AntiDumping mechanisms of the WTO

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AntiDumping mechanisms of the WTO by Mind Map: AntiDumping mechanisms of the WTO

1. Committee on Anti-Dumping Practices

1.1. meets at least twice a year

1.1.1. provides Members of the WTO the opportunity to discuss any matters relating to the Anti-Dumping Agreement (Article 16)

1.1.2. Questions concerning the operation of national anti-dumping laws and regulations, also with consistency of national practice with the Anti-Dumping Agreement

1.1.3. Separate body, the Ad Hoc Group on Implementation

1.1.3.1. Open to all Members of the WTO. Focuses on technical issues of implementation

2. Determination of dumping

2.1. Determination of normal value

2.1.1. the price of the product at issue, in the ordinary course of trade, when destined for consumption in the exporting country market

2.1.1.1. Sales in the ordinary course of trade

2.1.1.2. Insufficient volume of sales

2.1.1.3. Alternative bases for calculating normal value

2.1.1.4. Constructed normal value

2.1.1.5. Third country price as normal value

2.1.1.6. Indirect exports

2.1.1.7. Non-market economies

2.2. Determination of export price

2.2.1. normally based on transaction price at which foreign producer sells product to an importer in importing country

2.2.1.1. However Agreement recognizes that this transaction price may not be appropriate for purposes of comparison

2.3. Fair comparison of normal value and export price

2.3.1. Prices being compared are those of sales made at same level of trade, ex-factory level, and sales made at as nearly as possible the same time

2.3.2. investigating authorities are required to inform parties of the information needed to ensure a fair comparison

2.3.2.1. Info. regarding adjustments, allowances, and currency conversion, may not impose an “unreasonable burden of proof” on parties

3. Procedural requirements

3.1. Investigation

3.1.1. Initiation

3.1.1.1. Article 5 of the Agreement establishes requirements for evidence of dumping, injury, and causality, as well as other information regarding the product, industry, importers, exporters

3.1.1.2. when authorities initiate without a written application from a domestic industry, they shall proceed only if they have sufficient evidence of dumping, injury, and causality

3.1.2. Conduct

3.1.2.1. Article 6 of the Agreement sets forth detailed rules on the process of investigation, including the collection of evidence and the use of sampling techniques

4. Provisional measures and price undertakings

4.1. Imposition of provisional measures

4.1.1. Article 7 of the Agreement

4.1.1.1. Requirement that authorities make a preliminary affirmative determination of dumping, injury, and causality before applying provisional measures

4.1.1.2. No provisional measures may be applied sooner than 60 days after initiation of an investigation

4.2. Price undertakings

4.2.1. Article 8 of the Agreement

4.2.1.1. Rules on the offering and acceptance of price undertakings, in lieu of the imposition of anti-dumping duties

4.2.1.2. Undertakings between any exporter and the importing Member, to revise prices, or cease exports at dumped prices, may be entered into to settle an investigation

5. Dumping in the GATT/WTO

5.1. Dumping

5.1.1. Situation of international price discrimination

5.1.2. Price of a product when sold in the importing country is less than the price of that product in the market of the exporting country

6. Article VI of GATT and the Anti-Dumping Agreement

6.1. The GATT 1994

6.1.1. Sets a number of basic principles applicable in trade between Members of the WTO, including the “most favoured nation” principle

6.1.2. Members of the WTO als agreed to the establishment of schedules of bound tariff rates

6.1.3. Article VI

6.1.3.1. Authorizes imposition of a specific anti-dumping duty on imports from a particular source in cases where dumping causes or threatens injury to a domestic industry

6.1.4. Imported products not be subject to internal taxes or other changes in excess of those imposed on domestic goods

7. The UR Agreement

7.1. Basic principles

7.1.1. WTO Members can impose anti-dumping measures, if, after investigation a determination is made

7.1.1.1. (a) that dumping is occurring

7.1.1.2. (b) that domestic industry producing the like product in the importing country is suffering material injury

7.1.1.3. (c) that there is a causal link between the two

8. Notifications

8.1. All WTO Members are required to bring their anti-dumping legislation into conformity with the Anti-Dumping Agreement

8.1.1. And notify that legislation to the Committee on Anti-Dumping Practices

8.1.2. Committee does not “approve” or “disapprove” any Members' legislation, the legislations are reviewed in the Committee,

8.2. Members are required to notify the Committee twice a year about all anti-dumping investigations, measures, and actions taken

8.3. Members required to notify the Committee of preliminary and final anti-dumping actions taken

8.3.1. Including certain minimum information required by Guidelines agreed to by the Committee.

9. Collection of duties

9.1. Imposition and collection of duties

9.1.1. Article 9 of the Agreement establishes the general principle that imposition of anti-dumping duties is optional, even if all the requirements for imposition have been met

9.1.2. Authorities impose duties at a level lower than the margin of dumping if this level is adequate to remove injury

9.2. Retroactive application of duties

9.2.1. General principle that both provisional and final anti-dumping duties may be applied only as of the date on which the determinations of dumping, injury and causality have been made

9.2.2. Article 10. If the imposition of anti-dumping duties is based on a finding of material injury, anti-dumping duties may be collected as of the date provisional measures were imposed