./.  WORLD TRADE  
ORGANIZATION  G/ADP/AHG/W/121/Rev.4
17 February 2004 
 (04-0641) 
Committee on Anti-Dumping Practices 
Working Group on Implementation  
 
 
 
DRAFT RECOMMENDATION CONCERNING CONDITIONS OF  
COMPETITION THAT MAY BE RELEVANT TO A DECISION  
WHETHER A CUMULATIVE ASSESSMENT OF THE  
EFFECTS OF IMPORTS IS APPROPRIATE  
 
Revision  
  
 The following reflects specific drafting sugg estions and other comments concerning the text 
of the draft recommendation made by Members at the Meeting of the Working Group on 
Implementation on 21 October 2003. 
 
_______________ 
  
 The Committee notes that Article 3.3 of the Ag reement on Implementation of Article VI of 
GATT 1994 provides that the investigating authorities may cumulatively assess the effects of imports 
of a product from more than one country if, inter alia , a cumulative assessment of the effects of the 
imports is appropriate in light of the conditions of competition between imported products and the 
conditions of competition between the imported products and the like domestic product.  The 
Committee further notes that the Agreement does not est ablish any criteria or give any direction as to 
what factors might be relevant in this consideration 
of the conditions of competition. 
 The Committee recognizes that a decision whethe r a cumulative assessment is appropriate in 
light of the conditions of competition must be ma de by the investigating authorities in each case on 
the basis of the particular facts in that case, in th e context of the relevant domestic market.  Moreover, 
the Committee is mindful that the relevance of any pa rticular factor examined for the consideration of 
the conditions of competition may vary from case to  case.  Nonetheless, the Committee considers that 
it would be useful to have guidelines as to such factors that may be relevant. 
 The Committee recognizes that investigating authorities may consider other or different 
factors than those set out below in deciding whethe r a cumulative assessment of the effects of imports 
is appropriate in any given situ ation.  Moreover, the Committee recognizes that one or more of the 
factors listed below may not be relevant in the context of a particular Member's market.  The 
Committee emphasizes that no one or several of  the factors listed below will necessarily be 
determinative in any given situation.  
 In light of the foregoing, the Committee r ecommends that Members consider the following 
factors, among others, to the extent they are rele vant, in deciding whether to assess cumulatively the 
effects of imports as provided for in Article 3.3 (b) of the Agreement: 
 
1a. Physical characteristics and uses of the domestic like product and imports from each of the countries whose imports may be cumulated, as well as the [degree of] interchangeability, or 
substitutability.  [Considerations such as qualit y, [raw materials used],[function], technical G/ADP/AHG/W/121/Rev.4 
Page 2  
 
specifications, [tariff 
classification] [and specific customer requirements] [and customer perceptions] 
may be relevant in this regard;] 
2a. Whether the domestic like product and imports  from each of the countries whose imports may 
be cumulated have, for example: 
(a)  common or similar channels of distribution.   
Other factors which may be relevant to cumula tion for some Members could include whether the 
domestic like product and imports from each of the countries whose imports may be cumulated [are 
sold or offered for sale]: 
[(b)  the same or overlapping geographical areas of the domestic market, [as appropriate], 
and;]  
(c)  [during the period of investigation] [s ame or overlapping time-periods within the] 
period of investigation]. 
3. [Prices for the domestic like product and imports from each of the countries whose imports 
may be cumulated[, as appropriate].  [This price analys is could cover, e.g., leve ls and trends of prices, 
as well as the level of price undercutting]; 
4a. [[For the purpose of analyzing material injury and threat of material injury,][as appropriate,] 
the levels or trends in the volume of imports from each of the countries whose imports may be cumulated, either in absolute terms or relativ e to production or consumption in the importing 
country];  
4b. [[For the purpose of consideri ng cumulation for the assessment of threat of material injury,] 
[as appropriate], the levels or trends in the volume of imports, either in absolute terms or relative to 
production or consumption in the importing country,
 and pricing patterns from each of the c ountries 
whose imports may be cumulated];  
[The analysis of the conditions of competition shou ld refer to the period of data collection for the 
[dumping investigation] [or the period of data  collection for the injury investigation].] 
__________ 
 
 