./.WORLD TRADE
ORGANIZATIONG/ADP/AHG/W/121/Rev.1
26 July 2002
(02-4161)
Committee on Anti-Dumping Practices
Working Group on Implementation
DRAFT RECOMMENDATION CONCERNING
CONDITIONS OF COMPETITION THAT MAY BE RELEVANT
TO A DECISION WHETHER A CUMULATIVE ASSESSMENT
OF THE EFFECTS OF IMPORTS IS APPROPRIATE
Revision
The following reflects specific drafting suggestions and other comments concerning the text
of the draft recommendation made by Members at the Meeting of the Working Group on
Implementation in April 2002.
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The Committee notes that Article 3.3 of the Agreement on Implementation of Article VI of
GATT 1994 provides that the investigating authoritie s may cumulatively assess the effects of imports
of a product from more than one country if, inter alia , a cumulative assessment of the effects of the
imports is appropriate in light of the conditions of competition between imported products and theconditions of competition between the imported products and the like domestic product.  The
Committee further notes that the Agreement does not establish any criteria or give any direction as to
what conditions of compeition might be relevant in this regard.
The Committee recognizes that a decision whether a cumulative assessment is appropriate in
light of the conditions of competition must be made by the investigating authorities in each case on
the basis of the particular facts in that case, in the context of the relevant domestic market.  Moreover,
the Committee is mindful that the relevance of any particular condition of competition may vary fromcase to case.  Nonetheless, the Committee considers that it would be useful to have guidelines as to
conditions of competition that may be relevant to a decision whether a cumulative assessment of the
effects of imports is appropriate.
The Committee recognizes that investigating authorities may consider other or different
conditions of competition than those set out below in deciding whether a cumulative assessment of theeffects of imports is appropriate in any given situation.  Moreover, the Committee recognizes that one
or more of the conditions of competition listed  below may not be relevant in the context of a
particular Member's market.  The Committee emphasizes that no one or several of the conditions of
competition listed below will necessarily be determinative in any given situation.
In light of the foregoing considerations, the Committee recommends that, in general, the
following conditions of competition may be relevant in deciding whether a cumulative assessment of
the effects of imports is appropriate as provided for in Article 3.3(b) of the Agreement:
1a. Physical characteristics and uses of the domestic like product and imports from each of the
countries whose imports may be cumulated, as well as the degree of interchangeability, fungibility or
substitutability.  Considerations such as [[quality], function,] technical specifications, tariff
classification, specific customer requirements, and [customer perceptions] may be relevant in this
regard;G/ADP/AHG/W/121/Rev.1
Page 2
1b. Physical characteristics and uses of the domestic like product and imports from each of the
countries whose imports may be cumulated.  Such considerations may include the degree of
interchangeability, fungibility or substitutability, [and/as well as] [quality], function, technical
specifications, tariff classification, [specific customer requirements] and [customer perceptions];
1c. Physical characteristics and uses of the domestic like product and imports from each of the
countries whose imports may be cumulated;
2. The existence [of sales] [or offers to sell] of the domestic like product and imports from each
of the countries whose imports may be cumulated, for example:
(a) through common or similar channels of distribution,
[Other considerations which may be relevant to cumulation could include whether the domestic like
product and the imports from each of the countries whose imports may be cumulated are [sold] [or
offered for sale]:
(b) [in the [same or overlapping geographical areas of the] domestic market, and]
(c) [during [the same or overlapping time-periods within] the period of investigation; ]]
3. [The [levels and] trends of prices for the domestic like product and imports from each of the
countries whose imports may be cumulated];
4. [The levels of price undercutting by imports from each of the countries whose imports may be
cumulated during the period of the dumping investigation.]
Replace both 3 and 4 with the following combined 3-4.
3-4. [Prices for the domestic like product and imports from each of the countries whose imports
may be cumulated.  This analysis could cover levels and trends of prices, as well as the level of priceundercutting;]
5a. [For the purpose of analyzing threat of material  injury, [in addition to the other factors above,]
the [levels and] trends in the volume of imports from each of the countries whose imports may be
cumulated, either in absolute terms or relative to production or consumption in the importing
country];
5b. [For the purpose of analyzing material injury, the levels and trends in the volume of imports
from each of the countries whose imports may be cumulated, either in absolute terms or relative to
production or consumption in the importing country];
Replace both 5a and 5b with the following combined 5c:
5c. [For the purpose of analyzing material injury and threat of material injury, the levels and
trends in the volume of imports from each of the countries whose imports may be cumulated, either
in absolute terms or relative to production or consumption in the importing country];
[The analysis of the conditions of  competition [should/may] refer to the period of data collection for
the injury investigation.]
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