Egypt

Hot Rolled Flat Steel (HRC and/or HRFS)

The following communication, dated and received on 10 September 2025, is being circulated at the request of the delegation of Egypt.

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1.     Provide the precise description of the product involved

Hot Rolled Flat Steel (HRC and/or HRFS)

The products subject to this investigation are Hot Rolled Flat Steel (HRC and/or HRFS) (the products concerned). They are classified under the following H.S. tariff item numbers in the Egyptian customs tariff schedule: 7208.10, 7208.25, 7208.26, 7208.27, 7208.36, 7208.37, 7208.38, 7208.39, 7208.40, 7208.51, 7208.52, 7208.53, 7208.54, 7208.90, 7211.14, 7211.19, 7225.30, 7225.40, 7226.91, 7226.99 within the Egyptian Customs Tariff Schedule. The H.S. tariff item numbers are provided for information purposes only.

HS code(s): 7208.10, 7208.25, 7208.26, 7208.27, 7208.36, 7208.37, 7208.38, 7208.39, 7208.40, 7208.51, 7208.52, 7208.53, 7208.54, 7208.90, 7211.14, 7211.19, 7225.30, 7225.40, 7226.91, 7226.99

2.     Specify the proposed provisional safeguard measure

It is proposed to impose a provisional safeguard duty of 13.6% ad valorem of the CIF value, with a minimum specific duty of 3,673 EGP per ton.

3.     Specify the proposed date of introduction of the provisional safeguard measure.

14 September 2025

Upon the ministerial decree which will be published in the Official Gazette.

4.     Specify the expected duration of the provisional safeguard measure, if any decision on the duration of the measure has been made

1 April 2026

5.     Provide the basis for:

(i)     making a preliminary determination, as provided for in Article 6, that increased imports have caused or are threatening to cause serious injury; and

(ii)    determining that there are critical circumstances where delay would cause damage which it would be difficult to repair.

Increased imports

A preliminary analysis of the increase in imports into the Egyptian market of the subject product has been carried out over the period of investigation (POI) covers January 2021 to December 2024. The recent surge period is during 2024, as imports increased absolutely by 31% compared to 2023, and by 116% compared to 2021.

In addition, the imports increased Relatively to domestic production 40% in 2024 compared to 2023 and by 102% compared to 2021.

These increases are recent, sudden, sharp, and significant.

Serious injury

The domestic industry has suffered serious injury during 2024 compared to 2023, including the following:

Declining sales volume by 10%,

Declining the market share of domestic industry by 21%,

Declining the production by 6%,

Declining capacity utilization by 6%,

Declining the number of labours by 9%.

Declining the net profit by 70%.

Critical circumstances

Critical circumstances exist as a result of a preliminary determination that there is a clear evidence that imports have caused serious injury to the domestic industry, as follows:

The surge of imports in 2024 increased by 31% compared to 2023;

The profits declined sharply by 70% during 2024 compared to 2023, this fast and recent deterioration threatens to turn profits into losses.

Therefore, in the light of the above mentioned any delay in imposing measures would result in damage to the domestic industry that would be difficult to repair.

6.     Members are encouraged to provide the following information

Additional information

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.

Adjustment plan

The domestic industry has submitted an adjustment plan, including details regarding a set of strategic to improve its competitiveness and to enhance industrial performance, as follows:

Raise the efficiency of production lines.

Diversity of products for increasing added value.

Improve operational and technical efficiency.

Offer of consultations

Egypt offers consultations under Article 12.4 with Members having a substantial interest as exporters of the product concerned.

Developing country Members exempted

In line with Article 9 of the Agreement on Safeguards, developing country Members are exempted as long as each account individually for less than 3% of Egypt's imports, and collectively not more than 9%.

Point of contact for the investigation

Ministry of Investment and Foreign Trade

Trade Remedies Sector

Attention: Mrs. Yomna Elshabrawy New Administrative Capital – Governmental District

Cairo, Egypt

E-mail address: itpd@tas.gov.eg

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