RESTRICTED
WORLD TRADE G/ADP/W/52
G/SCM/W/61
ORGANIZATION 15August 1995
(95-2404)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
ORAL QUESTIONS POSED ATTHE JOINT SPECIAL MEETING
OFTHE COMMITTEES CONCERNING THE NOTIFICATIONS
PROVIDED BYTHE GOVERNMENT OFMEXICO OFLAWS AND
REGULATIONS UNDER ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Thefollowing communication, dated 27July1995, hasbeenreceived from theOffice ofthe
United States Trade Representative.
_______________
General Questions
1. Concerning thehierarchy oflawsandtherelationship between theForeign Trade Actandthe
A-DandSCM Agreements, whatguidance willbeprovided totheMexican administrators concerning
areas where theForeign Trade Actisinconsistent withtheAgreements?
2. Concerning therelationship between theForeign Trade ActandtheA-DandSCM Agreements
andanypossible inconsistency:
(i) Willparties beabletoargue totheAdministrators, Chapter 19binational panel, and
Mexican Courts thattheMexican lawisinconsistent withtheAgreements?
(ii) Inthecaseofanargument made totheAdministrators, atwhatstageintheproceeding
canthisargument beraised andwhowillruleonthisquestion?
(iii) Inthecaseofanargument made totheMexican Courts, willtheCourt require that
theargument hasbeenraised before theAdministrators?
(iv) Inthecaseofanargument made toabinational panel, willtheAdministrators inturn
argue tothepanel thatthePanels cannot consider thetextoftheAgreements?
(v) Willaruling inaparticular casethatMexican lawisinconsistent withtheAgreements
bebinding ontheAdministrators infuture cases?
3. What willbetherelationship between Mexico 'sexisting Foreign Trade Lawandthenewlaw,
onceenacted, thatMexico iscurrently drafting toimplement theWTO A-DandSCM Agreements?
4. How willtheMexican authorities implement adverse WTO panel reports?
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G/SCM/W/61
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Concerning Specific Articles
5. Concerning Article 36oftheForeign Trade Act("FTA") (pages 3-4,G/ADP/N/1/MEX/1):
what ismeant by"necessary adjustments" andhowdotheadministrators ofthelawdecide ifan
adjustment isnecessary?
6. Concerning Article 40oftheFTA(page 3,G/ADP/N/1/MEX/1):
(i) Does the25percentthreshold apply todetermining industry support (i.e., forthe
purposes ofinitiation)?
(ii) How isthe25percentstandard consistent withArticles 3and4oftheAgreement?
(iii) How istheprovision ofArticle 40oftheFTA which allows thedomestic industry
tobedefined as"theentire group ofproducers ofthegoods produced during the
immediately proceeding stage inthesame continuous lineofproduction" consistent
withArticle 4oftheA-DAgreement?
7. Concerning Article 67oftheregulations (page 26,G/ADP/N/1/MEX/1):
(i) What ismeant bytheterm"subject toinvestigation"?
(ii) Does Mexican lawallow cumulation across A-DandCVD investigations?
8. Concerning Article 59oftheFTA (page 7,G/ADP/N/1/MEX/1): thedelegate ofMexico
indicated thatArticle 59requires anexplanation ofwhyanargument wasaccepted orrejected (consistent
withA-DArticle 12.2.2). What specific provision ofArticle 59requires suchanexplanation?
9. Concerning Article 93oftheFTA, paragraphs IIIandIV,(page 12,G/ADP/N/1/MEX/1)
which allows theimposition offines:
(i) What provision oftheA-DandSCM Agreements provides abasisfortheimposition
offines?
(ii) Arefinesimposed onlywhere theinformation isfound tobefraudulent oralsoincases
where factsavailable would beused?
(iii) Generally, could youexplain howthese finesareimposed? Isthere judicial review
available before oraftertheimposition ofthefines?
(iv) What isthecurrent legalminimum wage inMexico?