RESTRICTED
WORLD TRADE G/ADP/W/71
G/SCM/W/80
11October 1995
ORGANIZATION(95-2981)
Original: Spanish Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED BYTHE
EUROPEAN COMMUNITIES1OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 20September 1995, hasbeenreceived fromthePermanent
Mission ofArgentina.
_______________
Ihavethepleasure toattach hereto thequestions oftheArgentine Delegation concerning the
legislation oftheEuropean Communities ondumping andsubsidies thatistobereviewed atthemeetings
oftheWTO Anti-Dumping andSubsidies andCountervailing Measures Committees tobeheldinthe
week of23to27October 1995. These questions werelikewise transmitted totheDelegation ofthe
European Communities.
1G/ADP/N/1/EEC/1 andG/SCM/N/1/EEC/1G/ADP/W/71
G/SCM/W/80
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General
1. Intheevent ofconflict between aprovision ofCouncil Regulations No. 3283
(document G/ADP/N/1/EEC/1) andNo.3284(document G/SCM/N/1/EEC/1) of22December 1994
andaprovision oftheAgreements onImplementation ofArticle VIoftheGeneral Agreement onTariffs
andTrade 1994 andonSubsidies andCountervailing Measures, which would prevail?
2. Article 3oftheRegulation onDumping andArticle 5oftheRegulation onSubsidies refer
intheSpanish version to"perjuicio" whereas theAgreements onDumping (Article 3)andSubsidies
(Article 15)referto"daño" .TheEnglish versions ofboththeRegulations andtheAgreements refer
to"injury" .What isthereason forthisdifference interminology? Isitmerely aquestion oftranslation
ordoesithavesome other significance?
Anti-dumping
1. Article 3,paragraph 5,oftheRegulation includes among thefactors tobeconsidered inthe
evaluation ofinjury "thefactthatanindustry isstillintheprocess ofrecovering fromtheeffects of
pastdumping orsubsidization ",afactor notcontained intheAgreement.
Please explain thescope andpossible application ofthishypothetical circumstance.
2. Article 5,paragraph 5oftheRegulation onDumping establishes theobligation tonotify the
government oftheexporting country concerned before proceeding toinitiate aninvestigation. How
isthisnotification implemented andhowmuch inadvance oftheinitiation oftheinvestigation isit
carried out?
3. Article 5,paragraph 7,oftheRegulation onDumping establishes that"proceedings shallnot
beinitiated against countries whose imports represent amarket share ofbelow 1percent,unless such
countries collectively account for3percent, ormore, ofCommunity consumption ".
Article 5.8oftheAnti-Dumping Agreement provides that"thevolume ofdumped imports shall
normally beregarded asnegligible ifthevolume ofdumped imports fromaparticular country isfound
toaccount forlessthan3percentofimports ofthelikeproduct intheimporting Member, unless
countries which individually account forlessthan3percentoftheimports ofthelikeproduct inthe
importing Member collectively account formore than7percentofimports ofthelikeproduct inthe
importing Member".
Howmaythisdifference between theRegulation andtheAgreement, andtheeffects thereof,
beexplained?
4. Article 5,paragraph 9,oftheRegulation onDumping states that"where, afterconsultation,
itisapparent thatthere issufficient evidence tojustify initiating proceedings theCommission shall
initiate proceedings within 45daysofthelodging ofthecomplaint andpublish anotice intheOfficial
Journal oftheEuropean Communities. Where insufficient evidence hasbeenpresented, thecomplainant
shall, afterconsultation, besoinformed within 45daysofthedateonwhich thecomplaint islodged
withtheCommission ".
What parameters need tobetaken intoaccount toconsider thattheevidence presented is
sufficient?G/ADP/W/71
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5. Article 5,paragraph 10,oftheRegulation onDumping establishes thatthenotice ofinitiation
hastostatetheperiod within which interested parties maymake themselves known, present theirviews
inwriting andsubmit information. Italsohastostatetheperiod within which interested parties may
apply tobeheard.
What istheperiod allowed tointerested parties tocome forward?
WhydoestheRegulation notlaydown aperiod?
