WTO – Law 6

Trade Remedies

WTO – Law 6

Trade Remedies

D u m p ing S u b sid ies S a feg ua rds

T ra d e R e m e d ies

US Cartel LawPrice DiscriminationPredatory Pricing

GATT LawPrice Discrimination from abroadReduction: only with material injury

AD LawPrice Discrimination International AspectMaterial Injury

SourcesArt. VI and XVI GATTAntidumping Agreement (AD) of the WTO

History AD Law

DumpingMaterial InjuryCausationAD Investigation and determination

Antidumping Measures: Prerequisites

Normal Value – Export Price = Dumping margin

Dumping

If positive: Dumping

Price in the domestic market (= home market method)Sale in the ordinary course of tradeOf like productsDestined for consumption in the exporting countryComparable Price of the like products

If not in the ordinary course of tradePrice in third countries (= third country method)Price constructed by adding costs (= constructed cost

method)

Normal Value (2 ADA)

Ordinary Export PriceSale in the ordinary course of tradeOf like productsDestined for consumption in the exporting countryComparable Price of the like products

If not in the ordinary course of tradeConstructed export price

Export Price (2 ADA)

Independant partners of a sales transactionExceptions

Affiliated companies (arms length transactions)Low volume or absence of tradeSales below costNon-market economies

Ordinary course of trade

Normal value vs. Export PriceComparison methods

Weighted average of both pricesTransaction-to-transaction comparison of both pricesMixed method (2.4.2)

Weighted average normal valueTo individual export prices

Price comparison

Article 5 (initiation and subsequent investigation) Article 6 (rights of the parties)Article 12 (requirements to decisions of the

authorities) Article 13 (opening of a judicial review)Recommendation Concerning the Periods of Data

Collection for Anti-Dumping Investigation (G/ADP/6 v. 29.10.98): normally between 6 and 12 months

Antidumping Investigation

Definitive AD duties (art. 9)Provisional Measures (art. 7)Accepting Price undertakings (art. 8)

AD Measures

SourcesArt. VI and XVI GATTSCMA of the WTO

Subsidies Law

Financial Contribution of a StateOr import or price supportSpecificityConferring a benefit

Subsidy

Status of Subsidies

Prohibited SubsidiesExport SubsidiesImport Substitution Subsidies

Actionable SubsidiesAll other specific subsidies

Non-actionable SubsidiesNon-specific subsidiesResearchRegionsEnvironment

Not prohibitedSpecificAdverse effects

Material InjuryOr threat of material injuryOr material retardation of the establishment of an industry

Nullification or impairment of benefits under GATTSerious prejudice or threat thereof

To the domestic industry of another member

Actionable Subsidies

Prohibited SubsidiesDSU procedure with special rules (4 SCMA)

Actionable SubsidiesTrack 1 – DSU procedure with special rules (7 SCMA)Track 2 – National Countervailing Duties procedures

Non-actionable SubsidiesConsultationsAuthorized Remedies (9 SCMA)

Remedies

Provisional measures after preliminary findings

Voluntary undertakingsDefinitive CVDs after definitive findings

Results

Unforeseen developmentsEffect of the obligations under GATTImported productsIn the importing or a requesting other member stateIn increased quantities

Absolute or relativeCausing or threatening serious injuryTo a domestic industryOf like or directly competitive products

Requirements of Safeguards (XIX GATT)

Necessity to prevent or remedy injury

Suspension of the obligation in whole or in part

Withdrawal or modification of concessions

Safeguards

Duty to maintain level of concessionsNegotiations

Agreement on compensationUnilateral suspension after 30 daysCountermeasures as compensation

Waiting period 3 yearsIf safeguard results from and absolute increase in importsAnd is in conformity with SCMA

Compensation (8)

Parallelism

Member states may be excluded from safeguardsIf they have not been considered when calculating serious

injury

Customs Union

Direct or indirect safeguardsLimits

NecessaryMost suitableExpressly justified

Exclusivity (11)Surveillance

Safeguard Measures