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1G/ADP/Q1/ECU/3-G/SCM/Q1/ECU/3.
2G/ADP/Q1/ECU/2-G/SCM/Q1/ECU/2.
3G/ADP/Q1/ECU/4-G/SCM/Q1/ECU/4.
4G/ADP/N/1/ECU/1-G/SCM/N/1/ECU/1 & G/ADP/N/1/ECU/1/Suppl.1-G/SCM/N/1/ECU/1/Suppl.1-
G/SG/N/1/ECU/2/Suppl.1.RESTRICTEDWORLD TRADE
ORGANIZATIONG/ADP/Q1/ECU/5
G/SCM/Q1/ECU/5
18 November 1998
(98-4625)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  Spanish
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS
Replies to Questions Posed by Japan1, Turkey2 and Venezuela3
Regarding the Notification of Ecuador4
The following communication, dated 30 October 1998, has been received from the Permanent
Mission of Ecuador.
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CONTENTS
Page
QUESTIONS POSED BY  JAPAN ...............................................................................................  2
QUESTIONS POSED BY  TURKEY ............................................................................................  3
QUESTIONS POSED BY  VENEZUELA .....................................................................................  3G/ADP/Q1/ECU/5
G/SCM/Q1/ECU/5
Page 2
QUESTIONS POSED BY JAPAN
Question 1
"Rules and procedures to be followed for the application of measures to prevent and
counteract the adverse effects of unfair trade practices or increased imports under conditions
such as to cause or threaten to cause serious injury to domestic industry" (hereinafter "the
Rules") has no description about cumulative assessment of the effects of imports of a product
from more than one country, which is provided in Article 3.3 of the Anti-Dumping Agreement.
If imports of a product from more than one country are simultaneously subject to
investigation, could Ecuador explain wheth er the investigating authorities assess them
cumulatively?  If so, what kind of criteria do the authorities use?
Reply
In accordance with the declared objective of th e legal instrument to which this Notification
refers, Ecuador has established rules for various WTO Agreements, such as the Agreement on
Implementation of Article VI of the GATT.  The legal instrument covered by this Notification refers
solely to the Articles of the Anti-Dumping Agreement which deserved additional attention in the
opinion of the authorities.  In the case of aspects not regulated by the domestic legislation, the
application of the multilateral criteria of the corresponding Agreements may be expected.
Question 2
Article 6.1.1 of the A-D Agreement provides that "Exporters or foreign producers
receiving questionnaires used in an anti-dumping investigation shall be given at least 30 days forreply".
While Article 32 of the Rules provides that "the investigating authority may request any
kind of information, including technical advice , from the various departments of government,
which shall respond as rapidly as possible".
Are exporters or foreign producers given at least 30 days for reply to the Ecuadorian
investigating authority?
Reply
Obviously these are two different cases.  The second paragraph of Article 32 refers
exclusively to the information, including technical advice, which the investigating authority collects
from public sector entities:  this information which is not subject to the 30-day minimum time-limit.
The time-limit applies to information to be submitted by exporters or foreign producers, with
the corresponding documentation, in accordance with Article 26 of the Ecuadorian Rules andArticle 6.1.1 of the Agreement.  Specifically, the investigating authorities grant exporters at least
30 days to reply.
Question 3
Article 53 of the Rules provides for anti-c ircumvention measures.  How does Ecuador
justify this provision under the A-D Agreement?G/ADP/Q1/ECU/5
G/SCM/Q1/ECU/5
Page 3
Reply
The Marrakesh Ministerial Decision on Anti-Circumvention confirms that this is a complex
matter that has been referred to the Committee on Anti-Dumping Practices to try to find a solution.
The problem has proved such that at present it is hoped to reach a determination on the type of rulesthat should be applied to resolve circumvention.  The Committee's work is aimed at launching the
debate by identifying the ways in which circumvention may occur.
Bearing in mind the above and also the progress made so far in the discussion, we may
confirm that Ecuador's legislation does not set out rules that are incompatible with the Agreement in
order to counter certain cases of circumvention.
QUESTIONS POSED BY TURKEY
Question 1
What is meant by "permissible legal remedies" in the last paragraph of Article 23?
Does this term refer to a judicial review?  What is the relationship between Article 23 and
Article 81 that regulates a judicial review?
Question 2
As regards Article 81, what happens if a judicial decision contradicts one of the
provisions of the Agreement?  Which one prevails?
Reply
The right of appeal against decisions by State officials is laid down in Ecuadorian law and is
open to all natural and legal persons established in the country.  Specifically, the last paragraph of
Article 23 means that the industry that has submitted an application may exercise the option to submit
an appeal with regard to the investigating authority' s decision that it is not appropriate to initiate an
anti-dumping investigation.  However, any court is  obliged to take into account the principle that
prevails in national anti-dumping legislation, i.e. that applications are accepted and investigations
initiated only where there are sufficient factual and legal arguments and evidence for proceeding.
