RESTRICTED
WORLD TRADE G/ADP/W/367
G/SCM/W/377
24April 1996
ORGANIZATION(96-1526)
Original: Spanish Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS POSED BYVENEZUELA CONCERNING THE NOTIFICATION
PROVIDED BYBOLIVIA1OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 17April 1996, hasbeenreceived from thePermanent
Mission ofVenezuela.
________________
VenezuelahasthefollowingquestionsconcerningtheAnti-DumpingandCountervailing
Measures Legislation notified byBolivia indocuments G/ADP/N/1/BOL/1 andG/SCM/N/1/BOL/1
dated 5April 1995.
1. GENERAL
(a) Could thedelegation ofBolivia saywhether theMarrakesh Agreement anditsassociated
Agreements, including theAnti-Dumping Agreement (A-D Agreement) andtheAgreement
onSubsidies andCountervailing Measures (SCM Agreement), formpartofBolivia 'sdomestic
legislation?
(b) WhatisthestatusoftheWTO'sA-DandSCMAgreementswithinBolivia'sdomesticlegislation
and,inparticular, inrelation totheA-DandSCM legislation previously promulgated andany
legislation which might bepromulgated subsequent tothesaidAgreements?
(c) HowaretheWTO 'sA-DandSCM Agreements applied andincorporated inBolivia '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/BOL/1-G/SCM/N/1/BOL/1 +G/ADP/N/1/BOL/1/Suppl.1-G/SCM/N/1/BOL/1/Suppl.1.G/ADP/W/367
G/SCM/W/377
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2. SUBSTANTIVE ASPECTS OFTHE A-DAND SCM LEGISLATION NOTIFIED BY
BOLIVIA
2.1 Determination ofdumping
(a) Observations
Article 24ofBolivia 'sregulations implementing thelegislation onunfair tradepractices states
thatwhere itisnotpossible toestablish thenormal value intheordinary course oftrade ormake a
validcomparison withtheexport price, thenormal value shallbecalculated byconsidering thehighest
export price forthelikeproduct exported toathirdcountry, provided itisrepresentative.
Question
Canthedelegation ofBolivia explain howcalculating thenormal value fromthehighest price
forexport toathirdcountry canbereconciled withtheprovisions ofArticle 2.2oftheWTO 'sA-D
Agreement?
(b) Observations
TheWTO requires thatforthepurposes ofdetermining themargin ofdumping thenormal
value shallbecompared withtheexport price onthebasis oftheweighted average ofeachorona
transaction-to-transaction basis. Itallows anormal value established onaweighted average basis to
becompared totheprices ofindividual export transactions inspecial circumstances.
Questions
Canthedelegation ofBolivia explain howthecomparison between thenormal value andthe
export price forthepurposes ofdetermining themargin ofdumping specified inArticle 26ofthe
regulations implementing itslegislation canbereconciled withtheprovisions ofArticle 2.4.2 ofthe
WTO 'sA-DAgreement? Canthedelegation ofBolivia saywhether when thenormal value calculated
onthebasis ofaweighted average iscompared withtheprices ofindividual export transactions the
corresponding criteria established bytheWTO inArticle 2.4.2 oftheA-DAgreement aretaken into
account?
2.2 Determination ofinjury
(a) Observations
Bolivia 'slegislation onunfair trade practices doesnottakeintoaccount, forthepurpose of
determining theexistence ofthreat ofinjury, whether imports areentering atprices thatwould have
asignificant depressing orsuppressing effect ondomestic prices andwould likely increase demand
forfurther imports. Nordoesitappear totakeintoaccount inventories oftheproduct being investigated.
Thisfollows from areading ofArticle 31oftheregulations implementing itslegislation.
Question
Canthedelegation ofBolivia explain howArticle 31oftheregulations implementing its
legislation onunfair trade practices canbereconciled withArticles 3.7and15.7oftheWTO 'sA-D
andSCM Agreements respectively?G/ADP/W/367
G/SCM/W/377
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(b) Observations
Itisnoted thattheBolivian A-DandSCM legislation permits theapplication ofcorrective
measures solely onevidence oftheexistence ofanunfair tradepractice ifthecountry under investigation
doesnotgrant theinjury testwhen investigating Bolivian products. Thisfollows from Article 2of
Bolivia 'sregulations implementing thelegislation onunfair trade practices.
Question
Canthedelegation ofBolivia explain howthisprovision fitsinwiththeWTO 'sA-DandSCM
Agreements, considering thatthelatter donotinclude anysimilar provision?
2.3 Initiation andprocedure
(a) Observations
Bolivia 'sA-DandSCM legislation appears todisregard thedegree ofsupport oropposition
expressed bytherestofthedomestic producers inestablishing whether thecomplainant represents
asubstantial proportion ofthedomestic industry. Thisfollows from Article 2oftheregulations
implementing itslegislation onunfair trade practices.
Question
Canthedelegation ofBolivia explain howthisprovision canbereconciled withArticle 5.4
oftheWTO 'sA-DAgreement andwithArticle 11.4ofitsSCM Agreement?
(b) Observations
Article33ofBolivia'sregulationsimplementingitslegislationonunfairtradepracticesdetermines
thesignificance ofthedumped imports onthebasisofconsiderations relating todomestic consumption.
Inestablishing therelevant criteria, theWTO textsrefertotheshare oftheimports inquestion inthe
totalimports ofthecountry concerned.
Question
Canthedelegation ofBolivia explain howtheBolivian criterion forthesignificance ofimports
canbereconciled withtheprovisions ofArticle 5.8oftheWTO 'sA-DAgreement?
2.4 Evidence andprovisional measures
(a) Observations
Article 11ofBolivia 'sregulations implementing thelegislation onunfair trade practices fixes
atime-limit oftwenty (20)working daysfromthedateofdespatch ofthequestionnaires fortheinterested
parties toreturn them totheTechnical Secretariat.
Questions
Canthedelegation ofBolivia explain howthistime-limit canbereconciled withtheprovisions
ofArticles 6.1.1 and12.1.1 oftheWTO 'sA-DandSCM Agreements respectively? HowdoestheG/ADP/W/367
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Technical Secretariat oftheMECE treatrequests foranextension ofthetime-limit forthereturn of
questionnaires, asenvisaged intheabove-mentioned articles oftheWTO 'sA-DandSCM Agreements?
(b) Observations
Bolivia 'sregulations implementing itslegislation onunfair international trade practices fixa
maximum period of45working daysfrom thedateofdespatch ofthequestionnaires formaking a
preliminary determination oftheexistence ofanunfair tradepractice. Considering thatthetime-limit
fordespatching questionnaires isfive(5)working daysfromthedateofinitiation oftheinvestigation,
themaximum period forthepreliminary determination isfifty(50)working daysfrom theinitiation
oftheinvestigation.
Question
Canthedelegation ofBolivia explain howthistime-limit canbereconciled withtheprovisions
ofArticles 7.3and17.3oftheA-DandSCM Agreements respectively?