RESTRICTED
WORLD TRADE G/ADP/W/102
G/SCM/W/111
ORGANIZATION 13October 1995
(95-3043)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED BY
THE GOVERNMENT OFBRAZIL1OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 3October 1995, hasbeenreceived fromthePermanent
Mission ofCanada.
_______________
With reference totheNotification ofLaws andRegulations byBrazil under Article 18.5of
theAgreement onImplementation ofArticle VIandArticle 32.6oftheSubsidies andCountervailing
Measures Agreement oftheGATT 1994, document G/ADP/N/1/BRA/1-G/SCM/N/1/BRA/1, dated
5April 1995 totheCommittee onAnti-dumping Practices andtheCommittee onSubsidies and
Countervailing Measures, Canada would liketoaddress thefollowing items:
According toWTO document G/SCM/N/1/BRA/1, theMarrakesh Agreement Establishing
theWTO anditsAnnexed Agreements havebeenincorporated intotheBrazilian legalsystem intheir
fulltextthrough Decree No.1355, of30December 1994. TheWTO document alsoindicates that
theBrazilian Government ispresently drafting newregulations onmeasures toavoid theeffects of
unfair trade practices, inaccordance withtheprovisions oftheWTO Annexed Agreements. Further
toProvisional Measure No.926(inrespect ofregulating andapplying duties) assetoutinWTO
G/SCM/N/1/BRA/1.
1. Totheextent thatthecovered agreements areintended tobeincluded andtoapply to
investigations andprevail overanycontrary ordifferent provisions contained inprevious laws, can
Brazil identify thespecific partsofitsexisting legislation thatwillcontinue toapply toinvestigations,
thespecific articles thatwillchange andhowexactly these articles aretobechanged?
2. Could Brazil clarify whether theAgreements willbethelawofgeneral application and,in
theevent ofconflict, willsupersede anyother Brazilian lawsthatmayconflict withtheAgreements?
3. Isthereanymeans bywhich domestic interests could useBrazilian laws(such asaconstitutional
challenge) toprevent theGovernment from implementing aDSBpanel decision?
4. Does theBrazilian Government intend toimplement allofthechanges (referred tointhe
Appendix) viaitsdraftlawtopermit administrative changes? Could theBrazilian Government advise
when theregulations topermit administrative changes totheCommittee willbenotified?
1G/ADP/N/1/BRA/1-G/SCM/N/1/BRA/1.G/ADP/W/102
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5. Willanyofthenewobligations (referred tointheAppendix) beimplemented through regulation
oradministrative practices?
6. What isthelegal mechanism inBrazilian lawfortheimplementation ofdecisions rendered
byaWTO panel?
Specific Questions Regarding Legislation Submitted 5April 1995
1. According toArticle 2ofProvisional Measure 926,Brazilian authorities mayapply provisional
measures afterhaving conducted apreliminary analysis. Could theBrazilian delegate please clarify
ifBrazil intends preliminary analysis tohavethesame meaning astheWTO wording preliminary
affirmative determination. Forexample, willtheBrazilian authorities firstpublish anddistribute to
interested parties, apublic statement disclosing theinformation prior totheimposition ofprovisional
duties asrequired under Article 12oftheAgreement onImplementation ofArticle VIoftheGATT
1994?
2. According toArticle 3ofProvisional Measure 926,theSRFoftheBrazilian Ministry ofFinance
mayaccept adeposit inmoney orabank guarantee during theperiod between theapplication of
provisional duties andthefinaldecision. Paragraph 1specifies that:
Theguarantee must ensure, inallcases, thesame level ofcorrection forinflation usedfor
thepurposes offederal taxes, including interest, starting fromthedateprovisional duties wereimposed.
Could theBrazilian delegate please specify whether, intheevent thattheimporter provides
adeposit inmoney andthattheaction iseither terminated orthefinaldetermination indicates noinjury,
willtheBrazilian authorities treattherefund ofthedeposit inasimilar manner (i.e.correct forinflation
andinclude interest)?
3. Article 4ofProvisional Measure 926specifies theprovisions forundertakings, butdoesnot
provide anytimeconstraints fortheacceptance ofsuchundertakings. Article 8.2oftheAgreement
onImplementation ofArticle VIoftheGATT 1994setsoutthatpriceundertakings shallnotbesought
oraccepted untilafterapreliminary affirmative determination ofdumping andinjury hasbeenmade.
CouldtheBraziliandelegatepleaseindicatewhereBraziliananti-dumpinglawssetoutthistimethreshold?
Questions Regarding Transparency ofProcess
Thesoleparagraph following Article 6ofProvisional Measure 926setsouttheinformation
thatwillbecontained inprovisional andfinalanti-dumping orders.
1. Could theBrazilian delegate indicate whether Brazilian authorities willgivepublic notice of
information regarding apriceundertaking order andwillforward thisinformation tointerested parties
asrequired byArticle 12.2oftheAgreement onImplementation ofArticle VIoftheGATT 1994?