The judicial review provided for in Article 81 refers to a stage subsequent to the initiation of
an investigation.  It should be noted that this Article is rather concerned with final decisions as to
whether or not to apply anti-dum ping or countervailing duties.
As a general rule, in Ecuador judicial decisions must be taken by the judicial authorities
taking into account the factual and legal issues involved, including international agreements and their
status within the ranking of legislation of the Ecuadorian State.  This ranking is clearly recognized in
Title I of the legislation covered by this notification.
QUESTIONS POSED BY VENEZUELA
Publications and notificationsQuestion 1
Article 5.5 of the Anti-Dumping Agreement st ates that "… after receipt of a properly
documented application and before proceeding to initiate an investigation, the authorities shall
notify the government of the exporting Member concerned".G/ADP/Q1/ECU/5
G/SCM/Q1/ECU/5
Page 4
The Ecuadorian legislation does not provide for notification of the government of the
exporting Member before an investigation is initia ted.  Would Ecuador please indicate whether,
after receiving a duly documented application and before proceeding to initiate an investigation,
the investigating authority will notify  the government of the exporting Member?
Reply
Article 25 of the Ecuadorian legislation establishes that once the application has been
accepted and it is considered appropriate to initiate  an investigation, the resolution initiating the
investigation shall be published and notified inter alia  to the government of the exporting country.  In
recognizing the obligation laid down in Article 5.5 of the Anti-Dumping Agreement, Ecuador will
make this notification prior to the initiation of in vestigations.  From the practical standpoint, the
Ecuadorian authorities take appropriate measures so that the government of the exporting country is
duly notified sufficiently in advance concerning the initiation of an investigation.
Imposition of provisional measures
Question 2
Article 29 of the Ecuadorian legislation provides that:  "Within sixty (60) days of the
initiation of a dumping or subsidies investigat ion, MICIP, through the investigating authority,
shall prepare a technical report determining, wh ere appropriate, the level of any provisional
anti-dumping or countervailing measures and shall submit it to COMEXI for approval".
Would Ecuador please clarify whether the application of anti-dumping duties is effected
within the 60-day period referred  to in the above-mentioned Article or after that period has
expired, as stipulated by the corresponding provisions of the WTO Agreement?
Reply
Provisional measures are taken when the technical reports of the national investigating
authority make a positive preliminary determination of the existence of dumping and ensuing injury toa domestic industry;  the time-limits laid down in the Agreement on Implementation of Article VI of
GATT 1994 are also observed.  These reports are the basis for the resolution that must be adopted by
the Foreign Trade and Investment Council (COMEX I).  Accordingly, it would be inappropriate to
interpret Ecuador's legislation in the sense that provisional measures may be applied prior to the
initiation of the investigation.  This is particularly the case insofar as the subsequent paragraphs
specify the conditions for implementing a provisiona l measure.  The time-limit mentioned in the first
paragraph of Article 29 refers exclusively to the period available to the investigating body to preparethe technical report determining, where appropriate, the level of the provisional anti-dumping or
countervailing measures and for submitting it to COMEXI for its consideration.
Price undertakings
Question 3
Article 39 of the Ecuadorian legislation states that "the competent authorities of the
country of origin or export or the producers or  exporters may express, through the investigating
authority, their intention to eliminate or limit the subsidy, revise the export prices or cease
exports to Ecuador …".G/ADP/Q1/ECU/5
G/SCM/Q1/ECU/5
Page 5
Could Ecuador indicate the objective and scope of the "undertakings to cease exports to
Ecuador" provided for in this Article and how they are in conformity with Article 18.1 of the
Agreement on Subsidies and Countervailing Measures and Article 8.1 of the Anti-Dumping
Agreement?
Reply
The purpose and scope of the provisions of the domestic legislation in this regard are to
enable exporters to propose undertakings within  the framework allowed by the Anti-Dumping and
Subsidies and Countervailing Measures Agreements.  These undertakings are not proposed by the
national investigating authority and no exporter is obliged to accept them.
Article 39 of the domestic legislation has the same purpose as paragraph 1 of Article 8 of the
Anti-Dumping Agreement and Article 18 of the Subsid ies Agreement, i.e. to suspend or terminate
proceedings without imposition of provisional anti-dumping or countervailing measures, the scope of
which is determined by undertakings voluntarily accepted by the authorities of the country of origin,
or its producers or exporters, and accepted by the Ecuadorian authorities.
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