NOTIFICATION PURSUANT TO ARTICLE 12 OF THE
AGREEMENT ON SAFEGUARDS

NOTIFICATION under ARTICLE 9.1, FOOTNOTE 2 OF THE
AGREEMENT ON SAFEGUARDS

United Kingdom

Certain steel products

Supplement

The following communication, dated and received on 19 April 2024, is being circulated at the request of the delegation of the United Kingdom.

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Pursuant to Articles 12.1(b), 12.1(c), 9.1 and its footnote of the WTO Agreement on Safeguards, the United Kingdom notifies that the Trade Remedies Authority ("TRA" – the United Kingdom's competent authority) has published on 19 April 2024 its final determination and recommendation in the extension review of the safeguard measure on certain steel products. 

The TRA recommended to the Secretary of State for Business and Trade an extension of the safeguard measure until 30 June 2026. The Secretary of State will make a decision on this recommendation in due course.

By way of background, the extension review was initiated on 4 September 2023, as set out in document _G/SG/N/6/GBR/1/Suppl.3.

On 21 February 2024, the TRA published its Statement of Intended Final Determination (SIFD) as set out in document _G/SG/N/6/GBR/1/Suppl.4 - G/SG/N/8/GBR/1/Suppl.8. The SIFD outlined the TRA's findings up to that date and the recommendation it intended to make to the Secretary of State. This was open to comment from interested parties until 7 March 2024. In making its final determination and recommendation, the TRA took account of further comments following the publication of the SIFD.

The UK continues to invite Members to hold consultations. Details are included in this notification under point 10 below.

Details of the case, including the TRA's Final Determination[1], can be found on the Trade Remedies Service platform at: https://www.trade-remedies.service.gov.uk/public/case/SE0041/#public-file.

1.  Provide evidence, citing relevant data and the applicable period of investigation of serious injury or threat thereof caused by increased imports.

The period of investigation for the review is 1 April 2018 to 31 March 2023.

The TRA has established that:

·_              imports of the goods subject to the review in increased quantities is likely to recur if the measure is not extended;

·_              serious injury has been removed or reduced, in whole or in part due to the application of the measure;

·_              it is likely that serious injury will recur if the measure is not extended;

·_              the circumstances of UK producers, or domestic or overseas market conditions, are such that serious injury caused by the importation of the goods subject to the review in increased quantities is likely to recur if the measure is not extended; and

·_              UK producers are adjusting to increased imports of the goods subject to review since the implementation of the safeguard measure.

The TRA conducted the above increased imports and injury assessments at product category level. The TRA considered the following factors across product categories: global steel overcapacity; trade diversion; production costs; interconnectivity of product categories; profitability, employment, productivity, and capacity utilisation by the domestic industry; and UK industry adjustments. The TRA concluded that these factors were relevant to the likelihood of increased imports or serious injury for every product category covered by the measure. Further details, including evidence and relevant data, can be found in Section E: Product Category Assessments of the TRA's Final Determination.

2.  Provide information on whether there is an absolute increase in imports or an increase in imports relative to domestic production (please see also Article 2.1 for the context).

See above.

3.  Provide the precise description of the product involved.

The products subject to this review are certain steel products imported under the following commodity codes:

4.  Provide a precise description of the proposed measure.

The TRA's Final Determination recommends to the Secretary of State for Business and Trade that the safeguard measure be extended across all product categories for a period of two years, from 1 July 2024 to 30 June 2026, which is necessary to prevent serious injury and facilitate adjustment by UK producers. The Secretary of State will make a decision on this recommendation in due course. 

The Annex sets out the recommended measure.

5.  Provide proposed date of extension of the measure.

As above.

6.   Provide expected duration of the measure.

As above.

7.  Provide expected timetable for progressive liberalisation of the measure.

The TRA recommends that the pace of liberalisation should remain at 3% per annum. The Secretary of State will make a decision on this recommendation in due course. 

8.  Provide:

(a)    Evidence that the industry concerned is adjusting and that the safeguard measure continues to be necessary to prevent or remedy serious injury;

Further to adjustment plans the TRA assessed in previous reviews of the measure, the TRA received and authenticated updated adjustment plans for the UK industry for this extension review. The adjustment plans are ongoing and have not yet been completed. UK industry submitted that they require additional time to continue their adjustment. These plans are generally confidential by their nature, and include actions that have already commenced, investments that are in progress and plans to ensure competitiveness. They largely relate to developments in working practices, new technology, or a changing of market position to ensure competitiveness with imported goods. The TRA authenticated these adjustment plans, as per the authentication reports on the public file, and determined that adjustments are, and have been, taking place.

It is also clear with reference to public sources that the UK industry is adjusting, with producers closing coke ovens, investing in new technology, restructuring operations and increasing vertical integration of supply chains. These adjustments are related to, and are likely to have a direct effect on, the production of the like goods.

         The TRA therefore determined that UK industry is adjusting. It also determined that the importation of goods in increased quantities and serious injury are likely to recur if the measure is not extended. Further details, including evidence and relevant data, can be found in Section E: Product Category Assessments of the TRA's Final Determination.

         The TRA concluded that an extension of the safeguard measure is necessary to prevent serious injury and facilitate adjustment.    

(b)    reference to the WTO document that notified the initial application of the measure;

This notification is in relation to the safeguard measure imposed by the European Union, on behalf of Member States, including the United Kingdom. The measure was provisionally applied from 19 July 2018, and was notified under document _G/SG/N/7/EU/1 - G/SG/N/11/EU/1. The definitive measure applied from 2 February 2019, and was notified under document _G/SG/N/8/EU/1 - G/SG/N/10/EU/1 - G/SG/11/EU/1/Suppl.1. The United Kingdom's transition review of the measure, following its withdrawal from the European Union, was initiated on 1 October 2020, as notified under document _G/SG/N/6/GBR/1.

(c)     duration of the measure from initial application till the date at which it will be extended;

The initial application of the measure commenced in July 2018 with a provisional measure. The TRA recommends extending the measure until 30 June 2026. The Secretary of State will make a decision on this recommendation in due course.

(d)    precise description of the measure in place prior to the date of extension.

The measure is currently in place as per document _G/SG/N/10/GBR/1/Suppl.14 - G/SG/N/11/GBR/1/Suppl.14.

9.  If the notification relates to a decision to apply or extend a safeguard measure, provide:

(a)    the major exporting Members of imports of the product involved;

The UK considers major exporting countries to be those who have a significant supplying interest.

(b)    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-application of the measure

Subject to the Secretary of State's decision on the TRA's recommendation, the measure would not apply to developing countries who benefit from an exemption under the UK's Economic Partnership Agreements. See table 5 of the Annex. 

10.  Provide information regarding procedures for prior consultations with those Members having a substantial interest as exporters of the product concerned.

Members who wish to consult with the United Kingdom may make a request through the UK Mission in Geneva and agree a mutually convenient time and date to hold consultations. These consultations will be held via MS Teams and will be conducted in accordance with Article 12.3 of the Agreement on Safeguards.

ANNEX

Table 1: Quarterly volumes of country and residual tariff-rate quotas (in tonnes) for 1 July 2024 to 30 June 2025

Table 2: Quarterly volumes of country and residual tariff-rate quotas (in tonnes) for 1 July 2025 to 30 June 2026

Table 3: Developing countries considered for the purposes of Article 9.1 of the Safeguards Agreement

Table 4: Developing country non-exemptions by product category, based on January-December 2022 import share

Table 5: EPA/FTA partners with a current global safeguard exemption

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