RESTRICTED
WORLD TRADE G/ADP/W/160
G/SCM/W/167
ORGANIZATION 22November 1995
(95-3686)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYTHE GOVERNMENT OFMALAYSIA1OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 15November 1995, hasbeenreceived fromthePermanent
Mission ofJapan.
_______________
Questions onconsistency ofMalaysian LawwiththeAnti-Dumping Agreement (AA)
andtheAgreement onSubsidies andCountervailing Measures
1. Cross-cumulation
Article 3.3oftheAAauthorizes under certain conditions acumulative assessment oftheeffects
ofimports ofaproduct from more thanonecountry indetermining material injury when more than
onecountry issimultaneously subject toanti-dumping investigations. TheAA,however, doesnot
permit across-cumulation ofimports forsimultaneous A-DandCVD cases.
Section 35oftheMalaysian Anti-Dumping andCountervailing Duties Actprovides that:
"Where imports ofmerchandise frommorethanonecountry aresimultaneously subject
tocountervailing oranti-dumping dutyinvestigations orboth, theGovernment may
cumulatively assess theeffects ofsubsidized anddumped merchandise orbothonthe
domestic industry."
Assuch,Section35oftheActspecificallyseemstoallowfordumpingandsubsidyinvestigations
tobecombined inawayinconsistent withtheAA.
Q. Does Malaysia agree thattheauthorization initslawsofcross-cumulation isinconsistent with
theAA? Ifnot,why?
1G/ADP/N/1/MYS/1-G/SCM/N/1/MYS/1.
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2. Acceptance ofundertakings
Article 8.2oftheAAspecifically states that:
"Price undertakings shallnotbesought oraccepted fromexporters unless theauthorities
oftheimportingMemberhavemadeapreliminaryaffirmativedeterminationofdumping
andinjury caused bysuchdumping."
TheMalaysian legislation, however, expressly allows fortheacceptance ofundertakings prior
tothepreliminary determination. Section 27(1) oftheActallows thesuspension ofaninvestigation
"atanytimeifundertakings areaccepted bytheGovernment". Moreover, Section 27(3) oftheAct
refers tothepossibility ofundertakings being accepted prior tothepreliminary determination: "If
theundertakings areaccepted bytheGovernment prior tothepreliminary determination ...".
Q. HowdoesMalaysia justify accepting undertakings prior tothepreliminary determination in
lightofArticle 8.2oftheAA?
3. Anti-circumvention
Although theparticipants oftheUruguay Round considered theinclusion ofrulesandnorms
fortheapplication ofanti-circumvention measures, theAAdoesnotinclude anyauthorization foranti-
circumvention measures. TheMalaysian law,however, authorizes theapplication ofanti-circumvention
measures (Section 37oftheMalaysian Act).
Q. Where intheAAdoesMalaysia findthebasis foritsanti-circumvention provision?