RESTRICTED
WORLD TRADE G/ADP/W/25
G/SCM/W/32
13July1995
ORGANIZATION(95-1997)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED BYTHE
GOVERNMENT OFVENEZUELA OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowingcommunication,dated4July1995,hasbeenreceivedfromthePermanentMission
ofCanada.
_________________
Indocument G/SCM/1/VEN/1, Venezuela indicates thatVenezuelan legislation relating to
anti-dumping andcountervailing measures comprises theMarrakesh Agreement Establishing theWorld
Trade Organization (WTO), theAgreement onImplementation ofArticle VIoftheGeneral Agreement
onTariffs andTrade 1994 andtheAgreement onSubsidies andCountervailing Measures.
1. Theabove noted document indicates thatthetextoftheMarrakesh Agreement forms partof
domestic legislation, hasforce oflawandprevails overanycontrary ordifferent provisions contained
inprevious laws. Forpurposes ofclarity, canVenezuela advise astowhether thereference tothe
Marrakesh Agreement means theAgreement Establishing theWorld Trade Organization andallof
itscovered agreements?
2. Totheextent thatthecovered agreements areintended tobeincluded andtoapply to
investigations andprevail overanycontrary ordifferent provisions contained inprevious laws, can
Venezuela identify (with respect toeachofthespecific items intheattached Appendix) thespecific
parts ofitsexisting legislation thatwillcontinue toapply toinvestigations?
3. WillanyofthenewWTO Agreement obligations (referred tointheAppendix) beimplemented
through other laws, through regulations, administrative practices ordecrees?
4. What isthelegalmechanism inVenezuelan lawfortheimplementation ofdecisions rendered
byaWTO panel?
5. Isthere anymeans bywhich domestic interests could useVenezuelan laws (such asa
constitutional challenge) toprevent thegovernment from implementing aDSBpanel decision?
6. Could theVenezuelan Government indicate when theywillbeabletonotify thelawtopermit
administrative changes totheCommittee?G/ADP/W/25
G/SCM/W/32
Page2
Appendix
Changes ToLegislation Resulting from
TheAgreement onSubsidies andCountervailing Measures
and
TheAgreement onImplementation ofArticle VIoftheGeneral
Agreement onTariffs andTrade 1994
ofPrimary Interest ToCanada
I. Subsidies disciplines
Definition ofsubsidy
- Treatment ofdefinition ofsubsidy: [SCM Art.1]-financial contribution bygovernment that
confers abenefit totherecipient;
- Treatment ofexhaustive listofgovernment practices thatconstitute financial contributions;
inclusion ofincome orprice support elements;
Specificity
- Treatment ofdejureanddefacto testsgoverning specificity, [SCM, Art.2];
- Treatment ofsub-federal specificity (SCM Art.2.2),anddesignation ofprohibited subsidies
asspecific (SCM Art.2.3);
Prohibited subsidies
- Treatment ofdefinition [SCM Art.3and4]andillustrative list[SCM Annex I];
- Treatment ofAgriculture Agreement exemptions,
Actionable subsidies
- Treatment ofactionable subsidies: [SCM Art.5,6,7]i.e.countervailable subsidies, toensure
exclusion ofnon-actionable under theSCM Agreement;
- Treatment ofserious prejudice elements;
Non-actionable subsidies
- Treatmentoftypes,definitionsandremediesfor"non-actionable"subsidies[SCMArt.8and9];
II. Countervailing measures
Massive subsidization
- Treatmentofdifferenceswithanti-dumpingmeasures,i.e.,onlyapplieswithrespecttoprohibited
subsidies;G/ADP/W/25
G/SCM/W/32
Page3
Calculation ofamount ofsubsidy
- Treatment ofArticle 14principles;
- Treatment ofbasisforcalculation, i.e.,benefit torecipient basis(unless Annex IVcalculation);
- Treatment ofamounts attributable tonon-actionable subsidies;
Developing country members
- Treatment oftransition andphase outperiod forprohibited subsides (Art. 27.3and27.4);
thresholds for"export competitiveness" (Art.27.5and27.6); actionable subsidies (Art.27.9);
thresholds forterminating countervail investigation (Art. 27.10. 27.11);
III. Determination ofdumping (ADP. Art.2):
Treatment ofsalesbelow cost-n.V. Based oncost-plus orthirdcountry sales (ADP Art.2.2)
Treatment ofnon-recurring items (ADP Art.2.2.1.1)
Treatment ofstart-up operations (ADP Art.2.2.1.1)
GS&A andprofits based onactual data(ADP Art.2.2.2)
Faircomparison provisions (ADP Art.2.4)
Useofexchange rates-Treatment ofsustained movements (ADP Art.2.4.1)
Determination ofdumping: investigation phase (ADP Art.2.4.2)
Targeted dumping (ADP Art.2.4.2)
Trans-shipments (ADP Art.2.5)
IV. Provisions Common toAnti-dumping andCountervail Investigations
Determination ofinjury
- Cumulation;
- Injury analysis/causation;
- Injury from other factors nottobeattributed todumping/subsidizing;
- Threat ofmaterial injury;
- Treatment incountervail provisions ofdifferences withanti-dumping measures i.e.,caseof
agriculture, deminimis standard and"negligible" injury;G/ADP/W/25
G/SCM/W/32
Page4
Applications/complaints
- Content ofcomplaint;
- Explicit requirement toexamine adequacy andaccuracy ofcomplaint;
Initiation standards
- Support;
- Authorities toavoid publicising complaints;
- Notice ofcomplaint;
- Conduct ofinvestigations;
Evidence
- Elements ofdueprocess;
- Sampling;
- Public interest;
Transparency
- Public notice/explanation ofdeterminations;
Provisional measures
- Proper initiation, public notice andinterested parties have hadanopportunity tosubmit
information andmake comments;
- Shall notbeapplied sooner than60daysafterinitiation;
Final measures
- Imposition andcollection ofduties;
- Margin where exporters notincluded insamples;
- Expedited reviews;
Price undertakings
- Time thresh-hold (i.e.notbefore apreliminary determination) foraccepting priceundertakings;
- Treatmentincountervailprovisionsofdifferenceswithanti-dumpingmeasures,i.e.,government
permission, andquantitative restrictions;G/ADP/W/25
G/SCM/W/32
Page5
Sunset
- Duration andreview ofanti-dumping/countervailing duties andprice undertakings;
Judicial review
- Independent judicial review shallbemaintained;
Final provisions
- Prohibition ofactions notbased ontheagreement;
- Transitional measures.