RESTRICTED
WORLD TRADE G/ADP/W/91
G/SCM/W/100
ORGANIZATION 11October 1995
(95-3020)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNING THE NOTIFICATIONS PROVIDED BY
THE GOVERNMENT OFCANADA1OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 2October 1995, hasbeenreceived from theEuropean
Communities.
_______________
With reference toWTO document G/SCM/N/1/CAN/2, theCommunity hasthefollowing
questions ontheSpecial Import Measures Act(Unofficial Consolidation ofJanuary 1995).
Countervailing Duty Legislation ofCanada
1. Page6-Definition oflikegoods (b)
Whydoesthisdefinition differ fromthedefinition of"likeproduct" contained infootnote 46
oftheSubsidies Agreement? Since thedefinition contained inthisfootnote doesnotconsider theuses
ofaproduct tobeacriterion indetermining likeproduct, howdoesCanada consider thatitsdefinition
isconsistent withthatinfootnote 46?
2. Page9-Definition ofprohibited subsidy
What isthefunction ofthenotion of"prohibited subsidy" inthecontext ofthecountervailing
dutylegislation?
CanCanada explain whether andinwhatsituations afinding of"prohibited subsidy" maylead
toadifferent course ofaction compared toother countervailable subsidies, andonwhatbasis?
3. Page10-Definition ofsubsidized goods (b)
Onwhatbasis isitdetermined thatgoods aredisposed ofataloss? Isit,forexample, with
regard totheaverage costofallsuchgoods ortheallocated costofthetransaction involved? Onwhat
basis isthecostcalculated?
Howisthisdefinition compatible withtheprovisions oftheSubsidies Agreement, which makes
useofthenotion of"adequate remuneration"?
1G/ADP/N/1/CAN/2-G/SCM/N/1/CAN/2.
./.G/ADP/W/91
G/SCM/W/100
Page2
4. Page11-Definition ofsubsidy (a)
InCanada 'scountervailing practice, isitpossible fortheamount ofthebenefit toexceed, on
aperunitbasis, theamount ofthefinancial contribution made bytheGovernment?
5. Page15-Section (6)Agreement affecting countervailing duty
Canthisprovision alsoapply incases where aGovernment undertakes toreimburse a
countervailing dutyonlyafteronehasbeenimposed? What would theinvestigative procedure bein
thiscase?
6. Page16-Section (7)Interpretation ofprovisions thatapply tobothdumped andsubsidized
goods
Doesthismean thatintheevent ofparallel anti-dumping andcountervailing dutycasesinvolving
thesame product fromthesame exporting country, theinjury caused bysubsidization would haveto
beassessed separately from thatcaused bydumping?
7. Page18-Section 3(1)(b) Anti-dumping andcountervailing duty
Article19.2oftheSubsidiesAgreementstatesthatitisdesirablethattheamountofcountervailing
dutyshould belessthantheamount ofsubsidy, ifsuchlesser dutywould beadequate toremove the
injury tothedomestic industry. Could Canada explain whyithaschosen nottoapply thisprovision?
8. Page47-Section 30.4 Amount ofsubsidy
How hasthedetermination ofthesubsidy amount beenprescribed uptonow? Please give
theappropriate reference anddetails.
9. Page50-Section 31.1(4)(b)
Does thismean thatanotified non-actionable subsidy could beinvestigated before thereview
procedure following asubstantial modification hasbeencompleted?
10. Page47-Section 41(1)(a)(ii.1)
Inwhatcircumstances isthevolume ofsubsidized imports considered negligible?