RESTRICTED
WORLD TRADE G/ADP/W/106
G/SCM/W/115
ORGANIZATION 19October 1995
(95-3177)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED BYTHE
EUROPEAN COMMUNITIES1OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENT
Thefollowing communication, dated 9October 1995, hasbeenreceived fromthePermanent
Mission ofThailand.
_______________
Questions concerning countervailing measures
1. Article 8.5-Hearings
There isnorequest toreproduce theevidence inwriting inaccordance withArticle 12.2of
theCode, andtomake itavailable promptly toother parties inaccordance withArticle 12.1.2.
Article 12.2requires thatanydecision bytheinvestigating authority bemade onlyonthebasisofthe
written record.
Q.1 Whyistherenorequirement forinformation presented orally under Article 8.5oftheregulation
tobesubsequently reproduced inwriting andtobemade available toother parties, asrequired
under Article 12.2oftheAgreement?
Q.2 Does nottheabsence ofthisrequirement prevent other parties from gaining access tooral
information, thusdenying themtheopportunity ofdefending theirinterests tothefullberefuting
itwhere appropriate?
Q.3 Whyisprovision forthereproduction oftheevidence inwriting made onlyinArticle 8.6of
theregulation when itismore important toensure theinformation isreproduced inwriting
when onlyoneparty ispresent thanitiswhen confronting parties arepresent andknow what
isbeing said?
Q.4 Inanyevent, given thestipulation inArticle 12.2oftheAgreement thatdecisions bythe
investigating authority canonlybebased oninformation andarguments onthewritten record
which havebeenmade available tointerested Members andother parties, what usewillbe
made oforalinformation provided under Article 8.5ifthisrequirement isnotmet?
1G/ADP/N/1/EEC/1 andG/SCM/N/1/EEC/1G/ADP/W/106
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2. Article 8.7-Inspection ofnon-confidential information
Nodistinction ismade between interested parties participating intheinvestigation forwhom
written evidence hastobemade available promptly under Article 12.1.2 oftheCode andallparties
whoaremerely granted theopportunity under Article 12.3oftheCode whenever practicable tosee
allinformation thatisrelevant tothepresentation oftheircase.
Q.1 Whyisnodistinction made between parties participating intheinvestigation andotherinterested
parties when making provision fortheavailability ofnon-confidential information?
Q.2 Bearing inmind thattheonlyinformation which ismade available forinspection bytheEC
isthenon-confidential information provided byother interested parties, should notthis
information bemade available without qualification toparties participating intheinvestigation
asrequired byArticle 12.1.2 under theAgreement, i.e.onsimple request rather thanarequest
inwriting inwhich parties havetojustify thattheinformation isrelevant tothepresentation
oftheircase?
Q.3 IstheECnotaware thattheprovisions ofArticle 12.3oftheAgreement onwhich Article 8.7
oftheECregulation appear tobebased, refers toallnon-confidential information tobemade
available forallinterested parties andthattotreatparties participating intheinvestigation in
accordance withtheprovisions ofArticle 12.3oftheAgreement isnotonlycontrary tothe
Agreement itself butcanalsoberegarded asanattempt todiscourage theinterested parties
from seeking andresponding toinformation inorder todefend theirinterests, sowidening
thediscretion oftheCommission?
3. Article 11.6-Imposition ofDefinitive Duties
Although theregulation provides forthepossibility ofconsultation withtheexporting country
prior toinitiation andduring theinvestigation, asrequired byArticle 13oftheCode, nomention is
made inArticle 11.6oftheregulation oftheneedtomake reasonable efforts tocomplete consultations
before theimposition ofadefinitive countervailing dutyasrequired under Article 19.1oftheCode.
Q.1 Whyisnoprovision made fortheneedtocomplete consultations withtheinterested Member
before acountervailing dutymaybeimposed?
Q.2 IsnottheECaware thatconsultations maybeexceptionally appropriate attheendofthe
investigation given thatmany interested Members mayhavedoubts onthecalculation ofthe
subsidy andtheexistence ofinjury andwould bemore prepared toenter intomeaningful
consultations oncethese doubts havebeenresolved?
4. Article 14-Circumvention
TheECanti-subsidy regulation contains theanti-circumvention provisions inArticle 14despite
theabsenceoftheanti-circumventionissuestobeincorporatedintheWTOAgreementonImplementation
ofArticle VIoftheGATT 1994.
