agreement on - world trade organization i: salient features of the nickel industry properties and...

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GENERAL AGREEMENT ON TARIFFS AND TRADE RESTRICTED MDF/W/21 28 June 1985 Special Distribution PROBLEMS OF TRADE IN CERTAIN NATURAL RESOURCE PRODUCTS Background Study on Nickel and Nickel Products Prepared by the Secretariat Table of Contents 1. INTRODUCTION SECTION I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial uses and substitutes Structure of the world nickel industry Pricing in the nickel industry SECTION II: Production Consumption and Prices Mine production Smelter production Semi-manufacture of nickel Consumption Prices and stocks SECTION III: International Trade Ores and concentrates Intermediate products Refined nickel products Direction of trade SECTION IV: Commercial Policy Situation 17. Tokyo Round Negotiations: tariff assessment 18. Trade in nickel and nickel products under different tariff treatment according to stages of processing 19. Tariff escalation 20. Non-tariff measures 2. 3. 4. 5. 6. 7. 5 5 5 5 11 13 20 24 8. 9. 10. 11. 12. 29 13. 14. 15. 16. 29 34 36 36 43 48 51 51 51 52 59 85-1142 59 62 103 103 Page

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Page 1: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

GENERAL AGREEMENT ONTARIFFS AND TRADE

RESTRICTED

MDF/W/2128 June 1985

Special Distribution

PROBLEMS OF TRADE IN CERTAIN NATURAL RESOURCE PRODUCTS

Background Study on Nickel and Nickel Products

Prepared by the Secretariat

Table of Contents

1. INTRODUCTION

SECTION I: Salient Features of the Nickel Industry

Properties and characteristicsNickel ores and reservesMining and ProcessingNickel products, industrial uses and substitutesStructure of the world nickel industryPricing in the nickel industry

SECTION II: Production Consumption and Prices

Mine productionSmelter productionSemi-manufacture of nickelConsumptionPrices and stocks

SECTION III: International Trade

Ores and concentratesIntermediate productsRefined nickel productsDirection of trade

SECTION IV: Commercial Policy Situation

17. Tokyo Round Negotiations: tariff assessment18. Trade in nickel and nickel products under different

tariff treatment according to stages of processing19. Tariff escalation20. Non-tariff measures

2.3.4.5.6.7.

5

5

55

11132024

8.9.10.11.12.

29

13.14.15.16.

2934363643

48

51515152

59

85-1142

59

62103103

Page

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Page

SECTION V: Activities in Other International Organizations 107

21. The Third United Nations Conference on the Law of the Sea 10722. International cooperation on nickel 10823. Customs Cooperation Council (Brussels) 109

24. Summary and observations 109

ANNEX I: Summary of pre-Tokyo and post-Tokyo RoundTariff Situation Affecting Nickel andArticles Thereof 112-118

ANNEX II: The Harmonized System of CommodityDescription and Classification 119-121

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List of Tables

Page

7

14

17

22

23

26

30

1. Estimated world nickel reserves and reserve base, 1985

2. Commercial forms of primary nickel

3. World consumption by uses in market economy countries

4. Corporate shares of world nickel production, 1982

5. Principal world nickel producers

6. Estimated costs of nickel production, 1975

7. World production of nickel, 1960-1983(in thousands of metric tons)

8. World production of nickel(as a percentage of world production)

9. World consumption of nickel, 1960-1983

10. Relative growth rates of nickel consumption until 1990

11. Nickel prices, 1950-1984

12. World stocks of unwrought nickel, 1976-1984

13. Exports of nickel - unwrought

14. Imports of nickel - unwrought

15. Direction of trade by main importers, 1983

16. Direction of trade by main supplires, 1983

17. Pre-Tokyo Round and Post-Tokyo Round tariffs in ninedeveloped markets (in percentages)

18. Summary of imports of nickel and nickel products underdifferent tariff treatment in twenty-three countries

19. - Australia

20. - Austria

21. - Canada

22. - EEC

23. - Finland

24. - Hungary

25. - Japan

31

39

42

44

47

50

53

54-55

56-57

61

63

65

67

69

71

72

74

75

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Page

26. - New Zealand 77

27. - Norway 78

28. - Switzerland 80

29. - Sweden 82

30. - United States 83

31. - Argentina 86

32. - Brazil 87

33. - Colombia 88

34. - Hong Kong 90

35. - India 91

36. - Korea 93

37. - Malaysia 94

38. - Spain 95

39. - Singapore 97

40. - Thailand 98

41. - Yugoslavia 100

42. Nickel and nickel products tariff rates according todifferent stages of processing in the following countries:Chile, Czechoslovakia, Egypt, Iran, Nigeria, Poland,Romania, Venezuela. 101

43. Non-tariff measures affecting trade in nickel andproducts thereof 104-106

Diagram I Nickel scrap flow 10

List of Charts

I Nickel consumption by first use, 1983 15

II Cash operating costs, 1983 27

III World mine production of nickel 32

IV Changes in world nickel consumption and crude steelproduction, 1953-1983 37

V World nickel consumption, 1950-1983 40

VI Canadian nickel prices, 1950-1983 45

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1. INTRODUCTION

1. The present study on nickel forms part of the series of factualbackground papers being prepared by the secretariat on non-ferrous metals.These studies are being undertaken in accordance with the Decision taken byMinisters at the Thirty-Eighth Session of the CONTRACTING PARTIES inrelation to Problems of Trade in Certain Natural Resource Products.

2. This study provides information on nickel and nickel productsconcerning the following CCCN positions: 26.01, 26.03, ex 28.28, ex 28.30,ex 28.35, ex 28.38, ex 28.39, ex 28.42, ex 28.43, ex 28.48, ex 73.02,ex 73.03, 75.01, 75.02, 75.03, 75.04, 75.05, 75.06. Section I givesbackground information on some of the salient features of the nickelindustry. Section II briefly reviews developments with regard to worldnickel production, consumption and prices since 1960. Section III providesinformation on trade flows in nickel ores and concentrates; onintermediate nickel products such as matte, speiss, and nickel oxide, andon refined but unwrought nickel products including, nickel oxide sintersferro-nickel, electrolytic nickel cathodes, briquets, pellets, rondels,incomets etc. Section IV provides detailed information on trade flows on atariff line basis, together with tariff treatment in twelve developedcountry markets and some developing countries. It also providesinformation on non-tariff measures affecting nickel and nickel products,notified in GATT. Section V describes actions in other internationalorganizations related to nickel.

SECTION I: Salient Features of the Nickel Industry

2. Properties and characteristics

3. Nickel (Ni) a light grey metal belongs to the iron-cobalt family. Ithas an atomic number of 28, an atomic weight of 58.70 and a melting pointof 1452°C. Nickel shares some properties with iron; high melting point,strength, hardness, and magnetism. It is, however, superior to iron in itsability to resist corrosion and oxidization and in its great strength atelevated temperatures. Alloyed with other metals, nickel imparts corrosionresistance, strength and toughness at high temperatures and other qualitiespreferable to those of other materials in a number of applications.

3. Nickel ores and reserves

4. Nickel occurs basically in four main types of mineral ores; sulphideores, oxide ores, arsenidic ores and sedimentary ores, of which only thefirst two are currently of economic interest. Arsenidic ores are todayconsidered to be virtually worked out. Sedimentary ores occur in manganesenodules on the ocean floor which, according to tests carried ou. so far,contain on average approximately 1 per cent nickel. This source of ore ispotentially important since sea-bed mining is seriously envisaged in thefuture when the technological problems involved might have been overcome.

5. The largest concentration of sulfide ores is in the Sudbury districtof Ontario, Canada. Sulfide ores exist also in Australia, South Africa,China, Zimbabwe, Botswana, Finland, Morocco, Norway and the Soviet Union.Until the late 1960s sulfide deposits accounted for almost two-thirds ofnickel mined in the world.

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6. Oxide (laterite) deposits are formed by a process of laterization overlong periods of weathering and erosion. They are found near the surface,can usually be mined by open-pit methods, and exist mainly in tropicalareas. Countries producing nickel from laterite ores include NewCaledonia, Cuba, Dominican Republic, Australia, Greece, United States,Indonesia, Colombia, Philippines, Brazil, Burma, Albania, Soviet Union,German Democratic Republic and Poland. Laterite deposits have recentlybeen discovered in Burundi, India, Ivory Coast, Tanzania and Zaire. Oxideor laterite deposits which now account for the major part of identifiedworld reserves are of two types; those in which silicates are predominant,and those with a predominant iron base. Silicate ores (also calledgarnierite) which comprise most of the New Caledonian deposits, are richerin nickel content than sulphide ores, usually exceeding 1.5 per cent. Thesecond type of laterite deposits, (limonitic) nickel-ferrous ironlaterites, while rich in iron (45-50 per cent) contain a low level ofnickel, about 1.0 per cent. Most of the deposits in Cuba, the Philippines,Indonesia and most other developing countries are of this type.

7. The world nickel reserve base, excluding nickel associated withsea-bed manganese nodules, have been estimated at about 111 million tonsfor 1985. On the other hand, total world reser-es have been estimated atabout 58 million tons of nickel. About 57.1 per cent of the world reservesare found in the developing countries which account for 29 per cent ofcurrent mine production. Cuba alone accounts for about 34.4 per cent oftotal world reserves, New Caledonia 3.4 per cent, Dominican Republic 1.4per cent, Brazil 1.5 per cent, Botswana 0.8 per cent, Colombia 1.1 percent, Yugoslavia 3.2 per cent, Zimbabwe 0.3 per cent. Other developingcountries with major reserves are the Philippines 3.4 per cent, andIndonesia 7.4 per cent. Developed market economy countries were estimatedin 1985 to account for 28.1 per cent of reserves, among them Canada andAustralia have the largest shares, 13.8 per cent and 4.0 per centrespectively; others are US 0.5 per cent, Greece 4.5 per cent, SouthAfrica 4.8 per cent, Finland 0.1 per cent. The centrally-planned economiesinclucing China account for about 14.8 per cent of total world reserveswith the USSR alone accounting for 12.6 per cent. Small reserves are alsoknown to exist in a number of other countries. Table 1 shows the knownworld reserves of nickel in 1985 and their distribution. Laterite ores areestimated to account for about 75 per cent of known reserves as against ashare of about 35 per cent of current mine output.

8. The discovery of a vast quantity of metal-bearing nodules on the oceanfloor has added a new dimension to attempts to have an accurate estimate of

In almost every occurence of laterite nickel ores the two types ofdeposits (limonitic and silicate types) are present, but in widely varyingproportions. Geologically the distinction betweem the two types is one ofdegree and any sharp classification is necessarily arbitrary.

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Table 1

Estimated World Nickel Reserves and Reserve Base, 1985

PercentageReserye share of

Countries/economies Reserves base reserves

World Total 58,140 111,250 100.0

Developing countriesand territories 33,183 72,500 57.1

Botswana 450 500 0.8Burundi _ 1,300 _Brazil 900 4,700 1.5Colombia 650 700 1.1Cuba 20,000 25,000 34.4Dominican Republic 800 1,100 1.Guatemala _ 900 _India _ 600 _Indonesia 4,300 5,800 7.4Philippines 2,000 5,100 3.4New Caledonia 2,000 17,000 3.4Papua New Guinea _ 1,400 _Zimbabwe 200 1,900 0.3Yugoslavia 1,883 2,000 3.2Other _ 4,500 _

Developed countries 16,340 29,050 28.1

Australia 2,300 5,300 4.0Greece 2,600 2,800 4.5Finland 40 50 0.1Canada 8,000 14,800 13.8United States 300 2,800 0.5Union of South Africa 2,800 2,900 4.8Other 300 400 0.5

Centrally-planned economies 8,617 9,700 14.8

USSR 7,300 8,100 12.6Albania 222 250 0.4China 800 1,000 1.4Other 295 350 0.5

¹The reserve base includes demonstrated resouces that are currentlyeconomic (reserves) marginally economic (marginal reserves), and some ofthose that are currently sub-economic (sub-economic resources)

Source: Bureau of Mines, United States Department of the Interior, 1985.

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world nickel resources and reserves. These nodules, also widely known asmanganese nodules, contain mainly manganese, nickel, copper and cobalt.Assuming that these nodules will be mined, those in the "first generation"operations will contain, on the average, approximately 1.3 per centnickel, 1.1 per cent copper, 0.23 per cent cobalt and 25.0 per centmanganese (if recovered). There are strong indications that because of thehigh cost of entry into ocean mining and the economies of scale, that onelikely individual mining project will need to have an annual capacity ofnot less than 3 million tons of dry nodules. The feasibility of a3 million tons per year operation, however, remains to be demonstrated.Thus, assuming a recovery rate from processing of 90 per cent, each projectwould at least produce 35,000 tons of nickel, 30,000 tons of copper and4,000 tons of cobalt annually. The quantity of sea-bed nickel on themarket at any time will depend therefore on the number of viable projectsin operation. As has been indicated above, the ratio of the four mainminerals found in nodules is significantly different from the relative sizeof present or likely future demand for each of them. Because of this andthe different land-based reserve status of these metals, there is a viewthat the decision to mine the nodules and the level of production will bedetermined by the market prospects for nickel. The extent of noduledevelopment , therefore. will be dictated by the outlook for an increase inworld demand for nickel and the degree of competitiveness between marine-and land-based sources of supply.

¹Resources as distinct from reserves are defined as total knowndeposits regardless of whether or not they can be mined at a profit undercurrent economic conditions. Resource availability is essentially dynamicsince the state of technology will be the crucial factor in determiningwhat is and what is not to count as a resource at any point in time.Reserves are the proportion of identified resources that are economic toextract given current prices and costs. Large fluctuations in costs andprices, especially the latter, which occur over relatively short periods,may lead to large fluctuations in the level of reserves, particularly forthose countries with large marginal deposits.

²The Nickel Industry and the Developing Countries, - UN New York 1980- ST/ESA/100, page 45).

³The Nickel Industry in the Developing Countries - United Nations,New York 1980 - ST/ESA/100, page 45.

4There are a number of uncertainties regarding nodule mining atpresent. Prospects for technological progress in engineering, material anddesign, which would reduce production costs are uncertain. Furthermore,the design of the particular metallurgic process selected - e.g. whetheradditional stages of processing are included in the plant design - coulddetermine whether certain minerals, particularly manganese, could berecovered, thus affecting profitability. Another crucial determinant ofcosts and the quantity of marine nickel output could be the regulations tobe imposed by the International Sealed Authority (ISA) whose creation was

proposed at the United Nations Conference on the Law of the Sea. A numberof countries have so far refused to be bound by certain aspects of theConvention on the Law of the Sea pertaining to the exploitation of sea-bedmineral resources.

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9. Global resources of nickel are estimated to be sufficient to supportthe growth in projected demand well past the end of this century. Inaddition, new resources will likely be discovered, especially in thedeveloping countries, where exploration has been less thorough andsystematic than in the developed countries, and some resources currentlyconsidered subeconomic will become viable as a result of technological andmarket developments. Ocean resources are likely to provide a very largeaddition to potential world supply. The exhaustion of resources does nottherefore appear to be a significant possibility for nickel, at least forthe foreseeable future.

Secondary sources of nickel

10. Secondary or scrap sources of nickel form a significant component oftotal nickel supply. A typical nickel scrap flow is shown in Diagram I.Nickel scrap is derived from two sources. The first considered as newscrap is generated in forming and shaping operations in primary processingplants and fabricating plants that use nickel-bearing materials, such asstainless steel and superalloys. New scrap comprises home scrap which isgenerated and recycled within integrated steel mills, foundries and alloyproduction plants as "runaround scrap" without reaching an outside market,and "prompt industrial scrap" which is sold to mills and smelters bymanufactures or scrap brokers. The other source is old scrap which isrecovered from nickel-bearing equipment and consumer goods. This isnormally returned through scrap brokers to steel mills, smelters,refineries and foundries.

11. The largest source of secondary nickel that appears on the market isstainless steel scrap, which is an internationally traded commodity. Thisis almost invariably used to make stainless steel, while nickel alloy scrapis used for nickel alloys and nickel-based super-alloy scrap for superalloys. According to a study by United States Bureau of Mines, thequantity of scrap metal generated in making many nickel alloys is unusuallyhigh compared with that generated in making steel and non-ferrous alloys ofcopper, lead, zinc and silver. In producing and fabricating stainless andalloy steels, product yields average less than 60 per cent. In producingand fabricating high-nickel alloys, product yield is often as low as 20 percent. There is some loss in recycling in-house high nickel alloy scrap.Once the nickel bearing material leaves the primary plant, scrap loss is30 per cent or more owing to inadequate material segregation. Therefractory nature of most high nickel alloys makes processing them to yieldseparate elements both technically difficult and expensive. In the United.States high-nickel alloy scrap is normally not utilized unless itscomposition is known within close limits

Mineral Commodity Profiles - Nickel - Bureau of Mines, United StatesDepartment of the Interior, 1983 - page 10-11.

²Idem, page 11.

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Diagram 1

NICKEL SCRAP FLOW DIAGRAM

_____ X~~~~~~~

- - - - - -Jl

_ _ _ _ _ _ _ _J~~~~

1 -- !1vlItS

_ ___ t__EXPORTS

Source: Mineral Commodity Profi les, 1983(Bureau of Mines - US Dept. of the Interior)

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Except for the United States, no data are available about the exactmagnitude of nickel scrap in the industry , since nickel scrap is usuallyincluded without identification in the statistics on refined nickel output.United States data, however suggests that nickel scrap accounts for about25 per cent of output and consumption and the same ratio probably appliesworldwide.

4. Mining and processing

12. Most known oxide deposits occur near the surface and can be mined byopen-pit methods, and consequently labour costs are a small fraction oftotal costs. Sulphide ores, on the other hand, are generally found deeplabour intensive underground and are mined using underground methods andhence are more susceptible to increases in labour costs . On the wholeproduction costs for the two types of deposits are significantly differentand this has been discussed in greater detail in Section II of this study.The exploitation of sulfide ores accounted for as much as 66 per cent ofnickel mined in the world as late as the mid-1960s. The shift towardsgreater exploitation of laterite ores started in the mid-1960's aftertechnological developments permitted the economic development of theseores. Concurrently, the development of the argon-oxygen-decarbonization(AOD) furnaces enabled the use of ferro-nickel in the making of stainlesssteel, thus boosting the exploitation of laterite ores. Another factor wasthe marked rise in the price of nickel in real terms from the mid-1960swhich boosted the profitability of nickel mining. At present about 55 percent of nickel production is from laterites.

13. The metallurgical process for extraction of nickel is fairly complexand costly. The different types of nickel ores require differentproduction techniques, however, the processing chain could generally beconsidered to consist of the stages described below.

Sulfide ores

14. The nickel-bearing ores are first ground and carried through a seriesof flotation and magnetic separation processes. In the operations of INCOLimited, three distinct concentrates are isolated for separate processing:(a) nickel-bearing iron sulfide, (b) copper-bearing nickel sulfide and(c) copper sulfide.

¹A study by the United Nations indicates that on the average homescrap represents 30-40 per cent of the feed of mills and foundries. Promptindustrial and old scrap could account for an additional 20-30 per cent.Primary nickel therefore represents less than half of the nickel feed forsteel and alloy producers. (United Nations Department of TechnicalCo-operation and Development - "The Nickel Industry and the DevelopingCountries - United Nations, New York 1980).

Since 1980 INCO LTD has been adopting the vertical block mining (VBM)technique in its underground mining operations. This is considered moreefficient and less labour intensive than the existing method (mainlycut-and-fill-stopping) - (Mineral Commodity Profile 1983 - Nickel - UnitedStates Department of Interior Bureau of Mines).

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15. The nickel-bearing iron sulfide is desulphurized in a fluid-bedroaster, reduced with carbon monoxide and hydrogen and then leached withammonia-carbon dioxide solution to remove the nickel. The nickel isrecovered as a basic carbonate. Sulphuric acid is also produced.

16. The copper-bearing nickel sulfide is partially desulphurized inmultiple-hearth roasters, melted and cooled under specially controlledconditions which allow subsequent magnetic and flotation separation intothree concentrates, i.e. nickel sulphide, copper sulfide and preciousmetals. The nickel sulfide is sintered for direct sale to the alloymarkets, and for further refining, both electrolytically and by thecarbonyl process.

17. Nickel-bearing sulfide ores are also treated by the Hybinette processwhich involves selective leaching of the copper with sulphuric acid from anickel-copper matte derived from a flotation concentrate. The crudeproducts are refined by a combination of electrolytic and concentrationtechniques.

18. Nickel sulfide concentrating plants to recover about 90 per cent ofthe nickel in the ore feed. Smelter recovery is estimated at 95 per centof the contained metal.

Laterite ores

19. Laterite (oxide) ores comprise two main types, the silicate type andthe limonite type which are also known as nickel-ferrous iron laterites andin which iron oxide minerals are prominent. Unlike sulfide ores, noeffective means have been found to concentrate laterite ores in the earlystages of processing and they must be treated directly using eitherpyromellurgical (smelting) or hydrometallurgical (leaching) processes.

20. The silicate ores of New Caledonia are partially treated by a mattesmelting process. The ore is fused with calcium carbonate, calciumsulphate and coke to yield nickel-iron sulfide concentrate or matte whichis further refined by smelting to eliminate the iron in silicon slag, andyield ultimately fairly pure nickel metal. Silicate ores can also betreated by electric smelting to yield ferro-nickel which can be solddirectly to the steel industry.

21. Laterite limonite ores can be reduced in multiple-hearth furnaces andthen selectively leached with ammonia-carbon dioxide solutions. Theammonia is recovered efficiently for re-use by steaming the solution whichresults from leaching, while the nickel is simultaneously precipitated asthe basic carbonate. The latter is calcinated to nickel oxide for directsale, or for further processing to nickel-oxide sinter or ingot nickel.Nickel can also be extracted from laterite ores by direct leaching withsulphuric acid solution at elevated pressure and temperature. A sulfideprecipitate produced from the leach solution can be chemically refined forthe production of metallic nickel. Plants that process laterites torecover nickel in ferro-nickel normally do recover 90 to 98 per cent of themetal contained in the ore. Limonitic ores yield cobalt as by-product andthis contributes to the economic justification for their exploitation.

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5. Nickel products, industries uses and substitutes

22. The commercial forms of primary nickel fall into two main classes.Class I products are essentially pure, with a nickel content between 99 percent and 100 per cent, and can generally be used without constraints formany applications. True Class I products include electrolytic cathodes(99.9 per cent nickel) and carbonyl pellets (99.97 per cent nickel);briquets, rondels and nickel 98 are also accepted as Class I products,although their use is slightly restricted. Class II products have amoderate range of residual elements; the nickel content ranges widely from20 per cent to 96 per cent. They are usually suitable for specific limitedapplications. Class II products include various grades of ferro-nickel(40-50 per cent nickel in the United States, but 20-38 per cent outside theUnited States) and nickel oxide sinter (either 76 per cent or 90 per cent).A new product, incomet (94-96 per cent nickel, introduced in 1974, isreplaces oxide sinter in certain markets. Nickel salts, also includedunder Class II products contain 20-25 per cent nickel. Table 2 shows theclassification of the major commercial forms of primary nickel and theirmain uses.

23. Apart from the main products mentioned above, considerable quantitiesof by-products are recovered in the processing of nickel ores: about52 per cent of world production of platinum metals, 30 per cent of cobaltmine production and 4 per cent of world copper output.1 Sulfide ores suchas those found in Canada and the USSR are rich in these metals, whilelaterite ores contain a substantial percentage of iron.

24 The proportion of nickel consumed as Class I or Class II productsdiffers widely among intermediate uses and various markets. At present,slightly over half the nickel output is consumed in "pure" form - Class I.Ferro-nickel and nickel oxide sinter, both Class II, account for about 33per cent and 13 per cent respectively of total world nickel consumption.

25. For the future, it is expected that the growth in demand for Class Iand Class II nickel will be approximately in the same proportion ascurrently prevails. Ferro-nickel is the major component of Class II nickeland, while its share of the market grew rapidly in the 1960s as the resultof the introduction of the argon-oxygen decarbonization (AOD) steel-makingprocess, this growth rate slowed in the 1970s. For the latter half of the1980s and the 1990s, it is expected that, while ferro-nickel productionwill increase, its growth will not be significantly different from refinednickel. Much of the future increment of nickel production in marketeconomies will likely come from least-developed countries where most of theundeveloped nickel resources have been identified.

26. The consumption of nickel by major end use category is illustrated inChart I. It shows that in 1983 approximately 50 per cent of primary nickelconsumption was accounted for by the production of stainless steel, a

¹Dusseldorf Handelsblatt of 14 August 1978 - as quoted in Non-FerrousMetals - Their role in industrial development - by Lotte Miller-Ohlsen,p.16 - published by Woodhead-Faulkner in association withMetallgesellschaft AG.

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Table 2

Commercial Forms of Primary Nickel

Class I

Cathode

Pellets

Powder

Briquets,

Rondels

Class II

Ferronickel

Matte

Oxide sinter

Incomet

Nickel salts1Nickel chlorideNickel nitrateNickel sulfate

Composition(percentage)

Nickel Iron Oxygen Main use

99.9

99.97

99.74

99.9

99.25

20-55

50-75

75-90

49-96

24.7020.1920.90

0.002

0.0015

0.01

0.02

0.087

Balance

0.3

0.15

0.04

Balance

Nickel alloys andelectro-plating

Nickel alloys

Chemical industry,powder metallurgy

Nickel-cadmiumbatteries

Nickel-alloys

Ferrous nickel alloys,stainless steel

Steel-making

Steel making

)Chemical industry

4 _____________________

¹Theoretical nickel content

Source: Nickel Handbook - World Bank 1981: Nickel Industry andthe Developing Countries U.N. New York 1980.

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Chart I

1983 NICKEL CONSUMPTIONBY FIRST USE

Supplied by the Department of Energy, Mines and Resources, Canada.Source:

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further 10 per cent was consumed in the production of high alloy steels,20 per cent in non-ferrous alloys, 8 per cent in plating, a further 8 percent in steel foundry products with the remaining 4% going to other usesincluding chemical uses. Table 3 on the other hand, shows the evolution inthe various categories of end use between 1960 and 1983. It shows,inter alia, that the only categories which have increased their share ofconsumption over the period have been the stainless and heat resistantsteels and non-ferrous alloys. These two categories have also had thefastest annual growth rates. Although the percentage share of stainlesssteel had gone up between 1979 and 1983, there was a substantial fall interms of volume. The slowest growth and the biggest declines in usage havebeen in electro-plating and chemical uses. There was also a fall in thealloyed steels sector after experiencing a relatively fast growth between1960 and 1979.

Stainless steel

27. The share of stainless and heat resistant steel in the totalconsumption of nickel has grown from 33 per cent in 1960 to over 46 percent in 1979 and about 50 per cent in 1983. A number of factors accountfor the rapid growth of nickel use in stainless, particularly the adoptionof argon oxygen decarbonization (AOD) have facilitated the use in steelmaking of both inferior quality scrap and nickel products with lower nickelcontent, particularly ferro-nickel. Besides cost advantage, the greateravailability of ferro-nickel since the latter part of the 1960's hascontributed to the growth of nickel use in making stainless.

28. A second factor in the rise of nickel use in stainless steel is thefavourable welding characteristics and anti-corrosive quality ofnickel-bearing stainless steel (mainly the 300-series), compared withchromium-bearing ones (mainly the 200-series). In particular,nickel-stainless is preferred for piping for the chemical and petrochemicalindustries, for automobile making and in a number of cryogenic applications(i.e. applications requiring very low temperatures). Potential for futureexpansion in nickel-bearing stainless lies in the field of nuclear energyand in the transport and storage of natural gas.

Electroplating

29. Nickel electroplating accounted for about 14 per cent of total nickelconsumption in 1975, Il per cent in 1979 and about 8 per cent in 1983.Nickel is used in electroplating for decorative purposes and as aprotection of the base metal against atmospheric corrosion. A major use ofelectroplating is in the automobile industry where nickel is applied tobumpers. For electroplating purposes cobalt can serve as a substitute forup to 50 per cent of the nickel content, however, if cobalt is highlypriced it will not allow any widespread substitution of cobalt for nickel.The use of plating, in a number of applications in most durable and cheaperstainless steel categories, is expected to decrease while aluminium andplastics in particular are likely to increase, depending on relative futureprices.

In addition, but to a lesser extent, the electroslag and vacuumprocesses for remelting along with the Witten-process, have permitted theuse of furnace charges containing many more impurities than could betolerated previously.

Page 17: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Table

3

Nickel

-Wo

rld

Consumption

byUs

esin

Mark

etEc

onom

yCo

untr

ies

('00

0Tons)

Page 1

7

MDF/W/

21Source:

Joseph

Hilmy,

"Changing

Patt

ern

ofNickel

Consumption:

AGlobal

View

",Wo

rld

Bank

,Ec

onom

icAnalysis

and

Proj

ections

Department,

1981,

Draf

t.Wo

rld

Bank

Pric

ePr

ospe

cts

forMajor

Primary

Comm

odit

ies

Vol.

IVMetals

and

Mine

rals

(1982).

Grow

thRate

Per

Annum

Use

1960

1970

1975

1979

1983

1960-83

Stainless

and

heat

72

33

184

41

243

44

276

46

245

50

5.5

resistant

steel

Elec

trop

lati

ng33

1559

1378

1467

il39

80.

7

Non-ferrous

alloys

4219

7717

8816

100

1798

203.

7

Alloyed

steels

2813

50il

61il

67il

4910

2.5

Iron

and

stee

lcastings

2612

419

397

336

398

1.8

Othe

rus

es18

841

945

852

920

4-0.5

Total

219

100

452

100

554

100

595

100

490

100

3.6

Page 18: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 18

Alloyed steels'

30. Nickel use for the production of alloyed steels accounted for about11 per cent of total nickel consumption in the 1970s and for about 10 per centin 1983. Nickel is an essential alloying element in the production ofalloy steels for structured applications because it increases hardness andstrength properties over a wide service temperature range. Typical uses ofalloy steels include crankshafts, axels, gears, shafts, frames, and otherparts of cars, trucks, cranes, and earth moving equipment, machine toolparts and frames, aircraft landing gear components, missile parts, and rockdrill parts.

Iron and steel castings

31. About 8 per cent of total nickel consumption is accounted for by theiron and steel casting industry. Nickel is added up to 5 per cent of totalcontent to impart toughness, machineability, and corrosion and wearresistance. The end product is used in the manufacture of engine blocksand parts for the automotive and heavy equipment industries and steel millrollers. The growth of this use decelerated in the past and in the 1970s adecline in absolute volume was experienced. Part of the decline has beenimputed to the decrease in the size of automobile engines in response tothe energy crisis. This decline has however boosted another nickel-bearingsector, that of alloys with higher chromium content, which provide betterresistance to corrosion. The slow growth in nickel use in castings hasthus been accompanied by an increasing use of nickel in the more advancedcategory of nickel super alloys.

Super alloys and other non-ferrous alloys

32. Nickel is an essential element in a number of super-alloys,nickelicopper alloys, copper-nickel alloys and other nickel alloys. Thesealloys account for about 20 per cent of total nickel consumption. Super

¹Steel may be divided into three categories: carbon, stainless andalloyed. The first contains .04 to .70 per cent carbon as well asmagnanese and minor additions of various alloying elements. Stainless isan alloyed steel that must have chromium among its constituent elements sothat the stainless quality may be developed. Alloyed steels (as used inthis study are those to which alloying elements - other than carbon andmanganese, and excluding stainless steels - are added to develop specificproperties. These alloying elements may include one or more of nickel(which makes a category of alloyed steel that is not "stainless"),molybdenum, tungsten, cobalt, titanium and aluminium.

²"Super alloy" is a name used after world war II to describe a groupof alloys developed for use in high-temperature application inturbo-chargers and gas turbine engines. These alloys possess relativelyhigh tensile and creep strength under high temperature service environment,such as that normally prevailing in jet engines. A typical super-alloy hasthe following chemical composition: 19.5 per cent chromium; 13.5 per centcobalt; 4.3 per cent molybdenum; 1.3 per cent aluminium; 10 per centcarbon; 3 per cent titanium; 2 per cent iron; 0.001-0.10 per cent boron;and the balance nickel (Kiel Working Paper No 160 - op. cit. p.14)

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MDF/W/21Page 19

alloys are used particularly in the civil and military aerospaceindustries, the manufacture of furnace elements and parts, nuclear powergeneration, and in a number of applications in the chemical andpetrochemical industries. Nickel-copper alloys comprise alloys of nickeland copper containing more than 50 per cent nickel. One of the best knownMonel 400 group of alloys have wide applications in food preparation andhandling equipment, and for interior trim. Cupro-nickel alloys which havecopper as the major constituent account for a further 3 per cent of totalnickel consumption and are used mainly in piping, tubing, pumps, and valvesfor marine service because of their excellenceResistance to corrosion anderosion under exposure to marine environment. They face strong competitionfrom titanium alloys. Nickel-molybdenum and certain other nickel alloysare mainly used in pumps, valves, pipe fittings, shafts and other processequipment used in the chemical and petroleum industries.

Other uses

33. Nickel is also used in alnico (aluminium-nickel-cobalt) alloys and inthe manufacture of magnets for loudspeakers, magnets and small generators,nickel-cadmium batteries etc. Nickel metal and salts are used as catalystsfor synthesizing gas, fuel oil and other chemicals. Nickel oxides are usedas an undercoating to promote the adherence of porcelain finishes to steeland cast iron products such as household appliances. Nickel metal is alsowidely used in coinage.

Substitutes

34. One of the major factors in the metals industry which help todetermine the level of overall consumption is the availability ofsubstitutes and nickel does not escape this phenomenon. Substitutionnormally takes place when nickel is in short supply over extended periodscharacterized also by high prices. Alternate materials are available totake the race of nickel in most of its uses, except super alloys inaerospace applications. However, with few exceptions, using alternatematerials might entail increased cost or some sacrifice in physical orchemical characteristics and hence would affect the quality of the product.In aerospace applications, considerable time and money must be spent forqualifying tests for specific aerospace usage.

35. The mosL likely areas in which other materials could be substitutedfor nickel are those in which nickel-bearing material is used for itscorrosion resistance, high-strength, or special magnetic and electronicproperties. For example, carbon steel clad with titanium could performsatisfactorily in many applications now filled by stainless steel andhigh-nickel alloys. Some plastics may have corrosion resistance comparableto nickel-bearing corrosion resistant materials under certain serviceconditions, but do not possess similar physical properties. While plasticor other coatings on steels are comparatively inexpensive, a high risk ofdamage in service limits their selection to less critical applications.Paint, enamel, or aluminium can be used in place of nickel-chromium indecorative trim. Cobalt may be used instead of nickel in electroplatingapplications. Several combinations of metals and non-metals are acceptablefor use in storage batteries in addition to, or as a substitute for,nickel-iron and nickel-cadmium combinations depending on servicerequirements. Some of these nickel substitutions were commonplace in1967-69, when nickel was in short supply, but were not always completelysatisfactory.

Page 20: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 20

36. While each application must be usually considered on its own meritsand many criteria are taken into account in considering alternativematerials as potential substitutes for nickel, the following list providesa general indication of the range of substitution possible: aluminium,coated steel and plastics in the construction and transportationindustries; nickel-free speciality steels in the power-generating,petro-chemical and petroleum industries; titanium and plastics in serviceapplications; and platinum, cobalt copper in some catalytic uses.Stainless steel containing chromium, manganese, and relatively littlenickel can be used in place of the conventional 300 series steels for someapplications. Columbium, molybdenum, chromium, and vanadium can replacenickel in some alloy steels, and cobalt-, chromium-, and columbium-basealloys can be used in place of some nickel-base super-alloys. Manganese,molybdenum, and copper can be used in place of nickel in some types of ironcastings, and the modified stainless steels described above can also beused in some cast forms.

6. Structure of the world nickel industry

37. The world nickel industry has undergone considerable changes in thegeographical pattern of production and trade in the past three decades. Inthe early 1950s, Canada alone produced over 66 per cent of the totalprimary nickel production with most of the rest being accounted for by theUSSR (about 20 per cent), New Caledonia (about 6 per cent) South Africa andCuba (about 4 per cent). Since then, various other countries have becomeproducers and some expanded their original small capacities considerably.Greece, Finland and Australia entered the production scene in the 1960's,and Albania, Brazil, the Dominican Republic, China, Indonesia, thePhilippines, Botswana and Guatemala during the 1970's. Since 1982Colombia and Yugoslavia have become producers. There are at presenttwenty-six producing countries and other countries with long-term mineproduction prospects include Burundi, Ivory Coast, Upper Volta, Zaire,Tanzania and Saudi Arabia. At the same time, production capacity has beenexpanded in various countries particularly in New Caledonia, Australia,Cuba the USSR and South Africa. The result of these developments is adecline of the Canadian share of world mine production to about 25 per centin 1983 and a much lower degree of concentration in the primary productionof nickel. The geographical pattern of smelter and refined production(ferro-nickel, oxide sinter, briquettes, powder, etc.) is less concentratedthan mine production, since part of the Canadian, New Caledonian,Indonesian, Australian and other mine production is exported to WesternEurope, the United States and Japan for refining.

38. In the past, corporate ownership of production in the nickel industrywas one of the most concentrated in the world metal economy . In 1950 there

¹In 1978 four leading companies in the market economy countriesaccounted for 64 per cent of the world nickel mining capacity and 60.4 percent of processing capacity. Comparative concentration ratios for othermajor metals were the following: alumina refining 51.5; Bauxite mining48.6; aluminium smelting 43.3; copper mining 37.6; iron ore mining 37.3;copper smelting 34.0; lead refining 27.7; copper refining 27.4; zincreduction 27.2; steel mining 21.2.

Source: Nickel Industry and the Developing Countries. United Nations, NewYork 1980-ST/ESA/100)

Page 21: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 21

were three producers in two countries (i.e. International Nickel Company(INCO) and Falconbridge in Canada, and Societe Metallurgique le Nickel(SLN) in New Caledonia) accounting for practically all production in themarket economies with INCO alone controlling about 85 per cent of the totalworld output. Market developments in the mid-1950s and technologicalbreakthrough in the 1960s which led to greater development of lateritedeposits around the world resulted in the gradual decline in the dominanceof INCO so that by 1982 it controlled only 22.0 per cent of world mineproduction and 26.5 per cent of world metal production. In 1982 there wereforty- our producers in twenty-six countinue some of which are stateowned. Table 4 shows the corporate shares of nickel production in themarket economy countries while Table 5 shows the country distribution ofproducing companies.

39. The three companies mentioned above, INCO, Societe Metallurgique leNickel (SLN) and Falconbridge Limited accounted for about 35 per cent ofworld mine output and about 42 per cent of metal production in 1982. INCOcurrently operates of mines, ore concentrators, smelters and refineries inCanada, a refinery at Clydach in Wales (Great Britain), a mine and smelterin Indonesia and an integrated rolling mill at Huntington in Virginia(USA). Falconbridge (7.3 per cent of world metal production in 1982)operates mines and smelters in Canada and the Dominican Republic. Thesmelted matte from Falconbridge in Canada is shipped to the firm's refineryat Kristiansand, Norway, where cathode nickel, nickel plating anodes, andnickel sulfate are prod ced along with other associated metals. SocieteMetallurgique le Nickel (8.2 per cent of world metal production) operatesa number of mines and a smelter in New Caledonia as well as a refinery atSandouville in France. It also exports a substantial part of itsproduction of ore to Japan. About forty-one other companies account forthe remaining world nickel production in the market economies and theirshare of the market is likely to expand in the future. Western Mining ofAustralia, the NONOC Mining and Industrial Corporation of the Philippines,and the Sumitomo Metal Mining Co. Ltd., of Japan, and AMAX (NickelDivision) of the United States are the major companies among these.Western Mining Corporation Ltd., of Australia is the largest among thenewcomers. It started its operations in the late 1960s and has expandedrapidly to obtain about 4.8 per cent of world output in 1982. The AMAXNickel Division of AMAX Inc., which began production of nickel late in 1974from imported nickel-copper matte accounted for 4.6 per cent of world metalproduction in 1982.

40. Of the total nickel produced from centrally-planned economies theSoviet Union account for about 80 per cent mainly from its Norilsk mines.

¹It is estimated that Government ownership accounts for about 40 percent of current world production capacity. Besides the centrally-plannedeconomies and China, other countries where the governments own majorityinterests either directly or indirection in finished nickel producingcompanies are Cuba, Finland, Greece, Indonesia, New Caledonia, thePhilippines and Yugoslavia. Countries where the government owns less than50 per cent equity interest are Colombia and the Dominican Republic.

