RESTRICTED
WORLD TRADE G/ADP/Q1/TUR/1
G/SCM/Q1/TUR/1
ORGANIZATION 17July1996
(96-2796)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
NOTIFICATION OFLAWS AND REGULATIONS UNDER
ARTICLES 18.5AND 32.6OFTHE AGREEMENTS
Replies ofTURKEY1
toquestions posed byARGENTINA2,THE EUROPEAN COMMUNITY3,
HONG KONG4,KOREA5,THE UNITED STATES6AND VENEZUELA7
Thefollowingcommunication,dated3July1996,hasbeenreceivedfromthePermanentMission
ofTurkey.
________________
Legal status oftheA-DandSubsidies Agreements
Hong Kong questions 1(a), (c),(d)
(Also Argentina question 1,United States 1,ECDumping andSubsidy andVenezuela 1)
1. Turkey 'snotification contains therelevant Turkish legislation which hasbeeninforce since
1October 1989. Turkey further states thatinorder tobring thelegislation intoconformity withthe
relevant WTO Agreement, anamendment lawhasbeenprepared butthedomestic procedures forthe
enactment ofthenewlegislation hasnotyetbeencompleted. Thenewlegislation willbesubmitted
assoon aspossible afterthecompletion ofnecessary domestic procedures. Apparently numerous
provisions oftheWTOADAgreement (theAgreement) arenotreflected intheexisting Turkish legislation
andsome Turkish provisions maybeatoddswiththeWTO provisions.
(a) What isthelegal status oftheAgreement inTurkey? Does ithavetheforce oflaw?
(c) HowwillTurkey ensure compliance withtheAgreement before itslawsarebrought
intototalconformity withit?
(d) What isthetimetable ofthecompletion ofthedomestic legislative procedures ofthe
newlegislation?
1G/ADP/N/1/TUR/2-G/SCM/N/1/TUR/2.
2G/ADP/W/314-G/SCM/W/322,3G/ADP/W/330-G/SCM/W/338,4G/ADP/W/356-G/SCM/W/364,
5G/ADP/W/365-G/SCM/W/374,6G/ADP/W/375-G/SCM/W/385,7G/ADP/W/374-G/SCM/W/384.G/ADP/Q1/TUR/1
G/SCM/Q1/TUR/1
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Answers
According totheConstitution ofTurkey "International agreements dulyputintoeffect carry
theforce oflaw. Noappeal totheConstitutional Court canbemade withregard tothese agreements
onthegrounds thattheyareunconstitutional".
TheAgreement Establishing theWorld Trade Organization wasdulyputintoeffect, thatis
tosay,itwasapproved byalawandputintoeffect byaDecree, andconsequently acquired theforce
oflawinTurkey inaccordance withtheConstitution. Therefore, compliance withtheprovisions of
theA-DandSubsidies Agreements willbeensured byacting inaccordance withtheirprovisions.
Turkey isaware ofthefactthatincertain respects, Legislation onPrevention ofUnfair
Competition inImportation doesnotcoincide withtheA-DandSubsidies Agreements. Inorder to
bring theprovisions ofthisLegislation intoconformity withtheAgreements, alawamending some
provisions oftheLawNo.3577, anewDecree andanewRegulation havebeenprepared. Thenew
legislation reflecting thenewunderstanding andprinciples brought bytheAgreements willenter into
force aftertheenactment oftheamendment lawwhich isbeing passed bytheParliament.
Forthetimebeing, itisnotpossible tosetatimetable forthecompletion ofthedomestic
procedures. Butwedobelieve thattherelevant procedures willbecompleted intheverynearfuture.
However, thefactthatthenewlegislation hasnotyetbeenputintoforce doesnotpreclude
implementation inaccordance withtheprovisions oftheAgreements because oftheprevalence ofthe
Agreements incaseofconflict orambiguity between theprovisions ofthedomestic legislation and
theAgreements orlackofprovision inthedomestic legislation.
