RESTRICTED
WORLD TRADE G/ADP/W/173
G/SCM/W/180
ORGANIZATION 24November 1995
(95-3722)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED
BYTHAILAND1OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 14November 1995, hasbeenreceived fromthePermanent
Mission ofKorea.
_______________
1. General Questions
(a) Incases where there arenorelevant provisions inthedomestic legislation, doestheWTO
Agreement apply?
(b) Iftheprovisions oftheexisting domestic legislation donotconform totheWTO Agreement,
dotheprovisions oftheWTO Agreement apply?
2. Normal Value
Article 3.2.(5) oftheRegulation ofThailand states that"inthecasewhere product andtrade
ismonopolized intheexporting country orwhere government intervenes inthedomestic price, normal
value shallbeconstructed onanyofthefollowing bases:
(a) selling price oflikeproduct indomestic market ofathirdcountry, or(b)theprice which is
calculated from costs ofproduction asin2(ii)inathirdcountry."
Weareunable tofindanyarticles intheA-DAgreement relevant tothepricewhich isaffected
bymonopolized production orgovernment intervention intheexporting country.
Does thismean thatThailand intends toexpand theuseoftheselling price ofalikeproduct
inthedomestic market ofathird country orofaconstructed price instead ofthedomestic price of
theexporting country?
1G/ADP/N/1/THA/2-G/SCM/N/1/THA/2
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G/SCM/W/180
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3. Standing
WhiletheA-DAgreement,particularlyArticle5.4,providesastandardforthedomesticindustry
submitting acomplaint, theRegulation ofThailand vaguely states inArticle 5.1that"domestic industry
maysubmit awritten complaint."
Does thismean thatThailand considers "domestic industry" asbeing consistent withtheA-D
Agreement, specifically withrespect toArticle 5.4?
4. DeMinimis andNegligibility
Notwithstanding thatArticle 5.8oftheA-DAgreement states thatcases involving dumping
margins oflessthan2percentorthevolume ofimports oflessthan3percentofthetotalimports
ofthelikeproduct aretobeterminated immediately, theRegulation notified byThailand doesnot
stipulate specific standards fordeminimis dumping margins orthelevelofnegligible import except
forArticle 6.2.1.(2), which states onlythat"iftheinvestigation shows thattheprice differences or
thesubsidy rateortheimports hadcaused minimal injury, theCommittee shalldetermine whether
toterminate theinvestigation."
Inaddition, thetermination clause isnotsubject toextra consideration bytheauthority but
mandatory.
Howwould Thailand apply non-injurious levels ofdumping margins andnegligible imports
inthefashion stipulated inArticle 5.8oftheA-DAgreement"
5. Provisional Measures
Article 7.4oftheA-DAgreement clearly states thattheapplication ofprovisional measures
shallbelimited toasshort aperiod aspossible, notexceeding fourmonths (conditionally sixmonths).
Article 8.1oftheRegulation ofThailand, however, allows theprovisional measures tobeextended
naturally upto6months, which could belengthened evenfurther iftheauthority deems itappropriate
toextend theenforcement period. Thisclearly conflicts withboththespirit andArticle 7.4ofthe
Agreement.
PleaseexplainhowThailandwouldrestricttheprovisionalmeasuresfromthenormalenforcement
period of6months toasshort aperiod aspossible, inorder tocomply withtheAgreement.
6. Anti-Circumvention
Even though there isnoprovision forcircumvention intheA-DAgreement, theRegulation
ofThailand stipulates lengthy provisions inArticle 12under thetitle"Measures toPrevent Avoidance
ofaSpecial Duty."
Will Thailand apply those provisions before WTO adopts aunilateral provisions about
anti-circumvention?