Ministry of Development, Industry and Foreign Trade The Brazilian Approach to Sunset Review 2005 International Trade Remedies Seminar - Seoul

Ministry of Development,Industry and Foreign Trade

The Brazilian Approach to Sunset Review

2005 International Trade Remedies Seminar - Seoul

Brazilian Trade Remedies System


1.The Brazilian Formal Procedures on Sunset Reviews

1.The Brazilian Formal Procedures on Sunset Reviews



• The Brazilian Regulation: Decreto nº 1.602/95, Capítulo VII.

• Formally, the petitioner is the Domestic Industry or a Public Body of Federal Administration.

• However the Brazilian Authority NEVER self initiate an investigation.

1. The Brazilian Formal Procedures on Sunset Reviews

Formalities:



• Time to petitioner to inform its intention of asking for a sunset review – 5 months prior the end of the duty.

• Time to present a petition – 3 months

before the end of the duty.


Formalities:



• Duration of Sunset Review investigation –

12 months, without postponement, due to

internal regulation.

• The duty remain in force during the sunset

investigation period

a


Formalities:



2.Brazilian Practice2.Brazilian Practice



2. Brazilian Practice

• The Brazilian Department of Trade Remedies – DECOM conducts both dumping and injury analyses.

• The burden of proof that the termination of the measures will lead to the continuation or recurrence of dumping and injury bears on the petitioner and the investigating authorities.




• In cases where there are importations during the period of antidumping order is in force, Brazil makes a calculation of a New Margin of DumpingNew Margin of Dumping.

• It is a mix of articles 11.2 and 11.3

2.1 Concerning the Dumping Determination:




• In cases where there are NO importations

during the period of antidumping order is in force, Brazil utilises the worldwide known methodology of comparing the landed VN to the Domestic Industry Price.

• The result is a New Level of DutyNew Level of Duty





• Either the New Margin of DumpingNew Margin of Dumping or the New Level of DutyNew Level of Duty will differ from the previous duty in force.

• The Brazilian Lesser Duty Practice,Lesser Duty Practice, applies also to sunset reviews




• Although the US Corrosion Resistant Steel Sunset Panel stated that it is not inconsistent with the ADA not applying article 5.8 on the conduction of a sunset review, Brazil uses in its sunset procedure the same de minimis (2%) used in original investigations






• In making the Injury Determinations, among others, Brazil analyses these factors:

• International Prices

• Significantly increase in the world capacity of production

2.2 Concerning the Injury Determination:




• Changing in inventories

• International Level of Trade

• New Trade Remedies measures into force

• Others trade restrictive practices over the world

2.2 Concerning the Injury Determination:



3. Trade Remedies Negotiations3. Trade Remedies Negotiations



• The Brazilian position in these negotiations is guided by the search for an equilibrium between our position as a Trade Remedies user and the protection of our exporters’ interests affected by the application of these instruments abroad.

3. Trade Remedies Negotiations



• Brazil has expressed its view on sunset issue on papers TN/RL/W/6 and 76

• Thus, in order to overcome or resolve the problem of the expansive use of the exception of the sunset review to continue the order, Brazil suggests:




• Adopt “automatic sunset” of Antidumping orders

• Allow one year grace period until re-investigate


Thank you very much indeed for your attention.

Ministry of Development,Industry and Foreign Trade


2005 International Trade Remedies Seminar - Seoul

› Rodrigo Faria› DECOM-Departamento de Defesa Comercial› E-mail: [email protected] › Website: www.desenvolvimento.gov.br

Documents

Ministry of Development, Industry and Foreign Trade The Brazilian Approach to Sunset Review 2005 International Trade Remedies Seminar - Seoul