./.WORLD TRADE
ORGANIZATIONG/ADP/AHG/W/121/Rev.2
7 April 2003
(03-1897)
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 October 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 the
conditions 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 from
case 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 theeffects 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 the
effects 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 ofthe 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, tariffG/ADP/AHG/W/121/Rev.2
Page 2
classification, [specific customer requirements], and [customer perceptions] may be relevant in this
regard;
1b. 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 or
substitutability, function, and tariff classification;
2a. 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; ]]
2b. Whether the domestic like product and imports from each of the countries whose imports may
be cumulated have, for example:
(a) common or similar channels of distribution.
Other considerations which may be relevant to cumulation include whether the domestic like product
and imports from each of the countries whose imports may be cumulated are present in, or will be
present in:
(b) the same or overlapping geographical areas of the domestic market, and;
(c) during the period of investigation.
3. [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 price
undercutting.];
4. [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, eitherin absolute terms or relative to production or consumption in the importing country];
[The analysis of the conditions of  competition s hould refer to the period of data collection for the
[injury] [or] [dumping] investigation[, as appropriate].]
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