RESTRICTED
WORLD TRADE G/ADP/W/54
G/SCM/W/63
22September 1995
ORGANIZATION(95-2743)
Original: Spanish Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
REPLIES FROM VENEZUELA CONCERNING QUESTIONS POSED
BYKOREA1CONCERNING THE NOTIFICATION OF
VENEZUELAN LAWS AND REGULATIONS2
Thefollowingcommunication,dated18July1995,hasbeenreceivedfromthePermanentMission
ofVenezuela.
________________
Question 1:Normal value
Asstipulated intheWTO Agreement, when there arenosales ofthelikeproduct inthe
ordinary course oftrade, themargin ofdumping shall bedetermined bycomparison withthe
price ofthelikeproduct exported toathird country. TheWTO Agreement requires theuseof
acomparable price, whereas Article 11ofVenezuela 'slawstates thattheCommission mayuse
thehighest price. Using thehighest price indetermining thedumping margin doesnotconform
totheWTO Agreement.
Despite theprovisions ofArticle 11oftheVenezuelan Regulations, theCommission 'spractice
insuchcircumstances hasbeentotakeacomparable price, asstipulated intheWTO Agreement. The
Commission 'spractice willcontinue tobeguided bythiscriterion. Similarly, theWTO Agreement
hasbeenincorporated intotheVenezuelan legal system; consequently, itisVenezuelan lawandis
applied assuchandisbinding, forwhich reason theprovisions oftheAgreement willprevail where
Venezuelan legislation isinconsistent withthem. However, atthepresent timetheGovernment of
theRepublic ofVenezuela isformulating draftRegulations tobring therulesinlinewiththose ofthe
WTO Agreements, andthisprovision willbeincluded inthedraft.
Question 2:Domestic industry
TheWTO Agreement establishes twocriteria fordetermining domestic production: those
domestic producers whosupport theapplication should beatleast 25percentofthedomestic
production andmore than50percentoftheproduction oftherespondents. However, Article 47
oftheVenezuelan Regulations establishes onlyonecriterion: thatthose domestic producers who
support theapplication account foratleast30percentofdomestic industry. Venezuela should
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accept another criterion: thesupporters oftheapplication should represent more than50per
centoftheproduction oftherespondents. What istheopinion ofVenezuela onthis? What is
themeaning of30percentofdomestic industry? Isitbased onquantity produced oramount
ofmoney earned bysales?
Todate,theCommission hasbeenusing thecriteria setoutinArticle 14oftheAnti-Dumping
LawandArticle 47oftheRegulations, notonlyfordetermining injury butalsofordetermining the
active justification forfiling applications toinitiate investigations. Inthisrespect, theCommission
hasbeenapplying thestandard setoutinArticle 47,namely 30percentofdomestic production of
thelikeproduct (which isstricter thanthestandard setoutintheWTO Agreements). However, the
Articledoes,exceptionally,ifthespecialcircumstancesoftheproductionstructureinquestionsorequire,
enable theCommission touseasabenchmark alower percentage, which maynotbelessthan20per
cent(alower percentage taken tobemodified to25percentunder theWTO Agreement). Furthermore,
neither theVenezuelan Anti-Dumping LawnortheRegulations include anyprovision whatsoever
concerning theneedtoverify thedegree ofsupport fortheapplication bydomestic producers. However,
theWTO Agreements aredirectly applicable toanti-dumping procedures andsubsidies initiated after
1January 1995 inVenezuela. Inthisrespect, inthecaseofimports from WTO member countries
andinaccordance withtherequirements ofArticle 5.4oftheWTO Anti-Dumping Agreement and
Article11.4oftheSubsidiesAgreement,theCommission,intheeventofanyoppositiontoanapplication
bydomestic producers, willverify whether thereisadegree ofsupport ofmorethanhalfofthedomestic
industry expressing either support for,oropposition totheapplication.
Question 3:Determination ofinjury
Article 50oftheRegulations establishes thatinjury todomestic industry isdetermined
bytheconditions established intheArticle, which doesnotconform totheWTO Agreement,
which states thatsuchfactors cannot necessarily givedecisive guidance. What istheopinion of
Venezuela onthis?
Article 50oftheVenezuelan Anti-Dumping Regulations dostipulate that,forthepurpose of
determining material injury, itissufficient fortheCommission todetermine thatatleasttwoofthe
three conditions setoutintheArticle aremet. However, asstated previously, theWTO Agreements
areapplicable toanti-dumping procedures andtosubsidies initiated after1January 1995inVenezuela.
Inthisregard, inaccordance withArticle 3oftheAnti-Dumping Agreement andArticle 15ofthe
Subsidies Agreement, theCommission must determine whether, asaresult ofthedumping orthe
subsidies, theimports cause injury tothedomestic industry. Forthispurpose, thespecific elements
ofArticle 50oftheRegulations arestillrelevant. However, these factors areexamined asawhole,
andoneorseveral ofthemcannot necessarily make foradecisive determination. Again, forthefuture
modification ofVenezuela 'sAnti-Dumping Regulations, theobligation tomake anoverall analysis
ofallaspects could beexpressly included.
Question 4:Cumulation ofimports
TheWTO Agreement specifies three conditions toassess cumulatively theimports from
more thanonecountry. TheWTO Agreement requires thatimports besimultaneously subject
toanti-dumping investigation, whereas theVenezuelan Lawstipulates thattheimports besubject
toinvestigation during theyearprior tothedateofinitiation, tocumulatively assess theeffects
ofsuchimports. Inaddition, theLawdoesnottakeintoconsideration thetwoother conditions
provided forintheWTO Agreement: (a)deminimis margin andnegligible import volume, and
(b)theconditions ofcompetition. TheLawshould accept therelevant provisions oftheWTO
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There areindeed differences andomissions asbetween Venezuela 'sAnti-Dumping Lawand
theWTO Agreement withregard tocumulation ofimports. However, asnotified, theWTO Agreements
aredirectly applicable toanti-dumping procedures andtosubsidies initiated after1January 1995 in
Venezuela. Inthisrespect, inthecaseofinvestigations involving imports fromWTO member countries,
onlytheeffects ofimports from various countries willbecumulated, inaccordance withtherules
contained intheAgreements. Suchruleswould beincluded inthefuture modification oftheVenezuelan
Anti-Dumping Regulations.