 
. /.  WORLD TRADE  
ORGANIZATION  TN/RL/W/149 
22 April 2004 
 (04-1801) 
Negotiating Group on Rules Original:   English 
  
 
EXCHANGE RATES (ANTI-DUMPING AGREEMENT ARTICLE 2.4.1)  
 
Communication from the United States
 
  
The following communication, dated 8 April 2004, is being circulated at the request of the 
Delegation of the United States.
1 
 
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The United States has suggested that Members di scuss problems associated with Article 2.4.1 
of the Anti-Dumping Agreement, which addresses the manner in which exchange rates are to be 
applied in anti-dumping investigations.2  Specifically, the United States pointed out that the 
substantive requirements of that Article are vague, and that it contains no procedural transparency 
requirements.  Without prejudice to proposals the United States may make on the former, in the view 
of the United States, setting forth clear rules which require Members to state the procedures they will 
follow will go a long way towards clarifying and improving this provision.  The United States recognizes that there may be several reasonable ways to implement Article 2.4.1.  For example, there 
are numerous sources of recognized authority from which information about exchange rates may be 
gathered.  It is important, however, that Members make clear how they will implement Article 2.4.1 
as a guard against arbitrary application.  With th ese thoughts in mind, the United States believes that 
the following steps would greatly clarify and improve Article 2.4.1:  
1.  Article 2.4.1 should require that Members use exchange rates from sources of 
recognized authority , and should require Members to notify the Committee on Anti-
Dumping Practices of the source they intend normally to use; 
 
2.  Article 2.4.1 should require Members to  notify the Committee on Anti-Dumping Practices 
of the specific methodology they will normally follow to implement Article 2.4.1; among the 
issues to be addressed by this notice should be:  (1) how the Member defines a “fluctuation” 
in exchange rates for purposes of Article 2.4.1.,  (2) what steps it will take if it identifies such 
a fluctuation;  (3) how the Member defi nes a “sustained movement” for purposes of 
Article 2.4.1., and (4) what steps it will take when it identifies such a movement; 
 
3.  Article 2.4.1 should specify that Members are obligated to use a notified source and follow 
a notified methodology, unless the Member has provided, in its relevant public notices and 
explanations of determinations under Article 12, a reasonable explanation of the facts and 
logic which lead it to conclude that the nor mal source or methodology was not appropriate; 
 
                                                     
 
1 The Delegation of the United States has requested that this paper, which was submitted to the Rules 
Negotiating Group as an informal document (JOB(04)/46), also be circulated as a formal document. 
2 See, TN/RL/W/130. TN/RL/W/149 
Page 2  
 
 4.  If a Member changes its practice with r espect to a source or methodology which has been 
notified under paragraph 1 and 2, Article 2.4.1 should require that Member to notify the 
Committee of its new practice;  and 
 
5.  Article 2.4.1 should specify the period duri ng which such notifications should be made, as 
well as the consequences for failu re to meet the obligation. 
 
In the view of the United States, there ar e areas covered by the Anti-Dumping Agreement 
where specific rules are needed.  In most areas, however, there are several reasonable procedures 
which may be followed.  The danger in such areas is less that the approach taken in a particular case 
may be unreasonable, but that a Member may arbitrarily shift among reasonable methods from case to 
case.  The approach proposed above for Article 2. 4.1 may serve as a useful model for dealing with 
such issues.  
 
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