²ERAP, the French state-owned energy group bought 70 per cent of SLNin May 1983. Former owners of SLN, Imetal and Elf Aquitaine reduced theirshares to 15 per cent each.

Page 22: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Table 4

Corporate Shares of World Nickel Production 1982

Corporation Share of mine production S Share of netal production zProducer (ownership per cent) Producer (ownership per cent)

Inco

Falconbridge

ERAP¹

AAC²

Western Mlning

Marinduque

Amax

Free Port McMoRan

Metals Exploration

Aneka Tambang

BP

Hanna

Larco

Gencor

Outokumpu

Rio Tinto-Zinc

Sumitomo.

Nippon Mining

Total

TotalInco(100) CanadaPT Inco Indonesia(97) Indonesia

TotalFalcombridge(100) CanadaFalc.Dominicana(66) Dom.Rep.

Societe Le Nickel(70) N.Caledonia

TotalBCL (30) 5Rustenburg (57)

Western Mining (100)

Marinduque (100)

BCL3 (30)

Queensland Nickel(50)

Queensland Nickel(50)

Aneka Tambang(100)

Agnew6 (60)

Hanna (100)

Larco (100)

Impala Platinum(49.6)

Outokumpu (100)

BotswanaS.Africa

Australia

Philippines

Botswana

Australia

Australia

Indonesia

Australia

US

Greece

S.Africa

Finland

Rio Tinto Zimbabwe(58)Zimbabwe

22.0

2.8

6.94.32.6

6.1

5.02.82.2

4.8

3.1

2.8

1.7

1.7

1.7

1.5

1.4

1.1

1.0

0.9

0.6

62.9

TotalInco (100)Inco (100)

TotalFalconbridge(100)Falc.Dominicana(66)

TotalSociete Le Nickel(70)Societe Le Nickel(70)

Total 4Sherrit Gosdon (40)Rustenburg (57)

Western Mining (100)

Marinduque (100)

Amax (100)

Queensland Nickel(50)

Queensland Nickel(50)

Aneka Tambang(100)

Hanna (100)

Larco (100)

Impala Platinum(49.6)

Outokumpu (100)

Rio Tinto Zimbabwe(58)

Sumitomo (100)

Nippon Mining (100)

CanadaUK

NorwayDom.Rep.

N.CaledoniaFrance

CanadaS.Africa

Australia

Philippines

US

Australia

Australia

Indonesia

US

Greece

S.Africa

Finland

Zimbabwe

Japan

Japan

26.522.73.8

7.34.82.5

8.25.62.6

3.72.11.6

4.8

3.0

4.6

1.3

0.7

1.2

0.9

1.7

0.4

4.7

1.8

73.9

¹ERAP, the French State-owned energy group bought 70 per cent of SLN in May 1983. Former owners of SLN,Imetal and Elf Aquitaine, reduced their shares to 15 per cent each.

²AAC group. The head of the group is Anglo-American Corporation of South Africa. Other importantmembers of the group are MINORCO (Minerals and Resources Corporation, based in Bermuda) and De Beers.

³Bamangwato Concessions Ltd. BCL is 85 per cent owned by Botswana RST. in which AAC and Amax have a30 per cent stake each.

4AMC group (through MINORCO) owns 29 per cent of the British-based investment corporation ConsolidatedGold Fields, which owns 25 per cent of the US-based investment corporation Newmont Mining, which in turnowns 40 per cent of Sherrit Gordon.

5AAC directly owns 24 per cent of Rustenburg. AAC group bas another 33 per cent stake in Rustenburgthrough 40 per cent owned Johannesburg Consolidated Investment.

6BP owns the British-based investment corporation Selection Trust, which owns 60 per cent of Agnev.The balance is held by the US Copper Corporation ASARCO.

Source: Roskill's Metal Data Book 1983; Annuaire Statistique Minimet (edition 1982), Mining AnnualReview 1982; Corporate annual reports.

MDF/W/21Page 22

Page 23: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Tabl

e5

NICK

EL

Prin

cipa

lworidni

ckel

producers

Coun

try

.Company

Nick

elpr

oduc

ts-_

1- -

Botwana

Cuba

Fran

ceGreece

._

..

_

NewCaledonia

_Norway

Phil

ippi

nes

Sout

hAfri

ca,Re

publ

icof..

.

U.S.S.R

Unit

edKi

ngdo

m.UnitedSt

ates

West

ernMining

Corp

.Ltd

Cueensiand

Nickel

Pty

.....

.............

..

Western

SoicastPty

Ltd.

...........................

....

_...

..

MLIs

aMi

nes

Ltd.

......

......

.Bo

tswa

naR.nhla

o.S.T

....

....

....

....

..-.;

Morr

odo

NiquelZ

......

......

......

....

....

....

....

....

....

....

....

...

Comp

anhl

aToc

antins

......

......

......

......

...................

Codemin..

....

;.

"...

.......

......

......

......

......

......

.....

....

....

...

INCO

,Ltd.........

......

.....

.......................

Falc

onbr

idge

,Lt

d...

....

....

....

....

....

....

....

....

....

....

....

...

Sherritt

Gordon

MinesL

td..

....

....

....

....

..Ec

oniq

uel.

...........

.............

.....................

Cubaniquel

(Sta

teowned)

..............................................................

Falconbridge

Dominicana

C.Po

rA..

....

....

....

....

....

......

....

Outo

kump

uOy

(Sta

teown

ed....

......

......

......

......

......

......

......

......

.SociétéMet

allurg

iquel

e Nickel (

SLN)

......

......

......

......

......

......

...LA

RCO

Soci

étéM

inlè

reet

Meta

llur

gtqu

ede

Larymn

aS

.............:..........

Exploracionesy

Expl

otac

ione

sMinéras

Izab

el(INCO.Wd.).

.........

P.T.

InternationalN

ickelI

ndonosla

(INCO,

Ltd.).

......

......

......

......

......

P.T.

Anek

aTambang

..........................

Sumi

tomo

Metal

Mini

ng.C

o.,L

td...

......

....

Nippon

YakunKogyoCo

.,Lt

d........

Nippon

Mini

ngCo

.Ltd.

...............

Paci

fio M

etal

sCo.,Lt

d...

....

....

..Ni

ppon

Nickel

Co....

......

....

...TokyoNi

ckel

Co..

....

....

....

....

......

......

......

......

......

......

......

.SociétéM

etallurgique

leNi

ckel

(SLN).

......

......

......

......

......

......

......

..Fal

conbdd

geNlkkeiverk

AS....

......

......

......

......

......

......

......

......

......

...MainduqueMl

nIng

Coip..

......

......

......

......

......

......

......

......

......

......

...Ru

sten

burg

Plat

inum

Mines,Ltd..

......

......

......

......

......

......

......

......

.....

Impala

Ptat

inum

Mines,

Ltd

..........

....

...;

Matt

eSme

lter

sPty

.,W.

.......

...

...

....

Stateowned

...

INC

,Ltd.

.....

.................

....

....

....

....

....

....

....

....

....

Hann

aMining

Co....

......

......

......

......

......

......

......

......

......

......

......

....

AMAX

Nick

elDM

son,AM

AXInc

......

......

......

......

......

......

......

......

....

Stateo

wned

......

......

......

Nickel

andma

te.

Nickel

oxid

eand

mixe

dni

ckel

-cob

alt

sulfides

Nickel

matt

e.Nickel

matt

eNi

ckkc

oppe

r-co

balt

matt

e.Ferronickel.

Nickel

méta

lan

dni

ckel

carbonate.

Ferr

onic

kel

Nickel

oxid

esi

nter

,sol

uble

nick

elox

ide,

nickel

metal (

cathodea

ndpellets),u

tility

shotan

dpig

.Ni

ckel

-cop

perm

atte

.Nickel

meta

l.Ferronickel.

Nickel

oxidean

dsul

fide.

Ferronickel.

Nickel

meta

l.Nickel

métal,

oxide,

salts,

Ferr

onic

kel.

Nickel

matte.

Nick

elma

tte.

Fern

onic

kel.

Nick

elmet

al,fer

ronick

el,ni

ckel

chemicals.

Ferr

onic

kel.

Ferronickela

ndnickel

meta

l.Nickel

oxideandfe

rron

icke

l.Nickel

oxide.

Nickel

oxid

e.Fefronic

kel

shota

ndma

tte

Nick

elmetal.

Nick

elbr

ique

ts,p

owder,

nickel

-cobal

tsulfides.

Nick

elmé

tal.

Nick

elmetal.

Nick

elma

tte.

Nick

elme

tala

ndmatte

Nickel

meta

land

nick

el-c

obal

tsalt

sFerronickel.

Nickel

briquets

andpo

wder

.Ferronickel.

Sour

ce:

USbu

reau

ofMinies

Page3

3MDF

/W/21ç n -..

w'à

w

Page 24: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 24

7. Pricing in the nickel industry

41. Until recently structure of prices in the nickel trade comprised threemain elements, the producer price set by the major producers and followedby most other producers, the free market price, and the London MetalExchange price quotations for nickel which have been practised since 1979.

42. The producer posted price at which most of the trade in nickel wastransacted until recently, was the result of the oligopolistic situationprevailing in the nickel industry in the 1950s and 1960s when the threemajor producers INCO, SLN and Falconbridge controlled the major part oftotal world production. The three acted as price-setters with their postedprices closely aligned, but in fact it was INCO which set and publishedprices. INCO's price was quoted f.o.b. refinery, Port Colborne, Ontario,or Thompson, Manitoba. Falconbridge quoted the same price f.o.b. Tharold,Ontario. The price of SLN, a major part of whose output is sent from NewCaledonia to France was quoted c.i.f. at a French port, based on the PortColborne price. The prices were quoted in US dollars and until 1965 theyincluded the United States tariff.

43. The other producers, the price-takers, have followed the producerprice thus set. However, many of them especially the newcomers have tendedto practise discounting in order to win a bigger share of the market.While producer prices are still posted, currently less than 2 per cent ofnickel sales are at these prices. Some high quality nickel is sold atthese prices in specialized markets, such as certain carbonyl powders fornickel cadmium batteries. In response to depressed market conditions in1982, producers were forced to basically abandon the producer pricingsystem and sell on the basis of LME or merchant prices, as is in the caseof most other metals.

44. In addition to marketing on the basis of the producer price, there hasbeen a smaller but growing open market for the sale of secondary nickel(scrap), as well as primary nickel. The latter has been fed partly by theUSSR and other centrally-planned countries until the nickel trading at theLondon Metal Exchange started in 1979, partly by independent producers inthe market economies, and partly by merchants or consumers who resell themetal they receive from the major companies. This is not an organizedmarket but price quotations attributed to it have been published in theMetal Bulletin since 1966.

¹The INCO price for electrolytic cathodes (99.7 per cent nickel)f.o.b. shipping has been selected as the benchmark prices. Prices of theremaining categories of nickel were usually established according to stapledifferentials. Since 1972, the prices of ferro-nickel, incomet and sinterhave been lower than the price of nickel cathode by about 6 per cent,10 per cent and 15 per cent respectively.

²The prices in this market are known to fluctuate heavily. In someyears when primary nickel supply has been extremely tight, the demand foropen market nickel and for pure nickel scrap has been very strong and saleshave invariably commanded a large premium over the producer price.

Page 25: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 25

45. The third element in the price structure of the nickel market issupplied by the price quotations of the London Metal Exchange on whichforward nickel trading was introduced in April 1979 followed in July of thesame year by spot trading. The volume of nickel trading on the LME hasbeen relatively small but has been growing rapidly. Moreover, it handlesmuch of the nickel exported by the Soviet Union. The LME is not only amarket where metal is physically sold and bought, it is important as ahedging market and a clearing market for the production of marginalproducers. As an open market where the metal is freely traded its mostimportant function is that of a price settel,whose price quotations,reflecting fundamental market conditions but sometimes also ephemeralexternal influences have, since 1982, served as the basis for salescontracts concluded directly between producers and customers.

Price determination

46. Basically the producer price is expected to reflect the cost ofproduction, with adjustment for inflation, as well as the demand and supplysituation for primary nickel on the market and the level of stocks. Themost important direct cost factors are the cost of materials, energy,labour, freight and overheads. In this regard there are basic differencesdepending on the nature of the ore being mined and processed. Table 6gives estimated costs of nickel production in different mining operations.Chart II, on the other hand shows the levels of cash operating costs ofthirteen mining companies in ten different countries.

47. While nickel production from sulfides is labour-intensive that fromlaterite is relatively energy intensive. About two-thirds of the requiredenergy is used at the mining and primary processing stage. For laterites,energy is estimated to account for between 40 to 60 per cent of totaloperating costs. The lower ratio tends to apply where hydro-electric poweris the main source of energy (e.g. in some operations in New Caledonia,

¹The LME prices are established at the end of each daily tradingsession of the LME, indicating a spot price and a three month futuresprice. These prices are subject to wide fluctuations from a number offactors directly influencing the market such as production short-falls orover-production on the supply side and up-swings or down-turns in economicactivity in the consumer countries on the demand side. At the same time,developments unrelated to the industry as such, such as interest rate orexchange rate movements, may also lead to fluctuations in prices.

2For example energy costs per pound of nickel in 1974 were estimated

to be 10 cents (US) for Canadian sulfide ores, while the correspondingfigures for laterite ores were between 41 to 56 cents per pound. For moredetail see Hilmy (1979) p.53.

Page 26: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Tabl

e6

Esti

mate

dcosts

ofnickel

production

in19

75,

(Current

doll

ars

perpo

undof

nick

el)

Page6

MDF/W/21

befo

retax

0sN-

Falc

onbr

idge

-Falconbridge-

Soci

été

Japa

nese

Costa

INCO

Sudbury

Domi

nica

naLe

Nick

elproducers

Dire

ctconte

Labo

ur0.

460.50

0.22

0.53

0.26

Energy

o.o6

0.07

0.60

0.59

0.58

Ore

_-

-0.67

Frei

ght,

etc.

_0.24

0.07

0.10

0.21

Other

0.47

0.75

0.35

0.26

0.17

Total

direct

coste

0.99

1.56

1.22

1.14

81.89

Overhead

costs

Sellingandad

mini

stra

tion

0.14

.0.11

0.05

0.08

0.08

Depr

ecia

tion

0.10

0.17

0.15

0.34

0.19

Inte

rest

0.05

0.02

0.27

0.18

0.25

Othe

r0.

040.27

0.05

0.07

0.08

Tota

lov

erhe

adco

sts

0.33

0.57

0.52

0.67

0.60

TOTAL

1.32

2.13

1.74

2.15

2.49

Source:

Commodities

Research

Unit

,Ltd.

Page 27: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

COSTINDEX

Souce:

a,)c"

c,a

ot

oo

oo

oO

oo

oo

o

INCO-T

HOMP

SON

O_.(

INCO-SUDBURY

~~~CD

WESTERN

MINING

I~~~~~~~~~~~~~

>FALCONBRIDGE-SUDBURY

QCERROMATOSO

'm

m>

FALCONBRIDGE

DOMINICANA

SLN

(ferro

nickel

only

)H

O

GREE

NVAL

EMARINDUQUE

zPT

INCO

u

|~~~

~~

~~~~

~~~~

~~~~

~AMA

X~~~

~~~~~~

~~~~~~~~~|~

~~~~~F

ENI1

~~~~

~~~~

~~~~

~~~~

~~LA

RCO

~

MDF/W/21

Page73u

~~~~

~~~~

~~~~

~~~~

~~~~

~~~~

~~~~

~~~~

~~~~

~~~~

~~~~

~(a_

_

Page 28: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 28

Indonesia and Brazil) while the higher ration applies where oil is used'(e.g. Dominican Republic). Until 1973, the operating cost of nickel fromlaterites was about 40 per cent more expensive than that from sulfides.The cost differential widened in the late 1970s due to the increase in theprice of petroleum, but has narrowed somewhat more recently with the fallin the real price of oils. The remaining part of the total operating costis generally divided between labour, materials and overhead in the ratio of2.5:1:1 respectively for production of nickel from su fide ores and 1:1.5:1respectively for obtaining nickel from laterite ores. In addition tooperating costs, capital requirements to produce a ton of nickel fromlaterites are generally about 70-80 per cent higher than those forproducing nickel from sulfides. On the whole it is estimated that the costof mining and processing laterite ores is roughly about 130-140 per centof producing nickel from sulfide sources.

48. Other than the cost elements discussed above the main short-termfactors which had greatly influenced prices have been the level of stockswhich are in turn influenced by the level of interest rates; labourproblems, especially strikes; and more importantly the oligopolisticstructure of the industry which had meant one major producer eventuallyacting as the price setter.

49. The producer prices should theoretically reflect market conditions andforces. In reality the three major producers acting as price setters havepreferred to practice a policy of price stability. This has implied thatprices were first set and then production planned according to the currentand expected market conditions. However, when expectations were provedwrong the price was usually maintained rather than letting it respond tothe market situation, thus placing the burden of market equilibrium on thesupply side. Consequently the industry has tended to experience periods ofshortage and over-production leading to production cut-backs, stockaccumulation and de-accumulation. Such imbalances, alongside with otherfactors did influence price and production plans of the next period.

¹Energy cost increases have a significant effect on the cost ofnickel. Estimates indicate that for every US$1 increase in the price of abarrel of crude oil, there is a corresponding cost increase of 5 cents perpound of nickel produced. Increased fuel oil prices affect the cost ofproducing nickel from laterites more than they affect the cost of producingit from sulfides. This occurs principally because fuel oil is used to drywet lateritic ores, which contain about 25 per cent moisture, and togenerate electrical energy used to smelt the dried unconcentrated ores tomatte or ferro-nickel, as is done in New Caledonia. On the other hand,nickel sulfide ores can be concentrated by flotation techniques, and nickelmetal can be recovered with generally cheaper hydroelectric energy, as isdone in Canada and Norway. The availability of hydroelectric power inColombia and Indonesia has been one important factor in permittingdevelopment of nickel mining and processing facilities in those countries.(Mineral Commodity Profile 1983).

²Nickel Handbook - World Bank - 1981.

³Kiel Working Paper No. 160 - Pg.19 - University of Kiel - Institutefor World Economy, 1982.

Page 29: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 29

50. Demand and supply elasticities may also help to explain the policy ofprice stability yhich has been practised by the major producers. Theshort-term price elasticity of demand in the industrialized marketeconomies has been estimated to be less than a unit while long-term demandhas unit elasticity. This meant that short-term changes in prices were notlikely to affect demand significantly. The price elasticity of the supplyof nickel has been estimated to be close to a unit in the short-term butsignificantly greater than a unit in the long run. In the long-term pricetrends are determined by the shape of the industry cost curve and in thisregard one major factor has to be considered. In future the greater partof land-based production would come from laterite ores which are a highcost source.

SECTION II: Production, Consumption and Prices

8. Mine production (Tables 7 and 8)

51. Mine production of nickel has grown considerably during the last twodecades and a half, and especially between 1960 and 1980. From a total of342,000 metric tons mine production grew at 4.3 per cent per annum to740,000 tons in 1980. With the beginning of the world economic recessionin 1980 and a fall in demand, production fell drastically to 633,000 metrictons in 1982. The recovery in the world economy which began late in 1982led to a resurgence in mine production in 1983 with producers re-openingplants and reversing production cutbacks necessitated by the recession.New mines were opened in Colombia, Brazil and Yugoslavia. Table 7 showsthe evolution of the world's mine production of nickel since 1960 and itsgeographical distribution and Chart III gives the same information in adiagrarmatic form.

52. The trend of increasing production continued in the first half of1984, as both the major producers INCO and Falconbridge boosted productionrates, joined by several other producers eager to take advantage of theincreased demand. Capacity utilization in 1984 was estimated to have risenfrom 56 per cent (1983) to 66 per cent, compared with 80 per cent in 1980.

53. The geographical pattern of nickel mine production has also changedconsiderably since 1960. At 69,000 metric tons in 1960, the production ofthe developing countries increased approximately 6.8 per cent per annum toreach 257,000 metric tons in 1980 but fell to 217,000 metric tons in 1983.The production of the developing countries represented 20.2 cent of theworld total in 1960, approximately

'Nickel on the other hand is considered to have a relatively highincome elasticity of demand. This has been used to explain on the one handthe fast growth in consumption in the fast industrializing countriescharacterized by high rates of income growth and on the other hand therelative stagnation and even falls in nickel consumption in countries whereindustrialization has reached a mature stage. In this last casesubstitution might also play a role. For discussions on demand and supplyelasticities in the nickel industry (see Nickel Handbook - World Bank1981). For a study of price elasticity of supply (see Kiel Working PaperNo. 16 - "An Econometric Model of the World Nickel Industry - Institute forWorld Economy, University of Kiel 1981").

Page 30: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Tabl

e7

Worl

dProduction

ofNickel,

1960-1983

(inthousand

metric

tons

metal

content)

Mine

Prod

ucti

onSm

elte

rPr

oduc

tion

(l)

1960

1965

1970

1973

1975

1979

1980

1981

1982

1983

1960

1965

1970

1973

1975

1979

1980

1981

1982

1983

Worl

d34

243

566

667

875

3674

740

716

633

655

325

413

607

643

693

663

750

700

620

686

Develo

pingc

ount

ries

6995

203

209

236

251

257

255

225

217

2843

7496

123

114

115

103

9211

4an

dterritories

of

Bots

wana

--

--

616

1518

1818

_-

--

--

--

--

Brazil

__

_4

33

47

13il

--

-2

22

22

5il

Colombia

__

__

516

__

__

__

__

113

Cuba

(2)

1429

40*

3537

3238

4038

4014

2638

*17

1819

2021

2121

Dominica

nRep.(3)

_-

_30

2725

1518

520

--

-30

2725

1619

620

Guat

emal

a_-

-6

7-

--

--

--

--

--

--

Indo

nesi

a-

2il

1615

3640

4548

38-

--

--

44

54

4Morocco

--

--

--

--

--

--

--

--

--

--

NewCaIedonia(4)

5361

139

113

129

8087

7860

46il

1628

3653

3033

2828

22Ph

ilip

pine

s(5)

__

-9

3335

2920

14_

__

-9

1923

1910

8Yu

gosl

avia

__

__

_-

23

l*_-

--

--

11*

Zimbabwe

_-

il9

1914

1513

IlIl_11

*13*

15*

15*

12*

15*

13*

Other

23

13-

--

--

--

31

8-

--

--

--

Deve

lope

dcountries

211

255

346

342

373

254

316

287

213

239

235

286

416

404

410

365

448

400

316

356

of which

_

Aust

rali

a-

-27

4076

7074

7488

79_

__

2033

3935

424.6

42Au

stri

a*_

_-

--

--

--

--

--

--

-1

22

Canada

195

235

279

249

242

126

185

160

89122

127

160

204

158

158

84152

109

6596

EEC:(6)

--

914

1515

14il

5*13*

4649

5761

6436

4346

1941

Germ

any,

F.R.

_--

--

2-

1-

--

--

--

France-

--

--

--

--

-10

8Il

10il

310

107

5Gr

eece

(3)

--

914

1515

14il

5*13

*-

-9

1415

1514

il5

13United

Kingdom

--

--

--

--

--

3440

3737

3919

1925

723

Finland

23

S6

66

67

65

-3

46

6il

1310

1315

Japa

n--

--

--

--

--

1926

9088

7810

610

994

8782

Norw

ay_-

--

1-

11

--

-30

3238

4337

3137

3726

29SouthAf

rica

3*5

1219

2125

2626

2220

1*3*

9*15

1418

1817

1718

United

Stat

es(7

)Il

1214

1313

il10

93

-12

1314

1320

4040

4441

31

Cent

rall

y-pa

lnne

d62

85117

127

144

169

167

174

195

199

6284

117

144

160

184

187

192

212

216

economics,

ofwh

ich:

Alba

nia

--

-6

68

89

99

--

--

-4

44

44

Chin

a,P.R.*

-_

_7

8il

ilil

1315

--

-7

8il

il12

1213

Czec

hoslavakia*

--

--

--

--

--

--

33

22

2I

3GermanyD.R.

__

-2

22

33

22

--

-2*

3*3*

3*3*

3*3*

Poland

11

2*If

1*1*

1*1*

1*-

11

22

22

2I

I-

USSR*

5880

110

110

125

145

143

150

170

172

5880

110

130

143

160

165

170

190

192

Other*

23

5_

__

__

__

23

5_

__

__

1)Pr

imar

ynickel

andnickel

cont

aint

edin

ferr

o-ni

ckel

,nickel

oxide

sinter

andme

tal

detailssm

elte

ddi

rect

lyfr

omor

es.

2)Sm

elte

rproduc

tion

figures

indicate

nick

elco

nten

tin

oxide

sint

er.

3Nickel

content

infe

rro-

nick

el(s

melt

er).

(4)

Since

1973

figu

resof

mining

prod

ucti

onin

dica

teth

enickel

contentonly,

anyco-content

beingex

clud

ed.

Nick

elco

nten

tof

ferro-nickel,

nick

elma

tteandexported

ores

tota

lled

asfo

llow

s:AA

AA

Smel

ter

Prod

ucts

Importes

Ores

1973

1915

1919

1'Ru

LWl

I9éz

157T

71-t

*42-

6148.tx

"i157

6.

6(in

thousid

nmtrictom)

50.6

43.3

38.5

36.9

29.8

27.8

19.9

5)Ex

clud

ing

nick

elnickel-cobalt

sulp

hide

s(smelter).

6)Forcomparative

purposes

total

figures

forth

eEEC

includetennumber

states

for

the

whole

peri

od.

7)Mi

ning

production

figu

res

indi

cate

recoverednickel

content

inferro-nickel

andas

by-product

inco

pper

refi

neri

es.

Nick

elco

nten

tof

ores

mine

din

thousand

metr

ictons

was

asfo

llow

s:1960:

12.8

;19

65:

14.7;

1970

:16.3;

1973

:16

.6;

1975

:15

.4;

1979

:13.7;

1980:

13.3;

1981

:11

.0;

1982:

3.6;

1983:

0.4.

*Figuresbasedon

estimates.

(-)

nilo

rless

than

500metric

tons.

Source:

MetalSt

atis

tics

1960-1970,

1973-1983,

Metallgesellschiaft

AG.

Page30

MDF/W/

21 - -)b

Page 31: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Tabl

e8

WorldPr

oduc

tion

ofNi

ckel

,19

60-1

983

(asa

percentage

ofworld

production)

Mine

Production

Smel

ter

Production(1)

1960

1965

1970

11973j

19751

1979j

1980

119

811

1982

198

[196

03916I

197

_1937

11975

L19

79'

180_9811_92

_1833

Worl

d10

0.0

100.

0100.0

100.

0100.0

100.0

100.

0100.0

100.

0100.0

100.0

1100.0

100.

010

0.0

100.0

100.

010

0.0

100.

010

.0100.0

Developing

coun

trie

s20

.221

.830.5

30.8

31.3

37.2

34.7

35.6

35.6

33.1

8.6

10.4

12.2

14.9

17.7

17.2

15.3

15.4

14.8

16.6

andterritories

Bots

wana

--

--

~~~~

~~~~~~0.8

2.4

2.0

2.5

2.8

2.7

-.-

--

Brazil

--

0.6

0.4

0.4

0.5

1.0

2.1

1.7

--

-0.3

0.3

0.3

0.3

0.3I0.8

1.6

Colombia

--

--

--

-0.

82.4

--

--

--

-0.2

1.9

Cuba(2)

4.1

6.7

6.0*

5.2

4.9

4.7

5.1

5.6

6.0

6.1

4.3

63

j,6.

3*2.

62.

62.9

2.7

3.0

3.4.3.1

DominicanR

ep.(

3)-

--

4.4

3.6

3.7

2.0

2.5

0.8

3.1

--

-4.

73.9

~3.8

2.1

2.7

1.0:

2.9

Guat

emal

a-

--

--

0.9

0.9

--

--

--

--:

..

..

Indo

nesi

a-

0.5

1.7

2.4

2.0

5.3

5.4

6.3

7.6

5.8

-'-

-0.

60.

-706

.

Morocco

--

--

--

--

--

--

--

--

New

Caledonia(4)

15.5

14.0

20.9

16.7

17.1

11.9

11.8

10.9

9.5

7.0

3.4

3.9I4.6

5.6

7.6

4.6

4.4

4.0

4.6

3.2

Philippines

(5)-

--

-1.2

4.9

4.7

4.1

3.2

2.1

--I

-1.3

2.9

3.1

2.7

1.6

1.2

--

--

--

-0.3

0.5

0.2*

--

--

--

-0.2

0.1*

---

1.6

1.2

2.8

1.9

2.1

2.1

1.7

--

-1.

7*1.

9*2.