Isthisperiod fixed ineachcase?
6. Article 6,paragraph 1,oftheRegulation onDumping establishes thataninvestigation period
shallbeselected which, inthecaseofdumping, shallnormally cover aperiod ofnotlessthansixmonths
immediately prior totheinitiation oftheproceedings.
What istheselection oftheinvestigation period based on?
7. Article 7,paragraph 2,oftheSpanish version oftheRegulation establishes thattheanti-dumping
duty"nodeberá sobrepasar elmargen dedumping provisionalmente establecido niserinferior adicho
margen, siempre queresulte adecuado para eliminar elperjuicio ocasionado alaindustria dela
Comunidad" .TheEnglish version states that"Theamount oftheprovisional anti-dumping dutyshall
notexceed themargin ofdumping provisionally established butitshould belessthanthemargin, if
suchlesser dutywould beadequate toremove theinjury totheCommunity industry".
Isthisdifference merely atranslation error?
8. Article 7,paragraph 7,oftheRegulation establishes thatprovisional duties maybeimposed
forsixmonths andextended forafurther three months where exporters sorequest ordonotobject.
Article 7.4oftheAnti-Dumping Agreement provides foraperiod notexceeding fourmonths,
which maybeextended tosixmonths upon request byexporters, andtoninemonths when requested
byanexporter andinaddition theauthorities examine whether adutylower thanthemargin ofdumping
would besufficient toremove injury.
How maythisdifference beexplained?
9. Article 9,paragraph 3,oftheRegulation establishes thattheinvestigation willbeterminated
where themargin ofdumping isdeminimis ,butatthesame timeprovides thatindividual exporters
willremain subject totheproceedings andmaybereinvestigated inanysubsequent review.
Since Article 5.8oftheAnti-Dumping Agreement refers onlytoterminating theinvestigation
when themargin ofdumping isdeminimis ,howmaythisdifference beexplained?
10. Article 10,paragraph 4(ii), oftheRegulation refers to"substantial rise"inimports.
Article 10.6(ii) oftheAnti-Dumping Agreement refers to"massive dumped imports ".
What isthereason forthisdifference?
11. Article 12oftheRegulation provides forthere-opening oftheinvestigation if"measures have
ledtonomovement, orinsufficient movement, inthesaleprices orsubsequent selling prices inthe
Community" .TheAnti-Dumping Agreement doesnotprovide forre-opening onthesegrounds. WhatG/ADP/W/71
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arethelegaleffects ofsuchre-opening? Does itinvolve anewinvestigation orcontinuation ofthe
previous investigation? What aretheeffects ofre-opening onthedefinitive duties already imposed?
What would theCouncil 'spower toincrease themeasures inforce bebased upon?
12. Howdoestheconcept of"circumvention" inArticle 13oftheRegulation fitintotheframework
oftheAnti-Dumping Agreement?
Subsidies
1. Article 5,paragraph 5,oftheRegulation includes among thefactors tobeconsidered forthe
evaluation ofinjury "thefactthatanindustry isstillintheprocess ofrecovering fromtheeffects of
pastsubsidization ordumping ",afactor notcontained intheAgreement.
Please explain thescope andpossible application ofthishypothetical circumstance.
2. Article 7,paragraph 9,oftheRegulation refers tonotifying thecountry oforigin and/or export
andinviting thegovernment forconsultations toclarify thesituation andarrive atamutually agreed
solution. What doesthispossibility ofa"mutually agreed solution" referto?
3. Article 7,paragraph 11,oftheRegulation establishes thatproceedings shallnotbeinitiated
"against countries whose imports represent amarket share ofbelow 1percent,unless suchcountries
collectively account for3percent, ofCommunity consumption" ,acircumstance notprovided forin
theAgreement.
What isthebasis forincluding this?
4. Article 10,paragraph 1(ii),oftheRegulation lists,among thetypes ofundertakings, "tocease
exports" ,which isnotlisted inArticle 18oftheAgreement.
How maythisbereconciled withtheAgreement?
5. Howdoestheconcept of"circumvention" inArticle 14oftheRegulation fitintotheframework
oftheSubsidies Agreement?