RESTRICTED
WORLD TRADE G/ADP/W/258
G/SCM/W/268
29January 1996
ORGANIZATION(96-0307)
Original: Spanish Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
REPLIES TOQUESTIONS POSED BYAUSTRALIA1CONCERNING THE
NOTIFICATION OFPERUVIAN LAWS AND REGULATIONS2
Thefollowing communication, dated 5January 1996, hasbeenreceived fromthePermanent
Mission ofPeru.
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Question 1
Since Peru hasnotyetadopted itsdraft regulation fortheWTO Anti-Dumping and
Subsidies Agreements, does thismean thatPeru willnotbetaking anyanti-dumping or
countervailing dutyactions before theregulation hasbeenadopted? Ifnot,howwillPeruensure
consistency withtheWTO Agreements?
Reply
While itistruethatPeruhasnotyetenacted regulations under theAgreement onImplementation
ofArticle VIofGATT 1994 (Anti-Dumping Measures) andtheAgreement onSubsidies and
Countervailing Measures, itmustbepointed outthatinaccordance withArticle 55ofthe1993Political
Constitution ofPeruthetwoAgreements havethesame status aslawsenacted bytheCongress ofthe
Republic andtherefore theirapplication ismandatory throughout thePeruvian territory.
From themoment thetwoAgreements arepartofdomestic legislation, theyapply forall
proceduresrelatingtotheestablishmentofanti-dumpingorcountervailingdutiesondumpedorsubsidized
imports causing orthreatening tocause injury todomestic industry.
AdraftSupreme Decree iscurrently being prepared inorder toensure thorough compliance,
intherealm ofadministrative proceedings, withtheAnti-Dumping andSubsidies Agreements approved
bytheCongress oftheRepublic. Meanwhile, thenational legislation enacted previously, inotherwords
SupremeDecreeNo.133-91-EFandotheramendmentsthereto,isappliedonasuppletivebasiswherever
itdoesnotconflict theprovisions ofthetwoAgreements.
Finally, itshould bepointed outthatthePeruvian legalframework fordumping andsubsidies
consists oftheprovisions thatwerenotified induecourse totheSecretariat oftheGeneral Agreement
onTariffs andTrade (GATT) through thePermanent Mission ofPeru inGeneva, theAgreement
1G/ADP/W/83-G/SCM/W/92.
2G/ADP/N/1/PER/1 andG/SCM/N/1/PER/1.G/ADP/W/258
G/SCM/W/268
Page2
Establishing theWorld Trade Organization (WTO) andtheMultilateral Trade Agreements contained
intheFinal ActoftheUruguay Round signed inMarrakesh, Morocco, on15April 1994. These
Agreements wereadopted bytheCongress oftheRepublic ofPerubyLegislative Resolution No.26407,
published intheOfficial Journal, "ElPeruano", of19January, andhave been inforce since
1January 1995.
Question 2
Could Peru provide clarification onthefollowing points regarding theincorporation of
theWTO Anti-Dumping andSubsidies Agreements intothePeruvian legal system.
(a) What isthehierarchy between these WTO Agreements andother Peruvian legislation,
regulations andother administrative rules?
Reply
TheAgreement onImplementation ofArticle VIofGATT 1994 (Anti-Dumping Measures)
andtheAgreement onSubsidies andCountervailing Measures, having beenapproved bytheCongress
oftheRepublic bymeans ofaLegislative Resolution, havethestatus oflawandnoother provision
issued bytheExecutive power hassufficient legalstatus toamend thescope ofthecommitments laid
down inthetwoAgreements.
Question 2(b)
(b) Willsubsequent laws(including regulations andother administrative rules) takeprecedence
over theWTO Agreements? Forexample, would theforeshadowed regulation take
precedence overtheWTO Agreements ifacourt found thatthere wasaconflict?
Reply
Theprovisions inforce prior totheapproval oftheWorld Trade Organization Agreements
havebeenrepealed wherever theyconflict withthose Agreements.
