RESTRICTED
WORLD TRADE G/ADP/W/269
G/SCM/W/279
ORGANIZATION 29January 1996
(96-0314)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
REPLIES TOQUESTIONS POSED BYNEW ZEALAND1CONCERNING
THE NOTIFICATION OFCANADIAN LAWS AND REGULATIONS2
Thefollowing communication, dated 11January 1996, hasbeenreceived fromthePermanent
Mission ofCanada.
_______________
1. Re.Paragraphs 3(1)(a) and(b)oftheSpecial Import Measures Act(SIMA): Why has
Canada notadopted alesser dutyrule?
Consistent withthepermissive nature ofthelesser dutyprovisions inArticle 9.1oftheA-D
Agreement and19.2oftheSCM Agreement, Canada hasnotadopted alesser dutyrule. Thatbeing
said,where theCanadian International Trade Tribunal isoftheopinion thattheimposition ofanti-
dumping orcountervailing duties, infullorinpart,might notbeinthepublic interest, section 45of
theSIMA, allows theTribunal tosoadvise theMinister ofFinance withfacts/reasons insupport.
Inthisregard, interested persons canmake representations withrespect topublic interest. There is
statutory authority allowing theMinister ofFinance toreduce duties.
2.(a) Re.Clause 5(a)(i)(A) ofSIMA: Why does Canada notspecify what constitutes a
"considerable importation" oflikegoods? DoesCanada plantobeconsistent withtheWTO
andterminate aninvestigation where thevolume ofimports islessthanthree percent
orseven percentcollectively?
Canada hasnotdefined what constitutes a"considerable importation" oflikegoods forthe
purposes ofclause 5(a)(i)(A) oftheActsince there isnorequirement todosointheA-DAgreement
and,further, theA-DAgreement doesnotprovide anyquantitative measures thatrelate tothemassive
dumping provisions. What constitutes a"considerable importation" willdepend, inlargepart,onthe
factsofagiven case.
Article 5.8oftheA-DAgreement provides forthetermination ofaninvestigation where the
volumeofdumpedimports,actualorpotential,isnegligible.Accordingly,theSIMAcontainsprovisions,
[i.e.,section 35andparagraph 41(1)(b)], respecting thetermination ofaninvestigation where theactual
orpotential volume ofdumped imports isnegligible.
1G/ADP/W/155-G/SCM/W/162.
2G/ADP/N/1/CAN/2-G/SCM/N/1/CAN/2.
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G/SCM/W/279
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(b) ReClause 5(a)(i)(B) ofSIMA: Under thisclause, isitpossible tolevyananti-dumping
dutywhere imports donotconstitute aconsiderable importation when theimporter of
thegoods wasorshould have beenaware thattheexporter waspractising dumping and
thatthedumping would cause injury?
Inorder tolevyananti-dumping dutyunder section 5oftheSIMA, twoconditions mustbe
met. Thefirstcondition ismetbysatisfying either clause 5(a)(i)(A) or(B)andthesecond condition
bysatisfying either clause 5(a)(ii)(A) or(B).Therefore, adutycanbelevied when clause 5(a)(i)(A)
isnotapplicable provided thattheconditions ofclause 5(a)(i)(B) aresatisfied, (i.e., theimporter of
thegoods wasorshould havebeenaware thattheexporter waspractising dumping andthatthedumping
would cause injury), andprovided thatoneofclauses 5(a)(ii)(A) and(B)havebeensatisfied inrespect
ofinjury. Thisisconsistent withArticle 10.6oftheADAgreement.
(c) What isthestandard for"should havebeenaware" ?
Thisisbased onanobjective reasonableness standard.
3. Re.Section 14ofSIMA: Thissection gives theGovernor inCouncil unlimited power
tomake regulations exempting anygoods orclass ofgoods from theapplication ofthe
Act. What kinds ofsituations areintended tobeexempted here?
ThisprovisionoftheSIMA,whichisintendedtocovertrulyexceptionaloremergencysituations,
hasnever beenused. Itmight beusedbytheGovernor inCouncil forbroader policy purposes, (e.g.,
public health andsafety) andwhere thereisanimportant public interest which cannot await thenormal
section 45"public interest" process.