or 
coated sheets . These products are imported under the following Moroccan tariff headings and 
subheadings : 7209 ( excluding  7209.16.00.20, 7209.17.00.20, 7209.18.00.20, 7209.26.00.20, 
7209.27.00.20 and 7209.28.00.20), 7211 ( excluding  7211.13, 7211.14 and 7211.19, 
7211.23.00.10, 7211.23.00.40, 7211.29.00.20 and 7211.29.00.50), 7225.50.10.00, 
7225.50.90.00, 7226 ( excluding  7226.11.00 and 7226.19.00), 7210 ( excluding  7210.11, 7210.12, 
7210.30.00, 7210.50, 7210.90.21.00, 7210.90.22.00, 7210.90.23.00 and 7210.90.29.91), 7212 
(excluding 7212.10, 7212.20.00, 7212.40.20.00, 7212.40.39.10, 7212.50.20.00, 7212.50.63.00 
and 7212.50.64.00), 7225 ( excluding  7225.11.00, 7225.19.0 0, 7225.30, 7225.40 and 7225.91), 
7226 ( excluding  7226.20.00.11, 7226.20.00.21, 7226.20.00.51, 7226.20.00.52, 7226.20.00.59, 
7226.91.00 and 7226.99.10.00).  
2  DESCRIPTION OF THE PROPOSED MEASURE  
The safeguard measure consists of an additional ad valorem  duty of 13.75 % applicable to imports 
of cold -rolled steel sheets and plated or coated sheets exceeding a fixed quota of 36,000  tonnes . 
3  PROPOSED DATE OF INTRODUCTION OF THE MEASURE  
The definitive safeguard measure will be published in the Official Journal of Morocco . Its provisions 
will enter into force on 1 January 2 022. 
4  EXPECTED DURATION OF THE MEASURE  
The Moroccan Ministry of Industry and Trade (the Ministry) plans to renew the safeguard measure 
for an additional duration of three years, i.e. until 3 1 Decem ber 2024. G/SG/N/10/MAR/4/Suppl.4 • G/SG/N/11/MAR/4/Suppl.5  
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  5  EXPECTED TIMETABLE FOR PROGRESSIVE LIBERALIZATION OF THE MEASURE  
The additional duty will be liberalized progressively, in accordance with Article 65 of Law No. 15-09 
on trade defence measures and Article 7.4 of the WTO Agreement on Safeguards, a ccording to the 
following timetable:  
Table  1: Liberalization the additional ad valorem  duty 
Year Additional  ad valorem  duty 
From 1 January 2022 to 31 December  2022 13.75% 
From 1 January 2023 to 31 December  2023 12,5%  
From 1 January 2024 to 31 December  2024 11.25% 
6  EVIDENCE THAT THE SAFEGUARD MEASURE CONTINUES TO BE NECESSARY TO REMEDY 
OR PREVENT SERIOUS INJURY AND THAT THE INDUSTRY CONCERNED IS ADJUSTING  
In order to determine whether the safeguard measure continues to be necessary to remedy or 
prevent serious injury and whether the Moroccan industry is adjusting in accordance with Article  69 
of Law  No. 15-09 and Article 7.2 of the WTO Agreement on Safeguards, the Ministry examined 
whether the safeguard measure was still needed to remedy serious injury . In this connection, it 
examined import trends for cold -rolled steel sheets and plated or coated sheets, and the Moroccan 
industry's economic and financial indicators . The Ministry then examined whether the safeguard 
measure continued to be necessar y to prevent serious injury . The examination focused, for that 
purpose, on the foreseeable and imminent behaviour of the imports and their effects on the Moroccan 
cold-rolled steel sheet and plated or coated sheet industry after the lifting of the safeguar d measure . 
The Ministry also examined this industry's restructuring programme.  
6.1  Determination as to whether  the safeguard measure continues to be necessary to 
remedy serious injury  
In order to determine whether the safeguard measure continues to be necessary to remedy serious 
injury, the Ministry examined the domestic industry's economic and financial indicators, namely 
production, production capacity, rate of capacity utilization, sales, production costs, profitability, 
inventories, productivity and  employment . A slight, but nevertheless very fragile, improvement in 
the situation of the Moroccan cold -rolled steel sheet and plated or coated sheet industry was 
observed.  