Hence, there isnopossibility ofaconflict arising between national dumping andsubsidy
provisions, ontheonehand, andtheprovisions oftheAgreement onImplementation ofArticle VI
ofGATT1994(Anti-DumpingMeasures)andtheAgreementonSubsidiesandCountervailingMeasures,
ontheother. Inanyevent, thePeruvian judges andcourts willhavetodecide anyissueinaccordance
withtheprovisions ofthose Agreements.
Itshould bestressed thatourcountry isgoverned bytheRoman Lawsystem, andtherefore
thereareno"binding precedents" asinthecaseofcountries which havealegalsystem based onCommon
Law.
Question 2(c)
(c) Intheabsence ofaspecific provision inregulations, which levels ofofficials would have
theauthority tointerpret theWTO Agreements todetermine procedure inananti-dumping
orcountervailing dutyaction?G/ADP/W/258
G/SCM/W/268
Page3
Reply
Inaccordance withDecree LawNo.25968 andtheregulations thereto, theDumping and
Subsidies Surveillance Commission, which isorganizationally partoftheNational Institute forthe
Defence ofCompetition andProtection ofIntellectual Property (INDECOPI), isthesoleadministrative
authority offirstinstance withpowers toinitiate andresolve proceedings tomake determinations
concerning dumped orsubsidized imports. Forthispurpose, itofficially applies theAgreement on
Implementation ofArticle VIofGATT 1994(Anti-Dumping Measures) andtheAgreement onSubsidies
andCountervailing Measures inorder todecide whether ornottoestablish ananti-dumping or
countervailing dutytoavoid andcorrect distortions tocompetition inthemarket arising fromdumping
orsubsidization.
Responsibility forinterpreting andapplying theseprovisions insecond andlastadministrative
instance lieswiththeTribunal fortheDefence ofCompetition andIntellectual Property, which isalso
organizationally partofINDECOPI.
Question 2(d)
(d) Intheevent ofaconflict between theWTO Agreements andother laws, could investigating
officials decide which lawshave precedence?
Reply
InPeruvian law,intheevent ofaconflict between national legislation ontheonehandand
theprovisions oftheAgreement onImplementation ofArticle VIofGATT 1994 (Anti-Dumping
Measures) andAgreement onSubsidies andCountervailing Measures, ontheother, thenational
authorities would havetoapply thespecial provision withprecedence overanygeneral provision.
Nevertheless, itmustbepointed outthereisnopossibility ofconflict between thelaws, because
asstated earlier thelegislation approving theAgreements hashigher legalstatus.
Question 2(e)
(e) Could aninterested party appeal tothecourts about theinterpretation oftheWTO
Agreements byofficials?
Reply
Thedecisions oftheINDECOPI Dumping andSubsidies Surveillance Commission maybe
appealed byaparty thatconsiders itself injured totheINDECOPI Tribunal fortheDefence of
Competition andIntellectual Property. Administrative remedies areexhausted withthedecision of
theTribunal.
Thedecisions oftheINDECOPI Tribunal fortheDefence ofCompetition andIntellectual
Property maybechallenged judicially before theCivil Division oftheLima Superior Court ofJustice,
asprovided forintheOrganic LawontheJudiciary.
Thejudgements oftheabove-mentioned Court maybeappealed totheConstitutional andSocial
LawDivision oftheSupreme Court oftheRepublic.G/ADP/W/258
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Question 2(f)
(f) Howwould Peruhandle aconflict inviews overtheinterpretation oftheWTO Agreements
between aPeruvian court andtheWTO Dispute Settlement Body?
Reply
InPeruvian law,thedegree towhich therecommendations anddecisions oftheWorld Trade
Organization 'sdispute settlement bodies arebinding vis-à-vis decisions oftheadministrative andjudicial
authorities isamatter governed bytheprovisions oftheAgreement onImplementation ofArticle VI
ofGATT 1994(Anti-Dumping Measures) andAgreement onSubsidies andCountervailing Measures,
asthecasemaybe.Hence, asaMember country Peruisobliged tocomply withtherecommendations
anddecisions ofdispute settlement bodies pursuant totheprinciple ofinternational law
"pacta suntservanda".