anti dumping 1
TRANSCRIPT
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Improving Africas Position in the International Trading SystemTunis, Tunisia, Nov 28 Dec 2, 2005
Agreement on Anti-dumping
By
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OUTLINE OF PRE S ENTATIONIntroduction/Definitions/Agreement
Background to contentious issuesS cope of mandate for negotiations under DDAThe July packageS pecial & Differential Treatment
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Background to issuesUruguay round + & single undertaking =accept whole package & opting out is outi.e., broader agenda + single undertaking =members gave up one form of flexibilityfear to encounter adjustment problemspossibility to react ex post necessary e.g., to
problems caused by unforeseen import surges
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Background to issues (cont)Without flexibility to act ex post membersreluctant to liberalizeAdditional flexibility for DevelopingCountries & LDCs extended implementation periods
technical assistance
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Background to issues (cont)Rationale for S DT weakness in institutional capacity cost of adjustments
imposed by new disciplines
Discussion leads us to trade remedies
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TRADE REMEDIE S
Three Types of Contingent Trade Remedies Anti-dumping Countervailing S afeguards
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ANTI-DUMPING AGREEMENT
ADA allows countries to impose anti-dumping duties to protect their producersfrom injury caused by imports of dumpedgoods
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WH AT IS DUMPING?When an exporter sells a product to theimporting country at a lower price than the
price at which the same (or similar) productis sold on its own domestic market Domestic price of exporter > export price
Dumping = price discrimination betweennational markets
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ANTI-DUMPING ISS
UES
What is wrong with Dumping?Can cause injury to local industryunfair trade practice
What is wrong with Anti-Dumping?Methodologies for calculating margins
sale of like products in ordinary course of tradecomparison of export price to normal value etc.(see below)
Effectiveness of Anti-Dumping Ordersintl distributors can easily source from other country (notMFN)
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ANTI-DUMPING MEA S URE S
Measures Import Restrictions Temporary protection of particular industries
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THE AGREEMENT
Legal Basis for Anti-Dumping Actions Article VI of GATT 1994 Agreement on Implementation of Article VI of
GATT 1994 (Anti-Dumping Agreement)
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DDA & July PackagePlaces needs and interests of Developingand Least Developed Countries at the heartof the negotiationsS pecifics discussed in the different
presentations during this seminar
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ANTI-DUMPING
Substantive Elements Dumping Injury
Causal link betweeninjury and dumping
Normal ValueLike Product?Determine the LikeProduct Compare the following
aspectsRaw material usedManufacturing processTariff classificationConsumer preference andend-useQuality
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ANTI-DUMPING
Export price to thirdcountry Use a comparable price of
the like product whenexported to an appropriatethird country, provided thatthis price is representative
Constructed value Cost of production in
country of origin andreasonable amount for administrative, selling andgeneral goods and for profits
Comparison of Domestic Price toExport Price The comparison must be made at the
same level of trade, normally at theex-factory level, and in respect of sales made as nearly as possible at
the same time Due allowance must be made for
differences which affect pricecomparability, including differencesin:
Conditions and terms of saleTaxation
QuantitiesPhysical characteristicsLevels of tradeAny other differences which aredemonstrated to affect pricecomparability
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ANTI-DUMPING
General Principles forComputing the Margin of Dumping
Modalities of DutiesAd valorem duties 20%ad valorem
S pecific duties U S$ 10 per kilogramVariable duty NV (POI)-export price of shipment
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ANTI-DUMPINGMeaning of Injury
Three meanings: Material injury to domestic
industry (current or present
injury) Threat of material injury todomestic industry (futureinjury)
Material retardation of theestablishment of a domesticindustry
Basic Principles for theDetermination of Injury The determination of injury must be
based on positive evidence andinvolve an objective examination of:
The volume of the dumped importsThe effect of the dumped imports on
prices in the domestic market for thelike productsThe consequent impact of theseimports on domestic producers of like products
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ANTI-DUMPINGPrice Effect of DumpedImports Price undercutting Price depression
Price suppressionImpact of Dumped Imports onDomestic Producers
