Council for Trade in Goods - Committee on Safeguards - Immediate notification under article 12.5 of the Agreement on Safeguards to the Council for Trade in Goods of proposed suspension of concessions and other obligations referred to in paragraph 2 of article 8 of the Agreement on Safeguards - Türkiye

IMMEDIATE NOTIFICATION UNDER ARTICLE 12.5 OF THE AGREEMENT
ON SAFEGUARDS TO THE COUNCIL FOR TRADE IN GOODS OF
PROPOSED SUSPENSION OF CONCESSIONS AND OTHER
OBLIGATIONS REFERRED TO IN PARAGRAPH 2
OF ARTICLE 8 OF THE AGREEMENT
ON SAFEGUARDS

Türkiye

The following communication, dated and received on 16 April 2024, is being circulated at the request of the delegation of Türkiye.

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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 on 19 October 2009, _G/SG/1/Rev.1 - _G/SG/N/6/Rev.1 - _G/SG/89) the Government of Türkiye provides the immediate notification to the Council for Trade in Goods of 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

Türkiye.

 

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 suspension of concessions and other obligations referred to in Article 8.2 of the Agreement on Safeguards

The measures at issue are the definitive safeguard measures adopted by Indonesia on carpets and other textile floor coverings under HS Codes Chapter 57 consists of 64 8-digit HS numbers under Indonesia Customs Tariff Book (BTKI) 2022, in the form of a specific duty. The definitive measures were imposed on 17 February 2021 through Minister of Finance's Regulation Number 10/PMK.010/2021.

Indonesia notified the imposition of the definitive measure to the WTO in documents _G/SG/N/8/IDN/27/Suppl.1, _G/SG/N/10/IDN/27/Suppl.1 and _G/SG/N/11/IDN/24 dated 17 February 2021. Indonesia notified the recommendation to extend the measure for three years until 16 February 2027, to the WTO in document _G/SG/N/8/IDN/27/Suppl.2 dated 9 November 2023.

3._            Describe the proposed suspension of concessions and other obligations referred to in Article 8.2, and the proposed date from which it will come into effect.

Taking into account the extension of the measures notified by Indonesia and without prejudice to the effective exercise of its right to suspend substantially equivalent concessions or other obligations referred to in Article 8.2 of the Agreement on Safeguards, Türkiye reserves its right to apply the proposed suspension of concessions as of 17 May 2024.

The proposed suspension of substantially equivalent concessions and other obligations under the GATT 1994 to the trade of Indonesia takes the form of an increase in duty on the selected products originating in Indonesia. Information with regard to the list of products and the duty rates will be notified accordingly.

The substantially equivalent level of concessions or other obligations under the GATT 1994 are calculated as follows.

According to figures of 2019, which is the most representative year before the application of the safeguard measure, the effect of the safeguard measure on Türkiye's exports of the products concerned to Indonesia is as shown below:

2019

Türkiye's Exports to Indonesia
(Million US Dollars)

Duty Calculated
(Million US Dollars)

8,95

24,17

In 2019, 8,95 million US Dollars of Turkish exports to Indonesia of the products concerned were realized. Hence, duty collected from these exports amounts to 24,17 million US Dollars. Accordingly, Türkiye's proposed suspension of concessions would result in an equivalent amount of duty collected from products originating in Indonesia.

Türkiye reserves its right to modify, supplement, or replace the suspension of concessions or other obligations should Indonesia make adjustments to the safeguard measures which would render the measures more restrictive towards products originating in Türkiye.

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