RESTRICTED
WORLD TRADE G/ADP/W/105
G/SCM/W/114
ORGANIZATION 12October 1995
(95-3046)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED BY
THE GOVERNMENT OFNEW ZEALAND1OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 3October 1995, hasbeenreceived fromthePermanent
Mission ofCanada.
_______________
Withreference totheNotification ofLaws andRegulations byNewZealand under Article 18.5
oftheAgreement onImplementation ofArticle VIandArticle 32.6oftheSubsidies andCountervailing
MeasuresAgreementoftheGATT1994,documentG/ADP/N/1/NZL/2-G/SCM/N/1/NZL/2,submitted
24August 1995 totheCommittee onAnti-dumping Practices andtheCommittee onSubsidies and
Countervailing Measures, Canada would liketoaddress thefollowing items:
1. Inregard totheDumping andCountervailing Duties Act1988, Section 3Interpretation, 1,
includes short definitions ofsubsidy, subsidized goods, andspecific subsidy. There donotappear to
beanyfurther regulations beyond these short definitions, including several essential provisions ofthe
SCM Agreement. Forexample, could NewZealand please clarify:
(a) whether inthecaseofacontradiction between itsdefinition ofsubsidy andthatin
detailed inArticle 1oftheSCM Agreement thatthelatter willprevail;
(b) howspecificity istobecalculated, andwhynoneofthedetails ofArticle 2oftheSCM
Agreement areincluded initsregulations;
(c) howNewZealand authorities willbeabletoterminate proceedings involving non-
actionable subsidies asdefined under PartIVoftheSCM Agreement, given thatthere
arenosuchprovisions intheNewZealand legislation, noranydefining prohibited
oractionable subsidies asprovided forinPartIIandPartIIIoftheSCM Agreement.
2. Section 4,Export Price, (1)(b)(iii)states theSecretary shalldetermine therateofprofit "with
regard totherateofprofit thatwould normally berealized onsalesofgoods ofthesamegeneral category
..."HowdoesNewZealand reconcile theapparently discretionary nature ofthephrase "with regard
to"withthenon-discretionary provision ("shall notexceed") ofArticle 2.2.2 (iii)oftheAgreement
onImplementation ofArticle VI?
1G/ADP/N/1/NZL/2-G/SCM/N/1/NZL/2.
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3. Section 5,Normal Value, 2(d)(ii)(A),makes reference to"reasonable amounts for
administrative andselling costs" asdetermined bytheSecretary. Would thisamount becalculated in
accordance withArticles 2.2.1.1 and2.2.2 oftheAgreement onImplementation ofArticle VI,using
records keptandactual costs where possible?
4. InSection 6,Export Price andNormal Value, willtheprovisions fortheuseofinformation
available beinvoked onlyinconformance withAnnex IIoftheAgreement onImplementation of
Article VIonBestInformation Available?
5. Willtheprovisions inSection 10,Initiation andsubsequent investigation, (6),for"reasonable
opportunity" beinterpreted inconformance withtherequirement sofArticle 6oftheAgreement on
ImplementationofArticleVI,andArticle12oftheSCMAgreement,including,forexample,aminimum
period of30daysforresponse?
6. Beyond theprovisions of10A, Notice toparties ofinvestigation, willNewZealand clarify
whetheritwillgivepublicnoticeandexplanationofinitiationanddeterminationsasrequiredinArticle12
oftheAgreement onImplementation ofArticle VIandArticle 22oftheSCM Agreement?
7. Further toArticle 12oftheAgreement onImplementation ofArticle VI,there donotappear
tobeanyprovisionsforpreliminarydeterminationsinthecourseofaninvestigation,evenwhererequired
under theSCM Agreement andtheAgreement onImplementation ofArticle VI[viz.Section 15,Price
Undertakings, (1A)andSection 16,Provisional Measures, (1)(a)]. CanNewZealand explain why
there arenosuchprovisions?
8. Could NewZealand clarify whether industrial users orconsumer organizations willbeallowed
toprovide relevant information inaninvestigation, asrequired byArticle 6.12oftheAgreement on
Implementation ofArticle VI?
9. Does New Zealand intend toinclude provisions initslegislation toimplement DSB panel
decisions, andifnot,whatwillbethelegalbasis fortheadoption ofapanel decision?