RESTRICTED
WORLD TRADE G/ADP/W/227/Suppl.1
G/SCM/W/237/Suppl.1
ORGANIZATION 1December 1995
(95-3918)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYTHE GOVERNMENT OFJAPAN1OFLAWS AND REGULATIONS
UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Supplement
Thefollowing communication, dated 29November 1995, hasbeenreceived fromthePermanent
Mission ofHong Kong.
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LikeProduct
1. Article2.1oftheWTOA-DAgreementstatesthataproductistobeconsideredasbeingdumped
iftheexport price oftheproduct exported from onecountry toanother islessthanthecomparable
price, intheordinary course oftrade, forthelikeproduct when destined forconsumption intheexporting
country.
Article 2.6oftheWTO A-DAgreement defines theterm'likeproduct 'asaproduct which
isidentical, i.e.alike inallrespects totheproduct under consideration, orintheabsence ofsucha
product, another product which although notalikeinallrespects, hascharacteristics closely resembling
those oftheproduct under consideration.
Question: Itisobserved thatboththeLawandtheOrder make frequent references totheterm
'likeproduct '.Arethereanystatutory provisions inJapan'sdomestic legislation which
reflect thedefinition oftheterm'likeproduct 'asprovided forinArticle 2.6ofthe
WTO A-DAgreement?
Determination ofInjury
2. Article 3.1oftheWTO A-DAgreement states thatadetermination ofinjury shallbebased
onpositive evidence andoutlines thefactors forobjective examination. Paragraphs 2,4to6ofArticle 3
oftheWTO A-DAgreement further specify thefactors tobeconsidered, impacts tobeexamined and
effects tobedemonstrated inthedetermination ofinjury inrespect ofthealleged dumped imports.
1G/ADP/N/1/JPN/2-G/SCM/N/1/JPN/2 +Corr.1.
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G/SCM/W/237/Suppl.1
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Question: Willtheabove requirements beobserved bytheJapanese authorities? Arethere any
relevant statutory provisions inJapan'sdomestic legislation?
Article 5oftheCabinet Order Relating toAnti-dumping Duty
3. Article 5.4oftheWTO A-DAgreement provides thataninvestigation shallnotbeinitiated
unless theapplication hasbeenmade byoronbehalf ofthedomestic industry. Theapplication shall
beconsidered tohavebeenmade 'byoronbehalf ofthedomestic industry 'ifitissupported bythose
domestic producers whose collective output constitutes more than50percentofthetotalproduction
ofthelikeproduct produced bythatportion ofthedomestic industry expressing either support for
oropposition totheapplication. Noinvestigation shallbeinitiated when domestic producers expressly
supporting theapplication account forlessthan25percentoftotalproduction ofthelikeproduct
produced bythedomestic industry. Footnote 14oftheAgreement further provides thatintheterritory
ofcertain Members, employees ofdomestic producers ofthelikeproduct orrepresentatives ofthose
employees, maymake orsupport anapplication foranA-Dinvestigation.
Paragraph 1ofArticle 5oftheOrder provides that'interested parties fordomestic industry '
whomayapply foranA-Dinvestigation orreview include:
(1) adomestic producer ofthelikeproduct oranassociation amajority ofthemembers
ofwhich aredomestic producers ofalikeproduct oftheimported products andwhose
totaloutput ofthelikeproducts constitutes notlessthan25percentofthetotaldomestic
production;
(2) alabour union consisted ofdirect orindirect members whoareengaged inproduction
ofthelikeproduct oftheimported products andthetotalnumber ofsuchmembers
constitutes notlessthan25percentofthetotalnumber oflabours whoareengaged
insuchproduction.
Question: (a) Itseems thatParagraph 1ofArticle 5oftheOrder onlymeets partofthe
requirement ofArticle 5.4oftheAgreement. Would Japan explain howthe
provision isconsistent withitsobligations under theAgreement?
(b) What would happen ifproducers opposed butunions supported apetition?
(c) What would happen when there areconflicting views between theproducer
andlabours from thesame entity?
(d) Ifaproducer andhisworkers bothmake submission insupport ofapetition,
would theproduction ofthecorresponding entity becounted twice in
considering the25percent-total-production threshold?