3*2.0*

1.7*

2.4*~

1.9

Other

~~~0.6

0.7

2.0

--

--

--

-0.9

0.2

1.3

--

--

--

Deve

lope

dcountries

61.7

58.6

52.0

50.5

49.6

37.7

42.7

40.1

33.6

36.5

72.3

69.2

68.5

62.8

59.2

55.1

59.7

57.1

51.0

51.9

Australia

--

4.1

5.9

10.1

10.4

10.0

10.4

13.9

12.1

--3.

14.

85.

94.7

6.0

7.4

6.1

Austria-

--

-.-

--

--

--

--

-0.1

0.3

0.3

Cana

da57.0

54.0o

41.9

36.7

32.1

18.7

25.0

22.3

14.1

18.6

39.1

38.7

33.6

24.6

22.8

12.7

20.3

15.6

10.5

14.0

EEC:

(6)

--

1.4

2.1

2.0

2.2

1.9

1.5

0.8*

2.0*

14.2

11.9

9.4

9.5

9.2

5.4

5.7

6.6

3.1{6.0

German

y,F.R.

--

--

--

-0.6

-0.

2-

--

--

France

0.1

1.9

1.8i

1.6

1.6

0.5

1.3

1.4

1.li

0.7~

Gree

ce(3

)-

-1.4

2.1

2.0

2.2

1.9

1.5

0.8*

2.0*

-.-

1.5

2.2

2.2

2.3

1.9

1.6

0.8

1.9

United

King

dom

--

--

--

--

--

10.5

9.7

6.1

5.8

5.6

2.9

2.5

3.6

1.1

i3.4

Finl

and

0.6

0.7

0.8

0.9

0.8

0.8

0.8

1.0

0.9

0.8

-0.7

0.7

0.9

0.9

1.7

1.7

1.4

2.1

2.2

Japa

n-

--

--

--

--

5.8

6.3

14.8

13.7

11.3

16.0

14.5

13.4

14.0

12.0

Norw

ay-

--

0.1

-0.

10.

1-

--

9.2

7.7

6.3

6.7

5.3

4.7

4.9

5.3

4.2

4.2

SouthAf

rica

0.9

1.1

1.8

2.8

2.8

3.7

3.5

3.6

3.5

3.1

0.3*

0.7*

1.5*I2.3

2.0

2.7

2.4

2.4

2.7

2.6

United

States(7)

3.2

2.8

2.1

1.9

1.7

1.6

1.4

1.3

0.5

-3.7

3.1

2.3

2.0

2.9

6.0

5.3

6.3

6.6

4.5

Cent

ral

planned

18.1

19.6

17.6

18.7

19.1

25.1

22.6

24.3

30.8

30.4

19.1

20.3

19.3

22.4

23.1

27.8

24.9

27.4

34.2

t31.5

economies,of

which:

,

Alba

nia

--

-0.9

0.8

1.2

1.1

1.3

1.4

1.4

--

--

-0.

60.5

0.6

0.6

06

Chin

a.P.

R.*

--

-1.0

1.1

1.6

1.5

1.5

2.1

2.3

--

-1.

11.2

1.7

1.5

1.7

1:9

1:9Cz

echo

slov

akia

*-

--

--

--

--

--

-0.5

0.4

0.5

0.3

0.3

0.2

0.4

Germany,

D.R.

--

-0.3

0.3

0.3

0.4

0.4

0.3

0.3

--

0.3*

0.4*

0.5*

0.4*

0.4*

0.5*

IPo

land

0.3

0.2

0.3*

0.1*

0.1*

0.1*

0.1*

0.1i

*0.

2*-

0.3

0.2

0.3

0.3

0.3

0.3

0.3

0.1

0.2

USSR*

17.0

18.4

16.5

16.2

16.6

21.5

19.3

20.9

26.9

26.3

17.8

19.4

18.1

20.2

20.6

24.I

22.0

24.3

30.6

Othe

r*0.

60.7~

0.8~

--

--

--

-~

0.6

0.7

0.8*

--1:

--

(1)

Primaryni

ckel

and

nick

elcontained

infe

rro-

nick

el,*

nickel

oxid

esi

nter

andmonelme

tals

smel

teddirectly

from

ores

.(2

)Sme

lter

prod

ucti

onfi

gure

sindicate

nick

elcontent

inox

ide

sint

er.

(3)Ni

ckel

cont

ent

infe

rro-

nick

el(S

melt

er).

(4)Si

nce

1973

figu

res

ofmi

ning

prod

ucti

onin

dica

teth

eni

ckel

cont

ent

only

.an

yco

-con

tent

being

excl

uded

.Ni

ckel

cont

ent

offe

rro-

nick

cel,

nickel

matt

ean

dexported

ores

follows:

1973

1975

1979

1980

1981

1982

1983

Smel

ter

Products

-57

71.1

AV

"-t

-4.

35"

26

(lnthousand

roetric

tons)

Expo

rtedOres

50.6

43.3

38.5

36.9

29.8

27.8

19.9

(5)

Incl

udin

gmi

xed

nick

el-c

obal

tsu

lphi

des

(Sme

lter

).(6)

Forcom

parati

vepuposes

tota

lfi

gure

sfor

the

EECin

clud

ete

nme

mber

stat

esfo

rth

ewhole

peri

od.

(7)Mi

ning

prod

ucti

onfi

gres

Indicate

recovered

nick

elcontent

inferro-niquel

and

asby-product

incopper

refineries.

Nick

elcontent

ofor

esmi

ned

inth

ousa

ndme

tric

tons

was

asfo

llow

s:19

60:

12.8

;1965:

14.7

;1970:

16.3

;19

73:

16.6

;1975:

15.4;

1979:

13.7

;19

80:

13.3

;1981:

11.0

;19

82:

3.6;

1983:

0A.4

Figu

resba

sed

onestimates.

nil

less

than

0.1

per

cent.

Sour

ce:

Meta

lStatistics

1960

.-19

70,

1973-1983,

MetaIlgesellschaft

AG.

Page 32: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

CHART

III

WORLD

MINE

PRODUCTION

OFNI

CKEL

-------

------

-------

-------

--------

-----

--------

----------

----

------------

----------

-

------------

--------

Page

32MDF/W/21

rJ

WORLD

OTHER

CUBA

INDONESIA

AUSTRALIA

NEW

CALEDONIA

USSR

CANADAANADA

Il

1'i

iI

1956

1960

1965

..

..-.

..

Iu

uII.

.I

III-

1980

1970

1975

Source:

Supplied

by

the

Department

of

Energy,

Mines

and

Resources,

Canada.

800-

700-

600-_

o500-

400-

300-

,

200-

100- 19

50

Page 33: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 33

34.7 per cent in 1980 and 33.1 per cent in 1983. Among the developingcountries themselves the pattern of production has also changedconsiderably. In 1960 New Caledonia and Cuba accounted for practically allthe share of developing countries, by 1983 this share was accounted for,other than New Caledonia (21.2 per cent), by Botswana (8.3 per cent),Brazil (5.1 per cent), Colombia (7.4 per cent), Dominican Republic (9.2 percent), Indonesia (17.5 per cent), Cuba (18.4 per cent) Philippines (6.4 percent), Yugoslavia (0.5 per cent) and Zimbabwe (5.1 per cent), not countingGuatemala where production has been suspended since 1981 by INCO as arationalization measure in view of the fall in world demand. Theproduction of New Caledonia has fallen from a high of 151,000 metric tonsin 1971 to 87,000 metric tons in 1980 and 46,000 metric tons in 1983. Theproduction of Cuba has stagnated around 40,000 metric tons since 1970 witha low of 32,000 metric tons in 1979. It is, however, expected to increaseproduction in the late 1980s with a ney 30,000 tons per annum mine andplant coming on stream at Punta Gorda. It remains however, the fourthlargest producer in the world after USSR, Canada and Australia. The otherdeveloping countries where production levels were fairly well maintainedduring the 1980-82 world economic recession were Botswana and Indonesia,however in the case of the latter country there was a sharp fall from48,000 tons in 1982 to 38,000 tons in 1983. Morocco has a small productionequivalent to about 500 metric tonnes of metal content. As developingcountries possess over 50 per cent of world resources, they haEe long-termprospects of producing the major part of world mine production , however,as high-cost laterite ore producers they are bound to be more vulnerable tocyclical changes in demand.

54. The developed market economy countries accounted for about 61.7 percent of total mine production in 1960 with a total production of211,000 metric tons. In 1980, with a production of 316,000 tons the shareof these countries had fallen to 42.7 per cent and in 1983 this share stoodat 36.5 per cent. In 1960 Canada was the only major mine producer amongthe developed market economies with 57 per cent of total world production,the other producers were Finland, South Africa and the United States.Australia became a major producer in the early 1970s and together withCanada accounted in 1983 for 84 per cent of the total production ofdeveloped market economies and 30.7 per cent of total world production.Canada's share of total world mine production stood at 18.6 per cent in1983, compared with 57 per cent in 1960. The United States has for a longtime been only a minor mine producer and in 1982 its only nickel mine wasclosed

¹Price Prospects for Major Primary Commodities Vol. IV. World Bank1982, page 51.

²Among the developing countries contemplating expansion of existingmind production or the development of new projects in the late 1980s andearly 1990s, are New Caledonia, Indonesia, Colombia, Brazil, Yugoslavia andVenezuela. Whether or not these projects will be implemented would dependupon medium and long-term market prospects. Other developing countrieswith production ambitions include Burundi, Ivory Coast, Saudi Arabia,Tanzania and Zaire.

³After a temporary shut down in 1982 Hanna resumed ferro-nickelproduction in December 1983.

Page 34: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 34

55. While it is probably safe to conjecture that in future the share ofthe developed market countries would decline further, it should be kept inmind that the major developed market producers are in a strong competitiveposition because of their technological expertise, financial resources andmarketing experience and because they possess ready-developed, relativelylow-cost ore deposits from which production can be increased more quicklyand more cheaply than would be the case for new "green fields" projectselsewhere.

56. The centrally planned economies have increased their productionconstantly from 62,000 metric tons in 1960 when they accounted for 18.1 percent of total world production to 199,000 tons in 1983 when they accountedfor 30.7 per cent of total production, the same as the developed marketeconomies. In 1960 the only major producing country among them was theUSSR; in the early 1970s it was joined by Albania, the People's Republicof China, Germany D.R. and Poland. China's production has increased from7,000 metric tons in 1973 to 15,000 metric tons in 1983. USSR with aproduction of 170,000 metric tons in 1983 has become the worlds' largestmine producer accounting for about 26.3 per cent of total world production.Under a five year plan started in 1977 the production capacity of USSR,currently the highest among nickel producers, was to be expanded by 44 percent from 231,000 to 310,000 tons of nickel content.

9. Smelter production

57. Smelter production of nickel amounted to 324,000 metric tons in 1960and by in 1983 the volume of production has more than doubled to686,000 metric tons. Smelter production of nickel is more diffused thanmine production. On the one hand due to the corporate structure or theindustry some producers in the developing countries export their primaryproduction in the form of ores or concentrates or matte, for smelting andrefining in the developed countries. Such has been the case of NewCaledonia which exports part of its matte production for refining inFrance. On the other hand a significant amount of INCOs new output, andthe output of Falconbridge from Canada are refined respectively in theUnited Kingdom and Norway which are not primary producers. Japan processesores, matte and concentrates imported from New Caledonia and Indonesia.The statistics of smelter production shown in Tables 7 and 8 indicate thatin 1983 developing countries including Cuba accounted for 16.7 per cent ofthe total world smelter production compared with 33.1 per cent of mineproduction. The 16.7 per cent share of the world production in 1983compares favourably with the meagre 8.6 per cent in 1960, although it showsa drop from the 17.8 per cent achieved in 1975. In terms of volume,production increased from 28,000 metric tons in 1960 to 114,000 tons in1983. While New Caledonia and Cuba practically accounted for all smelterproduction in 1960 it has been joined by other producers such as Zimbabwe,the Philippines, Brazil, Colombia, Dominican Republic and Indonesia. Asferro-nickel is increasingly used in the manufacture of stainless steelthus favouring the

¹Joseph Hilmy - "Old Nick" - An Anatomy of the Nickel Industry and itsFuture, Commodity Note No. 13, World Bank (September 1979).

Page 35: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 35

exploitation of laterite nickel resources the share of developing countriesin smelter production is expected to grow under normal market conditions.The share of developed market countries in smelter production has, on theother hand declined in percentage terms continuously from 72.3 per cent in1960 to 51.9 per cent in 1983. In volume terms however, production by thedeveloped market-economy countries did grow from 235,000 metric tons in1960 to 448,000 metric tons in 1980. Since then the economic recession hasnecessitated production cut-backs and plant shut downs resulting in aproduction of 356,000 tons in 1983, compared with an estimated productioncapacity of 658,000 metric tons. This shows a capacity utilization rate of54 per cent. As has already been pointed out earlier many developed marketcountries, who are not mine producers or only minor producers such asJapan, United Kingdom, France, United States, Finland and Norway aresubstantial producers of smelter and refined products. As in mineproduction Canada is by far the largest smelter producer among thedeveloped countries, accounting in 1983 for 14 per cent of total worldproduction and about 27 per cent of the production of the developedmarket-economy countries as compared with 39.1 per cent and 54 per centrespectively in 1960. In volume terms the smelter production of Canadaincreased from 127,000 metric tons in 1960 to about 204,000 metric tons in1970, since then production has fluctuated downwards to 96,000 metric tonsin 1983. Canada is followed in order of importance by Japan, where smelterproduction has more than quadrupled from 19,000 tons in 1960 to 82,000metric tons, or 12 per cent of world production, in 1983; Australia, wheresmelter production has more than doubled over the past ten years from20,000 tons in 1973 to 42,000 tons in 1983; and the EEC, where productionfluctuated upwards from a level of 46,000 tons in 1960 to 64,000 tons in1975 only to fall back to 41,000 tons in 1983, after a record low of 19,000tons in 1982.

58. Smelter production in the United States has more than tripled from12,000 tons in 1960 to 40,000 tons in 1982. The 1983 production figure was30,800 tons. Refinery production in Norway has been fairly stable with alevel of 29,000 tons in 1983 compared with 30,000 tons in 1960. In SouthAfrica where nickel is produced as a by-product of platinum production thelevel of production has remained fairly stable in recent years at around17,000 metric tons of refined nickel.

59. The volume of smelter production of the centrally planned economiesgrew consistently from 62,000 metric tons in 1960 to 216,000 metric tons in1983. Their share in world production has grown from 19.1 per cent in 1960to 31.4 per cent in 1983. As in mine production USSR is by far the largestsmelter producer among this group of countries with a production of192,000 metric tons in 1983, compared with 58,000 metric tons in 1960.This makes USSR the largest producer in the world with 28 per cent of totalworld smelter production.

¹In 1981 Falconbridge - Dominicana temporarily closed its plant in theDominican Republic which has a capacity of 30 thousand tons per annum ofnickel contained in ferro-nickel, while INCO- Guatemala permanently closedits 13 thousand tons mine and matte plant. In November 1981, theMarinduque Mining and Industrial Corporation, the major nickel producer inthe Philippines shut down its operations with a capacity of 34 thousandtons per annum. (Price Prospects for Major Primary Commodities - Vol. IVWorld Bank 1982).

Page 36: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 36

60. The other major producer is China.

10. Semi-manufactures of nickel

61. In many nickel consuming countries with refining plants part of theunwrought nickel is fabricated into semi-manufactures and more finishedproducts for final use. Products concerned here fall under CCCN headings75.02-75.06. CCCN 75.02 covers wrought bars, rods, angles, shapes andsections as well as nickel wire. CCCN 75.03 covers mainly wrought plates,sheets and strips, nickel foil, nickel powders and flakes of all typesregardless of their intended use. Depending on their physicalcharacteristics, powders and flakes are used in the unalloyed states inplates for nickel-cadmium batteries, in the manufacture of nickel salts, asbinding agents for metal carbides, in the manufacture of nickel coinageblanks for the production of nickel alloys (e.g. alloy steels) and ascatalysts. Tubes, and pipes and blanks thereof of nickel, as well ashollow bars, tubes and pipe fittings of nickel fail under CCCN 75.04, whileelectro-plating anodes of nickel fall under CCCN 75.05. Under CCCN 75.06fall miscellaneous nickel products including nickel nails, tacks, nuts,bolts and screws, structures such as window frames, household and sanitaryarticles and parts thereof of nickel. Production statistics for theseproducts are not available on a global scale, but the trade flows will bediscussed-in the section of this study dealing with individual countrytrade analysis.

11. Consumption

62. Nickel is a metal essentially used in the production of stainlesssteel, alloy steels and non-ferrous alloys. (See Chart I on nickelconsumption by first use). Its demand is a derived demand for the aboveproducts, especially steel whose production accounts for about 60 per centof total nickel consumption. Chart IV shows the correlation between worldcrude steel production and world nickel consumption. Stainless steelproduction tends to be coincident with the durable consumer sector, whilethe production of non-ferrous alloys (as measured by nickel consumption) ismore closely related to developments in the capital goods sector, thusmaking nickel responsive to market developments in both sectors. Theoverall consumption of nickel, its volume, rate of growth, intensity, andgeographical distribution, could be considered to reflect closely thecurrent stage of industrialization, the pace of industrial andtechnological development, and the sectors of the economy which are ofpredominant influence in metal consumption at any given period. As astrategic metal the consumption of nickel is also influenced by the stateof international relations; during periods of military strife and hightension the demand for nickel has tended to rise.

1It has been postulated that the amount of nickel used per unit of GNPvaries over the different phases of economic growth. Early stages ofindustrialization are normally accompanied by a sharp rise in nickelconsumption per unit of GNP. This was probably the case during the late1940's and in the 1950's when countries were trying to catch up on theUS level of nickel consumption. In the more advanced phases - e.g. in the1960's nickel consumption growth matched that of GNP. However in the moremature stages of development, e.g. in the seventies, the pattern of demandchanges in favour of services using less metals in favour of goods withhigh value added and low metal content, such as computers and electronics.Thereon nickel consumption per unit of GNP starts to decline.

Page 37: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 37

CHART IV

CHANGES IN WORLD NICKEL CONSUMPTION AND

CRUDE STEEL PRODUCTION, 1953-1983.

55 60 65 70 75 80 85

Source: Metals Analysis and Outlook - No. 22. Fourth Quarter 1984.

Page 38: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 38.

63. The primary nickel consumption picture is further complicated by thestainless steel scrap cycle. As stainless steel production varies inresponse to the economic cycle the amount of home and prompt industrialscrap available varies with respect to the desired level of stainless steelproduction: as production rises scrap availability decreases, pricesincrease and primary nickel consumption goes up with the reverse occurringas production falls.

64. Table 9 gives information on global nickel consumption between 1960and 1983, its volumes and geographical distribution while a diagramaticpresentation of the evolution of global nickel consumption is given inChart V.

65. Nickel consumption has in the past shown a marked cyclical tendency.Consumption of nickel almost doubled from 1948 to 1959. This apparentgrowth of approximately 9 per cent per annum was also maintained from 1959to 1969 when nickel consumption again doubled from 249,200 metric tons in1959 to 502,800 metric tons in 1969. These were, however, periods ofexceptionally rapid.growth when the industrialized nations of Europe werecatching up, from the World War II levels, on the US level of per capitametals consumption. Other factors which contributed to the high rate ofgrowth in global nickel consumption during this period were the increase inthe military spending occasioned by the Korean War, the "Cold War" and theVietnam War, and the fast expansion of capital goods industries. The highrate of growth in nickel consumption over a fairly long period of time ledproducers into extrapolating this trend into the future, and new miningprojects were developed in a number of countries in the late 1960's and theearly 1970's. Nickel consumption grew at a fast rate from 502,800 metrictons in 1969 to 710,700 metric tons in 1974 after which the effect of theeconomic recession in the market economies which followed the first"oil-shock" began to be felt. From 1975 to 1978, the annual worldconsumption of nickel fell well below the 1974 level. Following theeconomic recovery in the market economies which began in 1978 there was asharp rise in nickel consumption from 680,800 metric tons in 1978 to ahistorical peak of 748,000 metric tons in 1979. From then on the recessionof 1980-1982 caused consumption to fall to 651,00 metric tons in 1982.Consumption increased by about 6 per cent in 1983 to 690,000metric tonsprimarily on the basis of a 40 per cent increase in stainless steelproduction in the US. In 1984, global consumption of nickel is estimatedto have grown by about 10 per cent over the 1983 level and a furtherincrease is projected for 1985 when the world economy is expected to reachthe peak of its current cycle. Apart from the cyclical slowdown ineconomic activity in industrialized countries one of the fundamentalreasons-given for the reduction in nickel consumption in recent years isthe decline in steel consumption per unit of GNP in the major nickel

¹Scrap price increases also tend to draw greater amounts of obsoletescrap back into the system, limiting the run-up in scrap prices, and whenproduction is curtailed, exacerbating this decline.

²Metal Bulletin Monthly - No. 166 October 1984, p. 11.

Page 39: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Table9

Worl

dCo

nsum

ptio

nofNickel(l),

1960-1983

inth

ousand

metr

ictons

asapercentege

ofworldconsumption

1960

1965

1970

1973

1975

1979

1980

1981

1982

1983

1960

1965

1970

1973

1975

1979

1980

1981

1982

1983

World

293

429

572

657

577

748

709

664

651

690

100.

010

0.0

100.0

100.0

100.0

100.

0100.0

100.0

100.0

100.

0

Developingc

ountries

38

1621

2743

4849

4552

1.0

1.9

2.8

3.2

4.7

5.7

6.8

7.4

6.9

7.5

Argentina

--

-1

II

1-

-1

--

-0.

20.

20.

10.

1-

-0.

1Br

azil

--

-5

48

il7

58

--

-0.8

0.7

1.1

1.6

1.1

0.8

1.2

Indi

a-

--

13

67

9il

13-

--

0.2

0.5

0.8

1.0

1.4

1.7

1.9

Korea,

Rep.of(2)

_-

--

-1

34

22

--

7-

-0.

10.4

0.6

0.3

0.3

Mexico

__

_1

32

33

31

--

-0.2

0.5

0.3

0.4

0.5

0.5

0.1

Roma

nia*

__

_3

56

66

55

--

-0.

50.

90.8

0.8

0.9

0.8

0.7

Spain

13

55

99

78

8-

0.2

0.5

0.8

0.9

1.2

1.3

1.1

1.2

1.2

Turkey

__

__

__

__

I--

--

0.2

0.1

Yugoslavia_

11

22

22

2*2*

--

0.2

0.2

0.3

0.3

0.3

0.3

0.3*

0.3*

0ther(3)

37

124

48

6il

8il

1.0

1.6

2.1

0.6

0.7

1.1

0.8

1.7

1.2

1.6

Deve

lope

dco

untr

ies

216

311

426

496

388

522

480

435

420

450

73.7

72.5

74.5

75.5

67.2

69.8

67.7

65.5

64.5

65.2

Aust

rali

a(in

cl.Oc

eani

a)2

23*

52

55

44

40.

70.5

0.5*

0.8

0.3

0.7

0.7

0.6

0.6

0.6

Austria

33

65

45

54

44

1.0

0.7

1.0

0.8

0.7

0.7

0.7

0.6

0.6

0.6

Cana

da4

812

1111

810

97

8*1.

41.9

2.1

1.7

1.9

1.1

1.4

1.4

1.1

1.2*

EEC:

(4)

80100

135

145

125

184

161

143

142

147

27.3

23.3

23.6

22.1

21.7

24.6

22.7

21.5

21.8

21.3

Germ

any,F

.R.

2331

4155

4376

6862

5863

7.8

7.2

7.2

8.4

7.5

10.2

9.6

9.3

8.9

9.1

Belg

ium-

Luxe

mbou

rg2

12

44

54

44

50.

70.

20.

30.6

0.7

0.7

0.6

0.6

0.6

0.7

France

1921

3630

3239

3834

3232

6.5

4.9

6.3

4.6

5.5

5.2

5.4

5.1

4.9

4.6

United

Kingdom

2837

3531

2735

2322

2222

9.6

8.6

6.1

4.7

4.7

4.7

3.2

3.3

3.4

3.2

Ital

y7

920

2317

2727

2024

222.4

2.1

3.5

3.5

2.9

3.6

3.8

3.0

3.7

3.2

Neth

erla

nds

11

11

11

1.1

11

0.3

0.2

0.2

0.2

0.2

0.1

0.1

0.2

0.2

0.1

Finl

and

1-

--

-7

87

910

0.3

--

--

0.9

1.'1.

11.

41.4

Japa

n18

2799

114

83132

122

105

107

115

6.1

6.3

17.3

17.4

14.4

17.6

17.'

15.8

16.4

16.7

Norway

-1

1I

1-

--

--

-0.

20.

20.2

0.2

--

--

-SouthAfrica

--

-5

55

66

66

--

-0.

80.

90.

70.

30.9

0.9

0.9

Sweden

913

2327

2222

2016

1516

3.1

3.0

4.0

4.1

3.8

2.9

2.8

2.4

2.3

2.3

Switzerland

I1

2I

21

11

I1

0.3

0.2

0.3

0.2

0.3

0.1

0.1

0.2

0.2

0.1

United

Stat

es(5

)98

156

145

182

133

153

142

140

125

139

33.4

36.4

25.3

27.7

23.1

20.5

20.0

21.1

19.2

20.1

Cent

rall

y-pl

anne

deconomes,

ofwh

ich:

74110

130

140

162

183

181

180

186

188

25.3

25.6

22.7

21.3

28.1

24.5

25.5

27.1

28.6

27.2

Bulg

aria

*-

--

-1

11

12

2-

--

-0.

20.1

0.1

0.2

0.3

0.3

Chin

aP.

R.*

--

-18

1819

1819

1919

--

-2.7

3.1

2.5

2.5

2.9

2.9

2.8

Czechoslovakia

--

-7

910

1010

88

--

-1.1

1.6

1.3

1.4

1.5

1.2

1.2

Germ

anyDR

.*-

--

89

il10

1010

9-

--

1.2

1.6

1.5

1.4

1.5

1.5

1.3

Hungary--

-I

22

22

33

--

-0.2

0.3

0.3

0.3

0.3

0.5

0.4

Pola

nd5

79

87

67

-_

_0.8

1.2

1.2

1.1

1.1

0.9

1.0

74|

110

130

100

115

130

13I14

$025

.325

.61

22,7

15:2

19.9

17:4

18:1

212

201

(1)I

nclu

dingni

ckel

cont

ent

infe

rro-

nick

elandnickel

oxide

sint

er;

sinc

e19

73excludingco

nsum

ptio

nofnickel

chem

ical

s.(2)

Figuresfor

1973

included

inother

develo

ping

counties

cons

umti

on.

(3) I

nclu

ding

Taiwan.

(4)F

orco

mpar

ativ

epurposes

total

figures

for

the

EEC

include

tenme

mber

stat

esfor

thewhole

period.

for

1965

and

1970

provided

bytheUS

Bure

auof

Mine

swhi

leth

ose

indicatedby

International

Nick

elCo.

were

167.8and

1978

reported

cons

umpt

ion

isin

dica

ted;

begi

ning

1979

apparent

cons

umpt

ion.

*Figures

base

dan

esti

mate

s.-

nilo

rless

than

500

metric

tons

or0.1

per

cent

ofwo

rld

consum

ption.

Sour

ce:

Metal

Stat

isti

cs19

60-1

970

and

1973-1983,

Meta

llge

sell

scha

ftAG.

149.7

thousandmetric

tons

respectively.

From

1973to

Page39

MDF/W/21 -. ru

Page 40: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

CHAR

TV

Sm

~~~~~~~~~~~~~O

N

WORLD

NICK

ELCO

NSUM

PTIO

N1950-1983

800

700

600

500

400

200

1_

1950

1960

1970

1980

Supp

lied

bythe

Department

ofEn

ergy

,Mi

nes

and

Reso

urce

s,Canada.

Sour

ce:

Page 41: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 41

consuming nations which are entering the advanced stages of economicdevelopment where metal consumption falls as a result of the shift indemand towards services and other goods which are not metal intensive.¹

66. The global picture portrayed above hides wide regional differences inconsumption levels and their evolution. In 1960, 73.7 per cent of totalworld consumption of primary nickel was accounted for by the developedmarket economy countries, 25.3 per cent by the centrally-planned countriesand more specifically the USSR, and the remaining 1 per cent by thedeveloping countries. The share of the developing countries has since thengrown steadily at differing annual rates to reach 7.5 per cent in 1983 anda volume of 52,000 metric tons compared with 3,000 metric tons in 1960.Developing countries with the largest share of consumption are India,Brazil, Spain, Romania, Republic of Korea, Mexico, Yugoslavia andArgentina. As industrialization gathers pace in developing countries andincomes rise their consumption of nickel is bound to continue rising.Table 10 which shows the relative growth rates of nickel consumption in thedifferent economic regions indicate that developing countries have thehighest rate of growth in nickel consumption.

67. The share of the centrally-planned economies in the consumption ofnickel has remained fairly stable since 1960 increasing only slightly in afluctuating manner from 25.3 per cent to 27.2 per cent in 1983. In volumeterms, however, consumption has increased considerably from 74,000 metrictons in 1960 to 288,000 metric tons in 1983. The USSR is not only thelargest consumer by far among this group of countries, but it has alsobecome the largest consuming country in the world to the tune of 140,000metric tons, in 1983 representing 20.3 per cent of total world consumption.At 19,000 metric tons, the consumption of the People's Republic of Chinahas remained practically the same since 1973. In 1983, it represented2.8 per cent of world consumption. The other major consumers among thecentrally-planned economies are Czechoslovakia, Germany, D.R., and Poland.

68. The consumption of nickel by the developed market economy countriesmore than doubled between 1960 and 1983, rising from 216,000 metric tons to450,000 metric tons. This overall picture, however, hides a marketevolution closely related to the level of economic activity in thedeveloped countries. After a very fast growth which reached a first peakin 1974 consumption dropped sharply during the following four years ofeconomic recession. Demand started to pick up in 1978 and quickly moved toan all-time peak in 1979, but started a steep decline in the 1980-82economic recession. The 1983 consumption of 450,000 metric tons whichrepresents an increase over the previous year's level of 420,000 metrictons is still below the 1973 consumption level. Between 1960 and 1983, thedeveloped market economy countries lost eight percentage points share of

¹By the late 1960's, there was beginning to be a flattening of thedemand for nickel products. The economies of North America Europe andJapan were reaching something of a saturation point in consumption of steelproducts, the largest single outlet for nickel production. There was, andstill is a long-term slow down in the so-called "mature industries" such assteel and auto, in North America and Western Europe (Raw Materials Report1983 vol. 2. No. 2.).

²Nickel has a high income elasticity of demand.

Page 42: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 42

Table 10

Relative growth rates of nickel consumption until 1990

Source: Bundesanstalt für GeowissenschaftenInstitut für Wirtschaftsforschung, Untersuchungenmineralischer Rohstoffe - X (Nickel ), (Stuttgart,Verlagsbuchhandlung, 1978).

und Rohstoffeand Deutschesüber Angebot und NachfrageE. Schweizer Bart'sche

Taken from "The Nickel Industry and the developing countries - UN New York 1980

Consumption grovthShare of world nickel consumption 1976-19901966 1976 1980 1990 (percentage)

Developed marketeconomies 74.2 70.8 71.2 70.8 3.8Western Europe 27.7 28.5 27.4 27.3 3.5Japan 7.8 17.3 17.9 19.3 14.6United States ofAmerica, Canada,Australia, SouthAfrica 38.7 25.0 25.9 24.2 3.7

Centrally plannedeconomies 224.6 26.1 25.0 24.2 3.3

Developing countries 1.2 3.1 3.8 5.0 7.4

Brazil 0.2 0.6 0.7 1.4 10.1Mexico 0.0 o.6 0.9 0.9 6.8Developing countriesof Asia 0.3 1.0 1.2 1.4 6.5

World 100 100 100 100 4.0

Page 43: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 43

the total world consumption mostly to the developing countries and to alesser extent to the centrally-planned economies. The US is the largestconsumer among the developed market economies, with a volume of consumptionwhich has grown from 98,000 metric tons in 1960 to 139,000 metric tons in1983 after reaching a peak of 194,500 metric tons in 1974. Its share ofthe world market has, however, fallen considerably from around 33 per centin 1960 to around 19.2 per cent in 1982. When it fell for the first timebehind the USSR in 1983 its share was around 20 per cent.. The share of theEEC has fallen from 27.3 per cent in 1960 to 21.2 per cent in 1983 with theGerman Federal Republic, France, United Kingdom and Italy as the leadingconsumers. Consumption in the EEC grew from 80,000 tons in 1960 to 184,000tons in 1979. It then declined to 142,000 tons in 1982 and rose somewhatto 147,000 tons in 1983. Japan which is the third largest nickel consumingcountry in the world has had the fastest growth in consumption outside thedeveloping world since 1960. From a level of 18,000 metric tons in 1960consumption in Japan had grown to 115,000 metric tons in 1983 after peakingat 132,000 metric tons in 1979. This represented a market share increasingfrom 6.1 per cent in 1960 to 16.7 per cent in 1983, and reflected the rapidadvancement in nickel application technology in this country.

12. Prices and Stocks

69. Table 11 provides information on nickel prices in current and constantUS dollars during the period 1950 to 1983. The price series are based onINCO producers contract prices for electrolytic cathodes. Until 1965 theseprices included US tariffs. Constant prices have been calculated by usingthe industrial countries' unit value (c.i.f.) index of manufactured exportsto developing countries. Chart VI provides the same information on pricetrends in a graphic form.

70. One of the salient features of the nickel industry during the past fewdecades has been the relative price stability which has prevailedespecially between 1950 and 1965 in spite of a market situationcharacterized by periods of shortages and overproduction. This, as hasbeen explained earlier in this paper, is the result of a deliberate policypursued by the major producers especially INCO eventually at the expense ofa decline in their share of the market. During periods of shortages theyhave preferred to draw on stocks and ration supplies rather than allowprices to rise in response to market forces. Similarly they responded toany excess supply situation by cutting back production and or by buildingup stocks. ¹ This policy vas most effective in the 1950s and 1960 when INCOand the other major producers largely dominated production and trade andwhen demand was generally strong. Another feature of this policy ofstabilizing prices was that producer prices have for most of the periodbeen much lover than the free market prices.

Historically nickel, like most other metals, has experienced widecycles in inventories in response to demand cycles. The reasons given forthis behaviour include an inability to forecast the timing and severity ofmarket downturns accurately, a desire to utilize capacity at economiclevels, and such factors as market share expectations and the aggressiveparticipation of eastern world producers in western markets. When a marketalso suffers from chronic excess capacity as nickel has since theseventies, the inventory cycle can be amplified greatly.

Page 44: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Tabl

eIl

Nick

elPrices,

1950-1984

(US$/M

etric

Ton)

Cana

dian

¹LME CashSetlement

²

Year

Curr

ent

$$/lb

Constant

S³$/lb

Current

S4$/lb

1982

$/lb

Cons

tant

$³current

Constant

1950

988

0.45

4.29

61.

9519

511.191

0.54

4.36

31.

981952

1,24

60.

564.

450

2.02

1953

1.32

10.

604,929

2.24

8954

1,33

40.61

5.072

2.30

1955

1,422

0.65

5,306

2.41

1956

1,43

70.

655.245

2.38

1957

1,63

10.

745.703

2.59

1958

1.631

0.14

5.401

2.45

1959

1.63

10.

745,

683

2.58

1960

1,631

0.74

5.54

82.

521961

1.711

0.78

5.80

02.63

1962

1,76

10.80

6,03

12.

1419

631.742

0.79

5.92

52.

691964

1,742

0.79

5,807

2.63

1965

1.73

50.

795.764

2.61

1966

1.13

90.19

5,4S

I2.47

1961

1,936

0.88

5.97

52.

711968

2,075

0.94

6,848

3.11

1969

2.363

1.07

1.748

3.51

1970

2,84

61.

298,420

3.82

1971

2,93

21.33

8,011

3.63

1972

3.080

1.40

1.681

3.48

0913

3.313

1.53

7,042

3:19

1974

3,825

1.74

6,364

2.89

1915

4.57

02.07

6.701

3.04

1976

4,973

2.26

7,155

3.25

1977

5,203

2.36

6,910

3.13

1978

4,60

92.

095,190

2.35

1979

5,98

62.

72.6,040

2.74

1980

7,52

83.

417,

016

3.18

6,536

2.96

6,09

12.

7619

817.

500

3.43

7.405

3.36

5,985

2.71

5,85

62.66

1982

7,05

53.20

1,05

53.

204,816

2.18

4,816

2.18

1983

7,055

3.20

1.05

5.3.20

4,853

2.20

5.071

2.30

1984(Jan.-June

7,055

3.20

7.45

83.38

4,76

92.16

5.041

2.29

¹Ele

ctro

lyti

ccathodes,

cont

act

pric

e.f.o.b.

shipping

poin

t,US

duty

included.

²Ref

ined

meta

l,melting

grade.

LME

contract

opened

for

trad

ing

July

1979

.³T

hede

flat

orus

edis

the

indu

stri

alco

untr

ies'

unit

valu

e(c.i.f.)

index

ofmanufactured

expo

rte

tode

velo

ping

coun

trie

s.4T

hest

erli

ngpr

ice

quot

atio

nsha

vebeen

conv

erte

dto

USdollars

atth

eperiod

average

rate.

Sour

ces:

Comm

odit

yTrade

and

Pric

eTrends

1983

-84.

IBRD

/The

World

Bank

Worl

dMe

tal

Statistics

Bulletin,

World

Bure

auof

Metal

Stat

isti

csIMF

International

Fina

ncial

Stat

isti

cs,

October

1984

Page 45: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 45

CHART VI

Canadian Nickel Prices 1950-1983

(US$/metric ton)

Source: Commodity Trade and Price Trends 1983-1984 IBRD/The World Bank

10000

zo1--ci

p-w

inm

Page 46: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 46

71. On the basis of 1982 constant dollars nickel prices rose from US$1.95per lb. in 1950 to US$3.20 per lb in 1982 a rise of 64 per cent comparedwith the six-fold rise in current prices, and there vas a rise of 39 percent in 1982 constant prices between 1950 and 1967. The first period ofprices upheaval was 1967-1972 when producer prices increased sharply. Thishas been imputed to three factors. The prolonged strike in Canada in1967-68 and the resultant shortages of supplies, the market rise inproduction cost which took place at that time and the rising level ofconsumption.

72. The result of the fast rise in prices between 1967 and 1972 and thetechnological breakthrough in laterite ore processing in the 1960s vas asurge in the development of and output from laterites which aresignificantly more expensive then sulfide ores. Consequently, althoughproduction increased considerably between 1965 and 1975, prices were kepthigh te meet rising production costs. The world economy entered into arecession in 1974-1975, with the result that consumption declinedconsiderably in 1975. During 1975 and 1976 world production of nickel isestimated to have exceeded consumption by 221,000 tons, as the expectedeconomic recovery failed to materialize. With producers holding largestocks of nickel and market demand weak the stage was set in 1977 for aconsiderable lowering of the official producer price and a reduction incapacity utilization by the major producers. This did not prevent theproducer price from becoming the target of discounting by some producers,sometimes by as much a 5 to 10 per cent below the official posted price.Faced with increasing inventories, a decreasing market share and heavydiscounting by other competitors, INCO, in the course of 1977 rescinded aprice increase implemented in October 1976 and stopped publishing itsprices.

73. In early 1978 nickel stocks amounted to about eight months' suppliescompared with the normal level of two to three months and prices stayed atpre 1977 levels. In the course of 1978 there was improvement on the nickelmarket as consumption, following the recovery in the world economy, rose by9 per cent at the same time as production declined by 23 per cent from theprevious years' level. Producer stocks began to fall so sharply that bymid-1979 they amounted to four to five months consumption, still aboutdouble the normal inventory requirements. Similar reductions in consumers'stocks were observed as high interest rates outweighed the benefits ofholding large stocks. With the rapid depletion of producer stocks in early1979 caused by high demand, curtailed production, and the continuing workstoppage at nickel mines in Canada, INCO reinstated posted prices inFebruary and by the end of the year the producer price was at a levelconsiderably higher than that of 1978. Table 12 shows the evolution ofworld stocks of unwrought nickel in the markets economy countries betweenthe years 1976 and 1984. This Table also shows the current United StatesGSA strategic stockpile of nickel to amount to 29,000 metric tons comparedto an objective of 181,000 tons, virtually unchanged since 1976.

1Institute for World Economy - University of Kiel, - Working Paper No.160 -(1982).

Page 47: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Tabl

e12

Worl

dStocks

ofUnwrought

Nick

el,

1976-1984

nickel

plus

nickel

contained

infe

rro-

nick

el,

nickel

oxid

ean

dfo

nte,

excl

udin

gnickel

in

scrap

form.

Latest

avai

labl

einformation

contains

stocks

held

by:

Japanese

and

Brazilian

producers

for

months

of

-United

States

consumer

for

June.

-LME

and

Unit

edSt

ates

Stoc

kpil

efor

Augu

st.

3Nickel

metal

stocks

held

byJapa

nese

smelters

are

incl

uded

.4Opened

for

trading

July

1979.

5Nickel

instockpile

was

sold

tothe

United

Stat

esBureau

ofMi

nt,

unde

rlo

ng-t

erm,

contract.

July

and

April.

u

Source:

-Wo

rld

Meta

lSt

atis

tics

Bull

etin

,World

Bureau

ofMe

tal

Stat

isti

cs.

-Office

ofPreparedness,

Ceneral

Serv

ices

Administration,

Non-Ferrous

Metal

Data

1976

-198

3,American

Bure

auof

Metal

Stat

isti

cs,

INC,

New

York

.

1976

1977

1978

1979

1980

1981

1982

1983

198>

4

Commercial

stoc

ks

33

3Producers

130

225

145

65108

111

8564

7

Cons

umer

s44

2328

3120

2717

2613

Merc

hant

s5

73

33

28

7n.

a.

LME4

--

64

27

2820

Total

179

254

176

106

136

142

117

124

n.a.

Non-

Comm

erci

alSt

ocks

Stra

tegi

cSt

ockp

ile:

USA

n.a.

3432

30

329

2929

29

(cur

rent

stockpile

objective)

(185

)(1

85)

(185

)(185)

(181)

(181)

(181

)(181)

n.a.

¹Sto

cks

ofrefined

(in

thousand

metric

tone

s)

Page 48: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 48

74. The upturn in the nickel industry however did not last as the worldeconomy entered a recession in late 1980 which lasted until 1982.Reflecting a 10 per cent decline in world nickel consumption in 1980 withthe ensuing rise in inventories, INCO effected in November 1980 a 6 percent discount on its prices which had been listed at US$3.42 per lb.Meanwhile, nickel trading in the London Metal Exchange which had beenintroduced in 1979 was beginning to influence free market prices which weregaining in importance. Although posted prices in the second half of 1981averaged US$3.41 per lb, many producers were offering nickel at prices aslow as US$2.80 per lb including up to 150 - day credit terms. By the endof November 1981, INCO and the other major producers had reduced theirprices to US$3.20 per lb together with 6 per cent discount for nickeldelivered up to February 1982. The fall in prices continued in 1982 andreached dramatic proportions in tce third quarter when free market pricesreached as low at US$1.56 per lb. INCO producer price quotations stillmaintained at US$3.20 per lb were by now only of nominal significance.

75. However by the end of the year the recession had begun to ease and therecovery continued in 1983 resulting in greatly increasedd stainless steeland nickel consumption. Although mine production picked up in 1983 thiscould not prevent a supply devicit and there was a substantial producerdestocking, bringing inventories to their lowest level for a long time.However, the coming on-stream of new projects such as Cerro Matoso inColombia, Codemin in Brazil and Feni in Yugoslavia and the reopening ofmines by INCO, Falconbridge and Marinduque helped to maintain the market ina continuous state of over-supply. The free market price averaged US$2.13per lb throughout 1983, and realized producer quotations were only slightlyhigher with INCO prices averaging US$2.25 per lb and Falconbridge averagingUS$2.16 per lb. With world economic recovery well established in 1984consumption of nickel in the developed market-economy countries isestimated to have been 10 per cent higher than the 1983 level of512,000 tonnes, thus surpassing the 1979 record high of 522,000 tonnes.The rise in prices was however modest with free market prices in 1984averaging US$2.16 per lb. This has been imputed to a number of factors,among which was the fact that nickel production rose substantially andwhatever supply deficit remaining was made up by removal from LME stocks.

SECTION III: International Trade

76. Primary nickel is heavily traded internationally by virtue of itsimportance as a major industrial raw material. Nickel products tradedinternationally can be classified into four main groups; ores andconcentrates; intermediate products such as matte, and speiss; refinedproducts such as electrolytic cathodes, pellets, briquets, rondels, nickel89 as well as nickel oxide sinter and ferro-nickel; and semi-manufacturedrefined products. Old nickel scrap is also traded internationally andoften classified under unwrought nickel.

All the main producers responded to the collapse in prices bproduction cut-backs, production suspensions and mine shutdowns. INCOabandoned the Eximbal project in Guatemala indefinitely.

²It must be pointed out that due to the rise in the value of thedollar, these prices, low as they appear, compared favourably withpre-recession prices. Moreover, the major producers in developed count-ieshave managed to cut down costs and have again become marginally profitableeven at the prevailing low prices.

Page 49: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 49

77. This section is devoted to an analysis of export and import trade inthe first three groups of products mentioned above. The analysis ishowever, greatly handicapped by the absence of well established andclassified statistical data in certain countries. There is also an absenceof statistical uniformity in the product classification, and in some majorproducing countries quantum trade figures are not provided in availablestatistical sources. The accompanying export and import trade Tables mustonly be considered as indicative since aggregation has been done with somereservation. The pattern of trade in all three groups of products isdetermined by two main factors; the normal trade flows between the primaryproducers and the main consuming countries, and the corporate structure ofthe nickel industry. Thus, semi-processed nickel is either shipped betweenthe mining and processing facilities of the same company but in differentcountries or, between independent companies in different countries. Mattefrom Canada is exported to the United Kingdom by INCO and to Norway byFalconbridge for refining and, in the same way, SLN exports matte from NewCaledonia for refining in France. On the other hand, normal commercialtransactions take place between producers in Canada, New Caledonia,Indonesia, Australia, Philippines, Botswana etc., and refinery producers inthe United States, Japan and Western Europe. Cuba exports a large part ofits production to the centrally planned economies of Eastern Europe.

78. The centrally-planned economies are by and large self-sufficient innickel and have for a number of years been exporting significant quantitiesto the market economy countries, with the USSR as the main exporter.Detailed statistics from these countries indicate, as Table 13 shows, thatexports from these sources to the market economies estimated from importingsources reached about 327000 metric tones in 1980 but declined slightly toabout 31,000 metric tonnes in 1983.

79. Available statistics indicate that exports of unwrought nickel rosesteadily in the 1960s and 1970s. From a level of 301,000 metric tonnes in1960 exports from the market economy countries reached 529,000 tonnes in1970. Since then exports have tended to fluctuate considerably followingthe overall trends in the world economy. They reached about 617,000 tonnesin 1974 but fluctuated downwards to around 512,00 tonnes in 1980. Therewas a sharp fall in exports during the 1980-82 economic recession so thatby 1982 they were standing at an estimated 335,000 tonnes. Despite theeconomic recovery in 1983 exports hardly increased over those of thepreceding year.

80. The share of developing countries in total nickel export hasincreased substantially during the last twenty years. In 1960 this sharewas estimated at 17 per cent, by 1970 it has increased to 35 per cent andin 1980 it was estimated at 40 per cent.² This share is estimated to havefallen to about 37.5 per cent in 1983 but is expected to recover eventuallyto the pre-recession level.

Nickel Handbook - World Bank 1981

²Price Prospects for Major Primary Commodities. Volume IV - Metalsand Minerals - page 53. (World Bank - July 1982)

Page 50: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Tabl

e13

Exports

ofNi

ckel

-llitwrought

Prod

ucts

Main

Expo

rter

s

World

Tota

l

Develo

ping

unties¹a

Braz

ilBo

tswa

na²

Cuba

Dominican

Rep4

Indo

nesi

a5Ne

wCaledonta

Philippines

Zim

babw

e6

DeveIopedCountries

Australia7

EEC9

Finl

and

Japan

Horway

Unit

edStates

South

Africa10

Cent

rall

yanneaiIdountalrs11aa'

German,

D.A.

Hungary

USSR

Ores

and

Concentrates

1970

96.0

82.1 6.3

15.2 1.2

0.5

1912

;1.4

61.3

16.7

40.8 5.8

10.1

9 0.4

19)5

_._

12.8

44.J 0.5

4.5<

0.4

11

)1102

41.0

117,1

28.0 7.5 ,.8

1 0.5

64.1

fil.

.

17.7

368

9.6

0.6

0.6

3.8

53.6

16.8

29.8 7.0

0.2

41.9

14.4

27.3 S.)

0.4

0.1

53.9

35.6

10.1

20.3 5.0

18.3

18.0'

0.3

Hatte,

apeissand

other

inte

rmed

iate

1aa.

products

19101

1)9

1119

15

n.9

17.8

15.6

145.

0

10.0'

127.

57.5

*Fer

ro-n

icke

l"E

stim

ates

¹Colombia

star

ted

production

in19

82an

dth

eannual

ferr

o-ni

ckel

prod

ucti

onis

esti

mate

dat

22.5

thousand.

Expo

rtin

1983

was

12.3

thousand

tons

of

nickel

content.

²Exports

are

inthe

form

ofco

pper

-nic

kel

xuit

tesh

own

here

innickel

cont

ent.

³Exports

ofCuba

aremainly

matt

ean

dni

ckel

oxide

sint

er.

4Exp

orts

ofDominican

Republic

are

inth

efo

rmof

ferr

o-ni

ckel

s.Expo

rts

ofIn

done

sia

are

ores,

matte

and

ferr

o-ni

ckel

.6Exports

ofZi

mbab

weare

all

inrefined

nick

elpr

oduc

ts.

Sources:

Nati

onal

Stat

isti

cs.

1II1Commodity

Trade

Statistics

-various

trades.a

IiHYe

arbo

okof

International

Trade

Stat

isti

cs-

various

issu

es.

Mining

Annual

Review

-various issues

Worl

dMeta

IStatistics

-various

issues

Metal

Bull

etin

Handbook

-va

riou

sissues

Minerals

Yearbook

-v.aious

issu

es.,

sa.,

17.1

20.6

12.0

114.2

4.2

6.4

16.6

19.4

153.5

0.1'

'822.9

0.5_

1918^

176.

6

16.1

16.2

12.2

16.5

115.6

,47.

166

.9 L.6

184.

1

15.4

16.1

30.5

16.4

105.1

5170,

42.6 4.1

1.4

19H1

11982

1983

18.4

18.(

32.1

17.6

108.1

1,8.0

53.5

4.1

2.1

7In

the

absence

ofdetails

145.

0

17.1

16.2

25.0 7.9

141.6

68.5

18.2

28

3.7

18.1

13.3

47.3

29.51

21.0

40.1

2.01

3.21

1.8

0.3

1910

269.1

62.3 2.0

16.2

16.2

27.9

206.8

1.0

139.

012

.1 4.4*'

3.0

0.1, 5.5

3.5

1972

('000

metric

tons

ofmetal

content)

Ferro-nickel,

nick

elox

ide

sint

er,

unwrought

nickel

and

nick

elal

loys

1915

339.

3

1978

379.9

92.6

jL14-4

IWII

2.0

12.3

16.6

12.3

39.4 e00

1

16.5

109.

7

18.6

6.1te

4.7

6.0e'

40.2 1.9

10.2

2.0

12.6

2S.2

12.6

42.7 6.3

13.0e

32.9

90.1

14.3

17.80a

5.8

1.5

1IMe

29.s 6.1

10.7e

14.0

0.1

0.1

13.6

19.5

20.0

19.5

25.2

12.0

16.5

317.3

105.

710.2.

14.3

*é5.

9

3.0 7.6il

40..

10.6

21.S

0.2

0.3

21.4

1980

396.

1

129.2

19.4

19.4

32.1

24.*

14.4 I]

105.1I

8.4

93j0

11.1 1.3

60*

6.0

31.2

12.*

6

14.2e

12.4 0.2

0.2

31.0

1951

395.5

11S.

