RESTRICTED
WORLD TRADE G/ADP/W/374
G/SCM/W/384
23April 1996
ORGANIZATION(96-1523)
Original: Spanish Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS POSED BYVENEZUELA CONCERNING THE NOTIFICATION
PROVIDED BYTURKEY1OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 16April 1996, hasbeenreceived from thePermanent
Mission ofVenezuela.
________________
Questions Posed ByVenezuela Concerning Turkey 'sAnti-Dumping
andCountervailing Measures Legislation
VenezuelahasthefollowingquestionsconcerningtheAnti-DumpingandCountervailingMeasures
Legislation notified byTurkey indocuments G/ADP/N/1/TUR/1 andG/SCM/N/1/TUR/1 dated
1December 1995.
1. GENERAL
(a) Could thedelegation ofTurkey saywhether theMarrakesh Agreement anditsassociated
Agreements, including theAnti-Dumping Agreement (A-D Agreement) andtheAgreement
onSubsidies andCountervailing Measures (SCM Agreement), formpartofTurkey 'sdomestic
legislation?
(b) WhatisthestatusoftheWTO'sA-DandSCMAgreementswithinTurkey'sdomesticlegislation
and,inparticular, inrelation totheA-DandSCM legislation previously promulgated andany
legislation which might bepromulgated subsequent tothesaidAgreements?
(c) HowaretheWTO 'sA-DandSCM Agreements applied andincorporated inTurkey 'sdomestic
legislation?
(d) Isitintended tointroduce newdomestic A-DandSCM legislation inorder toimplement the
WTO 'sA-DandSCM Agreements? Ifso,whatstatus willthenewlegislation haveinrelation
totheWTO 'sA-DandSCM Agreements andother pre-existing legislation?
1G/ADP/N/1/TUR/2-G/SCM/N/1/TUR/2.G/ADP/W/374
G/SCM/W/384
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2. SUBSTANTIVE ASPECTS OFTHE A-DAND SCM LEGISLATION NOTIFIED BY
TURKEY
2.1 Injury orthreat ofinjury
(a) Observations
Articles 2,3and4ofTurkey 'sLawonPrevention ofUnfair Competition inImportation,
Article 1oftheDegree onPrevention ofUnfair Competition inImportation, andArticles 1,3and
27oftheRegulation onPrevention ofUnfair Competition inImportation refertomarket impairment
asatypeofinjury tothedomestic industry.
(b) Questions
CouldthedelegationofTurkeyexplainthescopeandmeaningofthisterm?Aretheseprovisions
consistent withArticle 3oftheA-DAgreement andArticle 15oftheSCM Agreement?
2.2 Degree ofsupport fororopposition tothecomplaint
(a) Observations
Turkey 'slegislation saysnothing about thedegree ofsupport fororopposition totheinitiation
ofaninvestigation orthepercentages mentioned inArticles 5.4and11.4oftheWTO 'sA-DandSCM
Agreements.
(b) Questions
DotheTurkish authorities takeintoaccount thedegree ofsupport oropposition inthedomestic
industry forthepurposes ofinitiating aninvestigation? DotheTurkish authorities takeintoaccount
thepercentages (50percentand25percent)forthepurposes ofdetermining whether thecomplainant
represents domestic producers oflikegoods?
2.3 Determination ofsubsidy
(a) Observations
TheTurkish legislation doesnotappear toestablish specificity criteria, ascontained inArticle 2
oftheWTO 'sAgreement onSubsidies.
(b) Question
Arethere, ordotheTurkish authorities takeintoaccount, specificity criteria fordetermining
theexistence ofsubsidies, asprovided forinArticle 2oftheWTO 'sAgreement onSubsidies?G/ADP/W/374
G/SCM/W/384
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2.4 Deminimis criteria andsignificance ofimports
(a) Observations
TheTurkish legislation appears tosaynothing about deminimis margins ofdumping oramounts
ofsubsidy orabout negligible volumes ofimports.
(b) Questions
DotheTurkish authorities consider deminimis margins ofdumping oramounts ofsubsidy
andthesignificance ofthevolume ofimports inmaking theirinvestigations? Could thedelegation
ofTurkey saywhether ittakes intoaccount thedeminimis andnegligibility criteria laiddown in
Articles 5.8and11.9oftheA-DandSCM Agreements respectively?
2.5 Price comparison
(a) Observations
Itisnoted thatArticle 22oftheTurkish Regulation onPrevention ofUnfair Competition in
Importation requires thatthecomparison ofthenormal value withtheexport price shallbemade as
nearly aspossible atthesame timeandlistsanumber ofitems which must betaken intoaccount in
order tohavetheprices fairly compared.
(b) Questions
DotheTurkish authorities takeintoaccount theprovisions ofArticles 2.4,2.4.1 and2.4.2
oftheWTO 'sA-DAgreement which requires afaircomparison between theexport priceandthenormal
value atthesameleveloftrade, normally attheex-factory level, andacurrency conversion thatshould
bemade using therateofexchange onthedateofsale? Moreover, dotheyconsider thattheexistence
ofdumping during theinvestigation phase should normally beestablished onthebasisofacomparison
ofaweighted average normal value withaweighted average ofprices ofallcomparable export
transactions orbyacomparison ofnormal value andexport prices onatransaction-to-transaction basis?
2.6 Material injury
(a) Observations
Itisnoted thatArticle 28oftheTurkish Regulation onPrevention ofUnfair Competition in
Importation states thatanumber offactors shallbetaken intoaccount inthedetermination ofmaterial
injury.
(b) Questions
DotheTurkish authorities takeintoaccount thelastsentence ofArticle 15.2oftheWTO 's
SCM Agreement which states thatnooneorseveral ofthese factors cannecessarily givedecisive
guidance?G/ADP/W/374
G/SCM/W/384
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2.7 Likegoods
(a) Observations
Itisnoted thatthesecond paragraph ofArticle 30oftheTurkish Regulation onPrevention
ofUnfair Competition inImportation states thatincases where anidentical orlikeproduct cannot be
identified, theeffects ofthedumped and/or subsidized imports shallbeassessed through examination
oftheproduction ofthenarrowest group ofproducts which includes necessary information available
forthelikeproduct.
(b) Question
What isthesignificance andscope ofthisprovision within thecontext ofArticle 2.6ofthe
A-DAgreement andfootnote 46toArticle 15oftheSCM Agreement, where itisstated thatinthe
absence ofalikeproduct theterm"likeproduct" shallbeinterpreted tomean another product which,
although notalike inallrespects, hascharacteristics closely resembling those oftheproduct under
consideration?
2.8 Initiation exofficio
(a) Observations
Itisnoted thatArticle 4oftheTurkish LawonPrevention ofUnfair Competition inImportation
states thataninvestigation maybeinitiated upon complaint orexofficio .
(b) Questions
DotheTurkish authorities takeintoconsideration thecriterion established inArticle 5.6of
theWTO 'sA-DAgreement, according towhich theauthorities should proceed withtheinitiation of
aninvestigation exofficio onlyiftheyhavesufficient evidence ofdumping, injury andacausal link
tojustify suchaction?