WORLD TRADE
ORGANIZATIONG/ADP/N/1/PER/1/Suppl.4
G/SCM/N/1/PER/1/Suppl.4
4 January 2002
(02-0036)
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
PERU
Supplement
The following communication, dated 7 December 2001, has been received from the
Permanent Mission of Peru.
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The Permanent Mission of Peru to the World Trade Organization (WTO) presents its
compliments to the Secretariat of the WTO (Rules Division) and, pursuant to Article 18.5 of the
Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994,hereby notifies Supreme Decree No. 225-2001-EF, dated 4 December last and appended hereto,
which amends Article 6 of the Regulations on Dumping and Subsidies (Supreme Decree No. 043-97-
EF), relating to market-economy conditi ons, through the addition of an Article 6 bis.G/ADP/N/1/PER/1/Suppl.4
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EL PERUANO, THURSDAY, 6 DECEMBER 2001, PAGE 213475
ECONOMY AND FINANCE
Amendment of Supreme Decree No. 043-97-EF establishing rules to prevent and correct
distortions of competition in the market caused by dumping and subsidies
SUPREME DECREE
No. 225-2001-EF
THE PRESIDENT OF THE REPUBLIC
WHEREAS:
By virtue of Supreme Decree No. 133- 91-EF, as amended by Supreme Decree
No. 051 -92-EF, rules were adopted to prevent and correct distortions of competition in the market
caused by dumping and subsidies;
By virtue of Legislative Decision No. 26407, the Agreement Establishing the World Trade
Organization (WTO) and the Multilateral Trade Ag reements contained in the Final Act of the
Uruguay Round signed at Marrakesh on 15 April 1994 were approved;
The aforementioned Multilateral Trade Agreements include the Agreement on
Implementation of Article VI of the GATT 1994, the Agreement on Subsidies and Countervailing
Measures and the Agreement on Agriculture;
Pursuant to Article 18.4 of the Agreement on Implementation of Article VI of the
GATT 1994 and Article 32.5 of the Agreement on Subsidies and Countervailing Measures, it is the
responsibility of WTO Members to take all necessary steps, of a general or particular character, to
ensure the conformity of their laws, regulations and administrative procedures with the provisions of
the aforementioned Agreements;
Article 6 of Supreme Decree No. 043-97-EF establishes that, in the case of imports coming
from or originating in countries where there are di stortions in the economy that do not permit them to
be considered market-economy countries, the normal value shall be determined on the basis of the
comparable price in the ordinary course of trade at which a like product is actually sold in a third
country with a market economy, or on the basis of any other method deemed appropriate by the
Commission;
In order to make investigation procedures more predictable and transparent, it is necessary to
specify what criteria shall be used to determine market conditions;
HEREBY DECREES:
Article 1. Add Article 6 bis to Supreme Decree No. 043 -97-EF, which reads as follows:
"Article 6 bis.   For the purposes of Article 6 on the determination of market-economy
conditions, the following criteria shall be taken into account:
(i) Prices shall be determined by freely operating market forces without interference or
restrictions of any kind on the part of the State.G/ADP/N/1/PER/1/Suppl.4
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(ii) Prices shall be set on the basis of free and fair competition.
(iii) Marketing and production costs, inclusive of inputs, raw materials and services, shall
be determined without interference on the part of the State.
(iv) Decisions of firms regarding output, sales and investment shall be taken on the basis
of the interaction of supply and demand, without interference on the part of the State.
(v) Firms shall maintain basic accounting records independently audited in line with
international accounting standards and applied for all purposes.
(vi) The existence of rules governing ownership, market entry and market exit that
guarantee legal certainty and stability for the operation of firms."
TRANSITIONAL PROVISIONS
Single paragraph.  The provisions contained in this Supreme Decree shall apply to
investigation proceedings initiated from the day following its entry into force.
FINAL PROVISIONS
Single paragraph.  This Supreme Decree shall be endorsed by the Minister for Economy and
Finance and the Minister for Industry, Tourism, Integration and International Trade Negotiations and
shall enter into force on the day following its publication in the Official Journal, El Peruano .
Done at Government House, Lima, this fi fth day of December two thousand and one.
ALEJANDRO TOLEDO
Constitutional President of the Republic
PEDRO PABLO KUCZYNSKI
Minister for Economy and Finance
JAVIER REATEGUI ROSSELLO
Minister for Fisheries
Minister for Industry, Tourism, Integration and International Trade Negotiations
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