Table 2 : Overview of indicators of serious injury suffered by the domestic cold -rolled 
steel sheet and plated or coated sheet industry  
(Index : 2017=100 and first half of  2020=100)  2017  2018  2019  2020  2020  
(first 
half)  2021  
(first 
half)  
Imports 
(tonnes ) Cold-rolled flat steel 
sheets, neither plated nor 
coated  11,530 10,552 14,401 18,246 9,616 2,446 
Coated flat steel sheets  18,637 35,657 46,331 23,998 11,339 4,355 
Plated flat steel sheets  2,400 7,777 10,130 8,812 3,017 2,596 
Production 
(tonnes ) Cold-rolled flat steel 
sheets, neither plated nor 
coated  100 59 65 46 100 321 
Coated flat steel sheets  100 84 107 84 100 120 
Plated flat steel sheets  100 87 76 84 100 129 
Imports/  
Production  Cold-rolled flat steel 
sheets, neither plated nor 
coated  100 154 193 341 100 8 
Coated flat steel sheets  100 229 233 154 100 32 
Plated flat steel sheets  100 370 557 436 100 67 
Domestic 
sales  
(tonnes ) Cold-rolled flat steel 
sheets, neither plated nor 
coated  100 37 75 55 100 290 G/SG/N/10/MAR/4/Suppl.4 • G/SG/N/11/MAR/4/Suppl.5  
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  (Index : 2017=100 and first half of  2020=100)  2017  2018  2019  2020  2020  
(first 
half)  2021  
(first 
half)  
Coated flat steel sheets  100 89 101 64 100 247 
Plated flat steel sheets  100 106 102 81 100 175 
Market share 
of domestic 
industry  Cold-rolled flat steel 
sheets, neither plated nor 
coated  100 67 81 60 100 267 
Coated flat steel sheets  100 78 74 80 100 169 
Plated flat steel sheets  100 84 78 76 100 116 
Market share 
of imports  Cold-rolled flat steel 
sheets, neither plated nor 
coated  100 163 135 174 100 23 
Coated flat steel sheets  100 168 181 161 100 26 
Plated flat steel sheets  100 259 323 345 100 57 
Domestic 
selling price  
(MAD/tonne )  Cold-rolled flat steel 
sheets, neither plated nor 
coated  100 119 111 101 100 118 
Coated flat steel sheets  100 113 104 98 100 112 
Plated flat steel sheets  100 113 105 98 100 111 
Profit abilit y 
(MAD/tonne ) Cold-rolled flat steel 
sheets, neither plated nor 
coated  100 159 132 120 100 168 
Coated flat steel sheets  100 117 103 109 100 133 
Plated flat steel sheets  100 126 114 112 100 129 
Inventorie s 
(tonnes ) Cold-rolled flat steel 
sheets, neither plated nor 
coated  100 77 111 67 100 58 
Coated flat steel sheets  100 100 228 252 100 76 
Plated flat steel sheets  100 117 142 129 100 85 
Production capacity (tonnes)  100 100 100 100 50 50 
Production capacity utilization rate i n (%)  100 81 87 77 100 142 
Invest ment  (MAD) 100 632 134 412 100 74 
Emplo yment  (person s) 100 100 108 99 100 109 
Productivit y (tonne s/employ ee) 100 81 81 78 100 130 
Source : Data compiled from Foreign Exchange Board statistics and results of a survey for domestic 
producers . 
6.2  Determination as to whether the safeguard measure continues to be necessary to 
prevent serious injury  
In order to determine whether the safeguard measure continues to be necessary to prevent serious 
injury, the Ministry examined the risk that imports would continue to increase in the coming years 
due to factors such as the following : 
i. The inc rease in global overcapacity;  
ii. Increased imports in  Afrique ; and 
iii. The increased protection of domestic markets . 
 
Having examined the above factors, Morocco concluded that there is a real and imminent risk of 
imports of cold -rolled steel sheets and plated or coated sheets increasing once the safeguard 
measure is lifted.  
6.3  Determination as to whether the domestic industry engages in adjustment measures  
The Moroccan cold -rolled steel sheet and plated or coated sheet industry has provided evidence 
showing  that it has instituted a structural adjustment plan aimed at increasing the competitiveness 
of the Moroccan steel sector . However, other adjustment measures are being implemented, which 
require the application of the safeguard measure for an additional pe riod. G/SG/N/10/MAR/4/Suppl.4 • G/SG/N/11/MAR/4/Suppl.5  
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  7  REFERENCE TO THE WTO DOCUMENT THAT NOTIFIED THE INITIAL APPLICATION OF 
THE MEASURE  
The WTO document containing the most recent Article 12.1(c) notification is document  
G/SG/N/8/MAR/4/Suppl.3  ‒ G/SG/N/10/MAR/4/Suppl.3  ‒ G/SG/N/11/MAR/4/Suppl.3, publis hed 
on 18 January  2019. 
8  THE DURATION OF THE MEASURE FROM INITIAL APPLICATION UNTIL THE DATE ON 
WHICH IT WILL BE EXTENDED  
Morocco applied a provisional safeguard measure to imports of cold -rolled steel sheets and plated 
or coated sheets, which entered into force on 2 7 October 2 014. This measure was applied definitively 
from 2 9 August 2 015 to 3 1 December 2 018. It was then re -extended for another three years, which 
will end on 3 1 December 2 021. Morocco plans to extend this safeguard measure for th ree years, i.e. 
until 3 1 December  2024. 
9  DEVELOPING COUNTRIES EXCLUDED FROM THE SAFEGUARD MEASURE UNDER 
ARTI CLE 9.1 OF THE AGREEMENT ON SAFEGUARDS  
Albania ; Angola ; Antigua and Barbuda ; Argentina ; Armenia ; Kingdom of Bahrain ; 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 ; Guyana ; Haiti; Honduras ; Hong Kong, China ; Indonesia ; 
Jamaica ; Jordan ; Kenya; Kuwait ; Kyrgyz Republic ; Lao People's Democratic Republic ; Lesotho ; 
Macao, China ; Madagascar ; Malawi; Malaysia ; Maldives ; Mali; Mauritania ; Mauritius ; Mexico; 
Republic of Moldova ; Mongolia ; Montenegro ; Mozambique ; Myanmar ; Namibia ; Nepal; Nicaragua ; 
Niger; Nigeria ; Oman; Pakistan ; Panama ; Papua New Guinea ; Paraguay ; Peru; Philippines ; Qatar; 
Rwanda ; Saint Kitts and Nevis ; Saint Lucia ; Saint Vincent and the Grenadines ; Samoa ; Senegal ; 
Sierra Leone ; Singapore ; Solomon Islands ; South Africa ; Sri Lanka ; Suriname ; Swaziland ; 
Chinese  Taipei ; Tajikistan ; Tanzania ; Thailand ; the former Yugoslav Republic of Macedonia ; Togo; 
Tonga; Trinidad and Tobago ; Uganda ; Uruguay ; Vanuatu ; Bolivarian  Republic of Venezuela ; 
Viet Nam; Zambia ; Zimbabwe . 
10  OFFER OF CONSULTATIONS UNDER ARTI CLE 12 .3 
In accordance with Article 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 . 
__________  