7

19.5

19.6

19.5

27.3

18.1

I11.

7

42.5

94.3

14.0

15.S

an11

.11.3

1.2*'

36.9

IS.1

15.0e

26* 0.2

0.5

2S.6

ofAustralian

expo

rttr

ade,

figures

give

nhere

are

for

1982

1l98i

90.1

17.2 5.6

17.2

26S

Il.}

12.0

_221.5

45.9

76.8

8.1 4*'

9.t

0.3

1.5*

29.2

31.3

13.20

31.0

0.1

0.1

30.8

351.3

110.

0

0.1

19.0n

20.9

19Oe

22.9

12.1

16.0

216.

6

41.8

78.1

11.3

5.2*

'11.3

0.3

30.0

20.1

13.6e

30.1 0.6

10.1

Inte

rmed

iate

prod

ucts

are

esti

mate

san

dthose

for

refined

prod

ucts

reflect

smel

ter

production.

8Products

ofintermediate

meta

llur

gyexported

byCanada

arema

tte

and

nickel

oxid

e.Ot

her

expo

rts

are

refined

unwrought

nickel

i.e.

anodes,

cathodes.

ingots,

rode

etc.

9For

purp

oses

ofcomparison

figu

res

aregiven

for

EEC

often.

Intr

aEEC

trad

eis

also

excluded.

10South

Africa

expo

rted

refi

ned

nick

elproduct

mostly

briquettes.

11The

figures

inthis

tabl

erefer

only

toex

tra-

CHEAtrade.

Stat

isti

csfor

the

years

preceeding

1975

are

not

avai

labl

e.

l

:

inMn

ID-fl X:

V%.

.CD

1\j

178.

418H.

7I9

0 j6.S

11.41

IR.21

L.2.L.

1Él.

01..

1j66

.9

11-3_-'

i11

-'(_-'D

1LI.-

S.31

12S

3-'l

Page 51: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 51

81. In the sub-sections which follow an attempt is made to analyse tradeflows in the different categories of nickel products.

13. Ores and concentrates

82. Raw nickel ores are exported by only three major producers, NewCaledonia, Indonesia and the Philippines, in order of importance.Virtually all exports go to Japan, which is the only major importer ofnickel ores. Exports of ores have, however, tended to decline in recentyears. Estimated at a gross weight of about 4.7 million tonnes in 1970,imports by Japan have declined to about 2.3 million tonnes in 1983.Exports of concentrates are more diffused and as in the case ofintermediate products such as matte and nickel oxides, intra-company flowsplay a major role. Thus, matte from SLN operations in New Caledonia areshipped for smelting and refining in France while INCO and Falconbridge inCanada export nickel oxide and matte to refineries i the United Kingdomand Norway respectively. Australia is the only other exporter ofconcentrates in significant quantities. The amount of trade inconcentrates is not easy to estimate since trade statistics often groupores and concentrates together or ores, concentrates and matte together.Their share of world trade in nickel products is however in decline asproducers increasingly prefer to export products il a more processed form.

14. Intermediate products

83. As implied in this study intermediate products of nickel compriseproducts other than ores and concentrates which are subjected to furtherprocessing before the refining stage and they include matte, speiss andnickel oxide. In 1983 they accounted for about 28.7 per cent of totalexports of nickel products. As the export Table shows developed countriesaccount for most of the intermediate products which are internationallytraded, with Canada as the largest exporter. The Canadian exports ofintermediate products which are mainly in the form of matte and nickeloxide have declined from 127,500 metric tonnes in 1970 to about 40,000tonnes in 1983. Estimated exports of Australia have, on the other hand,increased from about 25,500 metric tonnes in 1970 to about 42,000 tonnes in1983. Until the recession of 1982 exports of matte by New Caledoniaaveraged between 15,000 and 20,000 metric tonnes destined for refining inFrance and Japan. Other major exporter of matte among the developingcountries are Botswana and Indonesia. Until recently most of the export ofnickel-copper matte from Botswana vent to AMAX refining plants in theUnited States and some to Zimbabwe. Matte exports of Indonesia go mainlyto Japan. After the production cut backs resulting from the recentrecession exports of matte from New Caledonia which reached a low point of3,700 tons in 1983 are estimated to have gone up in 1984. Some oxide isalso exported by Cuba to Japan, the EEC and India, etc.

15. Refined nickel products

84. Products being considered in this study as refined products comprisethe normal Class I products such as electrolytic cathodes, pellet,briquets, rondels and nickel 98 as vell as nickel alloys. Nickel oxidesingers and ferro-nickel are also considered as refined products. Refinedproducts accounted for about 65 per cent of total exports of nickel

¹Exports of matte and ferro-nickel in 1984 are estimated to havereached 36,000 metric tonnes of nickel content, compared with 26,648 tonnesin 1983 and 34,753 tonnes in 1982.

Page 52: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 52

products in 1983. The export table shows that in 1983 five developingcountries other than Cuba were substantial exporters of refined nickelproducts. They were the Dominican Republic, Colombia, Indonesia, NewCaledonia, which export mostly ferro-nickel, the Philippines, which exportsbriquettes and other products and Cuba and Zimbabwe, which export mostlyrefined products. In contrast, New Caledonia vas practically the onlydeveloping territory exporting ferro-nickel in 1970. Developing countrieson the whole accounted for about 29 per cent of total exports of refinednickel products by the market economy countries in 1983 and this share isexpected to grow in the future as production from laterite deposits gain anincreasing share of the market in nickel products. Canada is the largestexporter of refined nickel products in the world accounting in 1983 forabout 24 per cent of the total exports of the market economy countries.This, however, shows a considerable fall from its share of about 61 percent in 1970. Other major exporters are Norway, United States, Japan,Australia, EEC and Finland.

85. The larges importer of refined nickel products is the United States,followed by the EEC and Japan, which together with other industralizedcountries of Western Europe, accounted in 1983 for over 90 per cent oftotal imports of the market economy countries. Import trade in nickelproducts is analysed in Table 14.

16. Direction of Trade

85. Tables 15 and 16 show the direction of import and export trade innickel products. As has been indicated earlier, trade flows in nickelproducts follow a pattern typical of many other metals. Ores, concentratesand semi-processed products are often shipped from production centres indeveloping and developed countries mostly to developed countries forsmelting, refining and fabrication. Exports of refined and sometimessemi-refined products are shipped, in most cases, from producing toconsuming developed and developing countries. In view of the ratherconcentrated corporate structure of the world nickel industry,intra-company operations also influence the direction of trade considerably(the overall number of exporters of nickel products is rather small).Table 16 indicates that among the developing countries the principalexporters of nickel products are New Caledonia, Cuba, Indonesia,Philippines, Dominican Republic, Zimbabwe, Colombia, Botswana and Brazil,while the principal developed country exporters are Canada, Norway,Australia, EEC, United States, Finland and Japan. This Table, like manyother statistical tables on nickel, is deficient in a number of ways. Manynational statistics differ in their product classifications, figures aresometimes given in gross weight instead of metal content or in valueinstead of quantities, and some countries fail to list export markets.

87. New Caledonia is by far the largest exporter among the developingcountries. It exports ores to Japan, nickel matte to the EEC and morespecifically to France and ferro-nickel to the EEC, Japan, Spain, Swedenand the United States. Indonesia exports substantial quantities of ore toJapan, which also receives most of its export of matte. The rest of itsmatte export goes mainly to the EEC; its ferro-nickel exports go mainly tothe EEC, Japan, Sweden and the United States. Dominican Republic exportsall its nickel production in the form of ferro-nickel to the EEC, Canada,Japan, Spain, Sweden and the United States. The Philippines exports somenickel ore and sulfide concentrates to Japan and the rest of its productionin the form of ferro-nickel and refined products goes mainly to the EEC,

Page 53: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Tabl

e14

Importsof

Nickel

(Unwrought)

(000'm

etric

times;

metal

content)

Ores

and

conc

entr

ates

Matt

e,speiss

and

other

inte

rmed

iate

prod

ucts

Ferro-nickel,

nick

elox

idesinter,

ofnickel

meta

llur

gyunw

rought

nick

elandn

icke

lalloys

Impo

rter

s19

1019

7219

1519

7819

801981

1982

1903

1910

1972

1975

1978

1980

1981

1982

1963

1910

1912

1975

1978

1980

1961

1982

1983

WorldTotal

153.1

104.7

100.6

105.

812

0.8

111.

494

.283.8

166.

315

0.4

146.2

159.1

209.

418

5.7

138.6

147.

129

9.9

314.

529

9.7

311.1

288.4

293.3

257.

5308.5

Developing

Coun

trie

s_

__

2.6

_0.

1n.

a.n.a.

0.4

0.3

0.2

0.7

3.1

2.4

0.5

0.4

4.4

3.5

3.3

14.1

17.9

17.9

15.2

19.6

Arge

ntia

____

n.a.

..

..

..

n.a.

__0.6

0.8

0.4

0.4

n.n.

Braz

il_

__

_.

..

..0.3

2.7

-_

__

3.0

S.7

4.9

1.7

0.2

India

__

_-

0.1

n.a.

n.a.

__

__

0.2

1.9

n.a

n.a.

2.9

2.4

3.1

3.6

3.2

6.9

L.lP

7.Ot

Spain

--

-2.

6_

n.a

0.4

0.3

0.2

0.3

0.1

0.4

0.3

0.3

--

-6.

76.3

3.6

5.0

11.0

Yugoslavia

--

--

__

__

_0.1

0.1

0.1

0.2

0.1

1.5

1.1

0.2

0.2

1.9

2.1

1.1

1.4

Develo

pedCountries

153.

110

4.1

100.6

103.

2120.8

111.

394

.283

.8165.9

50.1

146.

015

8.4

206.

3183.3

138.1

146.7

295.

5311.0

294.

9297.0

267.1

273.

6240.1

286.5

Aust

ria

--

--

--

-_

0.8

0.8

0.7

1.0

1.0

0.6

0.6

0.5

2.5

2.4

1.9

2.4

2.4

2.6

2.1

5.9

Aust

rali

a-

--

-0.

1-

-_

0.8

0.8

0.4

l.2

2.0

--

0.3

2.2

1.1

1.4

3.2

1.7

1.5

1.9

1.4

Finl

and

0.3

0.7

0.3

0.4

0.3

0.5

0.3

0.3

-_

_1.8

7.5

6.3

7.8

9.9

0.2

0.1

0.3

2.3

4.3

2.4

2.9

5.0

EEC¹

--

--

0.1

0.2

0.0

64.2

59.9

56.9

5,0.6

55.3

56.8

34.2

38.3

100.9

87.1

69.4

69.1

88.6

75.5

81.6

77.5

38.

46.

69.5*e

33.

4.25.60

27.5

44.(

yCanada²

26.9

22.1

17.9

3l.9

26.1

23.8

22.3

29.3

--

__

__

__

11.2

16.8

11.9

4.0

5.2

2.9

3.6

3.3

Norway

--

--

--

-_

54.

50.9

44.1

35.9

57.7

44.5

33.2

33.4

--

--

0.1

0.2

0.1

0.3

Swed

en-

--

--

0.2

-_

2.1.

52.

05.4

4.4

3.1

2.6

4.0

18.7

15.4

13.9

8.3

10.8

8.0

10.9

9.5

Japa

n3125.9

81.9

82.4

70.9

91.5

80.9

70.1

54.2

14.

10.1

21.4

24.0

42.8

30.4

33.4

30.7

7.6

12.3

8.6

10.9

15.6

17.4

19.9

21.01

1.6e

2.3

3,4P

1.10

.9.

3*e

10.4

12.8

*Un

ited

States4

--

--

2.8

5.8

1.3

-29

.426.1

20.5

38.5

35.6

41.6

26.3

29.6

106.5

113.7

98.5

13.2

122.6

128.

279

.299

.85.8

13.1

16.1

*e20.4

--

--

Cent

rall

y-Pl

anne

dCountries5

1.5

0.7

3.4

1.8

2.2

2.4

Czechoslavakia

0.4

0.4

0.7

1.1

I.1

1.2

Germ

an,

D.R.

-0.

10.

30.

10.2

0.5

Romania

0.3

-1.6

0.2

0.3

0.7

NorthKo

rean

_0.

80.2

0.8

0.4

0.6

-

*Fer

ro-n

icke

l.Est

imates

.For

purpos

esof

compar

isont

hefigures

for

the

EECco

ver

tenmem

bercou

ntries

.2 Ores

andco

ncen

trat

esfi

gure

sco

veralso

scraps

andmatte.

Japan

impo

rtsores

and

concentrates,

aswell

asmat

te,fe

rro-

nick

el,

unwrou

ghtrefinedni

ckel

and

nick

elal

loys

.4F

igur

esfo

rintemediate

products

includenickel

oxide

ingr

oss

weight

(000'm

etric

tonn

es)

i.e.

1970

-5.

7;1972

-5.

4;19

75-

4.0;

1978

-5.

5;1980

-4.2;

1981

-3.91

1982

-2.8;

1983

-3.

8.

The

figures

inth

istableexcludes

tradeamongm

emberco

untr

ies

ofth

eCMFA.

Statistics

for

theyears

preceding

1975

arenotav

aila

ble.

Page 54: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 54 Table15

Direction of Trade by MainImporters, 1983(thousandmetrictons)

Matte, speiss and otherImporting countries Ores andconcentrates intermediateproducts of Uuwrought Nickel

nickel metallurgy _

Total (Ni contant)AustraliaAustriaBrazilChileEECNorwayPeruSouth AfricaUnited States

Total

Total (gross weight)Norway

TotalNetherlands)

29.3

0.30.10.15.82.70.11.3

L2.3

0.1

12.212.2

0.1:TT

Total

Australia

AustriaCanada

CubaNew Caledonia

South AfricaSpainSwedenUnited States

Toctl (Ni contant)AustraliaCanada

UCEEC

Total

CubaEEC

63.6

7.20.426.62.25.7O.L0.2

0. L0.10.L

9.9

4.90.4

1.9

0.81.0

TotalDominicanRap.EEC

NorwayUnited States

(i) Total (ferro-nickel)Austria

BrazilColombiaDominican

lndonesiaJapanNew Caledonia

(ii) Total (unwrought)htavr=ths)

Canada

Cuba

NorwayphilippinesSouth AfricaSwitzerlandUnited States

USSRZimbabweOther

TotalAustraliaCanada

USSROther

TotalAustraliaCanadaCuba

NorwayFinland

PhilippinesSingaporeUnited States

USSR

3.'

0.30.7L.01.4

125.82.2,

5.95.1

L4.0.4

7.G9.*

79 *8

0.6

77.5

7.1

0.34.99.50.97.70. 113. &15.44.00.5

5.OL.21.70.30.31.C40.1

9.3

1.60.24.20.20.30.11.10.2a.*

¹Includesscrap.

²For theyear 1981-82.

3Ferro-nickel.

4lncludes mixed oxide and nickel salts.Sources: Canada, Finland, Japan: Metal Statistics Bulletin, January 1985, World Bureau of Statistics, London.

EEC: Nimexe 1983, Analytical Tablesof ForeignTrade, Exports, Eurostat.

Finland: Foreign Trade 1983, Vol I, Official Statistics of Finand, Board of Customs,Helsinski1984.India: Monthly statistics of the ForeignTrade of lndia, Vol II- Imports, March 1982, Diractorate Generalof Commercial IntlligenceaelTac*ti&tice,and Stalasies. Calcutta.Japan: Exports and Imports/83.12, Japan Tariff Association.Spain: Estadistica del ComercioExterior de Espans, Tou I, Enaro-Diciembre 1983, Direccion General de

Aduanas.

Sweden: Utrilkeshandal 1983, Kwartals Statistic import, Januari-december, Statistika Contralbytan.Norway: Commodity Trade Statistics: Jan-Dec 1983, UN Statistical Office.

Canada

EEC

Finland

India²

________.___ ._____________________ . =iw

Page 55: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Table 15 (cont'd)Direction of Trade by Main Importers, 1983

(thousand matric tons)

MDF/W/21Page 55

Matte, spaise and otherImporting countries Ores and concentrates intermediate products of Unwrought Nickel

CamA__

Total (gross weight)IndonesiaNew Caledonia

Philippines

Total (grossweight)AustraliaCubalndonesia

Total (gross weight)

CanadaEECFinlandlndonesiaSouth AfricaUnited States

Total

CubaEECNorwayUnited StatesOther

chr

otalOther

Total (millioncoutant pouned)

SEC&I

3S.:

0.:21.;

63.1

56.1

1.0.0.

0.0.2.8

O4.

1.O.

2.8

0.4

______________________________________________ I~~~~~~~~~~~~

(1) Total (ferro-nickel)(grossweight

ColombiaDomonicanRep.lndonesiaNew Caledania

(iil) Total (refined nickel)AustraliaCanadaEEC

NorwayPhilippinesSouth AfricaUnited StatesUSSR

Other

Total

CanadaDominican Rep.EECFinlandNew Caledonia

NorwayphilippinesSouth AfricaUnited StatesZimbabwe

TotalAustriaBrazilColombiaDominicanRep.EEClndonesiaJapanNew CalendoniaYugoslavia

(i) Ferro-nickeltotal (Ni content)Total(grossweight)Other

Total (millioncontent pounds)BrazilColombiaDominican Rep.EEC (Netherlands)lndonesiaJapanNew CaledoniaYugoslaviaOther

(ii) Refined nickelTotalAustralia

CanadaEECFinlandJapanHorwayPhilippinesSouth AfricaUSSRZimbabweOther

36.7

2.37.010.6L6.8

il.) 2J. 1

7.40.50.8L.92.30.62.05.'2.00. 1

11.0

1.60.76.10.10.3

w 0.20.10.40.60.6

12.930.52.S0.62.20.71.30.94.00. L

15.1W.732.1

31.3

1.94.316.00.61.01.8S.10.30.1

84.710.10.1

38.32: ._. _

5.33.1L0.111.3L. 14.04.0S 4

2 297. 1

1. 135. 7452.6

.TaPc

Spin

United States

Page 56: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 56

Table 16

Direction of Trade by Main Suppliors, 1983(thousand matric tons)

Matta,speiss and otherExporting countries¹ Ores and concentrates intermediate products of Unwrought Nickel

nickel metallurgy

Australia Total (gross weight) 863.7 Total n.a. Total n.a.EEC 412.1Japan 466.9Philippines 1.4Other 1.7

Brazil Total 15.5

Switzerland 1.6United States 2.7

Canada Total (Ni content) 40.15 Total6 78.1 |EEC(United Kingdom) 17.3 UEC 19.6Norway 22.8 United States 42.9

Other C

Colombia7

Cuba8 Total 37.8Austria 0.8Czechoslovakia 3.5EEC 6.6Germany D.R. 1.4Hungary 0.6India 0.3Japan 1.4Korea, Rep. of 0.5Mexico 0.2Poland 0.5Romania 1.4Spain 1.0Sweden 0.7

. . USSR 18.1Other 0.8

Dominican Republic * Total (gross weight) 53.8EEC (Netherlands) 1.3United States 8.2Other 44.3

¹Botawana exports copper and nickel matte mostly to the United States - detailed crade information is notavailable.Zimbabwe exports refined nickel productsavailable.

to Western Europe, and theUnited States - detailed crade information is not

2Quantity exported of domestic production.3Value of USS205.6 million (quantity and destination are country confidential)4Value of USS132.4 million (quatity and destination are country confidential)5Contains nickel matte6lncluding nickel oxide sinter7Since mining stated in 1982 the annual ferro-nickel production estimates at 22.5 thousand matric tonshas been

exported to Europe, Japan and the United States - detailed trade information is not available.8Figures for 1980. Cuba export matte, nickel oxide, and nickel oxide sinter9Value of USS94. 7 million (quantity and destination unspecified)

Sources: Canada, Dominican Republic, Finland, Japan, New Caledonia, Philippines, United States: Metal StatisticsBulletin, January 1985, World Bureau of Statistics. London.Australia: Foreign Trade, Exports and Imports, 1982-83, Part 1, Australian Bureau of Scatistics.Brazil: Comercio Exterior do Brasil, Vol.1, Exportacao, Banco do Brasil SA., CACEX.Cuba: Commodity Trade Scatistics, Jan-Dec 1980, UN Statistical Office.EC: Nimexe 1983, Analytical Tables of Foreign Trade, Exports, Eurostat.Indonesia: Exports 1983, Buro Pusat Scatistik; Mining Annual Review 1984, published by Mining Journal,London, June 1984.Norway Commodity Trade Statistics, Jan-Dec 1983, UN Statistical Office.South Africa: Foreign Trade Statistics, Vol.I, Imports and Exports, Calendar Year 1982.

Exchange rates: (i) Australia 1983: US$O.9025 per AS; (ii) South Africa 1982: US$0.9228 per rand.International Financial Statistics, IMF, 1984.

Page 57: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Table 16 (cont'd)

Direction of trade by Main Suppliers, 1983(thousand metric tons)

Matte,speiss and otherExporting countries¹ Ores and concentrates intermediate products of Uwrought Nickel

nickel metallurgy

EEC

Finland

Indonesia

Japan

New Caledonia

Norway

Philippines

South Africa

United States

Total (gross weight)Norway

Total (gross weight)Japan

Total (Ni content)Japan

Total (gross weight)Finland

Total (Ni content)

1.01.0

515.0515.0

20.320.3

10.010.0

5

Total (gross weight)AustriaCanadaSpainSwedonOther

Total (Ni content)Total gross weight)EECNetherlands)JapanSingapore

Total (Ni content)EEC (France)Other

Total

S.50.11.30.70.92. 5

17.146.012.833 00.1

8.07.0L.0

9i.a.-

(i) TotalAustriaFinlandlndiaSpainSweden

(Ferro-Nickel)

(ii) Total (unwrought)AustriaCanadaChina, P.R.CzechoslovakiaGermany, D. R.Hong KongIndiaIranJapanPakistanSpain

SwiterlandTurkeyUnited StatesOther

Total (Ni content)CzechoslovakiaEECGermany, D.R.Hong KongJapanPortugalRomaniaSpainSwedenSwitzerlandUnited StatesOther

Total (Ni content)

Total (gross weight)EECKorea,Rep.ofUnited StatesOther

Total (Ni content)EEC (France)Other

TotalArgentinaAustriaBrazilCanadaEECHong KongIndiaIndonesiaJapanKorea, Rep.ofMexicoSingaporeSpainSwedenSwitzerlandUnited StatesOther

Total

JapanUnited StatesOther

TotalCanadaEEC (Neherlands)Other

1) 14.91.34.70.64.63.8

11.304

1.60.70.90.30.20.60.30.70. 10.91.00.20.22.01.1

- 11.30.35.20.20.30.90. 10.20.20.80.22. 7

0.2

5.7

L3.78.10.25.00.4

23.0

11.0

30.00.20.10. 11.58.51.90.60.1180.10. 10.20. 10.41.1

L3.00.4

12.1I.04.05.8L.2

20.3

17.42.5~~~~.

MDF/W/21Page 57

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MDF/W/21Page 58

Japan, United States, India and Spain. Brazil exports most of its nickelproduction in the form of ferro-nickel and the rest in the form ofelectrolytic cathodes, with exports going mainly to the EEC, Switzerlandand the United States. Botswana has been exporting copper-nickel mattefor about a decade mostly to AMAX in the United States, and until recentlyto Zimbabwe (RTMZ). Zimbabwe has been a major developing country exporterof refined nickel since 1972. Its exports, mainly in the form of nickelcathodes, go to the EEC, Japan, Spain and the United States. Nickelproduction in Colombia began in mid 1982 and the totality of its productionis exported as ferro-nickel to the EEC, Japan, United States and Sweden.Cuba exports some oxide to the EEC, India, Japan and Spain, but its mainexports are nickel oxide sinter which go to the EEC, India, and otherunspecified countries.

88. Exports of Canada, the biggest exporter of primary nickel in theworld, comprises of matte, soluble nickel oxide, nickel oxide sinter andrefined nickel. Matte and nickel oxide are exported by INCO andFalconbridge to their refineries in the United Kingdom and Norwayrespectively, while most of the oxide sinter exports go to the UnitedStates and the EEC. Canada's refined nickel exports go mostly to theUnited States and the EEC with the rest going mainly to Finland, Norway,Spain and India. The only other developed country which exportsintermediate nickel products in substantial quantities is Australia.Although no detailed list of export markets is available in Australiannational statistics, importing sources indicate that most of the exports ofAustralian nickel concentrates, matte and other intermediate products go toJapan, United States, EEC, Canada, and Finland.

89. Developed country exporters of refined nickel, including ferro-nickel,are numerous since many developed countries have refineries which producefor both domestic consumption and export. Exports comprise refined primarynickel as well as end use semi-manufactures. Canada, Norway, Australia,United States, South Africa, EEC, Finland and Japan are the main exportersof refined nickel among the developed market economy countries. Apart fromtrading among themselves, exports go to other developed countries withoutor with only limited nickel refinery production, such as Sweden,Switzerland and Austria. Exports also go to consumer developing countriesand some centrally-planned economy countries. The direction ofinternational trade in nickel scraps is not always shown in availablestatistical sources, but by virtue of being the main consumers of refinednickel products, developed countries are also the main exporters of usedscrap which normally find markets in countries with nickel refiningfacilities depending on the nature of the scrap.

A fourteen year agreement has been signed (March 1985) by whichFalconbridge International of Bermuda will replace Amax of the UnitedStates as the main customer for Botswana's nickel matte exports.Falconbridge will take 6,500 tonnes of matte in 1985, 21,000 tonnes in 1986and 42,000 tonnes annually from 1987 until the agreement expires in 1999.It will refine the matte at its Kristiansand refinery in Norway. It ishoped that the remaining 6,000 tonnes of Botswana's annual production willbe taken up by Zimbabwe (RTMZ).

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90. Among the centrally-planned economy countries the main exporters ofnickel products to the non COMECON countries are the USSR, Hungary and theGerman Democratic Republic. Exports of the USSR, which are mainly in theform of electrolytic cathodes, go to the EEC, Finland, Japan, India, theUnited States and a number of other markets.

91. Table 15, which gives an outline of the direction of import trade innickel products, shows that Japan is the main importer or nickel ore whileCanada and Finland appear to be the other major importers of nickel rawmaterials mainly in the form of concentrates. The main importers ofintermediate nickel products mostly in the form of matte, and nickel oxide,are Norway, Japan, United States, EEC, Finland and Spain. The imports ofNorway are mostly matte from Falconbridge mines in Canada. Japan's importsare mainly nickel matte and speiss, while intermediate imports of theUnited States include matte, nickel salts. The member countries of the EECimport matte and oxides mainly from Australia and Canada. Finland receivesits import of matte and nickel oxides mainly from Canada and Australia.The EEC is by far the largest importer of refined primary nickel includingferro-nickel, followed in order of importance by the United States, Japan,Sweden, Spain, India and Finland.

SECTION IV: Commercial Policy Situation

92. This section discusses commercial policy measures affecting trade innickel and nickel products. First, it describes tariff concessions made bydeveloped countries on nickel in the Tokyo Round negotiations referring topre- and post-Tokyo Round rates. It also lists tariff concessions made byother countries. This part is followed by an analysis of trade follows innickel under different tariff treatment for countries participating in theTariff Study. Information on tariff treatment and trade flows for certaindeveloping countries is also presented. Some reference is made to theproblems of tariff escalation and effective tariff protection in the nickelindustry. This section is concluded with a description of non-tariffmeasures applied to trade in nickel and its products which have beennotified to GATT.

17. Tokyo Round Negotiations: tariff assessment

93. In a series of trade negotiations held in GATT, m.f.n. duties onnickel and nickel products have been reduced and bound in many countries.In this section, the main attention is focussed on the Tokyo Roundnegotiations and its results. It should however be borne in mind that anyattempt te measure the trade importance of tariff reductions encounters anumber of technical difficulties. "The main problem stems from theimpossibility to correctly assess the volume of trade which will begenerated by the agreed duty reductions. Instead of the future tradeincrement the past volume of trade is usually taken into consideration whenthe depth of the duty cuf on individual customs tariff lines is combined inthe overall assessment". The methodology worked out by the GATT WorkingParty on the tariff study was based on the comparison of the average levelof duties in the reference period before the negotiations on the agreedconcessional rates. Two tariff averages were used: the first tariff

1The Tokyo Round of MTNs, Report of the Director-General of GATT.

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MDF/W/21Page 60

average was a simple arithmetic average of duty rates; the second vas aweighted average giying to each duty the weight of imports on which suchduty was collected.

