Anti-dumping, subsidies, safeguards
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Introduction
Dumping is in general a situation of international price discrimination where the price of a product when sold to the importing country is less than the price of the same product when sold in the market of the exporting country. It is generally accepted in the multilateral trading system that if dumping takes place it might result in unfair trade as the domestic industry of the importing country might suffer harm as a result of the dumping. If this is the case the authorities of the importing country may if certain requirements are met take action against dumping. Anti-dumping action can therefore only be taken if dumping is taking place accompanied by consequent injury to the domestic industry.
Introduction
Although the AD Agreement contains some guidance on the methodologies to be applied in calculating the margin of dumping it does not provide comprehensive and detailed provisions to deal with all the issues involved. In some instances the AD Agreement provides for different options and leaves it to investigating authorities to decide which methodology to apply. In some of those instances where the AD Agreement does not provide clear guidance the practice of Members differs to a greater or lesser degree. An effort has been made to refer to the different practices of Members where the authors were aware of such practices. It is therefore not claimed that these references are complete and is done without any reference to the WTO compatibility or not of such practices.
Case-Study on Injury
This case-study seeks to illustrate the concepts discussed in a concrete fashion in the context of a hypothetical investigation. It should be borne in mind that the methodologies described herein do not necessarily represent the practices of any particular WTO Member and their disucssion in this case-study is not intended as an endorsement of those methodologies or as an indication that such methodologies are consistent with the AD Agreement. Nor are any of the possible conclusions or outcomes discussed in this case-study necessarily valid or sustainable in the context of WTO dispute settlement. The case-study merely seeks to illustrate possible approaches that might be taken to resolving issues that commonly arise in anti-dumping injury analysis. The methods presented herein are by no means the only available methodologies but they are based on methods that have been applied by Members which have not been disapproved by any dispute settlement Panel. In many instances there may be more than one approach to resolving a particular injury-related issue that would be consistent with Member obligations under the AD Agreement.
The Anti-Dumping Investigation
Once the decision to initiate an investigation has been taken and the required public notice has been given the formal investigation process starts.
A Handbook on Anti-Dumping Investigations
The subject of anti-dumping procedures has received growing attention in international trade policy and has become a source of tension between countries. This handbook covers the major areas arising in anti-dumping investigations as embodied in the relevant WTO provisions providing an exposition of well-sourced information explanations and guidance for grasping the intricacies of anti-dumping proceedings. Beginning with a chronicle of an anti-dumping investigation the book proceeds to consider the crucial issues involved: calculation of dumping margins and determinations of injury and causation. Well structured and easy to follow the handbook is designed to assist in a practical way investigators delegated the authority to conduct the required investigation. Clearly presented and informative this book will also interest government officials involved in international trade policy importing and exporting enterprises affected by anti-dumping investigations and their representatives including private legal practitioners and consultants and academic readers concerned with international trade issues.
Form and Content of Questionnaires
The timetable for completing an entire anti-dumping investigation is short. If the investigation does not proceed in a rapid and orderly manner it can become very difficult for investigating authorities to meet necessary internal deadlines to ensure that the ultimate deadlines are met. Thus the investigating authorities should rapidly complete their review of the application and other sources of available information and immediately begin work on drafting the questionnaires to be transmitted to each of the industry segments.
Case-Study I
This case-study as is the case with the second case-study as well seeks to illustrate the concepts discussed in a concrete fashion in the context of a hypothetical investigation. The methodologies described herein do not necessarily represent the practices of any particular WTO Member and their disucssion in this case-study is not intended as an endorsement of those methodologies or as an indication that such methodologies are consistent with the AD Agreement. Nor are any of the possible conclusions or outcomes discussed in this case-study necessarily valid or sustainable in the context of WTO dispute settlement. The case-study merely seeks to illustrate possible approaches that might be taken to resolving issues that commonly arise in calculating margins of dumping. The methods presented herein are by no means always the only available methodologies but they are based on methods that have been applied by Members which have not been disapproved by any dispute settlement panel. In many instances there may be more than one approach that would be consistent with Member obligations under the AD Agreement.
Gathering Industry Information and Preparing Questionnaires
As soon as the anti-dumping investigation has been formally initiated the investigating authorities should immediately begin the process of collecting the additional industry data that will be necessary to thoroughly evaluate allegations of material injury threat of material injury and the causal link between alleged injury and the dumped imports. The ability of the investigating authorities to properly analyze injury and causal issues and thus the likelihood of avoiding or withstanding any dispute settlement challenges to the definitive injury determination will depend to a significant extent on the quality of the information gathered in the investigation process.
A Handbook on Anti-Dumping Investigations
A key guide to the intricacies of anti-dumping proceedings
United States - Countervailing Measures Concerning Certain Products from the European Communities
On 10 November 2000 the EC requested consultations with the US concerning the continued application by the United States of countervailing duties on a number of products. In particular the EC claimed that the application of the “same person” methodology by the US and the continued imposition of duties based on it are in breach of Articles 10 19 and 21 of the SCM Agreement because there is no proper determination of a benefit to the producer of the goods under investigation as required by Article 1.1(b) of the SCM Agreement. The EC included in this request for consultations 14 US countervailing duty orders1 where this “same person” methodology was applied. All these cases involve alleged non-recurring subsidies granted to firms prior to a change of ownership.
European Communities - Anti-Dumping Duties on Imports of Cotton-Type Bed Linen from India - Recourse 1
On 3 August 1998 India requested consultations with the EC in respect of Council Regulation (EC) No 2398/97 of 28 November 1997 on imports of cotton-type bed-linen from India. India asserted that the EC initiated anti-dumping proceedings against imports of cotton- type bed-linen from India by publishing a notice of initiation in September 1996. Provisional anti-dumping duties were imposed by EC Council Regulation No 1069/97 of 12 June 1997. This was followed by the imposition of definitive duties in accordance with the above-mentioned EC Council Regulation No 2398/97 of 28 November 1997.