Q.1 TheGovernment ofThailand considers thattheEChasnorighttoinclude Article 14ofthe
ECAnti-subsidy regulation asnoconsensus wasreached onanti-circumvention. However,
asamatter ofinterest, andgiven thevague nature oftheprovisions ofArticle 14.1ofthe
regulation, could theECprovide some concrete examples ofalleged circumvention?G/ADP/W/106
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5. Article 15.2-Contents ofpublication
Thecontents ofthisArticle onlyprovide forthepublication ofasummary ofthefactsand
considerations relevant tothecountervailable subsidies andinjury investigations andnottothematters
offactandlawwhich ledtoarguments being accepted orrejected, asrequired under Article 22.4of
theCode inthecaseofaprovisional duty, nortothereasons fortheacceptance orrejection ofrelevant
arguments orclaims made byinterested Members andtheexporters andimporters, asrequired by
Article 22.5oftheCode when imposing adefinitive dutyoraccepting anundertaking.
Q.1 Whyisprovision made forthepublished regulations merely tocontain asummary ofthefacts
andconsiderations relevant tothecountervailable subsidy andinjury determinations andto
"thematters offactandlawwhich haveledtoarguments being accepted orrejected" inthe
caseofprovisional measures, asrequired byArticle 22.4oftheAgreement norto"thereasons
fortheacceptance orrejection ofrelevant arguments andclaims made byinterested Members
andbytheexporters andimporters" inthecaseofimposition ofdefinitive dutyortheacceptance
ofanundertaking asrequired byArticle 22.5oftheAgreement?
Q.2 Alternatively, ifthedetails ofthematters offactandlawandthereasons fortheacceptance
orrejection ofthearguments andclaims areconsidered tobetoolengthy tobeincluded in
theregulation, whyisnoprovision made fortheirpublication inaseparate report asprovided
forinfootnote 53oftheAgreement?
Q.3 IstheECnotaware thatintheabsence ofarequirement topublish thefulldetails relating
tomatters offactandlaworthereasons fortheacceptance orrejection ofalltherelevant
arguments andclaims, asrequired under Article 22oftheAgreement, rather thanasummary
ofthose selected bytheCommission toberelevant, there isarealdanger ofarguments or
claims being ignored, oreven manipulated inorder tosupport, orfailtocontradict, the
conclusions favoured bytheCommission?
Questions concerning anti-dumping
1. Article 13-Circumvention
TheECAnti-Dumping Regulation contains theanti-circumvention provisions inArticle 13.
However, noanti-circumvention clause isincluded inArticle VIoftheGATT 1994.
Inaddition, theECAnti-Dumping Regulation onanti-circumvention measures allows the
imposition ofanti-dumping duties without aregular finding ofdumping andinjury inaccordance with
theprovisions oftheWTO Anti-Dumping Agreement. Under Article 13oftheECRegulation, anti-
dumping duties canbeextended without compliance withtheprovisions onthecalculation ofdumping
margin asprovided indetail inArticle 2oftheWTO Anti-Dumping Agreement.
Q.1 Does theCommission agree thattheinclusion oftheanti-circumvention provisions intheEC
Anti-Dumping Regulation isincontradiction totheWTO anti-dumping provisions?
Q.2 Does theCommission agree thattheroleoftheCommittee onAnti-Dumping Practices in
reaching afuture consensus onanti-circumvention provisions willbeseverely undermined and
weakened byunilateral action taken bycontracting parties?G/ADP/W/106
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2. Special treatment fordeveloping country Members -(Article 15oftheWTO Anti-Dumping
Agreement)
TheECAnti-Dumping Regulation doesnotinclude animportant provision onthespecial
treatment fordeveloping countries asprovided forinArticle 15oftheWTO Anti-Dumping Agreement.
Under Article 15oftheAgreement, itrequires developed country Members togivespecial regard to
developingcountrieswhenconsideringtheapplicationofanti-dumpingmeasures,andexploreconstructive
remedies before applying anti-dumping duties todeveloping country Members.
Thisprovision under Article 15oftheWTO Agreement isintheinterest ofalldeveloping
country Members asexport earnings inimportant industries arealways essential forthefurther
development ofadeveloping country 'seconomy.