94. Table 17 presents a comparison of pre- and post-Tokyo Round averagetariffs on all industrial products (excluding petroleum) with tariffaverages on unwrought nickel, nickel semi-manufactures and metalmanufactures (other non-ferrous metals included) for nine developed countrymarkets. eriff averages of all duty rates are calculated usingthe m.f. the national tariff llne level (in 1977, in somecases 19- -ntry concerned. Simple and weighted tariff averagesare bro ree groups of products divided according to thestage of lable 17 shows that tariff averages, both simple andweighted, : nickel and nickel manufactures are, in mostcountries, an those on all industrial products taken together. Theonly exception is the weighted tariff average on nickel semi-manufacturesin Japan. With respect to metal manufactures (other non-ferrous metalsincluded) eight out of nine country markets listed in Table 17 have higherthan average tariffs on either a weighted basis or on both simple andweighted basis. -le only exception is Sweden. However, in examiningtariff averages gven in Tables 19 through 30 it can be noted that inCanada, Japan and the United States the simple tariff averages on nickelmanufactures are higher than the simple tariff averages on all industrialproducts. In contrast, Canada and Japan excepted, simple tariff averageson nickel manufactures are in most countries lover than those of metalmanufactures (other non-ferrous metals included). The weighted tariffaverages are not comparable as they refer to different trade years. Thesmall difference between simple tariff averages of unwrought nickel andnickel semi-manufactures given in Table 17 and simple tariff averagesindicated in Tables 19 through 30 is due to the fact that in Table 17 thewhole of the products falling under CCCN positions 75.04 and 75.05 areconsidered as vrought products (including powders and flakes and unwroughtnickel anodes).

~~~~~~~~~~~~~~~~"1The two methods can lead to very different results and suchdifference is easy to explain. In the weighted average the more trade isflowing under the duty, the more importance the duty is given in thecalculation. At the same time, logically, the lower the duty the largertends to be the volume of trade which flows under such duty. Thus, theweighted average will tend to give more importance to low duties and, atthe other extreme, will ignore duties which are se high as to beprohibitive. For these reasons, the weighted average has a downward bias.On the contrary the simple average gives the same importance to each dutywhatever its level. It could thus assign excessive importance to residualtariff items or to duties facing products of little importance in worldtrade. Therefore, the simple average should in principle give an upwardcorrection of the weighted average bias." The Report of theDirector-General on the Tokyo Round of Multilateral Trade Negotiations.

2Tariff study based on more recent trade statistics is not availablefor all markets covered in Table 17.

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MDF/W/21

Table 17 Page 61

Pre-Tokyo Round and Post-Tokyo Round Tariffsin nine Developed markets

(Percentages)ll

Allindustrial Nickel Metal¹products Unwrought semi-manu- manufacturesexcluding Nickel facturespetroleum

Pre Post Pre Post Pre Post Pre Post

Nine tariffscombined S 10.4 6.4- 4.0 1.6 7.7 4.3 9.8 5.9

W 7.0 4.6 0.6 0.2 4.5 2.9 9.3 5.7

United States S 11.2 6.3 0.0 0.0 9.5 5.1 9.9 7.9W 6.3 4.3 0.0 0.0 1.8 1.2 5.5 4.5

Canada S 12.6 7.3 11.7 6.8 5.9 3.5 14.6 8.5W 12.7 7.8 0.0 0.0 1.0 2.9 16.1 9.4

Japan S 10.2 6.0 16.1 4.5 12.1 5.5 10.4 5.4W 5.4 2.7 4.0 1.4 12.7 5.6 9.3 5.2

Austria S L1.7 8.1 0.0 0.0 8.2 5.0 15.9 9.6W 8.9 7.7 0.0 0.0 9.9 5.9 19.8 13.4

Finland S 13.2 11.4 0.0 0.0 1.2 0.7 8.8 6.8W 6.9 5.5 0.0 0.0 1.8 0.3 7.7 6.2

Norway S 8.5 6.7 0.0 0.0 2.1 1.6 7.8 5.3W 4.2 3.1 0.0 0.0 0.0 0.0 6.9 4.5

Sweden S 6.0 4.8 0.0 0.0 1.1 1.0 5.1 3.8W 5.6 4.0 0.0 0.0 0.8 0.7 5.3 3.9

Switzerland S 3.7 2.9 0.1 0.1 1.1 0.9 3.2 2.4W 2.9 2.2 0.0 0.0 0.5 0.5 3.8 2.7

EEC S 9.1 6.4 0.0 0.0 5.1 3.7 7.8 5.6W 6.5 4.6 0.0 0.0 5.6 3.9 5.8 5.8

S: Simple average.W: Weighted average.

¹Metal manufactures include all non-ferrous metals

Source: GATT, Tariff Study, 1980.

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95. Tariff concessions granted on nickel and nickel products in the TokyoRound vary according to different products and countries. On the basis ofthe information on pre- and post-Tokyo tariff treatment of nickel andnickel products in the countries participating in the MTNs presented inAnnex 1, the following observations can be made:

(i) With the exception of Australia, m.f.n. duties on nickel andnickel products are bound by all developed countries.Australian m.f.n. tariffs are unbound and m.f.n. duties shownin Annex I under the post-MTN represent m.f.n. rates appliedas from 1 January 1985. New Zealand does not bind m.f.n. dutyon ex CCCN 75.02 - Other.

(ii) Most m.f.n. duties are ad valorem. Switzerland applies lowspecific duties to all nickel products. M.f.n. specificduties are also applied by Austria on ex CCCN 75.02 - nickelwire, by Japan on ex CCCN 75.01 - unwrought nickel,ex CCCN 75.03 - foil, powders and flakes and CCCN 75.05 -electroplating anodes. In the Tokyo Round the United Statesreduced its specific rate on TSUS 620.30 - flakes toduty-free.

(iii) In the Tokyo Round, the majority of the positive m.f.n. rateson nickel were reduced. Only some low specific rates onnickel chemical compounds, ferro-nickel and unwrought nickelin Switzerland remained unchanged. Tariff cuts were between6.7 and 100 per cent. According to the "harmonization" tariffcutting formulae used in the Tokyo Round, tariff cuts onhigher rates were more significant than on low rates. Thisapproach has contributed to the dimunition of the incidence oftariff escalation. However, although most developed countriesapply duty-free treatment on nickel ores and concentrates,they grant tariff protection to further stages of nickelprocessing. In Canada and Japan tariff protection startsbeyond the mining stage while in other countries suchprotection is accorded to nickel semi-manufacturing andmanufacturing (Austria, EEC, New Zealand, Norway, Sweden, andthe United States). In most developed and developingcountries, tariff protection increases with a higher degree ofprocessing.

18. Trade in nickel and nickel products under different tariff treatmentaccording to stages of processing

96. The purpose of this discussion is to give an indication of themagnitude of trade flows in nickel and nickel products under differenttariff treatment according to stages of processing for a number ofcountries for which more detailed statistical information was available.Three sets of Tables, with varying degrees of detail have been establishedfor this purpose. First, Table 18 provides a summary of trade in nickeland nickel products under different tariff treatment in twelve developedcountry markets and some developing countries. Second, Tables 19 to 30give information on trade flows for the same twelve developed countries attariff line level broken down by stages of processing as well as bydifferent tariff treatment. Thirdly, flows in nickel and nickel productsby the major developing country importers included in Table 18 are shown inTables 31 to 41 based on information gathered from relevant national

Page 63: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Table

18

Summ

aryof

lmportsof

Nickel

andNickel

Prod

ucts

unde

rDi

ffer

entTa

riff

TreatmentinTwenty-Three

Coun

trie

s(US$'000)

Tota

llmp

orts

GSP

Other

Pref

eren

tial

Trea

tmen

tCoun

tryYeartal

Import

___

,y.

___

__

-_L

boJr

d-

dRCountrte

wch

tées

tothild

Value

X%

%Value

ntia

lRat

eatm

ente

xRateValue

Xpre

fereIv

ua[tre

n__Unbound

Bound

Valu

e|

Val.

|X

i.is

let

1Ira

nced

Astralla

198-

160,448

100.

049,001

81.2

1,71

32.8

4.0-

20.0

12.5-25.0

4,528NZL,

PNG,

CAN,eeCommonwealth.1

Frea

5,022

8.31ICC,<e

sth

(airtuies

Dac1ar

eden

ioun

preferittalca

trie

s

|-lr

la1e

8290,849

10EF

TA,

EEC,

ESP

85,924

94.9

0.4-8.0

672

0.7

2.5-

4.0

-|

Fre

4,253

4.17

DYEIEa:,VY

Cabada

19Fr

206.

077

100.

0ommonwealth

106,643

51.7

4-12

.593

,271

45.3

Froe-8.0

5.101

2.5

Viee

-10

1,02

20.

5NZ

L,Cmawatl

miitrîis

ottI

rthmta

h

ac

re

1982

907,6r2

100.

0FTA,

Mediteranean,AC

P0.

5-12

58,389

6.4

Féeo

19,5

642.

2Ft

ee29,557

3.3

DEA,

1cer

awla

,MP

dOv

eîec

ou«iea

aid

comtrles.

BCRpbd&ld

1982

72,7

60100.0

72,0

1399.0

1.8-

5.I

152

0.2

Ffee

-FM

ee59

50.

8EI:Em&,I3SID(1<,

S,CSK

,DO

R,1902

24,313

100.

013

,447

55.3

3.8-10.4

7,51

430.9

hee-

-Free

3,35

213

.8Aloe,(lI

(s;WR

Japa

n19

82584,636

100.

037

2,99

863.8

3.1-10.0

150,

606

25.8

Frea

571,130

9.8

S,CA

N,SPARTECA

(Pacific)

18,974

100.0

17.905

94.4

564

33.

4Fr

e1

0.0

Fi..

426

2.2|ICM4,S'llô(Fc1f1c),

tkavay

FTA,EEC

cont

ries

167,785

100.0

161,190

99.6

2.2-

4.6

300.0

Fiee

-Fm

e56

50.

3EME

eaum

rien

ES62

120,259

100.0

113,39

l94

.31.4

-5.8

2.853

2.3

Frec

-Fte

e4,0

153.

3LF

f,.E

E;P

SwMtze

îiElTA

,EEC

ESP

40,439

100.

029

0.5

0.1-

2.7

6,80

116.7

Free

409

1.0

Frie

33,2

0082

.3FMECES?

United

Stat

eN,

NTI6

372

3,78

0100.0

667,536

92.2

2.5-

10.0

52,8

487.

3Fr

ee3,388

0.5

Free

80.

0CA

mIWI

Arment

ibLA

DI98

16,

988

100.

010

-38

30-4

06,923

n.a.

650.

9ADl

braz

ilLADI3

6,41

510

0.0

Fiee-SI

10-15

6,361

9.2

n.a.

540.8AI

Colk

aia

198ALA

4,174

1OU.

05-

304,

746

99.4

a.a.

280.6

"JDI

fka

WX9

1983

35,0

89100.0

35,089

100.

0

lUia

1980-81

49,9

52100.0

40-1

0049

,952

100.0

Kurea,

Rep.

of1983

24,8Q4

100.0

Free-30

2024,

8.É100.Q

vola

ysla

1982

12,9

29100.0

Fice-lO

12,9

29100.0

Stit

pore

1983

38.7

1310

0.0

38,713

100.0

SFal

1982

E,EFTA9

100.0E

e-24

.4Fte--20

34,9

5163

pree-18.3

20,478

3.9

DEXC.fl

¶hailatd

1982

8A4)ANB

100.0

1-50

8,406

IW.0

0.9

-PS

EFM

Yujp

slîv

la1980

57,833

100.0

5-15

351

,833

Page 64: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 64

statistics. ln addition to the individual country Tables, Table 42indicates m.f.n. rates on nickel and nickel products applied by somecountries.

97. Tables 19 to 30 were established on the basis of the tariff assessmentlisting for the countries participating in the GATT tariff study. Thetrade flows in value terms (US$'000) refer to 1982 data (1980/81 forAustralia, 1981/82 for New Zealand and 1983 for the United States). TheTables indicate imports on tariff line basis from m.f.n. sources, importsfrom GSP beneficiaries and imports under other preferential treatment.They also show shares of imports under different tariff treatment indifferent stages of processing as well as in total imports of nickel andnickel products. Additional columns give the principal exporters undereach treatment.

98. Each tariff line shows tariffs granted to the item under differenttariff treatment. The m.f.n. treatment relates to MFN final rates. Incertain cases footnotes indicate lower rates actually applied (New Zealand)or imports under by-law provisions (Australia). For the purpose ofcomparability, specific rates of Switzerland were converted to ad valoremequivalents on the basis of 1982 trade figures and reference is made toAnnex I where specific rates are indicated. The m.f.n. rates are brokendown into duty-free and dutiable rates, bound and unbound. The GSP ratesfor Austria and Canada refer to final GSP rates. The current GSP rates aregradually being reduced in step with staged m.f.n. reductions. GSP ratesfor other countries refer to 1982 schemes (1980/81 for Australia, 1983 forthe United States). Other preferential treatment refers to preferentialrates of duty granted to certain countries or regional groupings.

(i) Developed Countries

99. Australia is a major producer and exporter of nickel products. In1983 it had the third largest mine production of nickel in the world,coming after the USSR and Canada. Its range of production extends fromprimary ores and concentrates to semi-manufactures. Although it is a majorexporter of nickel products it imports certain nickel products such asscraps, unwrought nickel and alloyed products, chemicals, semi-manufacturesetc. Australia's total imports of nickel products in 1980-81, excludingchemicals,¹ amounted to about US$32.6 million. Estimated together withchemicals, total imports amounted to about US$60.4 million. Imports ofores and concentrates were marginal amounting to about 1 per cent of totalimports excluding chemicals. The pre-MTN tariff on these items was unboundat zero. However, the operative rate as of 1 January 1985 was 2 per centwhile GSP imports enjoyed duty-free access. Australia imported only asmall amount of intermediate nickel products.

100. Imports of matte accounted for 3 per cent of total nickel imports,excluding chemicals, mainly from Canada. The import duty on this item isthe same as that on ores and concentrates. Imports of ferro-nickel(ex73.02) accounted for about 5.2 per cent of total imports of nickelproducts, exluding chemicals, and come mainly from New Caledonia. The pre-and post-MTN rate of import duty is zero and is partially bound.

¹Statistics on nickel chemicals are combined with those of otherchemicals falling under the same CCCN heading.

²This is a fiscal duty which has now been incorporated into the importtariff system.

Page 65: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Table

19

lmpo

rts

ofNi

ckel

and

Nick

elPr

oduc

tsunder

different

Tariff

Treatment

Acco

rdin

gto

Stages

ofProcessing

country:Australia

YEARtu-M&

(in

US$'00

0)

S.S.aIa

I__

__

__

__

__

___

__

Id.

,s

ic.

_________

ta&.

am,_

as

a.1i.

sa

.îlil

Value

Origin

Osîs

IaVe

,81.1.

,,_ér.

...0.

t

a13à

14

1516

182021

23e

lss

iVa

iV

l`u

lh.ai

as_

___2

4

3O.0

tI

il

3...

mmd1

41

>30

136

IxIl

e.Il

.0_

0_

_13

lieeîI13

101.0

li014

0.0

ball

sWalloy.d

att.ymd

Wu

-.Ic0*

hu.,l.aI

A&

14ti

f.a

à.',.

31.3.8.000

asz,

ee

SI-sisal

e, ffl il

010

,1311.1

611s 14 l.

tIlà

.6so

e.0

0.0

0.8

14 431

14.124,

1.181

S.Pa

b0.

1

Cm CAMuESh1

£KC,

gUJ,

CML

CAN,

eC,W

O g.

.F41

a

W'..

1,0<)

S,00

11.0

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_-

.,a

iac9

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31êa

».o

m.t.

as«^

w,

vu

*.Cs

uu

.o

».m

31.4.10

3I0

000

IS

&.»

"aU0l

*XOte

MZ4? 11.

az

accèd

1.04180"

VIAS

Its''

1.3.30

.sa

6,43

1si.nu

îo

(.sC,1416,J

80.1

6s.0

18I.03

O«..cm

.30,30,00

13"1"

lusu

015

.06"

3,11

531

11UUQJ8U

sa..

380

81

,31

,U,

ou.t___0.

0,-i.

330*

106.

6là.3

31,4

.104.1

131.31

-1sa

4,418

11.0

___

____

11.0'.

0ou9105

a..

UC.MAJU

s.0

UO

inI

u3

31.4

6ou

9SA

là1._

u-cet.îI

ma8

11.

4614

.801

6.W..

I1.VS

S.

1.6.

01,4

446

10.0

40,6

o101

.31.

111

3.483.1

IS

î4,13*

V...

o6.Wa

1,03

0.i

80usi1.

Luat

.a1i

mJatgiug#a_4Ic.U«.iaI

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.

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Lit.if

$ha"

ydès."

.die

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à.gau*adlOsa10-1

mmgc11a

S1ra--i

Saalici

euhu

..1,00-1.

1.44

d9s

As,

lDel

e*.1

Dl^eeal

Wlet

amle

I9l

hatc

ic.

½..îîîicgi

id<aIe.

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-tsliud

101-11b8sd.

giff

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4çvu

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Mais

I.41u

1rés.

ëffl

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mft

aI#

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viai

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lb.

gaul

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lail

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. r 14 r%

IVU

Page 66: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 66

Australia's imports of unwrought nickel and nickel alloys (75.01) accountedfor about 54.3 per cent of total nickel imports other than chemicals.Imports of unwrought nickel come from Canada, the EEC and Sweden. Whilethose of unwrought alloys come only from Canada. The post-MTN rate of dutyas at 1 January 1985 was 2 per cent but zero under by-law. Imports ofbrought nickel products falling under CCCN headings 75.02 to 75.05accounted for about 33.4 per cent of total Australian imports of nickelproducts other than chemicals. The pre-MTN duties on imports under CCCNheadings 75.02 and 75.03, mainly from the EEC, Japan, Sweden and the UnitedStates, were unbound at zero, but post-MTN rates as of January 1985 werequoted at 2 per cent unbound. Imports of nickel products falling under75.04 were subject to pre-MTN duty of 20 per cent (free by by-law) and GSPrate of zero. The post-MTN rate as of January 1985 was 20 per cent fortube and pipe fittings and 2 per cent for others, but were all free underby-law. Import of electroplating anodes of nickel (75.05) were negligibleand were subject te pre-MTN zero duties. Post-MTN duty rate in January1985 was 2 per cent and GSP imports were duty free. Imports of otherfinished manufactures of nickel accounted for less than 1 per cent of totalimports of nickel products in 1980-81; pre-MTN imports were subject to ahigh compound rate but were zero under by-law and the situation was aboutthe same in January 1985.

101. Australia's imports of nickel salts and chemicals appearing inTable 19 under CCCN headings 28.28 to 28.48 are difficult to evaluate sincethey are only part of their respective CCCN headings and are not identifiedindividually in trade statistics. With the exception of chlorides andoxychlorides of nickel (ex 28.30) all imports of this group of productsenjoyed a pre-MTN unbound zero duty. Chlorides and oxychlorides of nickelwere subject to a partially bound pre-MTN duty of 25 per cent reduced to12.5 per cent under by-law. The post-MTN rate of duty was 2 per centunbound as of January 1985. The post-MTN rate on all the other chemicalproducts also stands at 2 per cent as of January 1985 with the exception ofcyanides and complex cyanides of nickel (ex 28.48) which are duty-free.Imports from GSP sources are duty-free for all thes products.

102. Austria has a small refined nickel production capacity and is a netimporter of nickel products vith imports ranging from matte to finishednickel manufactures. Although Table 20 indicates imports of ash andresidues, these comprised all metallic ashes and residues including that ofnickel. Table 20 shows that total importation of nickel products byAustria amounted to US$90.8 million in 1982. About 30 per cent of this,however, consisted of all chemical products falling under the same tariffnumbers as nickel chemical products. Ferro-nickel imported from the EEC,Norway and Yugoslavia was the most important nickel product by valueimported by Austria. Imports of matte, unwrought nickel and nickel alloysconstituted the next important group of imports. They came mostly from theEEC, United States and Canada. There were also imports of wrought nickelproducts from the United States, Canada, Hungary and Japan.

103. All imports of crude nickel products, nickel chemical products,unwrought nickel products and ferro-nickel enjoy bound zero m.f.n. duties.Wrought nickel products as well as finished manufactures are subject torates of duties varying between 5 and 8 per cent. The pre-MTN rates variedbetween 8 and 15 per cent. A form of unworked nickel wire (ex75.02) issubject to a specific duty. Austria is a member of EFTA and as such allimports from other member states as well as industrial imports from the EECare admitted duty-free. Austria also offers GSP concessions on alldutiable imports of nickel products at a rate roughly equivalent to 50 per

Page 67: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Impo

rts

ofNickel

andNickel

Products

under

diff

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tTariff

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M1§

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Page 68: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 68

cent of the prevailing m.f.n. rate. The Table shows that 85.2 per cent ofimports of wrought nickel come from duty-free EFTA and EEC preferentialsources with the rest coming from the United States, Canada, Japan andEungary. On the whole, about 99.3 per cent of imports of nickel productsincluding chemicals entered the country duty-free and only 0.7 per cent ofimports were subject to duties.

104. Canada is the largest producer and exporter of prrmary nickel productsamong the developed market economy countries. Its exports range fromnickel concentrates and matte to finished nickel manufactures. It is,however, also a substantial importer of nickel products ranging from scrapsand concentrates to finished manufactures. Total Canadian import ofnickel products in 1982, as shown in Table 21, amounted to about US$206.1million including imports of chemical products containing nickel. Importsof unwrought products. including matte and ferro-nickel, accounted forabout 36.2 per cent; imports of brought nickel and of finished nickelmanufactures accounted for 24.7 and 16.7 per cent respectively of totalnickel imports.Imports of ores and concentrates accounted for 8.6 percent of nickelimports while imports of nickel chemicals accounted foranother 13.8 per cent.

105. As indicated in the detailed tariff information in Annex I imports ofnickel ores and concentrates, as well as of ash and residues containingnickel, enjoy bound post-MTN zero m.f.n duties. Matte imports enjoypre- and post-MTN duties bound at zero. Imports come mainly fromAustralia, United States and the Republic of South Africa. Imports offerro-nickel (ex 73.02) are subject to a bound post-MTN rate of 4 per cent(GSP free). In 1982 about 67 per cent of ferro-nickel imports came fromdutiable sources (United States, EEC, and South Africa), 28 per cent fromfree GSP sources (Brazil, Chile and Dominican Republic), and the restduty-free from Commonwealth preferential sources (Zimbabwe). Unwroughtrefined nickel, of which Canada is a major producer, is subject to apre-MTN m.f.n. rate bound at 5 per cent, (GSP free), while the post-MTNrate is bound at 4 per cent (GSP free). Unwrought alloyed nickel in theform of ingots, blocks, shots, billets, pigs, blooms and slab (ex 35500-1)enjoy a zero bound post-MTN duty, while other unwrought nickel alloys(35530-1) are subject to a post-MTN bound rate of 10.2 per cent withceiling binding as against a pre-MTN bound rate of 17.5 per cent. There isa GSP concession, but current imports of these products from all sourcesare temporarily free. The post-MTN bound rate on import of nickel wasteasked scrap is 10.2 per cent with a ceiling binding. There is no GSPconcession on this product however, import from all sources aretemporarily free.

106. As has already been pointed out above, imports of semi-manfuactures ofrefined nickel accounted, in 1982 for about 24.7 per cent of Canada'simports of nickel products with imports coming mainly from the EEC, UnitedStates, Japan, Sweden and Norway. About 91.8 per cent of the imports arebound duty-free on an m.f.n. basis and about 8.2 per cent are dutiable withbound rates ranging between 4.2 per cent and 10.2 per cent, some withceiling bindings. Duties on imports from GSP sources range from zero to4.5 per cent. Duties on import by Canada of nickel chemicals, mostly fromthe United States, EEC and Japan, are all bound at post-MTN rates rangingfrom zero in the case of sulphides and polysulphides of nickel (ex 28.35),cyanides and complex cyanides of nickel (ex 28.43) and salts andperoxysalts of inorganic acids (ex 28.48); 9.2 per cent in the case ofsulphates and persulphates of nickel (ex 28.38) to 12.5 per cent in the

Page 69: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Tabl

e21

>mpf

orts

ofNi

cklt

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NicklL

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under

Diff

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Tea_

muen

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(in US$'0

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Treatmen

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ir.

ap.g.

tli&Iratate

etearein

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line.Tradewe

ighted

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culate

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ett

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.

onaccountof

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riff

ratesand

thereforeappears

more than

etinthe

table.

Theco

rres

pond

ingtradeflow

has

not

beendisgranated

andis

meil

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ains

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timppîai

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andthis ratehasbeenused

fort

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lines.

Figures

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the

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lta

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Total

l'ar

ts

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oso

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ta

Page 70: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 70

case of the other nickel chemicals. Imported products from GSP sources areduty-free, except in the case of nickel oxides and hydroxides which aresubject to a duty of 8 per cent.

107. Mine production of nickel within the EEC is small, restricted only tosome ferro-nickel production in Greece. There exists however an importantnickel refining and fabrication industry in the EEC with production rangingfrom intermediate products to semi-manufactures and finished products. TheEEC is a net importer of nickel products. Imports range from ores andconcentrates to finished manufactures. Table 22, which analyses the importtrade of the EEC in nickel products and their tariff treatment, shows thattotal imports of nickel products into the EEC amounted to about US$903million including nickel chemicals. Imports of matte, unwrought nickel andnickel alloys constitute the bulk of EEC imports. Matte is imported mainlyfrom Canada, Cuba, Australia and New Caledonia. Unwrought nickel comesmainly from the United States, Norway, Finland, Canada, Republic of SouthAfrica, Zimbabwe, the Philippines, Australia and the USSR. Unwroughtnickel alloys are imported mainly from Canada, Cuba, United States, SouthAfrica and the USSR.

108. About 88.2 per cent of total EEC imports of nickel products in 1982enjoyed m.f.n. duty-free access. Another 1.9 per cent was admittedduty-free on the basis of GSP treatment and 3.1 per cent more had duty-freeaccess under other preferential arrangements. This meant that only 6.3 percent of imports were subject to duties. Table 22 also shows that importsof ores and concentrates of products of intermediate metallurgy, such asmatte, as well as ferro-nickel and unwrought refined nickel, enjoy boundm.f.n. duty-free access. On the other hand, imports of wrought nickelproducts were subject to bound duties which varied from 3.8 per cent to5.3 per cent. The simple average duty is 4.4 per cent and the weightedaverage duty is 4.7 per cent. Imported wrought products subject to dutiescome from the United States, Canada, Japan, USSR and the German DemocraticRepublic, while duty-free imports come mainly from Sweden, Austria,Switzerland and Norway. Imports from duty-free GSP sources come mainlyfrom Malaysia, Hong Kong and Singapore. Imports of nickel chemicalproduct are subject to bound duties ranging from zero for nickel oxidesand hydroxides to 12.0 per cent on cynides and complex cynides of nickel,reflecting a fairly high degree of protection. Imports of oxides comemainly from Cuba, Australia and Canada, and chemical imports subject toduties come from various sources including the United States, Japan and anumber of centrally-planned economy countries. Some chemical imports comefrom duty-free GSP sources such as China, India and Romania and a largepart come from the duty-free preferential sources such as Switzerland,Finland, Spain, Israel, Austria and Sweden. It must however be borne inmind, that these chemical imports included products other than nickelchemicals falling under the same tariff heading.

109. Finland has a sizeable nickel industry based on domestic mineproduction and imported raw materials. It is therefore both an exporterand importer of nickel products. Exports are mainly in the form ofunwrought refined nickel and occasionally also in the form of concentratesand matte. Imports include mostly ores and concentrates, scrap, matte,ferro-nickel and unwrought nickel. Imports into Finland of nickelproducts, including chemicals, amounted to US$72.8 million in 1982, US$32.5million of which comprised matte from Canada, Australia and the EEC, andUS$12.4 million unwrought unalloyed nickel from the USSR, Canada and thePhilippines.

Page 71: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Table

22

ImportsNickel

and

Nick

elPr

oduc

tsun

der

Differen

tTar

iffTreatment

Acco

rdin

gto

Stag

esof

Processing

TariffAverage

UnboundBound

Value

Origin

Overseas

countriesandterritorides

13

24

56

78

91011

1213

1415

16171819

20

»_

__

_

SaS-

lota

l3,11.3

100.

013

by6

100.0

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.$4

amW

as

I.Y.

4110

1.11i

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11.0

1.2

10.1

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*396

ama

15.ti.

1000

20es

3.

eci

V..

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S

l

.airds

Sà(e<a

2005

,91

10.

.00911,0

9.l.11l

09

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13,4

911.

WAto

Prie

1.06

3

31.04.2000

1,596

~~~~~~

~~~~~~

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419?1

-9«gt

-

11.05.0100

201

Free

toe,

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~~~~~~

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mse

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19

ncma

5.6è

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244

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1,12

65.0

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4,Cl6~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~3

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34

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el

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îeIai

l.

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rill

le

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marIai.

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------

Page 72: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Table

23

lmports

ofNickel

andNickel

Prod

ucts

under

Different

Tari

ffTr

eatm

ent

Acco

rdin

gto

Stages

ofProcessing

Valu

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0rs

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t1RId.f1$

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9 13

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Page 73: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 73

110. Imports of all unwrought nickel products and chemicals into Finlandenjoy zero bound duties with the exception of carbonates and percarbonatesof nickel (ex 28.42) which are subject to a bound duty of 1 per cent withceiling binding. Imports of wrought nickel products are also duty-freewith the exception of brought bars, rods, angles, shapes and sections ofnickel and nickel wire (75.02) which are subject to duties bound at 1.8 percent; tubes, pipes and blanks therefor of nickel etc., (75.04) are subjectto duties bound at 1.8 per cent; other articles of nickel (75.06) aresubject to a bound duty of 5.1 per cent. Since Finland is a member ofEFTA, most imports of wrought nickel come from duty-free EFTA and EECpreferential sources. Imports from GSP sources are duty-free.

111. Hungary has no domestic mine production of nickel and imports almostall of its needs. Excluding chemicals, total import of nickel productsamounted to US$13.4 million in 1983, 70 per cent of which was accounted forby matte, unwrought refined nickel and alloys, nickel waste and scrap.Ferro-nickel accounted for a further 6.3 per cent and the rest by wroughtnickel. Table 24 shows that there were practically no imports of nickelores and concentrates (ex 28.01) nor of ash and residues (ex 26.03). Allimports other than ores and concentrates, chemicals, and ferro-nickel enjoya pre- and post-MTN bound duty-free entry. Imports of matte and unwroughtrefined nickel and alloys come mainly from the USSR, Australia and Sweden.Imports of ores and concentrates are subject to a bound post-MTN duty of3.8 per cent. Ferro-nickel which is imported mainly from the EEC andBrazil is subject to a bound m.f.n. duty of 6.2 per cent. Imports ofnickel chemicals from the market economy countries are subject to boundpost-' - m.f.n. duties ranging from 3.8 per cent to 10.4 per cent; pre-MTNduties, anged from 5 per cent to 2,5 per cent. Imports of chemicals comemainly from the EEC, Austria, Canada, Sweden and Switzerland. Duties onimports from GSP sources range from zero to 9.8 per cent. Chemical importsfrom the member countries of the CMEA are duty-free.

112. Japan is one of the largest importers of nickel products with importsranging from ores and concentrates to finished manufactures. It is alsothe second largest producer of refined nickel among the developed marketeconomy countries and is a substantial exporter of refined nickel.Including nickel chemicals, Japan's total imports of nickel products in1982 amounted to about US$586.3 million. About 21 per cent of this wasaccounted for by imports of ores and concentrates, of which Japan is thelargest importer. Imports of nickel ores come from New Caledonia,Indonesia and the Philippines free of duty on an m.f.n. basis. Imports ofnickel ash and residues, which are also duty-free, come from Australia,Philippines and the United States. Imports of matte, also duty-free on abound m.f.n. basis, constituted about 30.3 per cent of total imports ofnickel products in 1982 with Indonesia, Australia and New Caledonia as themain source of imports. Imports of ferro-nickel, accounting for about7.6 per cent of total nickel imports, are subject to a bound m.f.n. duty of6.5 per cent. Most imports of ferro-nickel come from Indonesia and theDominican Republic which enjoy duty-free GSP treatment. The remainingimports come from New Caledonia and are dutiable. Japan's imports ofunwrought refined nickel and nickel alloys constituted about 19.2 per centof total nickel imports in 1982 and comprised nickel oxide, sinter,unwrought unalloyed nickel and unwrought nickel alloys,. All imports ofnickel oxide, and singer come from Cuba and are duty-free on the basis ofthe GSP. Most imports of unwrought unalloyed nickel come from Canada,Australia and the USSR and are subject to a bound m.f.n. duty equivalent toabout 5.8 per cent. The remaining imports came mainly from the Philippines

Page 74: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

COUNTRY:

Hungary

Tabl

e24

lmports

ofNickel

andNickel

Prod

ucts

unde

rdi

ffer

entT

arif

fTreatment

According

tostangeso

fPr

oces

sing

(in

US$'

000)

Tariff

No._

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MDF/W/

21 Page74

Page 75: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Table25

Importsofnickel

and

nickelProducts

tUDifferent

Tari

ffTreatment

Accord

ingtoStages

ofPr

oces

sing

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81,1

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origin.iaj.e..ii

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1uas5teili4sui

alesa.

..8

ts

Isii

lie..

.dect

..

ûsA.

.1962

liaàIl'

1%4..la

Lamic

o.0

t,-a

csaId

iate

fl.ailrole

26.08.081

but-

Ca.et

11.01.8210

21.0

822

.181

.120

911

CJ'4228

11.11,

1I1-

l.1888

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.02824

.

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11.01.

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-

Page 76: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 76

and Zimbabwe and enjoy duty-free GSP treatment. Imports of unwroughtnickel alloys come mainly from the United States, EEC and the USSR and aresubject to a bound m.f.n. duty of 9 per cent. Imports of nickel waste andscrap are duty-free and come mostly from the EEC and the United States.The simple average duty on unwrought primary and refined nickel products is3.8 per cent and the weighted average is 2.2 per cent.

113. Japan's imports of wrought nickel and nickel alloy products accountedfor only 4 per cent of total nickel imports. Out of the total wroughtnickel imports of about US$22.5 million about US$4.5 million were duty-freeon a bound m.f.n. basis. Most of the remaining imports are subject tobound m.f.n. duties ranging from 4 per cent to 7.2 per cent. Imports comemainly from the United States, EEC, Sweden and various other developedcountries. Imports from GSP sources are duty-free. The simple averageduty on wrought products is 5.2 per cent and the weighted average is4.0 per cent. Japan also imported modest amounts of various finishednickel manufactures mostly from the United States, EEC and Switzerland.Apart from small imports from GSP sources which are duty-free, imports aresubject to bound m.f.n. duties of 5.8 per cent and 10 per cent. The simpleaverage duty on finished nickel manufactures is 7.9 per cent and theweighted average 6 per cent. About 83 per cent of imports of nickelchemicals were subject to bound m.f.n. duties ranging from 3.7 per cent to7.2 per cent; imports from GSP sources were duty-free. Dutiable importscome from Canada, United States, EEC, Norway, Finland and variouscentrally-planned economy countries.

114. New Zealand imports only a modest amount of nickel products. Table 26shows total imports, excluding chemicals, amounting to US$4.2 millionalmost half of which were accounted for by imports of ferro-nickel.Imports of unwrought nickel products including matte, unalloyed refinednickel and nickel alloys come from Canada and Australia duty-free on anm.f.n. basis. Ferro-nickel imports which come from Australia, EEC and theRepublic of South Africa, as well as, imports of nickel powder and flakesfrom the United States, EEC and Canada enjoy bound m.f.n. zero duties.Imports of wrought nickel products amounted to US$978,000 of which 59 percent coming from the United States, EEC, Japan and Norway were subject to abound duty of 5 per cent. The rest of wrought nickel imports come from 1Canada and Australia duty-free on the basis of preferential arrangements.Imports of nickel chemical products come mainly from the EEC, Japan,Norway, Canada, United States and Australia and do enjoy bound m.f.n. zeroduties. Imports from GSP sources of all dutiable nickel products treatedin Table 26 are duty-free.

114. Norway has a significant nickel smelter production industry based uponimported raw materials mainly in the form of matte. On the other hand, itexports unwrought refined nickel and alloyed nickel products. Table 27shows that in 1982 total imports of nickel products by Norway amounted toabout US$167.8 million, about 95.5 per cent of which was accounted for bymatte imported mostly from Canada, and to a lesser extent from the EEC andSouth Africa. Import of wrought refined nickel accounted for only about1.2 per cent of total nickel import while nickel chemical imports

¹Imports from Canada enjoy Commonwealth preferences, while those fromAustralia enjoy preferential concessions under the Australia-New Zealandcloser Economic Relations Agreement.

Page 77: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Table

26

Impo

rts

ofNi

ckel

and

Nick

elProductsunder

Different

Tariff

Trea

tmen

tAccording

toStages

ofProcessing

TotaI

111<c»'~~

~~~~~~~~~~

~~~~~~~~~~

~~~~~~~~~~

~~~~SCtIw

rVrlemi«,a

ITrmae

Valu

e%

Origin

Valu

eRa

teRat

eVal

ue%

Origin

Rate

Value

%Ori

gin

16

78

9Io

IlIl

1384

851

16I

la8

2028

2223

Z'.

Ash

andre

sidu

es.26.03.000

(6>

(6)

JPN,A

US,CHA

MO

--

-.

75.01.

0m81)

~15.01

.1800

)7

7

Wast

e andsc

rap

75.01.0m08

Ferro-

nichel

ue11.0

2.000

2,410

2.410Z1.1,

Powder

sandflakes

15.03.009

241

2A..CN

Electr

o-plat

ing75.

05.000

5.0

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1

s1.635

IM.0~

0.1

0.1

3,58

59.m.

431.2

F.

r.7.

I.65.0

SUSA,EEC,JPN

15.0

5.00

08-9

I5.

0-j

.k5,

(Ie

Fr-

-8__________

____________

5.0

529

51.2

-ru

Fr..

39As.

752.04.OW

oO

2M

ex.I

0.00

2.56

32.

563

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2.321

2.32

1121.(31.JIN

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8.362

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569

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5,65

75,

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,28L4.oe00

864

864

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602

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~~~~~~~~

~~~~~~~~

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'STZfl

ntu

cirls

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aila

ble

trade

flowi

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stin

guis

hbe

twee

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electro-plating

good

s.Tr

adeflow

figure

for

this

item

have

been

included

unde

rwr

ough

tnicke

l.4Where

the

nickel

chem

ical

prod

ucts

are

not

spee

cifi

edse

para

tely

(indicated

by"ex"

infr

ont

ofta

riff

number)thetr

ade

flow

figu

res

may

include

imports

ofch

eemi

cal

productsotherthan

thoseof

nickel

.

a:

161

-

(inUSS

'000)

-- ,

Page 78: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Table

27

Imports ofNickelproductsunder Differentrifftreatm

entTariff TreatmentAccordin

gto

Stages

ofPr

oces

sing

filn .%.

N

(inUS$'000)

1hl8~a.I

U1a~1.

Valua

ZValua

Ilh*«

aa1dn

a

I2

34

96

1S

9Io

slI2

I14

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Ie19

20l1

Xlil

24

Oresand

26.0

1.30

1m_

Asha

ndresidues

3.%0

(2.611

.(2.

613)

D.M."