2. Could theBrazilian delegate indicate whether public notice ofprovisional andfinalanti-dumping
orders willbegiven andwhether interested parties willbenotified asrequired byArticle 12.2ofthe
Agreement onImplementation ofArticle VIoftheGATT 1994?
3. Could theBrazilian delegate please indicate whether, atthetimeofinitiation ofananti-dumping
investigation, theinvestigating authority willprovide public notice andwillnotify interested parties
oftheinformation specified inArticle 12.1.1 oftheAgreement onImplementation ofArticle VIof
theGATT 1994?G/ADP/W/102
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Questions Regarding Procedural Fairness
1. CantheBrazilian delegate clarify howitintends toimplement obligations regarding procedural
fairness? Forexample, whatopportunities doauthorities accord interested parties toprepare andsubmit
information?G/ADP/W/102
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Appendix
Changes toAnti-dumping Agreement ofPrimary interest toCanada
DETERMINATION OFDUMPING (Art. 2):
TREATMENT OFSALES BELOW COST -N.V.BASED ONCOST-PLUS ORTHIRD COUNTRY
SALES (Art2.2-various NEW elements )
TREATMENT OFNON-RECURRING ITEMS (Art2.2.1.1 -NEW )
TREATMENT OFSTART-UP OPERATIONS (Art. 2.2.1.1 -NEW )
GS&A andPROFITS BASED ONACTUAL DATA (Art. 2.2.2 -NEW )
FAIR COMPARISON PROVISIONS (Art. 2.4-various NEW elements )
USEOFEXCHANGE RATES -TREATMENT OFSUSTAINED MOVEMENTS (Art. 2.4.1
NEW )
DETERMINATION OFDUMPING: INVESTIGATION PHASE (Art2.4.2 -NEW )
TARGETED DUMPING (Art.2.4.2 -NEW )
TRANS-SHIPMENTS (Art. 2.5)
DETERMINATION OFINJURY:
CUMULATION (Art3.3-NEW )
INJURY ANALYSIS /CAUSATION (Art. 3.4-some NEW elements )
INJURY FROM OTHER FACTORS NOT TOBEATTRIBUTED TODUMPING (Art. 3.5-NEW )
THREAT OFMATERIAL INJURY (Art. 3.7-various NEW elements )
APPLICATIONS/COMPLAINTS:
CONTENT OFCOMPLAINT (Art. 5.2-various NEW elements )
EXPLICIT REQUIREMENT TOEXAMINE ADEQUACY AND ACCURACY OFCOMPLAINT (Art
5.3-NEW )
INITIATION STANDARDS:
SUPPORT (Art. 5.4-NEW )
AUTHORITIES TOAVOID PUBLICISING COMPLAINTS (Art. 5.5-NEW )
NOTICE OFCOMPLAINT (Art. 5.5-NEW )
CONDUCT OFINVESTIGATIONS (Art. 5.8various NEW elements )
EVIDENCE:
ELEMENTS OFDUE PROCESS (Art. 6various NEW elements )
SAMPLING (Art. 6.10-NEW )
PUBLIC INTEREST (Art. 6.12-NEW )
TRANSPARENCY
PUBLIC NOTICE/ EXPLANATION OFDETERMINATIONS (Art. 12-various NEW elements )G/ADP/W/102
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PROVISIONAL MEASURES:
PROPER INITIATION, PUBLIC NOTICE AND INTERESTED PARTIES HAVE HAD AN
OPPORTUNITY SUBMIT INFORMATION AND MAKE COMMENTS (ART. 7.1(I) -NEW )
SHALL NOT BEAPPLIED SOONER THAN 60DAYS AFTER INITIATION (ART. 7.3-
NEW ).
FINAL MEASURES:
IMPOSITION AND COLLECTION OFDUTIES (ART. 9)
MARGIN WHERE EXPORTERS NOTINCLUDED INSAMPLES (Art. 9.4-NEW )
EXPEDITED REVIEWS (Art9.5-NEW )
PRICE UNDERTAKINGS:
TIME THRESH-HOLD (I.E.NOTBEFORE APRELIMINARY DETERMINATION) FOR
ACCEPTING PRICE UNDERTAKINGS. (Art. 8.2-NEW )
SUNSET:
DURATION AND REVIEW OFANTI-DUMPING DUTIES AND PRICE UNDERTAKINGS (Art. 11
-NEW )
JUDICIAL REVIEW:
INDEPENDENT JUDICIAL REVIEW SHALL BEMAINTAINED (Art. 13-New)
FINAL PROVISIONS
PROHIBITION OFACTIONS NOTBASED ONTHEAGREEMENT (Art18.1-NEW )
TRANSITIONAL MEASURES (Art18.3-NEW )