RESTRICTED
WORLD TRADE G/ADP/W/45
G/SCM/W/53
ORGANIZATION 28July1995
(95-2263)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED BY
THE GOVERNMENT OFCHILE OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, received on18July1995, hasbeenreceived fromthePermanent
Delegation oftheEuropean Community.
_______________
Withregard toChile'scountervailing legislation, notified on15March 1995under Article 32(6)
oftheWTO Subsidies Agreement (document G/SCM/N/1/CHL/1) theEuropean Community hasthe
following questions:
General
Themost recent relevant legislation isdated 17June1993. What willbethelegalbasis of
theimplementation inChile oftheWTO Subsidy Agreement?
There appears tobenolegal definition of"like product", asspecified infootnote 46ofthe
Agreement onSCM. How willthisbeapplied?
Aredeminimis rulesforeseen intheChilean legislation asprovided forinArticle 11(9) SCM?
There appears tobenomechanism forundertakings. DotheChilean authorities intend toallow
thatproceedings canbesuspended orterminated bytheacceptance ofundertakings?
There appears tobenoreference tothelength oftimeofaninvestigation period. What will
betheminimum investigation period for(a)subsidization and(b)injury? What provisions willthere
bethattheperiod ofinvestigation ofsubsidization anddumping, willbethemostrecent appropriate
period?
Specific questions regarding Chilean legislation
LawNo.18.525. D.O., 30June1986
Rules ontheimportation ofgoods
Article 10
Arethesurcharges listed (3percent,5percent,8percent,10percent,12percent,15per
cent, 18percentand20percent) theonlylevels ofdutywhich canbeimposed?G/ADP/W/45
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Iftheabove isso,cantheChilean authorities confirm thatinaproceeding, ifthesubsidy margin
determined inanCVD investigation issay17percent, thatthelevel ofdutylevied willbe15per
cent,asan18percentlevywould becontrary toArticle 19(2) oftheCVD Agreement? Isthe20per
centlevelthemaximum dutythatcanbeapplied under CVD measures?
Article 11
Theinitiation ofaninvestigation isdetermined byaNational Commission, however, nomention
ismade ofconsultations withtherelevant Members whose products maybesubject toinvestigation,
asprovided forinArticle 13(1) SCM.
Thefourth paragraph ofArticle 11states thattheCommission mayonitsowninitiative conduct
investigations, doesthismean thattheCommission cancommence aninvestigation andrecommend
imposition ofmeasures without asufficiently motivated complaint being received fromthedomestic
industry asrequired byArticle 11(4) oftheAgreement? Arespecial circumstances of11(6) ofthe
SCM foreseen?
Thefifthparagraph ofArticle 11andArticle 25ofDecree No.575oftheMinistry ofFinance
(adopting regulations under Article 11ofLawNo.18.525) refers tothe"establishment ofminimum
customsvalue".Onwhatbasiswouldaminimumcustomsvaluebecalculatedinasubsidiesinvestigation
andhowwould thisrelate tothesurcharges listed inArticle 10above?
Decree No.575oftheMinistry ofFinance
Adopting regulations under Article 11ofLawNo.18.52
Article 1(1)
Green subsidies andnon-actionable subsidies
HowwilltheChilean authorities implement theprovisions ofArticle 8SCM andfootnote 35
SCM asthere isnomention ofthese intheChilean legislation?
Definition
Inthedefinition ofasubsidy, noreference ismade tothefactthatabenefit mustbeconferred
thereby. CantheChilean authorities nevertheless assure compliance withArticle 1(1)(b) SCM?
Article 10
Standing
Article 10states thatanynatural orlegalperson maymake acomplaint. HowwilltheChilean
authorities ensure thatthelevelofsupport isinaccordance withArticles 11(4) and16oftheSubsidies
Agreement?
Articles 12,13and14
Consultations
There appears tobenomechanism fortheChilean authorities tonotify interested parties of
theinformation required bytheauthorities aslaiddown inArticles 11and22SCM oftheAgreementG/ADP/W/45
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neither oftheprovision tosupply interested parties thefulltextofthecomplaint under 12(1) (3)SCM.
How willChile ensure compliance withthese requirements?
Article 15
Measures
TheArticle states that"themeasures recommended maynotbegreater thanthemargin ofprice
distortion". Thisappears toindicate, thatmeasures canbeimposed overandabove thelevelofinjury
found. How would thissquare withtheprovisions ofArticle 15(5) SCM?
Article 16
Thisprovision states thatinterested parties shallbenotified oncethecorresponding Decree
hasbeenpublished. There doesnotappear tobeanylegalprovision forinterested parties tocomment
onthefindings oftheinvestigation andanyrecommendations tobemade foradefinitive decision of
thePresident oftheRepublic. Howcanthisbereconciled withtherequirement ofArticle 13(2) SCM
andfootnote 44tothesameArticle, regarding consultations andwiththerequirements ofArticle 17(1)
SCM regarding provisional duties?
Article 18
Article 18states thattheNational Commission mayrecommend thatmeasures inforce be
modified. What criteria would beused? Would anewinvestigation takeplace? Would consultations
takeplace asprovided forinArticle 13(1) ifaninvestigation isinitiated?