S_

100~

~~~.0

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60.309

160*

30 9.c.lk.y.

11.01.

2l01»

12424

CAll

oyed

11.01.

31024

24CAN

,EEC

Wast

ean

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15.01.6000

loi

t2EC

Ferro-nickel

«13.02

.ÇEX1

161ill

:.omE

P.kr

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11004lS

Iuc

sEl

ectr

o-pl

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0.ïvi

l10

uc,5

w,Su

b-to

tal

14.3

11MA.O

165.31

110.0

~n.k

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1.2.

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a~.

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11.0

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0.3

1Available

trad

eflowinformationdoes

not

dist

ingu

ishbetween

unwr

ough

tan

dwro

ught

electro-plating

anodes.

2Whe

rethenickel

chem

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are

not

specified

separately

(indicated

by"ex"infronof

thetariff

number)the

tradeflowthantnose

ofnic

kel.

ProseDéAnn

Page 79: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 79

accounted for a further 2.6 per cent. Imports of other nickel productswere very small.

116. Imports of all nickel products other than wrought products fallingunder CCCN 75.02-75.06, enjoy bound m.f.n. zero duties. In addition, allproducts falling under CCCN 75.02 enjoy duty-free access except gilt orsilvered wire of nickel which is subject to a bound m.f.n. duty of 4.6 percent. Products falling under CCCN 75.03 are duty-free except plates,sheets and strips of nickel foil which are subject to a bound m.f.n. dutyof 4.4 per cent. Products falling under CCCN 75.04 are subject to a boundm.f.n. duty of 2.2 per cent. Products falling under CCCN 75.05 enjoy boundzero m.f.n. duties, while those under CCCN 75.06 arè subject to a boundm.f.n. duty of 3.8 per cent. Out of the total imports of vrought productsand finished manufactures (CCCN 75.02-75.06) amounting to US$1.97 million,about US$1.38 million or 70.0 per cent coming from the EEC, United Statesand Sweden were duty-free on au m.f.n. basis, and a further US$0.56 or28.4 per cent were from duty-free EFTA and EEC sources since Norway is anEFTA member country. All dutiable imports from GSP sources are duty-free.However, no imports from these sources were recorded. Out of the totalnickel imports by Norway in 1982 amounting to about US$167.8 million only0.4 per cent was dutiable, the rest was duty-free on m.f.n. or on apreferential basis.

117. Switzerland is a net importer of nickel products since it has no majorrefining capacity.. As Table 28 shows its imports of nickel products,including chemical products, amounted to, US$40.4 million in 1982. Importsof unwrought products accounted for 43.1 per cent of the total. Imports ofwrought products accounted for a further 30.2 per cent, and finishedmanufactures accounted for the remaining 4.7 per cent. Switzerland is amember of EFTA and all imports of nickel from other member countries aswell as from EEC and Spanish sources are duty-free. Table 28 also showsthat out of the total nickel imports of US$40.4 million including chemicals(falling under the same tariff line) about 82.3 per cent come from theseduty-free preferential sources. A further 1 per cent comes from duty-freeGSP sources while the remaining 16.7 per cent were dutiable and come mainlyfrom the United States, Canada, Japan, Republic of South Africa and variouscentrally-planned economy countries.

118. Imports of nickel ores and concentrates as well as of ash and residueswhich are duty-free are insignificant. Imports of matte, unwrought refinednickel and nickel alloys are subject to bound m.f.n. duty equivalent to 0.1per cent. Most imports however, come duty-free from the EEC and EFTAsources as well as from Cuba and the Philippines. Dutiable imports comefrom Canada, Republic of South Africa and the USSR. Imports offerro-nickel vere subject to bound m.f.n. duties equivalent to 0.3 percent. However, over 86 per cent of imports of ferro-nickel come fromduty-free EFTA and EEC sources, while dutiable imports core from the UnitedStates, USSR and the Republic of South Africa. Most imports of nickelpowders and flakes come from duty-free EEC and EFTA sources with the restcoming front the United States and Canada and are subject to a bound m.f.n.duty equivalent to 0.1 per cent. The simple and weighted average duty onunwrought products is 0.2 per cent.

EFTA has an agreement with Spain by which reciprocal duty-free accessis given to most industrial and some agricultural products in each othersmarket.

Page 80: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

COUN

TRY: Swi

tzerla

ndTable

28

Imports

ofNi

ckel

andNickel

Prod

ucts

unde

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Page 81: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 81

119. Imports of wrought nickel products in 1982 amounted to.US$12.4million, and about 81 per cent of this comes duty-free fromthe EEC, EFTAand Spain. The rest come mainly from the United States and Japan. Boundimport duties on wrought products range from 0.4 per cent to 2.7 per cent.The simple average duty is 1.0 per cent and the weighted average is 0.6 percent. Bound duties on finished nickel manufactures range from 0.2 per centto 2.9 per cent. However, most imports are duty-free since they come fromSpain and EEC sources. Dutiable imports come mainly from Japan and theUnited States. There are also small imports from Hong Kong and Singaporewhich are admitted duty-free. The simple average duty on finishedmanufactures is 1.2 per cent and the weighted average is 0.5 per cent.Imports of nickel chemical products are subj ect to bound duties rangingfrom 0.1 to 1.0 per cent. However, about 87 per cent of imports comeduty-free from the EEC and EFTA sources and from Spain, while dutiableimports come mainly from Japan, United States, Canada, Poland and theDemocratic Republic of Germany. Switzerland gives duty-free treatment toall nickel imports coming from countries eligible for the GSP. However,these sources accounted for only 1 per cent of all imports of nickelproducts.

120. Sweden is one of the major importers of nickel products. Totalimports in 1982 amounted to US$120.3 million, 89.5 per cent of which wasaccounted for by unwrought nickel products, 4.4 per cent by wrought nickelproducts, 4.9 per cent by nickel chemicals and 1.2 per cent by finishedmanufactures.

121. Table 29 shows that about 94.3 per cent of total nickel importsenjoyed bound zero m.f.n. duties. Sweden is a member of EFTA and a further3.3 per cent of imports had a duty-free entry on the basis of preferentialtreatment being imports from other EFTA countries, the EEC and Spain. Only2.4 per cent of imports were subject to m.f.n. duties ranging from 1.4 percent to 5.8 per cent. All dutiable imports from GSP sources enjoyduty-free treatment. Imports of unwrought nickel were all duty-free on anm.f.n. basis. Imports of matte come from Australia and the USSR; those offerro-nickel come from New Caledonia, and Dominican Republic and Indonesia,while imports of unwrought refined nickel come mainly from the UnitedStates, EEC and Canada. Imports of wrought nickel are subject to a boundm.f.n. duty of 1.4 per cent. However, about 50 per cent of wrought nickelimports core from duty-free EEC and EFTA sources.

122. Dutiable imports come mainly from the United States, Japan, Canada,Hungary and the USSR. Imports of nickel chemical products are duty-free ona bound m.f.n. basis with the exception of nickel nitrites falling underCCCN 28.39 which are subject to a bound m.f.n. duty of 5.8 per cent andceiling binding. Imports of chemicals come from the United States, EEC,EFTA, USSR and the German Democratic Republic. Imports of finished nickelmanufactures are subject to bound m.f.n. duties of 3.2 per cent. However,almost all imports come from duty-free preferential sources, namely, theEEC, Switzerland and Spain.

123. With only a small domestic mine production of nickel, the UnitedStates imports most of its nickel needs making it the largest singlecountry importer of nickel products. On the other hand the United Stateshas a large nickel refining and fabrication capacity. Imports range fromintermediate products, such as matte and nickel oxides, to finishedproducts. Table 30 shows that in 1983 total imports of nickel products

Page 82: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Impo

rts

ofNi

cket

Table

29

andNickel

Products

under

DifferentTariff

Treatment

Accaoding

to

Stages

ofProcessing

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l2,b73

10-o

hmaicail-

ic.

528.0

902.713

2,71

3EOAUs,3m.

icc. 3.10.9090

;81

783

WEUSA.IZ,

9I

38.10

ta180

180

lE.SM

c"38.9m)

843

843

El:,aJT3,i

233

S.S,

2.33

EEC.43.0u

.bx_4.

2.9<»

453

453

AIEC

L.t<

RIi

., :.43.9<*<)

5252

11,

EI|

e>e_~~

~.XJ.S

.M280a

2362

3|El

:,Fm

N|

5t-c

oCa1

5,88

0Q0

,00.7

5,64

796

.05.8

233

4.0

_i

__i

5.06.0

01"

356

3.2

14Free

-Fr

a134

2.lE.UjS7

i&is:wures

1:i

Swc<

va1,J56

L0.Q

1.214

1.0

tiS

M-

Fiee

1,342FQ.

I)

.LA2

12û.,59

MbO.0

113.391

94.3

|1.

4-3.

8',

853

2.4

Free

j-

Free

4.U5

i.iIC

.>ii

bltr

id:l

uin

torE

cim

Uwde

rcnIs

iardo

eme

disattauhbe

nwmdu

pre.

âln

ItlIu,aat

mi

ronW

ftom

.Trrde

flou

ft4gs1u

ebaem

lnchaled

uilerum

auqh

enic

dkl.

-,m

th.u.ei

alp

raâ

aare,

-c.e

ijuf

Wseperasy

(uitcatedb

y"ee

'infr

ataf

thétcaif

maL.0th

emode

fltt

i4u

esey

md.

importa

ofdch8calp

cohu

ottu

rth

mithoe

. 'imu

dl.

;Lcwi

acan

Intaithe

rriv

citeiddle

pamà

.sno

ulli

cdriff

mwmaa

ha.beu

cSa"aeel

Inrc

epai

cesa

pnrcs&.

!ei

lia

UaltaciLm.

hbilld

uinreçc

ai Mnlt

rite

soely

(i.e."e

ddes

nitr

tam)

.Ib

audC

ty-f

ree

tariffreact

,çpl.ee

tonitrates.

.7ppLaIrate

forthe

dtr

atariff

Une

tater

naà

t&.là

racehs

boa

forth

ecal-'-lLm

.ith

euM

avea

upa.

,tuff

ra'g

e.

w 'n --_ uÔ

Page 83: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Tabl

e30

Imports

ofNi

ckel

and

Nick

elPr

oduc

tsun

der

Diff

eren

ttariff

Trea

tmen

tAc

cord

ing

toStages

ofProcessing

jfflî16

13s4m

Tota

IIm

port

sDu

tyFre

eQut

iable

(duty

feee)

Other

prefasential

Treatm

ent

Value

OrigiaValue

Origin

Date

Valu

Origia

Rate

Volu

eOrigia

à4.

4i

II

leIl

la13

14.as

14si

1lte

lasi

lala

*4.5~

~01.

34

aheuS

salé

asa

6.1601

.-US,

CANMA.AusCAM

alla

4~~~~~

~01.4V

866,au4

a*IasUS,

CANlAmca

saky

é6*0

.01

41.31î

SI41.31,CAN,

MUR,

AUSs

caaaaîp

410.04.

p191,

11,463

CAN,

EEC,

'ii-etàa

nickel

160

,561

54,4%4

laIs

DOH,

NCLosiers

cal

5and

.62

4.0

4.36

134EV

Urcu

EE51

0.31

611326

451,30

AWV.

Su-tss

b-To

tal1

0o.a

544,411

100.0

613.40

à-6

&uc

Visa

rJi34

.3,1

61

îgccaj

ia2

LAVs

51.5

53.3ilK,1UCMVa.

3i

513.63

4.06

Visa

613.

136

.3:1k

ruVUFreee

Vude

433

.1I5

14UCCI,1.et.ia

4UA

irr

413.

501i

3-à

61~

161U,5£,BVia

3pc

é,VF

is51

1.06

M6.15

3144*e1

rd

Free

u

312.06

4.*45

.64lasc

aBjeuE

EC,CAN

,CMEII

Vi-t

e34

.11

31.1

à,4

11uc

cSMj

furude

aVisa

20.3

4511

asi

ScC>IJUEEC,

N,AUS

isa

530.33

11,61

.t131

MIUCUVsaEEC

CAN,

JPN

.Ve

5130

.4431

3.11LcsUcu

lis

Free

Vsa

M2.4.

4,16

.0

414£cJtu.i

sEEC,

SWE,

CAN

rude

a530.4

1432

.416

CAMUi

îsEEC,SWR

ubil

4,5

0.0

44

54

54443,11461.1

ias

JI33.

Vsa

I~~

a.Ic

ala41

~~6.30.

.1V

1.4.1V

ucVeus

aEEC,

JPN,SWK

Vîs

4.63s1,0

SA

aîCA

NAUU

m5cm

4.6.14.1o,13

:>KV

,li

CAN,EEC,

JPN

Vs

4.16.5

13:4.3

3.a1

4.i

uc.J

VUCA

Mvisa

siVies

-11.

61,6lo

lisub-Total

.4341,03

1.3-.1:

3,11

1.M1i

Via

Free

Visa

du.04

11,

-.1

11ICCIMVe33

III

Vimude

esea4403.6V

î,eî6a

'4.1

1,13

iCJEC

Visa

16i1VS

Vs

s6SîlVé

134

1.16

J115,Ccm

sinEEC,

JPNCAN

Vs

ss6S6.

111,

113

4~~~~~~~~54

.5-.

641.

Y4IIC*E9

,II

Vis

losSSCflI,4a

Vis*s431.10

3,431

1.5

3,463

LKCJ16,CAI

CAN,JPN

CAUFre

e1Vie

s-~~~~~~~~.1

1t.e

rud

sSeh

lola

lil,431

100.04.

.419.I50.li.

1,343

14.1

rude

1.1Vi.

V6.

loca

635

04,36

6.

..00

5350

1eia1n4.

ia.

a..

..u

alassessss

s5r5îc5îîî5aiîs

rade

flow

infArmationdoesnot

btut

oalgdistingwish

betweenash

andresiduceand

unwroughta

5%p

îS.J

..à.s

..s

for

eachan

dresiduce

unwr

ough

tbut

ht,nickelfor

4W

.th.

finanufactures

areno

tse

cifi

edeas

parately

"ex"

front

tariff

numer)

tradeflowfigureman

ufac

ture

sa1i

lCIa

Chot

her

thanth

oseof

nickel.Sin

cethisoccure int

hesajority

.man

ufactu

reswe

ight

edaerage

hasba

bthese

prod

ucts

..p

ia.

z OOn -- c

Page 84: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 84

amounted to US$723.8 million about 89.6 per cent of which was accounted forby unwrought nickel products. Wrought products accounted for a further 6per cent; finished manufactures 1.4 per cent while nickel chemicalsaccounted for the remaining 3 per cent. The Table also shows that about92.2 per cent of total imports enjoyed bound m.f.n. zero duties, 7.3 percent of imports were subject to bound m.f.n. duties ranging from 2.5 to10.0 per cent, and although all dutiable imports enjoy a duty-free GSPtreatment, only 0.5 per cent of imports fall under this category.

124. Imports of all unwrought nickel products are duty-free. On the otherhand, wrought products, chemicals and finished manufactures are subject toduties. Imports of matte accounted for about 11.2 per cent of total UnitedStates nickel imports and come mainly from Botswana, Australia and Canada.Imports of unwrought refined nickel and nickel alloys accounted for58.5 per cent of total nickel imports and come mainly from Canada,Australia, Zimbabwe, USSR, Finland and the EEC. Ferro-nickel importsaccounted for 8.4 per cent of total nickel import and had New Caledonia,Dominican Republic, and Colombia as the main sources of imports. TheUnited States is a major importer of nickel waste and scrap and in 1983they accounted for 2.4 per cent of total nickel imports with Canada, Norwayand the EEC as the main suppliers.

125. About 98 per cent of wrought nickel imports are subject to boundm.f.a. duties varying from 2.5 per cent to 7.4 per cent, the simple averageduty being 5.4 per cent and the weighted average 4.6 per cent. The largestwrought nickel import items were nickel rods and wire, cold worked, subjectto a bound duty of 4.7 per cent. Imports of wrought nickel products comemainly from the EEC, Canada, Japan and Sweden. All dutiable importsenjoyed duty-free GSP treatment with the main supplier being Brazil,Mexico, Republic of Korea, Philippines and Zimbabwe. Roughly 87.4 per centof United States imports of nickel chemicals consisted of nickel oxides andhydrooxides which enjoy bound duty-free access. Imports come mainly fromCanada, Australia and Norway. The other major chemical import items weresulphates and persulphates (ex 28.38) which are subject to a bound m.f.n.duty of 3.2 per cent with the EEC, Finland and Canada as the main sourcesof supply. Imports of chlorides and oxychlorides of nickel (ex 28.30) comefrom the EEC and Japan and are subject to a bound m.f.n. duty of 3.7 percent. The remaining nickel chemical imports were subject to a bound m.f.n.duty of 3.7 per cent and come mainly from Canada, Japan and the EEC.Imports of nickel chemicals enjoy duty-free GSP treatment. About 74.7 percent of United States imports of finished nickel manufactures are subjectte bound m.f.n. duties ranging from 4.7 per cent te 10.0 per cent with asimple average of 6.6 per cent and a weighted average of 6.4 per cent. Theremaining 25.3 per cent of imports of finished nickel manufactures are fromduty-free GSP suppliers. Dutiable imports come mainly from the EEC, Canadaand Japan while GSP supplier are mainly Israel, Hong Kong, Mexico and theRepublic of Korea.

(ii) Developing countries

126. Tables 31 to 41 provide information on imports of nickel and nickelproducts divided according to stages of processing for the followingdeveloping countries: Argentina, Brazil, Hong Kong, India, the Republic ofKorea, Malaysia, the Philippines, Spain, Thailand, Turkey and Yugoslavia.Trade figures are based on national statistics. Imports under CCCN ex26.03are not included in total nickel trade. Tables indicate the most recentm.f.a. tariff treatment and where available, preferential treatments

Page 85: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 85

granted to other countries or regional groupings. In examining theseTables it can be noted that m.f.a. nominal rates of duty on nickel increasewith a higher degree of processing. la principle, lower m.f.n. rates areapplied to imports of primary nickel while nickel semi-manufactures andmanufactures are subject to higher rates of duty. However, it should beborne in mind that the protective role of developing country tariffs cannotalways be disassociated from their fiscal function.

127. Argentina is a net importer of nickel products. On the basis of 1981trade information, import amounted to roughly US$7.0 million, 47.8 percent of which was in the form of unwrought products, 27.6 per cent in theform of wrought products and 22.5 per cent in the form of nickel chemicals.Imports of nickel manufactures were very small. On the basis of 1984-85tariff treatment the m.f.n. duties on unwrought nickel range between 10 and38 per cent. Imports come from the United States, Canada, Norway and theEEC. Imports of wrought nickel products into Argentina come mostly fromthe EEC, United States, Sweden and Switzerland and are subject to dutiesvarying from 10 to 38 per cent. Small amounts of imports come from Brazilunder preferential tariff rates. Import duties on nickel chemicals vary-between 10 and 35 per cent. Imports came mainly from, the EEC, UnitedStates and Switzerland, while a small amount comes from Chile on apreferential tariff basis. The simple average duty on imported finishedmanufactures of nickel is 38 per cent. M.f.a. imports come mostly from theEEC, United States and Japan, while a small amount of imports underpreferential duties comes from Brazil and Mexico.

128. Brazil is both an importer and exporter of nickel products, Table 32shows that total imports of nickel products amounted to US$6.4 million in1983 of which, 23.0 per cent were in the form of unwrought nickel productsand 43.0 per cent in the form of wrought nickel products. Imports ofnickel chemicals including other products under the same tariff linesaccounted for 32.5 per cent of total nickel imports. Imports of finishednickel manufactures were very small, and amounted to only 1.5 per cent oftotal nickel imports.

129. Imports of ores and concentrates, as well as imports of nickel ash andresidues, have duty-free access into Brazil. The rest of nickel importsare subject to duty varying between 10 and 55 per cent. Duties onunwrought nickel products vary from 10 to 45 per cent and imports comemainly from the United States, EEC, Canada, Norway and Switzerland, whileduties on wrought nickel imports vary from 15 to 45 per cent, with the EEC,United States, Japan and Switzerland as the main sources of imports.Imports of nickel chemicals come mostly from the United States, Canada, EECand Switzerland and are subject to duties of 15 and 30 per cent. Smallamounts of imports come from ALADI sources. The simple average duty onimports of finished nickel is 55 per cent and imports come mainly from theUnited States, EEC, Japan and Canada.

130. Since 1982 Colombia has been exporting a substantial amount offerro-nickel. However, it also imports some nickel products which in 1981amounted to about US$4.8 million made up mostly of unwrought nickelproducts (45.8 per cent), wrought nickel products (22.3 per cent), nickelchemical products (29.2 per cent) and finished nickel products (2.7 percent). All imports of ores and concentrates as weil as of nickel ash andresidues are subject to a 10 per cent duty. Matte and speiss, on the otherhand, are subject to a duty of 5 per cent. Imports of unwrought nickel and

Page 86: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

COUNTRY:

Arge

ntin

aTable

31

TEAR:

1981

(tra

de).

1984-85

(tariff

trea

tmen

t)

Import

ofNi

ckel

and

Nick

elPr

oduc

tsun

der

Different

Stages

ofTa

riff

Trea

tmen

tAccording

toStages

ofPr

oces

sing

(ln

US$'00

0)

HFN

Prod

uct

Tari

ffTo

tal

Tari

ffAverage

MFN

Othe

rPr

efer

ence

s1Description

NoIm

port

sSimple

Weig

hted

%Ra

teVa

lue

Orig

inRata

Valu

eOr

gin

Oresand

concentrates

26.01

12%

_Ashan

dresidues

26.0

3302

_16

URT

Sub-Total

1621

122-

30%2

-16

Unwr

ough

tMa

tte

and

speiss

75.0

1.01

.00.

00-

USA

_Al

loye

d75

.01.

03.0

0.00

10%

2,99

3US

A,EE

C,NO

R,CA

N_

Waste

and

scrap

75.01.02.00.00

_Fe

rro-

nick

el73.02.03.09.00

i6Z3

_Po

wder

san

dflakes

75.03.00.00.02

237

EEC,

USA.CAN

_75.03.00.02.994,

38s

loi

USA.EEC

Electro-plating

anodes

75.05

102

13US

A,EE

CSu

b-To

tal

3,344

27.7

11.1

10_z

38z2

3,344

Wrought

10%

699

EEC,

USA,

CHE,

SWE

SRA

142

138

EEC,USA,

CHE,SWE35

)8}

1815

3USA.EEC

CHE

~~31

.1EES,CAN-

75.0

3.00

.01.

99,U

382

218

EECUSA

75.04

,,C

C10x

504

EEC.USA.CHE

_75

.054

E10-5

_USA.EC

Sub-Total

1,927

15.1

13.6

IOZ3

8Z2

1,90

7.

20

wemi

cals

628.28

IOZ

llO

USA.EEC

28.30.00.01.11

25I

24EE

C_

28.30.00.02899

353

H75

EEC

I_CO

LaX28.30

102

-

28.e35.00.9900

,,

252

1,28

1EE

CUSA

POL,

CSR,

AUT

ex28.38

352

-USAEEC

ex28.39

CHE

25S

3EEC

USA

auE

_28

.42.

02.1

3.00

ex28.43

102

34USA

EEC

ex28.48

,E

,CHE

32USAEECCIe

_Su

b-To

tal

1,57

617

.510

Z352

21,559

Il

Fini

shed

manu

fact

urer

s75.06

,U,

W,JP

N38

211

3EECUSAPT

12SRA.HEX

Sub-

Tota

l125

3838

382

113

12

Tota

l6,

988

=10_382

6,92

365

Imorts

trou

isADI

coun

trie

sare

indictoed

Inth

ese

colu

mns,

alth

ough

noinformation

laav

aila

ble

inrelation

Cothenature

ofextent

oran

ypr

efer

ence

sap

plie

d.The

veig

hted

tariff

averages

are

calc

ulat

edex

clud

ing

this

trade.

2Tar

iffra

nge

3Thesbound

rate

onitem

75.0

3.00

.02.

01(Pouders

end

Flakes

ofpure

nickel)

ie40

per

cent.

Tari

ffav

erag

eha

vebe

enca

lcul

ated

usin

gap

plIe

drates.

4Ava

labl

etrade

flou

information

does

not

distringuiah

betw

een

unwrought

and

wrou

ght

elec

tro-

plat

ing

anod

es.

This

item

hasbeen

incl

uded

wIn

the

calculation

etth

esiwple

tariff

average

forbo

thun

vrou

ght

and

brou

ght

nickel

but

only

inunvrought

nickel

for

the

trade

weig

hted

tariff

average.

5The

bound

rate

ontl

u1It

emL1

30per

cent.

Tari

afav

$r00

esha

vebeen

calc

ulat

edusing

applied

rates.

(-)

nil

orle

ssthon

USS5

ûO.

6Whe

reth

enickel

chemical

prod

ucts

are

not

spec

ifie

dse

para

tely

(ind

tcat

cdby

"ex"

infr

ont

ofthe

tari

f(nu

mber

)th

etrade

flo

figu

res

May

incl

ude

Importe

ofchemical

products

othe

rthan

thosse

ownickel.

Since

this

occu

rsin

the

majo

rity

ofth

ech

emic

alproduct

novweighted

tarif(

average

has

been

calc

ulat

edin

resp

ect

ofth

ese

prod

ucts

.(B)

Sound

rate

(Schedule

1XIV

)-

Arge

ntin

a).

Source:

Coue

rclo

Exte

rior

1981

Impo

rtac

lôn

Vol.

III

Iand

2,In

stit

isto

Nacional

deEstadistica

yCe

nsoa

,1981.

inte

rnat

iona

lCuatous

Jour

nal,

Arge

ntin

s1984-85.

Brussei.

1984.

3

eC

Page 87: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

COUN

TRY:

Brazil

YEAR:

1983

(trade).

1985

Table

32

(tariff

treatment)

Imports

ofNi

ckel

and

Nickel

Products

under

Diff

eren

tSt

ages

ofTariff

Treatment

According.

toSt

ages

ofProcessing

______________________

____________________

____

____

____

____

____

A(in

US$'000)

HFN

Prod

uct

MFN

Tari

ffTo

tal

Tarif(

Average

HN

Othe

rPreferences

Des%ription

NoImporte

Smple

IlWe

Igh

edZ

Rate

Valu

eOr

igin

Rate

Value

Origin

Orea

and

core

entr

ates

2HE0

1F)_

CII

Ash

and

reai

dues

26.0

3

Sub-

Tota

lFree

_

Unvr

ough

tta

tte

and

apei

se75

.01

151,

Unalloyed

75.,01

,10o

(A51,

039

USANORCAN,EEC,CHE

Allo

yed

75.,

01)

152

USAE

ECWanted

and

*crap

E5C0

1)

-£Er

Ferro-nickel

73.02.07.00

371

7USA,EEC

Pouders

and

flak

es7E

.03.

02.0

1451

-CEC

75.0

320E

.29

)lS

228

USACAN,CEC

Elec

tro-

plat

ing

anode

75F05

)17

4ZAPEEC.CHE

Sub-Total

1.416

11.1

11.6

IOI-

45S

1,47

6

Wrought

75.0

245

2736

CHEEEC.USA,ESPJPH

75.0

320

2g708

EECCHEUSA,JPN

15.0

4301

741

USA,

EEC.

CAN

75.0

4202

.00

37Z

573

EECUSA

75.,

05H

152

-ZA

FEEC

,CE

Sub-Total

2.758

29.2

32.9

15l-4523

2.75

8_

Chem

icai

a4ex

2a.2

8AN,

EEC

)57

3US

A,CM

EEC

ex28

3030

1>26

8EEC.CHE,CHN

5ARC

ex28.35

)Il

EECU

SA28

.38.

16.0

0G,MEX

15S(

B)1,

161

EECCHEUSA

49ARGHU

ex28.38

ex28.39

ICHEUSAEEC

28.42

130

2l

CHEEEC

ex28

.43

IEEC.USA,CHE

ex28

.48

16EECUSA

Sub-Total

2,086

29.6

1S2-302

2,032

54

Finl

uhed

manufactures

75.06

Is2

95USA,EEC,JPN,CAN

Sub-

Tota

l95

55.0

55.0

552

95

Total

6.41

5_

Free

-552

36,

361

54;

Importe

irom

ALADI

cisntries

are

indi

cate

dln

thes

ecoliamna

although

noInformation

teav

aila

ble

Inrelation

any

pref

eren

ces

appl

ied.

The

weighted

tariff

average

are

calc

ulat

edex

clud

ing

this

trade.

tath

ena

ture

orextent

of

2Ava

ilab

letwade

flou

Info

rmat

ion

does

not

diatingulal

between

unwr

ough

tan

dbr

ough

tel

ectr

o-pl

ating

anodes.

This

Item

has

been

Incl

uded

inth

eca

ughl

atio

nof

the

simple

tari

fEaverage

for

both

unwrought

and

wros

igt

nickel

but

only

Inun

wrou

ght

nickel

for

the

tradeweighted

tari

ffav

erag

e.

3Tri

ffrange.

4'Wiere

the

nickel

chemifalmproducts

arei

not

spec

ifie

dseparatelywtn

dica

tcd

by"ex"

in

iron

tof

the

tartff

number)

the

trAde

floau

figures

moy

Incimde

Impo

rta

ofchemical

products

nther

than

those

ofni

ckel

.Since

this

fccurs

in

the

majo

rity

ofth

echemical

product

no

weig

hted

tarif

average

haa

b'en

calculted

inre

spec

tof

theme

prodica.

(B)

Eound

rate

(Schedule

Mt-

Ozaz

il).

(-)

Nll

or

leas

than

US$500.

Snai

rren

MCoe

rcin

Exterlrr

dnBraaul.

lmpnrtacao

1983.

Tiam

nIand

Il.

Hinisterioda

Faze

nda.

Secr

etar

iada

Receita

Federal.

Brasilla

1983

.Ti

i-L[

Tidu

ane1

r:t

doSr

tail

.Rio

deJa

ntil

o1985.

U3 C7 _n __ -_ INJ

Page 88: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

YEAR

:1981

(trade).

1982-83

(tariff

treatment)

Impo

rts

ofNi

ckel

andNi

ckel

Prod

ucts

under

Diff

eren

tStages

ofTariff

Treatment

According

toSt

ages

ofProcessing

MFN

product

Tari

ffTo

tal

Tariff

Average

MFN

Othe

rPr

efur

ence

stDe

scri

ptio

nNo

Impo

rte

Simple%

weighted

%Ra

teValue

Origin

Rate

Value

Orion

Ores

and

conc

entr

ates

26.0

1.03

.00

102

_As

hand

resi

dues

ex26

.03

Sub-

Tota

l_

lO10

2_

Unwr

ough

tNa

tte

and

spei

sa75.01.01.00

51

n.a.

Unalloyed

75.01.02.00

Alloyed

75.01.02.00

102

1,84

6CANUSA,EEC

Waste

and

scra

p75

.01.

03.0

052

40n.a.

Ferr

o-ni

ckel

73.02.00.09

10%

_Po

wder

san

dflakes

75.0

3202

.00

151

22Electro-plating

anod

es75

.05

280

na.

Sub-Total

2.18

910

10.6

52-1

513

2.189

Brought

75.02

15Z

546

EEC.USACUI

28RR

A15

.03.

01.0

0152

74n.

s.75.042

302

417

USA.CAN.EEC

75.0

515

2_

Sub-Total

1.06

522

.521

.0152-3023

1.037

28

Chemicals3

ex28

.28

488

EEC,

CANU

SACH

Eex28.30

231

n.a.

ex28

.35

126

n.a.

ex28

.38

202

170

n.a.

ex28

.39

148

U.a.

ex28.42

87n.

a.ex28.43.01.99

84n.

a.ex28.43

252

In.

a.ex28.48

*252

58a.a.

ex28.48.05.99

152

-n.a.

Sub-Total

1.39

320,7

151-Z523

1.393

Finished

manu

fact

ures

75.0

630X

127

n.a.

Sub-Total

127

3030

30X

127

Tota

l4,774

52-302

4.74

62d

'Imp

orts

from

ALAD

Icountries

are

indi

cate

din

thes

eco

lumn

salthough

no

information

any

pref

eren

ces

applied.

The

weig

hted

tariff

averages

are

calc

ulat

edexcluding

this

trede.

isavailable

inre

lati

onto

the

natu

reor

exte

ntof

2Ava

ilab

letrade

flow

Info

rmat

ion

does

not

distinguish

betw

een

unwrought

and

wrought

electro-plating

anod

es.

This

item

has

been

included

Inthe

calc

ulat

ion

ofthe

simp

letariff

average

for

both

unwr

ough

tan

dwr

ough

tnickel

but

only

inunwrought

nickel

for

the

trad

e-we

ight

edtariff

averp3a.

3Tariff

rang

e.

4Whe

rethe

nickel

chemical

producta

are

not

spec

ifie

dse

para

tely

(indicated

by"e

x"in

fron

tof

the

tari

ffnu

mber

)the

trade

flow

figu

res

may

incl

ude

impo

rts

ofch

emic

alpr

oduc

tsother

than

thos

eof

nick

el.

Sinc

eth

isoccurs

inth

ema

jori

tyof

the

chemical

products

noweighted

tariff

average

has

been

calculated

Inre

spec

tof

these

products.

(S)

Bound

rate

(Schedule

LXXV

I-

Colo

mbia

).(-

)Ni

lor

les.

thon

US$500.

n.a.

when

CIF

calu

elesn

than

US$400.000

origin

net

available.

Sour

ces:

-Anuario

deComercio

Exte

rtor

1981

Departamento

Adainistrativo

Nactonal

deEs

tadi

stic

a.-

international

Customs

Jour

nal.

Colo

mbia

1982-83,

Brussels,

1982

.

u3

noC

CDc

00-g

0wri

*"

COUNTRY:

Colombia.

Rep.

ofTabl

e13

Page 89: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

22sag S~ ,- ---°s^- .-E<2-2'98 * -é°i!;fidÉ] * 8. : '-~ ~ ~~~~~~°°°-,o -- *______________-« S l> 1

_--

MDF/W/ 21Page 89

nickel alloys are mostly imported from Canada, United States, and EEC, andare subject to a 10 per cent import duty. Wrought nickel imports comemainly from the EEC, United States, Canada and Switzerland and are subjectto duties varying from 15 to 30 per cent. Nickel oxides and peroxides fromCanada, EEC, United States and Switzerland make up a great part of nickelchemical imports most of which are subject to a duty of 20 per cent. Thesimple average duty for this sector is 30.7 per cent while nominal dutiesrange from 15 to 25 per cent. The nominal and simple average duty onimports of finished nickel manufactures is 30 per cent.

131. Bong Kong is a substantial net importer of nickel products. Importsin 1983 as indicated in Table 34 amounted to US$35.1 million, about75.0 per cent of which vas acounted for by unwrought nickel products,12.2 per cent by brought products and a further '2.7 per cent by nickelchemical products. Imports of all nickel products into Hong Kong areduty-free on au m.f.a. basis. Imports of ash and residues come from Japan,Singapore, Philippines and China. The bulk of nickel imports are in theform of unwrought unalloyed nickel from Canada, Norway, EEC, Australia andthe Republic of South Africa. Unwrought alloyed nickel comes from Canada,United States, and Japan, and ferro-nickel imports côme from the EEC,Brazil, Republic of South Africa and Australia. Imports of wrought nickelproducts come mainly from Japan, EEC, United States, Canada, Australia andNorway. The main nickel chemical imports into Hong Kong are nickel oxidesand hydroxides (28.28) and sulphates and persulphates of nickel (28.38)which together accounted for over 67 per cent of nickel chemical imports.Imports of chemicals come mainly from Canada, EEC, China, United States andJapan.

132. India is one of the major importer of nickel products amongdeveloping countries with total import in 1980-81 amounting to US$49.9million. Import range from ores and concentrates to finished manufactures*and are subject to m.f.n. duties ranging from 40 to 100 per cent.Unwrought nickel products accounted for 62.1 per cent of total imports.Wrought nickel products accounted for 20.6 per cent and chemical importsaccounted for a further 16.6 per cent. Imports of finished nickelmanufactures amounted to only 0.2 per cent of total nickel imports.

133. Imports of ores and concentrates come from the EEC and Canada, andimports of ash and residues came from Australia, Canada and Singapore. Thenominal duty on ores and concentrates is 60 per cent and that on ash andresidues is 40 per cent. Imports of unwrought nickel products come fromthe EEC, Canada, United States, Australia, USSR and the Philippines. Theyare subject to a duty of 40 per cent with the exception of nickel powders,flakes and electroplating anodes which are subject to a duty of 60 percent. The simple average duty on unwrought products is 45 per cent and theweighted average is 42 per cent. The simple average duty on wroughtproducts is 68 per cent, while the weighted average duty is 67.6 per centand the nominal rates are 60 per cent and 100 per cent. Imports of nickelchemicals are subject to a nominal and simple average duty of 60 per centand the bulk of imports are in the form of nickel oxides and hydroxideswhich come from the EEC, United States, Australia and Canada. The othermajor chemical imports are nickel chlorides and oxychlorides which comemainly from Japan, EEC, United States, Singapore and the Republic of Chine.Small imports of other nickel chemicals come from Hong Kong, Japan, EEC,United States, Norway, USSR and the Republic of China.

Page 90: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

COUNTRY:

Hong

-Kon

g

YEAR:

1983

(tra

de),

1984

Table

34

(tar

iff

trea

tmen

t)

Impo

rts

ofNickel

and

Nick

elProducts

unde

rDifferent

Stages

ofTariff

Treatment

Acco

rdin

gto

Stag

esof

Processing

(InUS

$'00

0)

MFN

Prod

uct

Tarif

fTotal

Tari

ffAverage

HFN

Othe

rPreferences

Description

NoImporte

Simp

leWeighted

Rate

Value

Origin

Rate

Valu

eOrigin

Ores

and

concentrates

26.0

1)

Ash

and

resi

dues

ex26.03

(893

)JPN,CHN.PHL.SGP

Sub-

Tota

l-

Unwr

ough

tMa

tte

and

speise

75.01

Unal

loye

d75

.01

)J

24,641

CAN,NOR.EECAUSZAF

Allo

yed

75.01

)247

CANU

SAJP

NWa

ste

and

scra

p75.01

)Fr

eePTW

Ferr

o-ni

ckel

ex73.02

)1.159

EEC,ZAF,SRAPTW,AUS

Powd

ers

and

flak

es75.03

)Electro-plating

anodes

75.05

)25

3NORJPN.USA,CAN

Sub-Total

26,301

26,3

01

Brought

75.02

11,66

5JF

N.EE

CUSA

.AUS

75.0

3)Free

2.61

0NO

R,CA

N,JP

N,EE

C,CH

E75.041

)Fre

e7

EECJPNAUS

75.0

5)

NOR,

JPNUSA,CAN

Sub-Total

4,282

4.28

2

chemicals2

28.28

)1,158

CAN,CIWI,EEC

28.30

)I

463

EEC,

JPN,

CHNU

SAex28.3

0)

I37

JPNUSA,ISR.CHNEEC

ex28.35

)118

CHN,

KOR,

EEC.

JPN

28.3

8)

Free

1,403

EEC,PTW,FIN,CHN,JPN

ex2a

.39

)243

CHN.EEC,USA

ex28

.42

)670

CIIN,EECJPNSUN

ex28.43

)34

2EE

CJPN

,USA

ESP,

CHN

*x28

.48

)31

EECJ

PNUS

A

Sub-

Tota

l4,465

4,465

Fini

shed

manufactures

75.0

6Free

41EEC,JPN

Sub-

Tota

I41

41

Total

35,0

89Fr

ee35,089

Avai

labl

etrade

flow

vinformation

does

not

dist

ingu

ish

between

unwrou

ghtandwr

ough

tel

ectr

o-pl

atin

ganodes.

This

item

has

been

included

lnth

eca

lcul

atio

nof

the

simp

leta

riff

aver

age

forboth

unwr

ough

tan

dwr

ough

tni

ckel

but

only

inun

wrou

ght

nickel

for

the

trade-weighted

tariff

average.

2Whe

rethe

nick

elchemical

products

are

not

spec

ifie

dseparately

(ind

icat

edby

"ex"

infr

ont

ofth

etariff

number)

Ray

incl

ude

impo

rted

of

chemical

products

other

than

thos

eof

nickel.

Sinc

ethis

occurs

Inth

ema

jori

tyof

the

chem

ical

average

has

been

calc

ulat

edin

resp

ect

ofthese

products.

(8)

Bound

rates

(Sch

edul

eXI

X-Ho

ngKong).

(-)

Nil

or

less

than

US$500.

Sources:

-Ho

nggo

ngTrade

Statistics,

Impo

rts,

Cens

usan

dSt

atis

tics

Department.

Hong

Kong

1983.

-Zo

Il-u

nd-H

ande

lsInformation,

Hong

-Kon

g,1984

Exch

ange

Rate

1983:

7.27

3Ho

ngKo

ngdollare

per

US$,

Hong

Kong

Mont

hly

Dige

stof

Statistics.

March

1984

.

the

trad

efl

owfi

gure

spr

oduc

ts.

no

weighted

tari

ff

lu3

-0h

%0_K

Oru

Page 91: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

YEAR:

1980-81

(trade),

1983

-84

(tariff

treatment)

Import

ofNickel

and

Nick

elProducts

unde

rDi

ffer

ent

Stages

ofTariff

Treatuent

Acco

rdin

gto

Stages

ofProcessing

(inUS$'000)

H~~~~~

FUPr

oduc

tf

Tari(f

veragal

Tari

ffAlvvMre

HFN

Othe

rPr

efer

ance

sDe

scri

ptio

nN

smHo

%We

ight

ed%

SiplepiX

Rete

rigin

Velu

Ovgl

tRatue

igin-vtv

alue

Ortign

Ores

andconcentrate

26.01

6021

190

EEC.CAN

Ash

and

residues

ex26

.03

402

(2,7

48)

AUS,KEN,CANR50P

Sub-Total

190

5041.3

401-

601

190

Unwrought

Hatte

and

*pease

75.0

1)

E1,

113

REC

Unelloyed

15.0

1)

E,

NR,

149

ZECB

SUUC

ANNO

RUSA

Allo

yed

75.01

)40

1E

2.H55

CARC

EC.U

SAPH

L,IX

CMA

ute

and

acrap

75.01

)W

2,98

7EEC.USASVEAUS

Ferr

o-ni

ckel

73.02

)E

B3,

117

REC,

SCPI

RA

Powd

era

and

flak

ea75

032

)60

2,164

AUSC

ANUS

AEEC

Clig

Electro-plating

anodes

75.0

53EEC,CAN

909

RCCAN

Sub-Tot4l

31.044

45.7

4240

Z-60

231

,044

Wrou

ght

75.02

60X

3,8P

0WE

EEC.

NOR.

PHL.

JFNS

gg75.02

1002

2,14

0EREC,USACAN,JPN,SVI

75.0

3)

N,3

,N81

EECCAMHUNiJPHUSA

75.04 2

602

W82H

ERCJPN.USASUECUE

7505

2)-

NEEC,CAI

Sub-

Tota

l10

,305

6868.3

601-1002î

10,305

Chemical3

ex28

.28

)H5,839

EECUSA.CIE.AUS,CAN

ex28.30

)1,37H

JPNEECUSA,SGPC1N

ex28

.35

)56

EEC,USA,JPN

ex28.38

)P

,HH05

RJ1N,EECJIKGCINNOq

ex28

.39

)602

GN

1N9

NEEC,HKO,CAISUW,JPl

ex28.42

)10

9EEC,USASUN

ex28.43

)156

REC,

JPN,

CHN,

USA

*x2B

.48

)13

7JPN,EEC

Sub-

Tota

l8,298

6060

28.

298

Flinlshed

manu

fact

ures

75.06

115

EEC

lIS

ZeC,

USAS

WE.J

PN

Sub-Total

115

6060

602

115

Tota

l49,952

402-1002

49,952

Tariff

range.

2wva

lîAb

metr

ade

floa

Infor.ationsdoes

not

dist

ingu

iAh

betw

een

unwr

ough

tan

dwr

ough

tel

ectr

o-sl

atin

gasodee.

Thit

itemih

aube

anincluded

lnth

ecalculation

ofth

esi

mple

tariff

average

forwoou

unwrought

and

vrnigit

niwk

elbu

tanly

tnunvrought

niwkel

for

the

trade-'eighted

tariff

aver

age.

3Whe

rethe

nick

elch

emic

alpr

oduc

tsare

not

spec

ifie

dse

para

"ely

(ind

icat

edby

'ex"

lnfr

ont

ofth

etariff

nowber)

the

trad

eflo

figu

re.

may

include

imported

ofch

emic

aepr

oduc

tsother

thon

itho

seof

nickel.iSlnce

mais

occurs

lnth

e*e

nori

tyof

the

chem

ical

product

nowe

ight

edta

riff

average

ham

been

calc

ulat

edin

respect

ofthese

products.

(8)

Soin

drate

(con

cess

ions

aaed

bein

gre

nego

tiot

ad)

Sources:

-Honthly

Stat

isti

ceof

the

ForeignTrad11

fIndia.sVolume

[I-

Importa.

Directorate

Central

ofCoercial

Inte

llig

ence

and

Statlntics,

Calc

uttn

,19

81.

-InternationaI

Cist

ras

Jour

nal.

asel

sa19

81-8

4,br

usti

el1183.

.xch

ange

Rate

1980

:7$863

Fupeces

per

UaS,

IMf

Internationul

Fina

ncia

lSt

atia

tics

,1984.

CMIN

TRYs

Ind

ieTable

35

Page 92: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 92

134. The Republic of Korea is a net importer of nickel products. Importsin 1983 amounted to US$24.8 million and were subject to duties varying fromzero to 30 per cent. Unwrought nickel products accounted for about56.2 per cent of total nickel imports, wrought products 19.3 per cent,nickel chemicals 19.4 per cent, while finished manufactures accounted for2.6 per cent. The structure of duties indicates a tendency for rates torise with degree of processing. Import of ores and concentrates areduty-free, but no imports were recorded in 1983. Import of matte andspeiss, as well as of ferro-nickel, are subject to a duty of 5 per cent butimports are insignificant and came from Japan. Imports of unwroughtrefined nickel and nickel alloys are subject to m.f.n. duties varying from5 to 20 per cent some of which are unbound. Wrought product are subjectto a duty of 20 per cent except anodes which are subject to a temporaryduty of 15 per cent. The simple average tariff on unwrought and broughtproducts are 13.9 per cent and 18.6 per cent respectively. Imports ofunwrought products come mainly from Canada, United States, Australia,Japan, EEC, Finland and Singapore, while wrought imports come from Japan,United States, EEC, Austria, Sweden, Canada and Norway. Imports of nickelchemical products are subject to duties varying from 20 to 30 per cent,the simple average duty being 26 per cent. Import come mainly fromCanada, Japan, EEC and the United States. Imports of finished nickelmanufactures are subject to a nominal and a simple average duty of 30 percent and imports come mainly from Japan, United States, EEC and Singapore.

135. Malaysia has no domestic mine production of nickel and import all itsnickel needs. Imports of nickel products by Malaysia amounted to US$12.9million in 1982, US$7.9 million out of the total was, however, accountedfor by chemicals which included products other than nickel chemicals.Unwrought alloyed nickel and ferro-nickel make up the bulk of-imports ofunwrought products. Import are generally subject to two main duties, zeroand 10 per cent. Import of unwrought nickel products are duty-free withthe exception of nickel powders and flakes (45.03) which are subject to aduty of 10 per cent. The main sources of imports of unwrought nickel areCanada, Japan, United States, EEC, Norway and Finland. Imports of wroughtproducts are subject to a duty of 10 per cent with the exception ofelectroplating anodes which are duty-free and the main sources of importsare Japan, Singapore, United States, EEC and Australia. Import ofchemical products are duty-free and come mainly from Japan, EEC, UnitedStates, Singapore and the Republic of China. Finished manufactures ofnickel are subject to a duty of 10 per cent with imports coming mainly fromJapan, United States, EEC, Hong Kong and Switzerland. The simple averagetariffs are zero for ores and concentrates, 1.4 per cent for unwroughtnickel products,. 7.5 per cent for wrought products and 10 per cent forfinished manufactures of nickel.

136. Spain is a net importer of nickel products, with import amounting toUS$55.4 million in 1982 and subject to m.f.n. duties ranging from zero to24.4 per cent. About 83 per cent of total import consists of unwroughtnickel products, mostly refined nickel, ferro-nickel, matte and speiss. Afurther 8.3 pet cent consists.of wrought nickel products, while nickelchemicals and finished nickel manufactures accounted for 5.7 per cent and1.9 per cent respectively. Import of ores and concentrates and ash andresidues are very small. Spain has preferential trade agreements with theEEC and EFTA and as can be seen in Table 38, about 37 per cent of import

Page 93: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

COUNTRY:

Korea,

Rap.

of

YEAR

:19

83(t

rade

).1982-83

Tabl

e36

(tariff

trea

tmen

t)

lmpo

rtsof

nick

elan

dni

ckel

Products

under

Diff

eren

tSt

ages

orTa

riff

Treatment

Acco

rdin

gto

Stag

esof

Processing

(InUS

$'00

0)MFU

Product

Tariff

Total

Tariff

Average

MFN_

Othe

rfr

efer

ence

sDescription

NoImporta

Simp

le%Weig

hted

%Rate

Value

Orig

inRa

taVe

lue

Origin

1..

Ores

and

concentrates

26.01

Free

-

Ash

and

resi

dute

26.03

202

611

JPN

Sub-Total

611

1020

Free

-201

611

Unwr

ough

tMa

tte

and

spsise

75.01

522

JPN

Unal

loye

d75.01

20I(

B)10,029

CAN.USA.AUSJPHEEC

Alloyed

15.01

Wast

eand

scra

p7S.01.0200

202(5>002)

812

CAUF

INEE

CSC.

?Ferro-nickel

73.0

2.04

0052

165

JPN

Powd

ers

and

flakes

15.0

3.0300

202(

<)492

AUS.JPEN.USA.EEC

Elec

tro-

plat

ing

anod

esîS

.02

201(15Z*)

2,435

CANJ

PN,US

AEEC

Sub-

Tota

l13

,935

13.9

18.4

5Z-20%

13,9

3S

Brought

75.0

220.

2,30

6JPN

USA,EEC,AUT

15.0

32,193

JPN,USA,EEC,SEE

15.0

3.02

.00

2%&

754.

202(1>

29S

USAEECJPN

75.0

5.2

0<(1

52*)

-CANJPN,NO

R,SEI

Sub-

Tota

l4.

794

18.6

20152-20SI

4,194

Chemicals

28.2

8.03

0020

2212

CANJ

PN28

.30.

0106

)21

2JP

N,EE

CUSA

ex28.30

)25

2416

JPNE

ECUS

Aea28.35

)10

2JPN,

EEC,

SWE,USA

28.38

.020

6)

821

EEC.

JPM,

CHN

USAex

28.3

8)

302

169

JFN.

USA.

EEC

ex28.42

)91

5EC

.JPN

USAB

KGex28.43

)25

21,499

JPNEEC

ex20.48

)411

JPNE

ECCI

Dl.U

SA

Sub-Total

4,811

2620X-1021

4.817

Fini

shed

manufactures

75.0

6302

641

JPN,

USAE

EC.S

CP

Sub-

Tota

l641

3030

302

641

Total

24,8

04Free-301

24.8

04

Tariff

range.

2Ava

llab

letr

ade

flow

information

does

net

diet

ingu

ish

between

unwrought

and

wrou

ght

elec

tro-

plat

ing

anod

es.

This

item

has

been

incl

uded

lnth

ecalculation

ofthe

simp

letariff

aver

age

for

bath

unwrought

and

wrou

ght

nickel

but

only

Inun

wrou

ght

nick

elfo

rth

etr

ade

weighted

tariff

average.

3Where

the

nick

elch

emic

alproduct

are

not

specified

sepa

rate

lyindicatedd

by"ex"

infront

ofth

eta

riff

number)

may

incl

ude

impo

rts

ofch

emic

alpr

oduc

tsother

than

thos

eof

nickel.

Since

this

occu

rsin

the

majo

rity

ofthe

chemical

aver

age

has

been

calc

ulat

edin

resp

ect

ofthese

prod

uct.

(>)

Roun

dra

ts(Schedule

LX-Korea.Rep.

of).

éTemporary

duty.

This

rate

has

been

used

inthe

calculation

ofth

eta

riff

average.

Sour

ces:

Statiatical

Year

book

ofForeign

Trad

e19

83,

Office

ofCustoms

Admi

nist

rati

on,

Dece

mber

1983.

Inte

rnat

iona

lCu

stom

sJournal,.

Korea

1982-83,

Brus

aeia

1982.

the

trad

ef low

figures

prod

ucts

nowe

ight

edtariff

Page 94: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

COUNTRY:

Nalays

iaYe

ar:

1982

Table37

Table

37

Ivorta

et

Nickel

and

Nickel

Fgodocts

gnseofDifferent

Stanes

aTariff

Treatment

Accordint

ta

States

Pracessina

(inUS

$'OO

0)

Prod

uctA

vera

geTa

Miff

Total

Tari

ffer

aze

HFN

Other

Pref

eren

ces

Desc

r%pW

ion

NoiI

mpor

teSi

mple

XVe

ight

edRa

tgVa

lue

Orîgin

Rate

Value

Oril

in

Ore

and

concentrates

26.0

F1r1

0Viet

43EE

C,US

Aah

and

resi

duea

(ex2

6.03

.900

)10

t(2

.302

)SG

PJPO

USAE

EC,1

1D

Sub-

Tota

l43

59.8

Free

-lOI

'43

Unwr

ough

ttte

and

opet

as75.01.

100

lEE

C,AU

Sna

loye

d75.01.310

212

CAN.

USAN

OR,F

INME

Clloyed

75.01.320

Free

1,369

JPN,

USA,

EEC,

SG?,

K0R

sate

andcrap

75.01.200

2US

AFerro-nickel

ex73.02.900

977

AUSU

SAEE

CJPN

Paid

ers

and

flakes

75032

I0S

-SGF.JPN.HIKC,EC

Elac

tro-

plat

ing

anod

es75Vos3cFree

P408

EEC,NOR,JPNSG!

Sub-

Tot4

l2,979

1.4

0.0

Fres-lOI

2,979

brou

ght

75.0

2EE

CSGP

253

IND.

IÙCU

SA,A

US,-

7503

1O01,

598

SGP.

JPN,

HIGE

EC75

0416

JPHS

SPUS

AAUS

7So52

Fret

-EE

C,14

0ROJ

PN.E

CP

Sub-Total

1.867

7.5

10Fr

ee-1

01,867

hemicals4

ex28.28

784

JPN.

NCR,

UEC,

SCPU

SAex

28.3

0.90

0G

HN2,630

JPN,SCP,EEC,USA,Chi

es28

.35.

900

HN96

EEC,

JPNC

II,U

SA,A

USex28.38

.290

PTW

772

JPH,

EECU

SASU

H,FT

Uex28e39

EP

HFr

et52

5US

A.SE

CJFN

CIN,

CHL

ex28.42.

200

WOER

2,321

JPN,EEC,CHN,PTV,DD

ex28.43

GPP

WE716

SWF,

EECU

SA,J

tNS1

Sex

28.4

8.90

0GP

77EEC,JPN,SO?,USA,AUS

Sub-Total

7,921

0.0

Free

7.921

Vlniehed

manufactures

75.06

1011

9JI

N,US

A,EE

C,HK

G,oe

B

Sub-Total

119

1010

1011

9

Total

12.9

29Fr

ee-1

0212,929

Tariff

range.

2Powders

fndmflakesthave

notbeen

iden

tifi

edseparately

trou

the

olher

items

under

head

ing

75.0

3.Tr

ade

floae

unde

rthis

tariff

head

ing

(and

therefore

the

calculaced

weighted

tariff

aver

age)

have

been

included

unde

rwr

ough

tnickel,

but

the

simp

letariff

average

calculations

forunviought

and

wrought

nick

elbath

include

the

tariff

rate

appl

ied

tota

riff

heed

ing

75.03.

3Avastthe

trad

efl

orgi

nfor

mawi

ondies

not

dlst

ingu

iah

betweeT

unwrnghthand

brou

ght

elec

tro-

piat

ing

anodes.

Ihis

item

basbe

enin

clud

edln

the

calculation

ofth

ewsi

mple

tariff

average

forbo

thunwrotght

andvr

ough

tni

cwel

but

only

inunwrought

nick

elfor

the

trad

e-ve

ight

edta

riff

average.

4Iiere

the

nickel

chemical

product

are

not

apecifind

separately

(ind

icat

edby

"ex"

Infront

ofthe

tariff

numb

er)

the

trade

flow

figu

res

may

Incl

ude

imported

ofchemicaisproductsather

than

those

ofnickem.

Since

thia

occu

wein

the

majo

rity

ofth

ech

auic

alproducts

novsighted

tari

ffav

erag

ehan

been

calc

ulat

ed.

(B)

îoun

drets

(Schedule

LXXIX-Malaysta).

(-)

Nil

orla

soth

anUS

$500

.

Sotsces:

Exte

rnal

Trad

e198s,

ImporunlaVal.11

1and

2.Departmont

ofStatiaties,

K.ia

lLu

mpur

.tiiBrussels,ual

Çustoma

Jour

nal

Hala

ytaa

1981-82,

liroaannl

1981

srch

ange

Rate

l982:

2.33

54Rl

nggi

tper

US5,

I1F

International

Financial

Stat

tati

ce1984.

l3

a)0

O-n

4stu

O--%

Page 95: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

COUNTRY:

Spain

YEAR:

1982

(tra

de),

1983

-84

tari

fftrentm

ent)

Product

Toriff

Description

No

Tota

lImports

Imported

ofNi

ckte

land

Nickel

Prod

ucts

under

Diff

eren

tSt

ages

ofTa

riff

Treatment

Acco

rdin

gto

Stag

esof

Processing

Simp

leXWeighted

2Rate

MFN

Value

Origin

Rate

In

Us$'000)

Othter

Pref

eren

ces1

Value-

Origin

Ores

and

conc

entr

ates

26.0

1)

Free

61SU

EAsh

and

residues

26.0

3)

65USA

450

EEC,

AUT

Sub-Total

576

Free

655II

Unwrou

ghtMatte

and

spec

ies

75.01

8,961

CUBAUS.CAHNUSA.ZWE

1907

EECF

IN.N

ORUnalloyed

75.0

120,85

4USACAN

ZAFZW

EAUS

5,529

EEC,OR

FINC

HEAI

loye

d75

.01

Free

(C)

430

CAN,

ZAFU

SA410

EEC,

Clk

Waste

and

scra

p75.01

2USA

58EEC

Ferro-nickel

73.02.51

Free

31,4

84DOM

,NCL,

USA

3.36

1EE

C.AI

JTPowders

and

flak

es75.03.20

)15

USAC

ANAUS.ZAF

840

EEC.

Si4E

Oie

Elec

tro-

plat

ing

anodes

15.05.10

4.5S

.31

EEC

Sub-Total

45.9

480.

60.0

Free-4.512

33.8

0612

.142

wrought

75.0

2.10

.13.52

-4

EEC

15.0

2.10

.28.5X

-9