Asaresult, developed countries should seekforpossibilities ofconstructive remedies such
asprice undertaking fordeveloping countries before applying anti-dumping duties.
Q.1 WhydotheEuropean Communities nothaveaspecial provision fordeveloping countries in
theECAnti-Dumping Regulation asprovided forunder Article 15oftheWTO Agreement?
Q.2 Intheabsence ofsuchprovisions intheECanti-dumping law,cantheECconfirm thatitshall
nevertheless, asacontracting party, takefullaccount ofArticle 15oftheWTO Agreement
onAnti-Dumping intheimplementation oftheECanti-dumping law?
3. Article 2.10-Comparison andallowances
Itisnoted inArticle 2.10oftheECRegulation thatfactors upon which adjustments canbe
made arelisted. Article 2.4oftheAnti-Dumping Code states thatdueallowances maybemade for
anyother differences which arealsodemonstrated toaffect price comparability.
Q. Inthecaseofallowances, could theCommission confirm thatalldifferences affecting price
comparability willbetaken intoaccount inaccordance withtherequirements ofArticle 2.4
oftheAnti-Dumping Code, GATT 1994, andthattheyshallnotbelimited tothose listed under
Article 2.10a-joftheECRegulation?
4. Article 6.5-Hearings
Article 6.5oftheECRegulation doesnotprovide therequirement tosubsequently reproduce
theoralinformation inwriting before itistaken intoaccount asrequired under Article 6.3oftheWTO
Agreement.
Q.1 Why isthere norequirement forinformation presented orally under Article 6.5oftheEC
Regulation tobesubsequently confirmed inwriting andmade available tootherinterested parties
before being taken intoaccount, asrequired under Article 6.3oftheAgreement?
Q.2 Does nottheabsence ofthisrequirement prevent other parties fromgaining access totheoral
information, thusdenying themtheopportunity ofdefending theirinterests tothefullbyrefuting
itwhere appropriate?
Q.3 Whyistheprovision forthereproduction oftheevidence inwriting made onlyinArticle 6.6
oftheRegulation when onlyoneparty ispresent thanitiswhen confronting parties arepresent
andknow whatisbeing said?G/ADP/W/106
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5. Article 6.7-Inspection ofnon-confidential information
Article 6oftheAnti-Dumping Code, 1994, enhances transparency byproviding interested
parties, interalia,therighttoseeallrelevant information onsimple request.
Q. Bearing inmind thattheonlyinformation which ismade available forinspection bytheEC
isthenon-confidential information provided byother parties, should notthisinformation be
made available promptly tootherparties participating intheinvestigation without qualification,
asrequired byArticle 6.1.2 oftheAgreement, i.e.onsimple request rather thanarequest
inwriting inwhich theparties havetojustify thattheinformation isrelevant tothepresentation
ofthecase?
6. Article 14.2-Contents ofpublic notices
AlthoughprovisionismadeintheRegulationforthenoticestocontainasummaryofthematerial
factsandconsiderations relevant tothedumping andinjury determinations, itfailstotakeaccount of
therequirements ofArticle 12.2oftheCode "torefertothematters offactsandlawswhich haveled
toarguments being accepted orrejected" andinthecaseofprovisional duties "thereasons forthe
acceptance orrejection ofrelevant arguments orclaims made bytheimporters andexporters" inthe
caseofdefinitive duties ortheacceptance ofprice-undertakings.
Q.1 Whyisprovisionmadeforthepublishedregulationsmerelytocontainasummaryofthematerial
factsandconsiderations relevant tothedumping andinjury determinations andnot"thematters
offactandlawwhich have ledtoarguments being accepted orrejected" asrequired by
Article 12.2oftheAgreement aswellas"thereasons fortheacceptance oforrejection of
arguments andclaims areconsidered tobetoolengthy tobeincluded intheregulation", why
isnoprovision made fortheirpublication inaseparate report asprovided forinfootnote 23
oftheAgreement?
Q.2 IstheECnotaware thatintheabsence ofarequirement topublish thefullreasons forthe
acceptance orrejection ofallrelevant arguments orclaims, asrequired byArticle 12.2ofthe
Agreement, rather thanasummary ofthose selected bytheCommission toberelevant, there
isarealdanger ofarguments orclaims being ignored, orevenmanipulated, inorder tosupport,
orfailtocontradict, theconclusion favoured bytheCommission?