RESTRICTED
WORLD TRADE G/ADP/W/61
G/SCM/W/70
ORGANIZATION 16August 1995
(95-2426)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
ORAL QUESTIONS POSED ATTHE JOINT SPECIAL MEETING
OFTHE COMMITTEES CONCERNING THE NOTIFICATIONS
PROVIDED BYTHE GOVERNMENT OFKOREA OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 11August 1995, hasbeenreceived fromtheHong Kong
Economic andTrade Office.
_______________
Article 4-2(2) oftheEnforcement Decree oftheCustoms Actdefines thedomestic industry
as"thedomestic production industry thataccounts foralloramajor portion ofthetotaldomestic
production oftheproducts thatarethesame inkindandquality andtheproducts similar withthose
imported atapricethatislower thanthenormal value"(ourunderlining). Thedefinitions oftheterms
"product same inkindandquality" and"similar product" aregiven inArticle 4-(1)oftheRegulation
oftheCustoms Act.
Article 4.1oftheWTO A-DAgreement defines "domestic industry" as"thedomestic producers
asawhole ofthelikeproducts ortothose ofthemwhose collective output oftheproducts constitutes
amajor proportion ofthetotaldomestic production ofthose products... ".Theterm"likeproducts"
isdefined inArticle 2.6astomean "aproduct which isidentical, i.e.alikeinallrespects totheproduct
under consideration, orintheabsence ofsuchaproduct, another product which, although notalike
inallrespects, hascharacteristics closely resembling those oftheproduct under consideration" (our
underlining).
TheWTO A-DAgreement therefore isclear thatsimilar product (i.e.product which has
characteristics closely resembling those oftheproduct which issubject ofinvestigation) willbeused
todefine domestic industry onlyifidentical products arenotproduced domestically intheimporting
Member. TheKorean legislation seems topermit, bylumping "product same inkindandquality"
and"similar product" together inthedefinition ofdomestic industry, theinclusion of"similar product"
todefine thedomestic industry eventhough thereisproduction of"product same inkindandquality"
inKorea.
Wewould appreciate clarification from theKorean authorities astohowArticle 4-2(2) is
consistent withArticle 4.1andArticle 2.6oftheWTO A-DAgreement.