CEC

75.0

2.10

.355

13US

A289

EECA

UT15.02.55.

7.Z}i

1)139

USAJPN

662

EECiEAiUTSWE

75.0

2.55

.292$N)

33USA

1,284

EEC.SUE.AUTCIIE

75.01.11

3..ZS

66EE

CAUT

75.03.15.1

S.13

2US

A74

3EEC,SWE.CHE

75.0

1.15

.21.

51114»

1~~~~~135

ISSA

.JPM

352

EECC

HE75.04

5.52

83USA

33EE

C,AU

T75

.04

9h(11

)43

USA

506

EEC

15.04

10.8 a

n14

EEC,CHE

75.04

Il.8Xoz

,-

USA

60EE

C15

.04.

20A

4Z1H

4USA

22EEC,AUT

75.0

5.80

4.5_

Sub-

Tota

lI4.

626

8.1

7.7

I.5-

I.îi

.Bî2

582

4,04

4Chemicals

28.2

8.40

10.5X

101

CAN

l3EE

C28.30.55

10.5X

60SI

IN.I

ISA

220

EEC

28.3

0.90

.9I2

.5X

26C(

:N.U

SA24

1I;

EC28

.30.

95?1ù)

15IIlR

ISR,

JPN,

USA

78EI

EC28

30.98.9

24.4b

USA

31EEC

ex28

.35

1Ii24

4EECAUT

2818

655h

SUR

486

ECC,FIN,

CHE28.38.(î5

10<1>

5Ol

86ir

.rncnlg

28.38

.89.

9i,1

2_

EEC

28.3

8.90

20.?12

(Il)

7ISSA

696

EEC

ex28

.39.

5U19X

8CIl

lN.USA

51FE

C28

.42.

8920.

0111()

IJPN

31EE

l:Nn

Rex

28.4

215

_ex28.43

21.4

11)-

USA

46EF

.CCI

iE28.43.91

21).

(8)

80SU

N,CH

N310

EEC

28.48.99

152

25USA

256

EECA

UTSub-Total

3.191

18.8

10.5

x-24

:1,2

240

12.190

Finished

manu

fact

ures

75.0

613

.2z(

n)97

JPN.

USAC

SK961

EECAUT

Sub-

Tota

l1,058

13.2

13.2

13.2X

9796

1To

tal.

55,399

Free-24.4I

14,9

5120

_148

_

Unde

rArticle

XXIV

a25

per

cent

reduction

ofth

eactual

m.t.n.

duy

rate

lngrated

toIm

port

soriglnating

litFE

Cand

FFTA

coun

trie

sexcept

fort

-ni

ckel

ores

andco

ncen

trat

esto

which

60pear

cent

rehd

ucti

onapp

liesia

tnappl

e.sa

itemsh

ading

CCCN

einli

75.g

1ast

eiuain

ascrap

,whic

hare

granted

a60

percent r

educ

tion

whenor

igin

atin

gin

anEECco

untr

y.in

atii

ngln

EEC

coun

try.

2Tariff

range.

31Ulere

tcts

nick

enot

specifiedseparately(

Indicatedby

"ex"

infront

ofta

riffnumber)thetradeflowfigures

mayt

eber

)tIle

trade

fito

fre.

ay

products

othe

rthanth

oseof

nick

el.Sincethis

occurs

inanu

mber

of

theCh

emic

alpr

oduc

ts,nowe

ight

edta

riffave

ragea

iiidî,

Ir

<.1

0tIrlIt-cnltlucta.

tusi

eilgliitei

Unr

iIflU

aver

age

laeu

hecn

,calculated

for

nick

elch

etic

alpruduhc

(>)

ousind

rate

(Scl

edul

eXhV

-Sl

ain)

.(-

)tl11

or

lena

tisn

itIISS.

Adur

cent

secc

ion

deEa

tadi

stic

s,Madrid.lor

ti*Ep

anit

n.lilrerulst

general

AaIn

n:as

.Sarclait

dleEt

atdi

tica

s.liiid.

1984

.se

Haie

6iaeii

I88

îen-îa

9lUS

ett

ite

nr.

itOai

icilil

iten.

1914

.

TaI l

al

-

_3w

ctl

CD-.

VISi

(}

6|-

-e

Page 96: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/231Page 96

of nickel products come from sources enjoying preferential duties and therest from m.f.n. duty sources.

137. About 84 per cent of total nickel imports in 1982 were duty-free.They comprise ores and concentrates, ash and residues, and all unwroughtnickel products except electroplating anodes which are subject to an m.f.n.duty of 4.5 per cent. Imports of these products come from various sources;matte and speiss come from Cuba, Australia, Canada, United States,Zimbabwe, EEC, Finland and Norway; unwrought refined nickel and nickelalloys come from the United States, EEC, Canada, Zimbabwe, Australia,Republic of South Africa, Norway, Finland and Switzerland; while importsof ferro-nickel come mainly from the Dominican Republic, New Caledonia,United States, EEC and Austria. The rest of nickel imports are subject tobound and unbound duties varying from 2.5 to 24.4 per cent. Wrought nickelproducts are subject to bound and unbound m.f.n. duties ranging from 3.5per cent to 13.8 per cent. The simple and weighted average duties being8.1 per cent and 7.7 per cent respectively. Imports come mainly from theUnited States, EEC, Japan and EFTA. Imports of nickel chemical productsare subject to bound and unbound duties varying between 10.4 and 24.4 percent with a simple average of 18.8 per cent. Imports of chemical productscome from Canada, United States, EEC, EFTA, Japan, USSR, Republic of China,and Israel. Imports of finished nickel manufactures are subject to a boundm.f.n. duty of 13.2 per cent, the simple and weighted average duties alsobeing 13.2 per cent. Imports come from Japan, United States, EEC, Austriaand Czechoslovakia.

138. Singapore is a net importer of nickel products. Including chemicalproducts, total imports amounted to about US$38..7 million in 1983 andcovered products ranging from ores and concentrates to finishedmanufactures. Imports of nickel chemical products and other chemicalsfalling under the same tariff llnes amounted to US$18.7 million in 1983.Table 39 shows that a"l imports of nickel products into Singapore areduty-free on an m.f.n. basis according to 1984-85 tariff treatment.Imports of ore and concentrates come from the Philippines while those ofash and residues come from Japan, Malaysia, Australia and the EEC. Importsof unwrought refined nickel come mainly from New Caledonia, Canada, EEC andJapan while ferro-nickel imports come from Australia, EEC, Japan,Philippines and Mozambique. Imports of wrought nickel products come fromthe United States, EEC, Japan, Sweden, Australia, Canada and Norway and thesources for the imports of nickel chemicals are mainly Norway, EEC, UnitedStates, Japan, Republic of China, Israel, German Democratic Republic andHong Kong. Imports of finished nickel manufactures come mainly from theEEC, Hong Kong, India, United States and Japan.

139. Thailand imported in 1982 a total of US$8.4 million worth of nickelproducts, including nickel chemicals. Imports of nickel chemicals togetherwith other chemicals falling under the same tariff heading amounted toUS$4.4 million. Import duties on nickel products range from 1 to 50 percent. Imports of ores and concentrates, ash and residues are very small

1Under thé terms of the preferential trade agreements between Spainand the EEC and between Spain and EFTA and in accordance with Article XXIVof the GATT a 25 per cent reduction of the actual m.f.n. duty rate isgranted te imports originating in the EEC and EFTA countries.

Page 97: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Year:

1983

(trade).

1984

-85

(tar

iff

treatment)

lmports

ofNi

ckel

and

Nick

elProducts

unde

rDifferent

Stages

ofTa

riff

Trea

tmen

tAc

cord

ing

toSt

ages

ofPr

oces

sing

(in

US$'000)

Product

Teri

ffTotal

Tari

ffAverage

HFN

Othe

rPreferencet

Description

NoImports

Simple

XWeighted

%Rate

Valu

eOrigin

Rate

Value

Origin

Ores

and

concentrates

26.0

1.24

0)1,401

PHL

Ash

and

residues

ex26.03.900

Free

(2.0

37)

JPN,MYS,AUS,EEC

Sub-

Tota

l1,401

1,401

Unwrought

Matte

and

spei

ss7S.01.900

)5

a.&.

Unal

loye

d75.

01.200

13,921

NCLC

ANEE

WJP?

Alloyed

)1.2

ILCuE.P

Waste

and

scrap

75.01.l00

)Freo

229

HNTS

HLFerro-Nickel

)x7

102

900

)I,558

AUSI

OZeE

C.JP

NPHL

Powd

are

end

flakes

e5 032

)_USA2.901

-AUS

Electro-plating

anodes

75.0

5147

EECCANJPNUSA

Sub-

Tota

l16,460

16,4

60

Wrought

75.02

3317

USA,

EEC,

SWEJ

FN15

.03

)446

USA.JPN,EECAUS

74.04$

Frea

62EEC

,JPN

Sub-

Tota

l845

845

Chemicals3

ex28.28

62,030

JNRI

C.US

A.ip

CJC

ex28.30

)4,462

JPNISRUSAECCG

ex28.35

121

CHN,

EEC

ex28.38.900

1.830

FV,E

ECJp

uCIN

,IS

ex28

39Fr

ee1.

292

EECISRNORCHL,

ex28.42.900

7,458

KENEECUSA,DDR,JP

ex28.43

I,215

EEC.

JPN;

USAH

KGex

28.4

830

9EEC,USAJeNHKG

Sub-Total

18,717

18.1

7

Fini

shed

manu

fact

ures

75.06

1,290

EECH

XG,I

ND,U

SA,J

u

Sub-

Tota

l1,290

1.29

0

Tota

l38

,713

Frea

38,1

13~~~~

¹Pow

ders

and

Flakes

have

not

been

Identifled

separately

from

the

other

items

unde

rheading

therefore

the

calc

ulat

edav

erag

e)ha

vebeen

Incl

uded

under

wrought

nick

elbu

tthe

simple

tari

ffni

ckel

both

Incl

ude

the

tariff

rate

applied

tota

riff

heading

15.03.

75.0

3.Trade

flows

unde

rthis

tariff

heading

(and

average

calculations

fur

unwrought

and

wrou

ght

a s

Avai

labl

etrade

flow

information

daes

not

distinguish

between

unwrought

and

brought

elec

tro-

plat

ing

anod

es.

This

item

has

been

incl

uded

inth

eca

lcul

atio

nof

the

simple

tariff

aver

age

for

both

unwr

ough

tan

dwrought

nickel

but

unly

lnunwrought

nickel

for

the

trad

e-we

ight

edtariff

aver

age.

³Whe

reth

enickel

chemical

prod

ucts

are

not

spec

ifie

dse

para

tely

(ind

icat

edby

"ex"

lnfront

ofth

etariff

numb

er)

the

trad

efl

owfi

gure

sma

yin

clud

eimports

ofchemical

prod

ucts

other

than

those

ofni

cekl

.Since

this

occurs

inth

ema

jori

tyof

the

chemical

products

nowe

ight

edta

riff

aver

age

hasbeen

calc

ulat

edIn

resp

ect

ofthese

prod

ucts

.(B)

foun

drate

(Schedule

LXIII

-Slngapore).

(-)

Nil

orless

than

US$5

00.

Sour

ces:

Sing

apor

eTrade

Statistics.

Import

and

Exports,

Vol.

IVNo

12Department

ofStatistice.

Sing

apor

e.19

83.

Inte

rnat

iona

lCustoms

Jour

nal.

Singapore

1984-85,

Brus

sels

1984.

Exchange

Rate

1983:

2.1131

Singupore

Dollars

par

US$,

IMF

Inte

rnat

inal

Fina

ncia

lSt

atis

tics

,19

84.

Table

39CO

UNTR

Y:Singapore

Page 98: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

COUNTRY:

Thal

land

YEAR

:19

82(trade),

1984

Table

40

(tar

iff

trea

tmen

t)

Impo

rtof

Nickel

end

Nickel

Producte

unde

rDifferent

Stages

ofTariff

Treatuent

Accordtng

toSt

ages

ofProcessing

(lnUS$'000)

Prod

uct

Tari

ffTotal

Tariff

Ave

MFN

Othe

rPreferences¹

Descript

ion

NoIm

port

sSi

mple

%We

ight

ed%

Rate

Value

Orig

inRate

Value

Orig

in

Ores

and

concentrates

ex26

.01.

39((158

>CH

N,AU

S,JP

N,EE

CAs

hand

resi

dues

ex26

.03

Sub-Total

_3

32-

Unwrought

Matte

and

spei

ss75

.01.

0115

AUS

Unalloyed

75.0

1.03

2,66

1CAH.NOREECJPNFIN

Allo

yed

15.01.04

80SUN

0.9

-

Waste

and

scrap

15.0

1_

Ferro-nickel

73.02.02

529

NOR

Powders

and

flakes

75.03.

122

20Z

36EEC,SIJE

Elec

tro-

plat

ing

anod

es15

.05.

00302

IPT

VUSA

Sub-Total

2.80

28.4

l.3

12-3

022.802

Wrou

ght

15.02

152

605

JPNEEC,CHEAUTUSA

15.03.11

202

-EEC

15.0

3.21

15258

5JP

NEEC

SGP

75.04

012

25EE

C.US

A75.05

30S

PT_,USA

Sub-Total

1.21

517.6

ISISZ-3023

1.215

Chem

ical

s4ex

28.2

8.09

901

NORJ

PN.E

CAUS

ACAN

ex28

.30.

2968

1EE

C,JP

N,C1

IN,P

IWDD

Rex

28.3

5.09

65EEC,PWUSAKOR

ex28.38.29

102

1,225

JPNE

ECUS

ACII

NPW

ex28.39

241

REC,CRN,ISRJPN,CHE

exl8

.42.

09804

KEN,

HKC,

EECC

IIN,

RO0*

exZd

.43.

0934

56EC,JPN,CHN

exZ.

48.8

00110

EECJ

PN.C

IN

Sub-

Tota

l4,

374

10102

4,374

Fini

shed

manufactures

75.06.01

502

-USA

75.0

6.09

30Z*

17J'NUSA,EEC

Sub-

Tota

l17

4030

30I-

50%3

17

Total

8,406

IS-5

sh3

8,40

6

¹Preferential

treatment

granted

toASEAN

coun

trie

s.

²Avail

able

trade

flow

information

daes

not

distinguish

betw

een

unwrought

and

wrought

etectro-plating

anodes.

This

item

has

been

lncl

uded

in

tie

calculation

ofthe

simp

leta

riff

average

for

bath

unwr

ough

tan

dwrought

nick

elbut

only

Inun

wrou

ght

nick

elfor

the

trad

e-we

ight

edta

riff

average.

3Tar

iff

range.

4Whe

rethe

nick

elch

emic

alpr

oduc

tsare

not

spef

icie

dseparately

(ind

icat

edby

"ex"

infront

ofthe

tariff

number)

may

unclude

imports

ofch

emic

alproducts

other

than

those

ofni

ckel

.Si

nce

this

occurs

lnthe

majo

rity

ofth

ech

emic

alta

riff

average

has

been

calculated

tnrespect

ofth

ese

products.

(B)

Bound

rate

(Schcdtule

VI-

Thai

land

).(-)

Nil

or

less

than

US$500.

Sources:

-Fo

reig

nTrade

Statistics

ofThailand,

December

1982/B.E.2525.

Department

ofCu

stom

s,Ba

ngko

k.-

zrttund-Iandie1

sInform.atIon,

1984

.-GA

fl:l

,/47

32.

Exchange

Rate

1982

:23

.08alht

per

US$,IMF

international

Financial

Statistics,

1984.

the

trad

efl

owfi

gure

sproduct

nowe

ight

ed

' ~ %J

Page 99: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 99

and are subject to an m.f.n. duty of 3 per cent. Table 40 shows that.unwrought refined nickel products constitute the most important nickelimport product. The rate of duty is 1 per cent and imports come mainlyfrom Canada, Norway, EEC, Japan and Finland. The rates on the otherunwrought products varied from 5 per cent on ferro-nickel, 20 per cent onnickel powders and flakes to 30 per cent on electroplating anodes. Thesimple average tariff on unwrought products is 8.4 per cent and theweighted average is 1.3 per cent. On wrought nickel products import dutiesrange from 15 to 30 per cent, the simple average duty is 17.6 per cent andthe weighted average 15 per cent. Imports come mainly from Japan, EEC,United States, Singapore, Austria and Switzerland. Thailand imposes a dutyof 10 per cent on all imports of nickel chemical products and imports comefrom varied sources, the main ones being Japan, EEC, United States, Canada,Republic of China and Hong Kong. Imports of finished nickel manufacturesare subject to duties of 30 to 50 per cent. Imports are very small andcome from Japan, United States and the EEC. The simple ar.d weightedaverage tariffs on finished manufactures are 40 per cent and 30 per centrespectively.

140. Yugoslavia is a net importer of nickel products although it has somedomestic mine production. Including nickel chemicals, imports in 1980/81amounted to US$57.8 million, 38.4 per cent of which was made up of importsof unwrought products mainly matte, alloyed nickel and ferro-nickel,10.6 per cent wrought products, and 3.8 per cent finished nickelmanufactures. Imports of chemical products amounted to, US$27.2 million or47.1 per cent of total imports. Import duties on nickel products variedfrom 3 to 15 per cent on the basis of 1980-81 Yugoslavian tariff treatment.

141. As Table 41 shows, crude primary products, mainly ores andconcentrates as well as ash and residues are subject to a 5 per cent m.f.n.duty rate. There were no imports of ores and concentrates. The importduties on unwrought products varied from 3 to 15 per cent and apart fromsmall amounts of matte and of nickel powders and flakes, the main importeditems are alloyed nickel products (3 per cent duty), ferro-nickel (15 percent duty) and electroplating anodes (5 per cent duty). Imports of alloyednickel come mainly from the USSR, Australia, EEC and the United States.Those of ferro-nickel come from Norway, EEC, Sweden, Brazil andSwitzerland and electroplating anodes come from the EEC, Japan and theUnited States.

142. The nominal m.f.n. duty rate on imports of wrought nickel products, aswell as the simple and weighted average rate is 5 per cent and the mainsources of imports are the EEC, Japan, Sweden, United States, Hungary andPoland. The import duties on imports of nickel chemicals varies from 5 to10 per cent and imports come mainly from the EEC, Japan, USSR, GermanDemocratic Republic, Republic of China, Romania, Norway, Poland,Czechoslovakia, United States, Sweden and Switzerland. On the other hand,import duties on finished nickel manufactures are 10 to 12 per cent givingsimple and weighted average duties of 11.7 and 10.6 per cent respectively.Imports of finished manufactures come mainly from the EEC, Japan, UnitedStates, Spain and Switzerland.

143. Table 42 summarizes the tariff treatment of nickel and nickel productsin eight countries which have not been considered separately, namely,Chile, Czechoslovakia, Egypt, Iran, Nigeria, Poland, Romania, Venezuela.As in the previous Tables, it analyses the tariff rates according todifferent stages of processing.

Page 100: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

YEAR

:1980

(trade),

1980

-81

(tariff

trea

tmen

t)

Impo

rtof

Nick

elan

dNickel

Prod

ucts

under

Diff

eren

tSt

ages

ofTariff

Treatment

Accordtng

toSt

ages

ofPr

oces

sing

(in

US$,000)

Prod

uct

Tariff

Tota

lTariff

Average

HFN

Othe

rPr

efer

ence

sDescription

NOIm

port

eSi

mple

XWeighted

1Rate

Value

origin

Rate

Valu

eOrigin

Ores

and

concentrate

26.0

152

-

Ashan

dresidues

ex26.03

51(Q

)(150)

AUT,

CHE,

EEC

Sub-Tota

l5

55

-

Unwrought

lattes

and

speiss

75.0

15X

518

EEC

Unalloyed

75.0

1)

-AI

loye

d75.0

1)

3<')

>13

.684

SUNAUSEECUSA

Waste

and

scrap

15.0

l52

3AUT

Ferr

o-ni

ckel

ex73.02

152(

Q)5S

,989

EECN

ORSI

WECH

EBR

Powd

ers

and

flak

es75

03)

371

.EECJPN,POL,USA

lectro-platting

anod

es75

.05

)1,675

EEC,

JPN,

USA

2Su

b-To

tal

22,2

405.

96.

532

-152

22,2

40

rought

15.0

2)

3.582

EECSWEHUN

75.03

)5

2,122

EECIIUNSWEUSA

75.041

)456

EECSWEPOL

75.0

5)

-EE

CJPN

,USA

Sub-

Tota

l6,160

55

526,160

heuicals3

ex2a

.28

723,509

EEC.

JPN.

SUNC

IINN

ORexZ8.30

5X3,

448

EECD

DRSU

NI,C

HNES

Pex28.30

855

2SUNEEC

ex28.30

)21

1EEC,JPN,CHE,SUN

ex28

.35

)2,

446

EECSUNDDRROH

ex28.38

*1

8,406

EEC,

SUN.

DDRP

OLCI

INex

28.39

)1I0

1,546

EECPOLDDRCSKISR

ex2.42

)5.

286

EECS

UNDD

R,CS

K.CI

IEex2H.43

1)

1,012

EEC,

SUN,

C1IH

SWE

ex28

.48

)801

EECU

SA,J

Pl

Sub-Total

27,226

9.4

5_I0

o22

Z7,226

inlahed

manu

fact

ures

15.06

101,598

EEC

75.06

Il.609

EEC.EL

SPCIIE

JPU.US

ASu

b-To

tal

2,20t

l.7

10.6

102-12S2

2,20

7

Total

57,833

31-1522

57.833

Avai

labl

etr

ade

flow

info

rmat

ion

does

not

distinguish

between

unwrought

and

wrou

ght

electro-plating

anodes.

This

item

has

been

incl

uded

inthe

calculation

ofth

esi

mple

tariff

aver

age

for

bath

unwr

ough

tan

dwr

ough

tni

ckel

but

only

inun

wrou

ght

nickel

for

the

trade-veighted

tariff

aver

age.

Tariff

rang

e.

Where

the

nick

elch

emic

alpr

oduc

tsar

eno

tspecified

separately

(ind

icat

edby

"ex"

infr

ont

ofth

eta

riff

number)

the

trade

flow

figu

res

may

incl

ude

imports

ofchemicals

products

othe

rthan

thos

eof

nickel.

Since

this

occu

rsIn

the

majority

ofthe

chem

ical

prod

ucts

,no

weighted

tari

ffaveragee

has

been

calc

ulat

edIn

respect

ofthese

products.

(8)

Boun

drate

(Schedule

LVII

-Yigoslavia).

(Q)

Cust

oms

quotas

may

besp

ecif

ied

pursuant

tostipulations

ofarticle

49of

the

Cust

oms

Act.

(-)

Nil

orle

sstitan

US$500.

Sour

ces:

Statistics

ofFo

reig

nTradeof

the

SFR

Yagu

sala

via

for

1980,

Fede

ral

Inst

itut

efo

rSt

atistIcs,

Beograd

1981.

InternationalCustoms

Jourinal,

Yugo

slav

ia19

80-8

1Br

unrs

els,

1980

.Exchange

Rate

6/19

80:

27.3

dîne

rspe

rUS

$,according

toDecision

ofthe

Federal

Executive

Council

ondi

nar

party.

3.

'.

0

COUN

TRY:

Yugoslavia

Tabl

e41

Page 101: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Tabl

e42

Nickel

and

Nick

elProducta

Tariff

Rate

sAc

cord

ing

toDi

ffer

ent

Stag

esof

Proc

essi

ng(indicates

coun

trie

sfo

rwh

ich

trade

stat

isti

cson

tariff

line

bast

ear

eno

tavailable)

Product

Desc

ript

ion

Tari

ff1982-83

1982

-83

1981-82

1979

1984

1981

-62

1976-77

1982

No.

Chile*

Czechoslovakia

Egypt

Iran

Nigeria

Pola

ndRo

mani

aVe

nezu

ela

Ores

and

concentrate

26.0

1)

))

2I)

Free

5%Free

10I

Ash

and

residues

ex26.03

)10

)Fr

ee(B

))

)33

.32

Free

5S)

Unwrought

Matte

and

spei

ss15

.01

))

))

))

Unal

loye

d75

.01

))

))

))

)Al

lowe

d75

.01

)Frec(B>

)2S(B)

)5I

)66.6S

)Fr

ec)

Free(B)

)Wa

ste

and

scra

p75.01

)OI

))

))

))

ISFerro-nickel

ex73

.02

))

)5

)S

Powd

ers

and

flakes

75.03

6.52

(5)

15I

152

102

))

Free

>Electro-plating

anodes

75.05

4.252(5)

5I10I

20Z

1I010

2

Wrought

75.02

)1.

5(B)

_)1

5S.10,S33.3S.66.62

))

10S

75.03

)10

1.75

S(B)

,4.5

S(B)

)15

)102,33.31.66.6%

)5S

)Fr

ee251

75.0

41

3S(B)

)20

ZI

toI75.05

)4.25(A)

5210

202

10))

Chem

ical

sex

28.2

852

))

)10

I)

25S

ex28

.30

52(B),7.25S

)52(B)

))

5I.8

S.10

2S22

,5S

ex28.35

4.15I(B)

))

)5S

:oz

)5S.252

ex28.38

102

9.75

I(B)

.52(

B)2I,5S(B)

)15Z

)82

)10

5Sex28.39

4.152(B).5S(B)

1)

12I,

15S1)

5S.15I

)~~~)

)ex

28.4

2)

S)z

5)

)5

ex28

.43

)52

())

)0I

f02

)5)

ex28

.48

>)

))

.i2I

)52

.352

Flnished

manu

fact

urer

s75.06

10S

2I(B).2.52(B).

50,1

752,

IOOI

,250

Z252,1002

66.6S

102

Frea

202

2175t(

i2

Tariff

range

102

Frec

-9.7

5222

-250

252-1002

Free-66.6I

Free-lO

Free

-lOI

12-3

52

*All

tari

ffssho

wnin

the

tabl

ear

ebo

und

at35

per

cent

(Schedule

VII

-Chile).

(B)

Boun

drate

(Schedules:

X-Czechosiovakia;

LXII

-Eg

ypt;

X.II

I-Ni

geri

a;LX

V-

Pola

nd;

LXIX

-Romania

Sour

ces:

-Zo

ll-u

nd-H

ande

lsInformation:

Iran

,Ni

geri

a,Venezuela.

-International

Customs

Jour

nal:

Chile,

Czec

hoas

lova

kia,

Egypt,

Pola

nd,

Rowania/Brussaels.

MDF/W/

2Pa

ge10

a-n

cOnt

,v_.% Il

Page 102: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 102

144. ln Chile the tariff situation as of 1982-83 shows that there was auniform duty of 10 per cent on all nickel products ranging from crude rawmaterials to finished nickel manufactures. In Czechoslovakia the tariffsituation as of 1982-83 shows a range of bound duties varying from zero to9.75 per cent. The duty on crude raw materials, such as ores andconcentrates, ash and residues was zero. The zero duty also coveredintermediate products such as matte and speiss, as well as ferro-nickel andunwrought refined nickel and alloyed nickel. On the other 'and, wroughtproducts were subject to rates of duties varying from 1.5 to 6.5 per cent.On chemical products the tariff rates ranged from 5 to 9.75 pr cent whileduties on finished nickel manufactures varied from 2 to 2.75 per cent.

145. In Egypt the tariff structure which existed in 1981-82 shows a rangeof duties varying from 2 to 2.50 per cent. There vas a duty of 2 per centon crude nickel raw materials such as ores and concentrates as well as onintermediate products, unwrought refined nickel and ferro-nickel. Onnickel chemicals there were two rates of bound duties, 2 per cent and 5 percent, and on wrought nickel products they were 5 per cent and 15 per cent.Finished nickel manufactures were, on the other hand, subject to dutiesranging from 50 to 250 per cent. The rates of duties on nickel and nickelproducts in Iran, as shown in the 1979 tariff systems, indicates a rangevarying from 5 to 100 per cent. Crude raw materials of nickel such as oresand concentrates, ash and residues, intermediate nickel products such asmatte and speiss, unwrought refined nickel, ferro-nickel and alloyed nickelwere subject to a duty of 5 per cent. Chemical nickel products weresubject to a uniform duty of 15 per cent while the duties on wroughtproducts varied from 10 to 15 per cent. Finished nickel manufactures were,on the other hand, subject to duties of 25 per cent and 100 per cent.

146. The 1984 tariff system in Nigeria shows that nickel and nickelproducts are subject to tariffs ranging from zero to 66.6 per cent. Oreand concentrates enjoy a duty-free entry. On the other hand, nickel ashand residues are subject to a duty of 33.3 per cent. Intermediate productsas well as unwrought refined nickel and alloyed nickel are subject toduties of 66.6 per cent, while ferro-nickel has a duty of 5 per cent.Nickel chemicals are subject to two main rates, 5 and 10 per cent. On theother hand, the duties on wrought nickel products range from 5 to 66.6 percent, while finished nickel manufactures are subject to a uniform duty of66.6 per cent.

147. Import duties on nickel products in Poland as of 1931-82 range fromzero to 15 per cent. Crude raw materials such as ores and concentratesattract a duty of 5 per cent, while nickel ash and residues enjoy aduty-free access. Unwrought intermediate products and refined nickel andalloyed nickel also enjoy a duty-free entry, while ferro-nickel imports aresubject to a 5 per cent duty. Nickel chemicals were subject te dutiesranging from 5 to 15 per cent and brought nickel products attracted dutiesof 5 per cent and 10 per cent. Finished nickel manufactures attracted aduty of 10 per cent. The available tariff information on Romania asreflected in the tariff system of 1976-77 shows that all nickel productsimported into Romania were duty-free with the exception of nickel ash andresidues which were subject to a duty of 5 per cent, as well as nickelchemicals which attracted a duty of 10 per cent. The tariff system ofVenezuela in 1982 shows that crude nickel raw materials such as ores andconcentrates, ash and residues attract a duty of 10 per cent; intermediateproducts as well as unwrought nickel and alloyed nickel, ferro-nickel and

Page 103: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 103

nickel powders and flakes, on the other hand, attract a duty of only 1 percent. Electroplating anodes attract a duty of 10 per cent, while wroughtnickel products are subject to duty rates of 10 and 25 per cent. Nickelchemical imports attract duties varying from 2 to 35 per cent, and importsof finished nickel manufactures into Venezuela are subject to a uniformduty of 20 per cent.

19. Tariff escalation and effective tariff protection

148. As pointed out previously in document TAR/W/29, COM.TD/W/369 of 8 June1982, a number of serious difficulties arise in any attempt to measurerates of effective tariff protection with a high degree of precision.These include lack of accurate information on input/output values inspecific industries, as well as other factors such as the estimation of therelative importance of trade flows under m.f.n. and GSP rates, thecalculation of ad valorem tariff equivalents of non-tariff measures, theestablishment of appropriate weighting patterns, and accounting fortechnological change in industries. Nevertheless, as noted in TAR/W/18, of5 March 1981, the effective rate of protection can be assessed withreasonable precision in the early stages of processing. Beyond theunwrought stage, precise measurement of effective rates of protectionbecomes increasingly difficult. As indicated in TAR/W/29 of 8 June 1982,where tariffs show escalation by successive processing stages, effectiverates of protection are higher, often considerably so, than nominal tariffrates themselves.

149. Due to the methodological problems described above, the present studydoes not attempt to analyze effective tariff protection in the nickel ,industry. However, the study shows nominal tariff protection granted tonickel and nickel products. It may be seen from this information thatthere is a fairly widespread tendency in a number of countries for nominaltariffs to increase with the stage of processing. Although many of thecountries examined import nickel ores and concentrates and unwrought nickelduty-free, they apply positive m.f.n. rates of duty on wrought nickelproducts and nickel manufactures. Moreover, with respect to the latter twogroups of products, it is often the case that duties are significantlyhigher on nickel manufactures than on wrought nickel products.

20. Non-tariff measures

150. Table 43 shows non-tariff measures applicable to imports of nickel andnickel products, as notified to the secretariat in the context of theperiodic exercise of updating the Inventories of Non-Tariff Measures. Thelist covers four main measures: import prohibition; licensing; quotasand liberal licensing. The latter is often only an administrative measureand does not have a restrictive effect. In addition to the measures listedin this Table, there exist other measures such as certain forms ofsubsidies which apply to a wide range of products including nickel. Thesemeasures may take the form of govern ental and intergovernmental grants andloans, fiscal measures (e.g. tax incentives for processing industries),research assistance, etc., which are not being dealt with in this study.

151. Purchases of metallic ores and non-ferrous metals and articlesthereof, when made by entities listed in Annex I to the-GATT Agreement on

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Table 43

Non-Tariff Measures Affecting Trade in Nickel and Products Thereof

Nan-tariff measures Product Countries maintainingthe measure

On imports

(a) Prohibitions orembargo

(b) License suspended

(c) DiscretionaryLicensing

ex75.04

75.06 Other articles ofnickel

75.04.0300

75.04.0400

75.06 Other articles ofnickel

26.01.300 Nickel ores andconcentrates

28.30.01 Chlorides andoxychlorides of nickel

28.39.01 Nitrites andnitrates of nickel

28.39 Nitrites andnitrates of nickel

28.48.010 Salts andperoxysalts ofinorganic acids

ex75. Nickel and articlesthereof except matte,waste, scrap (ex75.01)

75.01 Nickel matte, speissand other intermediateproduct of nickelmetallurgy; unwroughtnickel; nickel waste and

scrap

Senegal

Tuinsia

Brazil

Colombia

Israel

Colombia

Ghana

Colombia

MDF/W/21Page 104

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Table 43 (cont'd)

Non-tariff measures Product Countries maintainingthe measure

(d) Quotas

Liberal licensing

75.02 Wrought bars, rods,angles, shapes andsections of nickel;nickel wire

ex75.02 Wrought plates,sheets, strips of nickel,nickel foil, nickelpowders and flakes

75.06 Other articles ofnickel

75.04 Tubes and pipes andblanks thereof of nickel;hollow bars and tubesand pipe fittings, etc.,of nickel

75.05 Electroplatinganodes of nickel, wroughtor unwrought

75.06 Other articles ofnickel

26.01.700 Nickel oresand concentrates

28.39 Nitrites andnitrates of nickel

73.02.38 Ferro-nickel

ex75 Nickel and articlesthereof

26.01.700 Nickel oresand concentrates

28.30 Chlorides andoxychlorides of nickel

28.35 Sulphides, includingpolysulphides of nickel

Colombia

Nigeria

Colombia

Colombia

Colombia

Yugoslavia

Sri Lanka

Yugoslavia

Senegal

Korea

South Africa

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Table 43 (cont'd)

Non-tariff measure Product Countries maintainingthe measure

ex73.02 Ferro-nickel South Africa

75.01 Nickel matte,speissand other intermediateproducts of nickel,unwrought nickel wasteand scrap

75.02 Wrought bars, rods,angles, shapes andsections of nickel;nickel wire

75.03 Wrought plates sheets,strips of nickel, nickelfoil, nickel powdersand flakes

75.04 Tubes, pipes andblanks thereof of nickel;hollow bars and tubesand pipe fittings etc.,of nickel

75.05 Electroplatinganodes of nickel wroughtor unwrought

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Government Procurement, are covered by this Agreement.¹ Statisticalinformation on purchases of such products of government entities in 1981and 1982 have been exchanged amongst the Parties to the Agreement. Itmight be noted that Article VIII of the Agreement contains generalexceptions relating to procurement indispensable for national security ornational defence purposes. In addition, it might be noted that defenceagencies in countries Parties to the Agreement are not covered by theAgreement in respect of purchases of certain specific products.

SECTION V: Activities in Other International Organizations

21. The Third United Nations Conference on the Law of the Sea

152. As a major industrial metal, nickel has been the subject of studies invarious international institutions such as the World Bank, the UnitedNations and UNCTAD. Two major international activities in recent yearswhich are relevant to nickel have been the Third United Nations Conferenceon the Law of the Sea and the attempts by major producers and consumers ofnickel to create an international forum for studies and discussions ofnickel.

153. The Third United Nations Conference on the Law of the Sea (UNCLOS) vasconvened in 1973 and ended, after nine years of negotiations, in theadoption in April 1982 of the United Nations Convention on the Law of theSea which has since been awaiting its entry into force. One of the majorsubjects covered by the Convention is the possible exploitation of themineral resources of the seabed outside national jurisdiction which, asdeep sea exploration has revealed, is covered in numerous areas withnodules rich in manganese, nickel, copper, cobalt and other minerals.

154. Apart from the tremendous technological, environmental and financial²problems involved in deep seabed mining, some of the major long-termproblems are the likely effects on land-based mining of the mineralsinvolved and vice-versa and the need to reconcile conflicting national andcorporate interests. The United Nations Convention on the Law of the Seaprovides, inter alia, for the creation of an International Seabed Authorityto participate in and regulate rational exploitation of deep seabedminerals. This provision has so far not received the general acceptance ofall the countries involved.

¹Members to this Agreement are: Austria, Canada, EEC (Greeceexcepted), Finland, Japan, Norway, Sweden, Switzerland, United States,Israel, Hong Kong and Singapore.

²The original optimism regarding seabed mining has been severelytempered by a growing recognition of the serious technological problemsinvolved and by the price prospects of the minerals to be exploited whichcast serious doubt on their economic viability. The current thinking isthat seabed nodule mining might not be seriously undertaken for a long timeto come.

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22. International cooperation on nickel

155. In spite of the position of nickel as one of the most importantminerals in world trade, international cooperation on nickel unlike thecase with many other minerals, has been practically non-existant. However,moves have been initiated in recent years to remedy this situation. Astudy by Canada and Australia in 1980 on information gaps in nickel whichidentified shortcomings in available nickel statistics, suggested whatwould be required in a nickel data system, and described various forms ofintergovernmental cooperation involving other metals. After a few moreyears of further exploratory studies and discussions in which six of themajor producing and consuming countries of nickel participated, a consensuswas reached at a meeting in March 1984 that intergovernmental consultationsamong themselves had evolved to such a point where there was a need tobroaden the discussions to include the active participation by allgovernments with an interest in the production or consumption of nickel.

156. In response to an invitation by the Governments of Canada andAustralia, an intergovernmental meeting on nickel was held in Geneva from22-24 October 1984. The purpose of this meeting was to explore thepossibility of establishing an intergovernmental nickel discussion group toimprove the statistics and other information on world nickel production,consumption and trade with a view to achieving greater transparency in theinternational nickel economy, and to provide a forum for consultation. Itwas attended by thirty-one countries representing over 95 per cent of worldnickel production and over 90 per cent of world nickel consumption.

157. In welcoming the Australian/Canadian initiative, all delegationsacknowledged both the desirability of developing intergovernmentalcooperation on nickel and the constructive role that could be played by aforum designed to give effect to that development. It was felt that such aforum should provide for the participation of industry representatives asmembers of government delegations.

158. Broad recognition was expressed at the meeting, of the seriousinformation gaps with respect to the world nickel economy, in terms ofquality, timeliness and international comparability of availablestatistics. Most delegations indicated willingness and ability to improvethe quality of nickel data they could provide. Given the very favourableattitudes evident at the meeting cowards developing cooperation, it wasconcluded that serious consideration should now be given in capitals to theearly convening of a subsequent meeting.

159. In this connection, a consensus among the delegations was that theUNCTAD should be requested to convene such a meeting.

160. Under the auspices of UNCTAD a Preparatory Meeting on Nickel was heldfrom 10 to 18 April 1985. The meeting vas attended by thirty-fivecountries including all the main producers and consumers of nickel. Duringthe meeting there was a consensus that there existed substantial scope forimproving intergovernmental cooperation on issues concerning nickel, inparticular, by improving the information available on the internationalnickel economy and by providing a forum for international discussions onnickel. There was a consensus that the Trade and Development Board shouldrequest the Secretary-General of UNCTAD on behalf of the Secretary-Generalof the United Nations, to convene a negotiating conference on. theestablishment of an autonomous International Nickel Study Group, later inthe year. The draft terms of reference of the International Study Groupenvisage the following fuctions:

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1. To establish the capacity for and undertake the continuedmonitoring of the world nickel market and its trends particularlyby establishing, maintaining and continuously updating a-statistical system on the vorld production, stocks, trade andconsumption of all forms of nickel.

2. To conduct between members consultations and exchanges ofinformation on developments related to the production, stocks,trade and consumption of all forms of nickel.

3. To undertake studies as appropriate on a broad range of importantissues concerning nickel.

4. To consider appropriate possible solutions to any specialproblems or difficulties which exist or may be expected to arisein nickel and are unlikely to be resolved in the ordinarydevelopment of world trade.

23. Customs Cooperation Council (Brussels)

161. Attached to this study as Annex II is the section on nickel and nickelproducts of the recently developed "Harmanized System" of commoditydescription and classification. The Harmonized Commodity Description andCoding System (H.S.), developed by the Customs Cooperation Council isenvisaged by the CCC timetable to be applied, for those countries whichdecide to adopt it, as the basis for customs tariffs and internationaltrade statistics nomenclatures with effect from 1 January 1987. Theadoption of the Harmonized System is expected to ensure greater uniformityamong countries in customs classification.

24. Summary and observations

162. Nickel is a major metal in industrial usage due to its intrinsicproperties such as a high melting point, strength, durability, magnetismand resistance to corrosion and oxidization. Its main utilization is inthe production of stainless steel and alloys. Consequently, the volume andrate of its consumption depends directly on the level and rate ofindustrial development. Over 90 per cent of the worlds nickel consumptionis accounted for in the developed market economies and thecentrally-planned economies. However, in recent years the highest growthrate in consumption of nickel has been in the more advanced developingcountries. Since 1950 there has been a rapid growth in the globalconsumption of nickel which reached its highest point in 1979. Thereafterthere was a sharp decline in consumption due mainly to a slowdown inindustrial growth in the developed countries. After reaching a low pointin 1982 the global level of consumption picked up in 1983. In thecentrally-planned economies the level of consumption.in recent yearsappears to have been maintained on a slightly increasing trend, while inthe developing countries the momentum in consumption growth appears to havebeen regained in 1983 after a fall in 1982. A small part of the fall inthe volume of nickel consumption might be attributed to the growingcompetition from other substitutable metals, alloys and non-metallicproducts like plastics. This is the result of recent technologicaladvancements which have enabled them to be employed, in usages hithertoattributed to nickel, at competitive costs.

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163. In tune with the growth in consumption, nickel mine productioncapacity has seen a very rapid development in volume and structure duringthe past three decades especially in the 1950s and 1960s. While in theearly 1950s over 80 per cent of mine production came mainly from sulphideores in Canada, technological developments, which have enabled the use offerro-nickel in stainless steel production, have led to a rapid developmentof laterite ores which are mostly located in tropical countries. Thus in1983, developing countries accounted for 33.1 per cent of total mineproduction as against 36.5 per cent for developed countries and 30.4 percent for centrally-planned economy countries. With developing countriesnow accounting for over 50 per cent of know nickel reserves, it is likelythat their share in total mine production will continue to grow. Thedevelopment of production capacity inthe 1960s and early 1970s hasbeen such that with the decline in consumption over capacity has become amajor feature in the nickel industry.

164. The corporate structure of nickel production has also undergoneconsiderable changes in recent decades. In the 1950s and 1960s productionwas dominated by only three major mining companies to such an extent thatthey could set and control price. While the corporate structure is stillrelatively concentrated, about 44 companies now participate in mineproduction and prices are nov largely determined by LME operations.

165. The bulk of international trade in nickel products is in the form ofunwrought refined nickel, alloyed nickel and ferro-nickel. Trade in nickelore has tended to decline and only one major consuming country stillimports ores. increasinglyy, developing countries prefer to export moreprocessed products such as ferro-nickel, nickel oxide sinter, and unwroughtrefined nickel. However, they account for the bulk of the exports ofnickel ores and of intermediate products such as nickel matter. In 1983developing countries accounted for about 27.4 per cent of world exports ofunwrought refined nickel products. Import trade in nickel and nickelproducts is dominated by developed countries. Imports of developingcountries are mostly in the form of unwrought refined products.

166. Until the second half of the 1960s price stability was a major featureof the world's nickel economy with prices being set by the concerted actionof the three major producers. With the fall in the market share of themajor producers, the decline in world consumption and market over supply inthe second half of the 1970s, producer prices gradually lost theirinfluence on the market. With the introduction of LME trading in nickel in1979, its price quotations determined mostly by market forces haveeventually become the basis for pricing in nickel trade.

167. Most developed countries have bound m.f.n. duties on nickel and nickelproducts. A few countries have some m.f.n. duties bound at the ceilinglevel while applied m.f.n. rates are lover. Most of the positive m.f.n.duties are ad valorem. The majority of the positive m.f.n. rates on nickeland nickel products were reduced in the Tokyo Round. In one developedcountry a uniform fiscal duty has been consolidated into a customs tariffwhere imports were previously duty-free.

168. ln almost all developed countries imports of nickel ores andconcentrates are duty-free. In some cases the duty-free treatment extendsto chemicals and unwrought refined nickel products and ferro-nickel.Thereafter tariffs in most countries appear to rise with the degree ofprocessing with the highest duties falling on finished nickel manufactures.

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These duties appear to be protective in character rather than fiscal sincemany developed countries have nickel refining and manufacturing facilities.In this context the escalation of tariffs with the degree of processingcould reveal a high degree of effective tariff protection. On the otherhand the high nominal tariffs observed in many, although not all,developing countries appear to be fiscal rather than protective since manyof these countries have no nickel refining or manufacturing industries. Ina number of developing countries, however, with growing nickel industries,the high tariffs reflect, to an extent, a fairly high degree of protection.

169. Imports of nickel and nickel products into most developed countriesfrom developing countries which are legible for GSP concessions are mostlyduty-free or enjoy reduced preferential rates. Many developed countriesand groups of countries also grant duty-free or preferential rates underother regional arrangements.

170. There are some non-tariff measures on nickel and nickel products, suchas import prohibitions, quotas and licensing in certain countries. Thereare also other measures of a general practice in the form of governmentprocurement or subsidies of various kinds in certain countries. However,no widespread non-tariff measures on nickel products are to be found inmajor importing markets.

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AnnexI

Summary of dot PutcT&M Round TariffmaNiAMdrc andArticlesThereoff~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Sulphides andpolysulpides ofelSpd. a ?polyPutMc i" d.L

Carbon and lbac ofof nickel

cttu and cm a of nsa= d u«Wa c1 ac t aciW

Nicke almp. nyuklt mmd Moaachd

iccamiaca products of nickel

(excluding electro-placing

Wrought beo, rods, angles,shapessandsections of nickel; nickelwirm

liha ex);ni

jm~ fni.L-1Ilde Md of M

of nickel; hollow bau and cubeand

.Joe uec adt fL"m.), of ~

Electro-plating modes of nickel,

P se ro, S1ai~ is

produced by electrolysis

Otherarticlesof nickel

rxwr

Exm 2GSP:Free

From FmGSP: Free

25%(PUUaiY æoe,>LJ (by law) M. hm

GSP: Free

Free

GSP: Free

FreeGSP:Free

Free ~~~~P:m

Free

GSP:Free

Free (partially bourd)

4Z 2:A43r IreC m<ilein P~Fa >b lu)

Free (by law)R-. Fan

Free 2Freea

2ZGSP: Free

20%(Cube and pipefirrings)2%(other)

Up: Fan

30%or AM.ooe/1

GSP: From

Free(B)

Free(B)

Free(B)

Free(B)

Free(B)

Free(B)

Free(B)

Free(B)

Free(B)Free(B)

Free(B)Free(B)

GSP 5.42v.1 edu of a

Free(B)

Free(B)

Free(B)

Free(B)

Free(B)

Free(B)

GSP:3.5dd.doe of Lm

0.d-S 252/1=4 (0.6» S L76.4/lt0o (0.42)

GSP: 0.3Z (M: 0.M2

I0(3) 62(s)M. 4.32 M 3

SUS)

M: 3.iS

L52

GSP. 6.32

&%(a)

6cE)

GSP: 3Z

M: 6S

*As ofJanuary1985(B) - Boundrace

(C) - Ceiling binding

_

2

ex6.0l

ex.03

exm.3O

exm.30

o28.35

28.39

73.01

73.02

75.03

7S.04

73.05

73.06

Free(bylaw)GSP: Free

ffl em-eurf

i11

111

11i1i

1

1

1

1

1.i

11

111

1

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Smmary of Pre-Tokyoand Post-TokyoRound Tariff SituationAffecting Nickel and Articles Thereof

Product I-

afS - -td

Niclkeloxides and hydroxides

Chlorides and1U of nickel

Sulphides and polymuiphides of nickel

Sulphates andpersuophates

Nitrites and nitrates of nickel

Carbonats and percarbonate of nickel

Cyads andcomplexcyi of nickel

Slats and peroxysalts of inorganicacids

Fereo-nickel

Nickel mattes, nickel specissand otherintermediate products of nickel metallurgy;unwrought nickel (excluding electro-plating

annodes); nickel wasteandscrap

Wroughtbars, rods, angles, shapesandacctions of nickel; nickel wire

Wrought plates, sheets and strip of nickelnickel foil; nickel powders andflakes

Tubas and pipes and blanks therefor, of nickel;hollow bars and tube and pipsfittings (forexample joints, elbows, sockets and flanges),of nickel

Uoe-pl"atirg ofa nickel, vrutht aerzwztqmt lrnc3dIlz~dus. pirabai by

Oum.r utidla of nickel

«329001

lMM0-1 (oulte rir, rUa ul ua)

33506-1

d2B35-1

oS2839-1

1,g

es92848-Z(w62848-2 (amanm nickel sulphate)«37506-1

(i) matte355Z I

(ii) unalloyved(lamps, ingots, blocks).C35101-1

(iî) &Lmed (Irtm, bIdcks. sht, ,bi. pip,blooks,slabs)

a3550-1M3550-1

Temporarily Free (till 30/6/1985)*(iv) %qute adW

ac35109-1TMorily Frea (tili 30/611985)*

er35500-1355051

3535-1TemporarilyFree (til 30/6/1985)*

ec35610-1 (classor kindmadein Canada)a i356101 (class orkind not madeinCanada)

71100-5o40121-1)

)c4122-1l) 6,f.)

«z35605-1«35700-1

35515-1 xwer)

35510-1

35700-l

ex35605-1ar358W-1

ac35700-1ex7110O-1

*Custsoms Tariffeffective January 1, 1985, Departmental Consolidation Revenue Canada, CustomsandExcise.

keen o nFU

Free Free(B)

Frai) Fra()

1.52 12.52<1>

152(C) 12.52(1)ZP: FGi SP: Fra

15Z(C (E)152(C) 9E.22(1

UP: Fra CSP: Fra

152(C 12.5 2()C: Pm CSP: FrC:

152(C 12.p(B)W: Fr. GSP: Fm

152(C 92t(s)Fra

152(C) Fu(B)GS: Frai

S2(B) 42Z(B)SP: Fr c: Fri

15e(B) pFra(B)

52(B) 42(B)GSP: Fre GSP: Frai

Frai Free(B)17.5S(C) lO.22(C)

17.5(8) 10.lQ(C)

Frai 4.3t(B)Fr«i 4.22(C)

19B2: Fra17.5S(C) 100.(C)

102 6.82tB)GSP: 52 GQP: 4.5217.52(C) )

) 4.22(C)Fr ) 1982: Froe

17.5S(B) 5.52(B)GSP: 8.5: GSP: 3.5212.5S(B) 4.52t()CSP: 62 CP: 32lS:tB) 10.2StB)

;P: 8.52 GSP: 6.5Z17.52(B) I0. 22(B)

GSP: 9.52 GSP: 6.52

(see above under75.02)17.52(B) 10.2%(B)

GSP: Free CSP: FreeFree(B) Free(B)

Free(E) Free()GSO àba under 75.03)

(see above under75.02)

IFri(B) Fra(B)

(see above under 75.03)

17. 9.5(B) :.r(B)GSP: 9.5S GSP: 6.5S

MDF/W/21Page 113

26601

26.03

«2&28

exM30

ex8M35

v.39

eaL42

iz2.43

w2.48

aex.02

75.01

I75.02

75.03

75.04

75.05

75.06

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MOF/W/21Page 114'

Summary of Pre-Tokyo and post-Tokyo Round TariffSituationAffecting Nickel and Articles Thereof

Nickel oew and

mli"a -- Md hydmmà

Chloridesanda1da mi ag7ch1al ci idcui

=283S IM l hId ci w 1

am.u8 ald ;VU

3M39 l dnt cf1

«xM42 Czgbeum M pmb* of mi

a28.43 CyUaa c a1 Midm of idoel

SaltsZ.468 Sai. Md pacquilsce ioerc ad.

IM3.02Ferro-nickeli.cim

75.01 m actbu , qida, s3aL, end o ur

M cfWUW U i '4&

rt4"1~~%MMMd 22

7-%a2 u * boxe ms*, -Ces duue

7se.m serpt"41 n4ke %75.03 Wrought places, = and strip

:al foLai; :dA1 u

75.04 '`''' p4 ad blk 1 zf,

of nickel; hollows barsandcubeand

a coLsc aud oLdwroughtorunwrought, includingthoseby tlàl

75.06 Other articles ofnickel

Free(B)

10.4Zo)z(s

GSP:Free

1 . Dogscz-jpcloe ac _ _ .