Article 3.4 Injury Factors Actual and potential decline in sales,
productivity, profits, return oninvestment, output, and market share
Factors affecting domestic prices
The magnitude of the margin of dumping
Actual and potential negative effects
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ANTI-DUMPINGCausality Article 3.5
Illustrative list of potentialother factors
The volume and price of
imported goods Contraction in demand Respective trade practices of
and competition betweenforeign and domestic
producers Developments in technology Export performance and
productivity of domestic producers
Shall not attribute theinjuries caused by such otherfactors to the dumpedimports
Threat of Injury S ignificant rate of increase of
dumped imports indicated thelikelihood of substantially increasedimportation
Sufficient freely disposable, or animminent substantial increase in thecapacity of the exporter
Whether imports are entering at prices that will have a significantdepressing/suppressing effect ondomestic prices, and would likely
increase demand for further imports Inventories of the exporter/importer
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ANTI-DUMPINGDetermination of MaterialRetardation
The Agreement does notprovide any guidance
regarding the determination of material retardation
Procedural Aspects of an Anti-Dumping Investigation Format of Investigation
InitiationInformation gathering
Preliminary determinationFurther investigation
Response to preliminarydetermination
Verification of informationFinal determination
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Conditions for Application of ProvisionalMeasures
Provisional measures may be applied if an investigation has been initiated (in accordancewith the provisions of Article 5), a public notice has
been given to that effect, and the parties have beengiven opportunities to submit information andcomments
a preliminary affirmative determination has beenmade of dumping and consequent injury to adomestic industry
it is judged that such measures are necessary to prevent injury being caused during the investigation
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Forms of Provisional Measures
The amount of the duty may not be greater thanthe margin of dumping provisionally estimated
The security should be equal to the amount of the provisional duty
Provisional measures may take the form of a
provisional duty or, preferably, a security (bycash deposit or bond)
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Provisional Measures & Final Duty
Duration of Provisional Measures
The general rule is that provisionalmeasures should be applied for as
short a period as possible
Not more than 4 months or, bydecision of the authorities uponrequest by exporters representing asignificant percentage of the tradeinvolved, for a maximum of 6months
When the authorities examine
whether a duty lower than themargin of dumping would besufficient, these periods may be 6and 9 months, respectively(lesser duty considered )
Final DutyPublic Notice: S ufficient detail on findings and
conclusions reached on all issuesof fact and law
S pecifically:Names of suppliers/supplyingcountriesProduct descriptionMargin of dumpingConsiderations re: injury
Main reasons behinddetermination
If information not in notice to bemade available in a separate report
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ANTI-DUMPINGFinal Duty (2)
If final margins are de minimis -2% of export price - no duty
can be imposed
If the volume of dumped exportsfrom any given country isnegligible - 3% of imports of the subject product - no duty can
be imposed, unless all together these countries account for 7%
Duration of Final Duty
Only for as long as, and tothe extent necessary, tocounteract injurious practice
Not longer than five yearsafter imposition
Can be reviewed uponrequest after a reasonable
period or at own initiative of
authorities
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Review of Anti-Dumping Duties
Assessment of Review Review due to changed circumstances
RequestOwn initiative Dumping and/or injury
S unset reviewfive year termination New shipper review
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S pecial & Differential TreatmentArticle 15 recognize special situation of developing
countries Possibilities of constructive remedies provided
for by this Agreement shall be explored beforeapplying anti-dumping duties
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AFRICAN PO S ITION The Kigali Consensus
Introduction of more complex rules and
disciplines would be counterproductive andwill negatively affect African countriesrights under these agreements
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AFRICAN PO S ITION (cont)
The Cairo DeclarationAvoid introduction of more complex rules anddisciplines
Need to provide adequate technical assistance toAfrican countriesNeed to address development dimension of negotiationsClarification and improvement of disciplines and
proceduresA moratorium by developed countries oncontingency measures that include anti-dumpingactions against African LDCs exports
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Thank you very much