~~~~~~~~~~~~M - 1. _?Mt Fc 1ff

(chlorides)-I 91)

5.6 2c1) (m n)

Gf. ftm

?MO)

?MO)

10.42(3>

5.5(3)sPF

6.92()C: Fm

52M)6=0M. ftm

SUS) )(C *)

&JS2)oeæ*: Fm

8.8SZ() (cmboe11.23) ~GSP: Free

8.SZ(3) ( tM*152cR) (complexcyanides)

11.52(3)

GSP:Free

Free (B)

on)mu

82()6.6ZO).GSP: Free

1=) 5*a)

62Z(W: ?rm

6.6Fr

FM<B)FrM<B)

6Sz() 4.42)M?: Fm G: ?Fra

7M) 4.92(B)0.5S2o (padu ma flkm) 0.52(3)GU. Pa a:. Frm

8U3) 5.32(3)5Z(B) (tub M pe K ) 3.82Mcap: Fra GSP: Fr.

42(3)52(E): ?r.

(w- 3.8S2()(W: Frai

4.5S(3) (sm , =a, c±vs a 'eshmof a sha cbu. or l

I dg me emu 6e5(S3) (orcr1 -miai 3.E

diffaoe dimal>6.52(s) (odur) 4.6

1 Gsp ?r i h P-

3.5:(3)

3)8X

Free (B)

Free(B)

Free(B)e)

Free(B))

Free(B)o)

Free(B)

Free(B)

Free(B)

Free(B)

Free(B)

2=(B)=?: Free

Free (B (powdersand5=() (other)

52(5)

Ge: Free

Free(B)

7.32(B)

¢P: Free

uS)

Free(B)

Free(B)

Free(B)

y%(C)*

Free(B)

Free(B)

Free(B)

Free(B)

1.8:(B)(M: Fm

flk)) fru(B)

1.8(3B)

5P:

Frs«()

5.1z(B)

: Frai

*Sm L/5004

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Summary of Pre-TokyoRound Tariff SituationAffectingNickel and Articles Thereof

'APAUCCCNDescriptionP Powct _m:vL

.2..0l Nickel crossand

Ash and iàm =nwr qa1y n±dckJ.

nickL oes Md hys

.2830 Chlorides andaych1s2 ci wtwL-t

«235 Sulphides andiddu ci IWAo1

.2&.8 Sulphides and l$utm

Nitiritesand u of ~U1CM

Catoeuc id p _ fci .lu

Cynciau and complexld ci nickl

Salts and ummaic i inorganicacids

Ferre-nickel

75.01 Nickel t, .dCai id Ocbe*b ltm pro*= ce (

(a-t.hd3 - );o±cq L w us a

75.02 Wnqc bas. raed, mm,sacrm of :- nickel wire

75.03 plia. 'es sfP off1 'WA f1feu; t1àaL

73.04 Tubesandpipes rafnor,ci mickel llm bm ndo8 Md

pi" f±O (for aopla jours.

eJhU. _maa md lm ), dUd."

75.05 larf q =du ci nL.W=qbXcor uwesc. '="WH dam

produced by electrolysis

75.06 Otherarticles of

52

Free102: 5S=2 (chlorides)

CP. SS102 (=la

GSP: SS52s

GSP: 5

5S2GSP: Free

222 (cy )

25: S2

25

Free(B)

Free(B)

Free(B)

ùow)

3.SZC)GSP:Free

6.22(8)

8.92(3)GSP. 526.22(8)GSP: 2%

9.8Z(8)

8.92(8)

GSP: sz

3.8Z(B)GSP: Free

9.Z= )

Ftu0)

Free)

2(3)GSP: Free

7.52(3)GSP:Free

52(8)G: Fru

=OCs)7.52(3)G?: FP

7.52(8)(W: tu

7.52SS)GSP: Free

. 7.J2()

Free(E)

Free()

4.92()I P Free

3.7t')GSP: Free

(Sulphite) S.SZC)(p;eu ) 4.92(3)

GSP: Free

4.9Z(3)GSF: Free

4.92(8)GSP: Free

4.9Z()

i0 (oa S élslight ) 5.82(3)

7.52() (odlr) 4.92(3)GSP: Free GSP: Free

I(Z) 6.2(s)GSP: Free GSZ : Free

ft«O) 0 mm, sne:is. tmiaoe =Crs

FPrIm)

r !a of rPPo)GSP: Free GSP:Free

GSP: M53.44f or GSP: WaO.S or

6.32 whichever islessder is.l(3.82) CZ.92)

2.52(3) (alloys containing less thanFree (B)5= nica Mdc 1leuthan 10% cobalt)

22.5(z) (ottea 92(3)GSP:Free

W= Ume Md

ZL5ZC3)r: FrmZ.52(3)

152(B)I 52s()GSP: Free

GSP: Free

6.8(ZC).: .0ra

Tra(B)

(unLoa) 7.2=CB1aflye) 5.82(B)

S. !Sm

Ula s, sh ts Md iL5z(B) (Luflcgaf) 7.2=(3)12.S5(3) (&Lloya) 5.82Cs)aP:r S?: Tm

(ii) foil, powdersand flakes

¥ioorî (6.= m) r=lod %'5% (m CS)22.52(3) (aticyn) 62(3)GSP: ?u ¢;S?: Ftrm

flO00/1% (5.=)(B) (unalloyes:for Free(B)

ict= fo vuaa13Jj

Free (B)

Free(B)

Free(B) Free(B)

152B) (uala"a) 7.=(B)(allaf) 6.52()

GSP:Free GSP: Free

'flSO/K (6.3S (3)Os?: ?r GSP:

252(B) (placed with praciousmetals)!Ct=(B)1OS(B) (ocer) 5.d2(B)

GSP: Free GSP: Free

.2603

g2&28

MDF/W/21Page 115

.2830

a2843

ur2.48

I73.02

(unalloyed)

(alloyed)

Page 116: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 116

CCCNProductDescription__________

Nickel oxides and hydroxides

-« iCUÜOC d aq aid ci id"

Carbonates and parcarbonatesofnickelCy1phc u andcomplex cy of nickel

Mcdoim ma.=Ummw of

Ferro-nickeli ~lmd

-~',

r4k:-d:oeL iscsmiu

Wrought boxs,rods, angles,shapes and

sectionsof nickel;nickelwire

o£m 1@p«adbmotao.U~

ptfor bslus i oe.fr~M4Lk- io1bDo bms Mdci mi

pipe fittings (for example joints,elbous,socketsand flanges)ofnickel

aa=Ldf modu etrdckecew huà by iloesslysid

ou= rd aie ea3.

?m

?tu)

Free

Free(partiallybound)

Free (B)

Free(B)

Free(B)Free(partially bound)

Free(B)

Free(partiallybound)

1.023)

SMâ)

5c)

52

GSP: Free

GSP: Free

(6= and =os)(or e)

Md fIakus)

S=O)M.: fP

Free(B)

Free(B)

Free(B)ua)

kM(3)

51

Foe)

sz

stB)

?-(r3)

5S)

SIP:

G;P: r

GS: Pr«

5zs)CM: r

EM(B)

vErms)

Fr«(S)

rmas)FM(B)

?(B)

.6zC3) (su.CM: --m

Free(B

6SP: Free(PJaus. *M a

cmee(B)us

G: Fru

FrP(B)

5Z(E)GSp: FrZo

Fu(B)

Fus(E)

Fts(E)

?M(B)

.Ma)

s.U voeod 4.6 E)

Osp: rus

.S-2:"(ee)rsono nita. !oW4.4Z(B)

GOP: Fra

Z"(E3)G.S T's

TrP:E)

ZE)GS:

_______I~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

.i26.01

L26.03

«2&28

cr2&39

«M.48

c7.02

75.01.

75.02

75.04

5.05

75.06iSO

SZMU-Y ci Z-. Acoed TatLef SivmtcîmAura==R= wd AVECIM mmoet

Page 117: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

Supplof 7rSY. u- Pse-tow i r SLAffecting NickelandArticleThereofI ' Sv=IO 5

Pws Dcrt CW=

D~~~~~~~M ffq% preIND j ez R

euZS.02.iaZOS

M.301.Jmu123.38

Nickel orme and concentrates

AM and residues containingmainly nickel

Nickel oxides and hydrosides

Chloridesand oxychlorides of nickel

Sulphides and polysulphides of nickel

o8.38 Sulphatesand pernulplates

«u.Ii

àZ:

Nitrites and nitratesof nickel

Carbonates and percarbonates of nickel

es23.13 Cy1deam andcomplex cyanides of nickel

0928.48 Salts and peroxysaltsof inorganicale toi"

ex3.02 Ferro-nickel

75.01 Nickle stre., nickel speit and otherintermediate products ofnickeleatallurM unwrought nickel(excludingelectro-plating anodes);nickelwaste and scrap

75.02 Wrought bars, rods, angles, shapesandsections of nickel;nickel wire

75.03 Wrought plates, shoetsandstrip of

nickel; nickel foil; nickel powdersandflakes

J

73.06 Tubes andpipes and blants therefor,of nickel; hollow bars and tubeandpipe fittings (for exemple joints,elbows, snakcs andflanges) of nickel

73.05 Electro-plating modes of nickel.W mo or mnust, includingthoseproducedby electrolysis

7.0 Otherarticles of nickel

Free(B)

Free(B)

<is)

Free(B)

Free(B)

Free(B)(tait

Free(B)

L.5YJ)

07TrB)

L..S'(E>

F7"(T)GSP:Free

z)E

TresCE)

r)rrwsoLtue) s.2<a)sau>) Trea<B>

4.3%0I2.581: TFi

LUISe<E)

L.Uffl>CS: Tria

flakes) FTr(E)

L.(41)W's Fr«

3.:%c)WX Fro

préviE)

W? TrieSffl- fiV4 O0.1)(I)

MSt fr

C: tri

Sun.s/l a(o.3%) (3

037: Tre

3uft.SWEsC0.2t} (3>CSP: Tri

Sel.2flb0Sg(0.7%)<E) (mlple.e) Sa .2lOOKga<0%)(t)St2.3ogsC(0.6%)(E> (npritrates) Sw.fO .7

Mt Trie Mi TrisvT3Jll100gC1)tS)(E tcuirlce) Svf2.jfi00p<^)(b)Suf.31ID0EgO.~%<) (uinramces) Svf2.6J1.00a(0.6%) (3

037: Trie CsP Te

S2.flJ0oeg.(O.Lb)<i) (cahaCea) 5vU2. /UOJ(0.4X)(3)Sv1 <0.2 )((ECperatoesce) SvQ4/W 04O)(>

Wl Tri CMP: *re

SvIO.75/IOO (0.L.)(I)

cm7 Tri

c. Fre

sunFnogoe(0.3n)(<E

GSP:Free

Svf.s/10gp0J>cE)

SvU0.25l1.00g(0.1) (E>

037: Trie

SvT0.7S110Kga(0.1%)(3)

Cspt rroe

GSP: Free

GSP: Freenickel wire

cros-sectionaldimensionuv30/2 gs(0.5S)(E (Cver 0.Sm tce 6m) S ,(O.5%(

3vVS31100Ks(0.^)(E) (0.C or ties) SvTl/2.O C)(E)GSP: Free SPs Tre

(i)not surface-treatedSeF27fLOOEgsO.7% (rOkeetaglar, over SvT25/0Oa(0.,')(3>

0.SM thick)SullKgs(0.7S))(Otrecanmlar,0.3su S2/ s(0.6%)(S)

or less thick)Sv96SflD~gs<0.6S>CE)(oet th= rueta- ST4/0(.6)(0)to(0.6>(>

sSir shape)Sufl.OOlWOEga(1S>(I (drtlld, puoched. SvF00/l00gs(l%) (E)

het)CSP1rs CPrro

(al.) lSt ortlveridSurL2OtlD clf.>)S(3)OO/10(2.s)

03i trie CQ: Tri(fi om re ,aa-ec

SueVl0I00g(3.Z2)<E) SwflOOlIOOKga.7'i>3)037: Tri 0s: Trio

(iv) pouders and nakesS W:O. f/1a014X.L%)(E SvT0./IL007ps (0.N>(E)

057: Tri 07 TrieI 4

svnsnvo0Ks.6>(&> Su2n7/loOKg(O.GSi: Trou CSP: Tru

SvTi0l1Dfgs0.5~(I> svfLiSloka(o.037: Fre M.: Tr?

tt) te . ." ethime 100grâ-- or tlegs *ch

SwT2.0O/W00Ka<.80(><SE89/>m4S?: re 05P:

(iL) Vcs. Culw sud other containers for

46))(0

3%)(3)

(O. <)a?rai

tndustrtla ;UroueaSUF6OL00K"c0.)E%)>(8)f2flOop(0.3)(3>

0SP- Tre : Trie(iti) Oter

SwfSSl11OOegu<.à6>(E) (unworkadw 5vf53/IO0Kap(0.E)(E)SueflOIW Z.6(E) <machinai> S L0EgsC2..0(ESvfl2O0Ioie(3.s(>) (Cuber) SonaoKga2.3%)(

-c9p _g CS7 -1:. a aa «_st_ fi @ @ #{ "__4 . -

MDF/W/21Page 117. * __ _ . _, . . . . r :.

Page 118: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 118.

Ash and resickness minly nickel

Nickel oxides and hydroxides

Chlorides and oxychloridesofnickel

Sulphates and polysulphidesofnickel

Carbonates and pbm oif~.

Cymmdu Md -c= cymmsd 0f f

Salts andperroxysalts of inorganicacids

Nickel cm. -nickel speicesandotherunwrought nickel (excluding electro-

unwrought nickel (excludingelectro-plating an); nickel wasteandscrap

Wrought bars, rods, angles,shapes and

nickel foil; nickel andscrip ofnickel;nickel foil; nickelpowders and flakes

Tubesand pipes and blanks, thereof,ofnickel; hollow bars andtubefittings(for example joints, albows,socketsand

flanges) of nickel

Electro-plating a ai£ of nickel, wroughtor unwrought, including theseproducedby electrolysis

@1.36

603.6d0 tcmaL u d - LO nicul by 'ic>

419.72

419.74

)))419.76 (nickelco rdEskpenickel ^t4-

oxide or sulfare))

6oe.2a620.03 (unwroughtnickel)620.60 (seeabove)62M.04 (wasteandscrap)

cE2M.10 mc m1UM.12 (coldworked)620.20 (rodsand wireolVd62.22 (rods and wirecold worked)62.26 (angles, shapes andsections)

am2n.i0 (not coldworked).mM..12 (cold worked)

620.3Z (powders)62D.30 (flankes)

62D.40 (tubes,pipes and blanksnoccoldworked)620.42 (t:b. pp« Md bImko =U uoebd)620.46 (odcbr)

620.50

642.06 (vin =Cwadi dcimWC 11.8d."C =Mi)

«é2.78 (cloah. . Jbrk. *oSt4d f. C. Un

f dm 90 wiz L Uod142.7 6vfrm dotb. sum, fàmîa, *=mm -tmcu

andfencing,co *am, e.:.)M3.70 (vpuAzplwh-11dbad :My

656.20 fzlm d bom MaL mici cm ptacad

dith rd.mff6.35 (f iL ci bms mmL. te., mrad

657.50 (othernickel articles,notspecificallyprovidedfor, notcoated with preciousmetal)

*Figure inparam ai vasm Icdce oi dt specifi tan culadcu ca chu b«Ui ci 19L3 .

'26.01

6.03

M38

«0.42

.c28.43

7M.48

501

7S.02

75.03

75.04

75.05

75.06

a

ftra)

52m(B)%S.)

.. ft

52(B)

UCS)

GSP. Free

?!M(B)

Srm(B)

:;P:

E(B)Fre**)Fr5c)7c)

52(3)7tu(3)

U2: ?m

'2cR,

X%()

GS?. hmn

SZCB>GSP:Free

7ZCS)

4:0S)

?2NOM

3.7103)

3. hies

3.e(B)

3.7%>

GSP:Free

?rM<B)

4.37-%.

3.5ZO3

3.7.(B)

4.72(3CS-.52(3)

P: Fis

3.5%(3)

'.7: PM

GSP: Free

3.62(B)

1sp Yzoe

4.72(3)-

6.6203

)16Z(3) ) 16.(B)

252(B)

9CS)9%e:

102(3)

6.520s)

5.5C=)

s r

scum, ci Pte--Tcimo Md LOU amod TJXUf sientimAC4==-Mc"L Md ATCLCI" murs«

-

b1

Page 119: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 119

ANNEX Il: The Harmonized System of CommodityDescription and Classification

Nickel and articles thereof (Chapter 75)

"In this Chapter the following expressions have the meanings herebyassigned to then:

"(a) Bars and rods

Rolled, extruded, drawn or forged products, not in coils, whichhave a uniform solid cross-section along their whole length inthe shape of circles, ovals, rectangles (including squares),equilateral triangles or regular convex polygons (including"flattened circles" and "modified rectangles", of which twoopposite sides are convex arcs, the other two sides beingstraight, of equal length and parallel). Products with arectangular (including square), triangular or polygonalcross-section may have corners rounded along their whole length.The thickness of such products which have a rectangular(including "modified rectangular") cross-section exceedsone-tenth of the width. The expression also covers cast orsintered products, of the same forms and dimensions, which havebeen subsequently worked after production otherwisee than bysimple triming or de-scaling), provided that they have notthereby assumed the character of articles or products of otherheadings.

"(b) Profiles

Rolled, extruded, drawn, forged or formed products, coiled ornot, of a uniform cross-section along their whole length, whichdo not conform to any of the definitions of bars, rods, wire,plates, sheets, strip, foil, tubes or pipes. The expression alsocovers cast or sintered products, of the same forms, which havebeen subsequently worked after production otherwisee than bysimple triming or de-scaling), provided that they have notthereby assumed the character of articles or products of otherheadings.

"(c) Wire

Rolled, extruded or drawn products, un coils, which have auniform solid.cross-section along their whole length in the shapeof circles, ovals, rectangles (including squares), equilateraltriangles or regular convex polygons (including "flattenedcircles" and "modified rectangles", of which two opposite sidesare convex arcs, the other two sides being straight, of equallength and parallel). Products with a rectangular (includingsquare), triangular or polygonal cross-section may have cornersrounded along their whole length. The thickness of such productswhich have a rectangular (including "modified rectangular")cross-section exceeds one-tenth of the width.

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MDF/W/21Page 120

"(d) Plates, sheets, strip and foil

Flat-surfaced products (other than the unwrought products ofheading No. 75.02), coiled or not, of solid rectangular (otherthan square) cross-section with or without rounded corners(including "modified rectangles" of which two opposite sides areconvex arcs, the other two sides being straight, of equal lengthand parallel) of a uniform thickness, which are:

- of rectangular (including square) shape with a thickness notexceeding one-tenth of the width,

- of a shape other than rectangular or square, of any sizeprovided that they do not assume the character of articles ofproducts of other headings.

Reading No. 75.06 applies, inter alia, to plates, sheets, stripand foil with patterns (for example, grooves, ribs, chequers,tears, buttons, lozenges) and to such products which have beenperforated, corrugated, polished or coated, provided that they donot thereby assume the character of articles or products of otherheadings.

"(e) Tubes and pipes

Hollow products, coiled or not, which have a uniformcross-section with only one enclosed void along their wholelength in the shape of circles, ovals, rectangles (includingsquares), equilateral triangles or regular convex polygons, andwhich have a uniform wall thickness. Products with a rectangular(including square), equilateral triangular, or regular convexpolygonal cross-section, which may have corners rounded alongtheir whole length, are also to be considered as tubes and pipesprovided the inner and outer cross-sections are concentric andhave the same form and orientation. Tubes and pipes of theforegoing cross-sections may be polished, coated, bent, threaded,drilled, waisted, expanded, cone-shaped or fitted with flanges,collars or rings.

Subheading note

"In this Chapter the following expressions have the meanings herebyassigned to them:

"(a) Nickel, not alloyed

Metal containing by weight at least 99 per cent of nickel pluscobalt, provided that:

- the cobalt content by weight does not exceed 1.5 per cent,and

- the content by weight of any other element does not exceedthe limit specified in the following table:

Page 121: AGREEMENT ON - World Trade Organization I: Salient Features of the Nickel Industry Properties and characteristics Nickel ores and reserves Mining and Processing Nickel products, industrial

MDF/W/21Page 121

Elements Limiting content % by weight

Fe Iron 0.50 Oxygen 0.4Other elements, each 0.3

"(b) Nickel alloys

Metallic substances in which nickel predominates by weight overeach of the other elements provided that:

- the content by weight of cobalt exceeds 1.5 per cent,

- the content by eight of at least one of the other elementsshall be greater than the limit specified in the foregoing table,or

- the total content by weight of elements other than nickelplus cobalt exceeds 1 per cent."

Reading H.S.No. _.;Code

75.01 Nickel mattes, nickel oxide sinters and otherintermediate products of nickel metallurgy

7501.10 - Nickel mattes7501.20 - Nickel oxide winters and other

intermediate products of nickel metallurgy

75.02 Unwrought nickel7502.10 - Nickel, not alloyed7502.20 - Nickel alloys

75.03 7503.00 Nickel waste and scrap

75.04 7504.00 Nickel powders and flakes

75.05 Nickel bars, rods, profiles and wire- Bars, rods and profiles:

7505.11 Of nickel, not alloyed

7505.12 - Of nickel alloys_ Wire

7505.21 Of nickel, not alloyed

7505.22 - Of nickel alloys

75.06 Nickel plates, sheets, strip and foil7506.10 Of nickel, not alloyed

7506.20 - Of nickel alloys

75.07 Nickel tubes, pipes and tube or pipe fittings(for example, couplings, elbows, sleeves)- Tubes and pipes

7507.11 -- Of nickel, not alloyed7507.12 - Of nickel alloys7507.20 - Tube or pipe fittings

7508.00 Other articles of nickel15.08