Hong Kong question 1(b)
AreTurkishADofficialsrequired,legallyorotherwise,toobservetheprovisionsoftheAgreement
intheconduct ofADproceedings, ortoconsult them, forexample ontheinterpretation ofdomestic
legislation?
Answer
TheTurkish Constitution provides thatpublic servants areunder obligation tocarry outtheir
duties withloyalty totheConstitution andthelaws. Therefore, Turkish officials areconstitutionally
required toabide bytheAgreements which areinforce oflaw.
Judicial review
Hong Kong question 2
(Also United States question 8)
What judicial review procedures hasTurkey putinplace inobservance ofitsobligations under
Article 13(Judicial Review) oftheAgreement?
Answer
InTurkey, theConstitution provides thatrecourse tojudicial review shallbeavailable against
allactions oftheAdministration. Therefore, within themeaning ofArticle 13oftheA-DAgreementG/ADP/Q1/TUR/1
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andArticle 23oftheSubsidies Agreement theadministrative actions relating tofinaldeterminations
andreviews ofdeterminations fallwithin thejurisdiction ofadministrative courts.
Panel reports
Hong Kong question 3
What isTurkey 'spolicy andlawfortheimplementation ofWTO Panel Reports?
Answer
Turkey doesnothaveaspecific lawgoverning theimplementation ofWTO panel reports
concerning anti-dumping andcountervailing dutymatters. Panel reports willbeconsidered within
theframework oftherelevant provisions oftheAgreements.
Thestanding ofacomplaint
Korea question 1
(Also United States question 3andVenezuela 2.2)
InArticle 4ofLawNo.3577, itissimply described thatananti-dumping investigation may
beinitiated uponthecomplaint oftherelevant natural orlegalperson orrelated professional institution.
Webelieve thatthisprovision maycause theabuse ofcomplaints, because itdoesnotrestrict thestanding
ofcomplaint indetail. Soitshould berevised inaccordance withArticle 5.1oftheA-DAgreement.
Arethere anyspecific provisions intheanti-dumping lawofTurkey concerning thestanding
ofacomplaint inaccordance withtheA-DAgreement ?
Answer
There isnospecific provision concerning thestanding ofacomplaint inaccordance with
Article 5.1oftheA-DAgreement. However, theprovisions oftheA-DAgreement mustbeobserved
bytheTurkish officials, forthereasons explained earlier. Accordingly, Turkey willapply Article 5
oftheA-DAgreement which appears fairly precise onthestanding ofcomplaints.
AsforthesecondpartoftheUSquestion,IwouldliketoinformyouthattheDirectorate-General
hasdisregarded many complaints unsubstantiated byrelevant evidence within themeaning ofArticle 5
oftheA-DAgreement.G/ADP/Q1/TUR/1
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DeMinimis rule
Korea question 2
(Also United States question 12andVenezuela 2.4)
InArticle 4ofLawNo.3577, itissimply described thatananti-dumping investigation may
beinitiated uponthecomplaint oftherelevant natural orlegalperson orrelated professional institution.
Webelieve thatthisprovision maycause theabuse ofcomplaints, because itdoesnotrestrict thestanding
ofcomplaint indetail. Soitshould berevised inaccordance withArticle 5.1oftheA-DAgreement.
Arethere anyspecific provisions intheanti-dumping lawofTurkey concerning thestanding
ofacomplaint inaccordance withtheA-DAgreement ?
Answer
TheLegislation onPrevention ofUnfair Competition inImportation doesnotspecify any
particular percentage todetermine whether theimport volume isnotnegligible, nordoesitcontain
anymention ofthedeminimis rule. However, theprovisions oftheA-DandSubsidies Agreements
mustbeobserved byTurkish officials, forthereasons explained earlier. Accordingly, theprovisions
ofArticle 5.8oftheA-DAgreement andArticle 11.9oftheSubsidies Agreement which arefairly
precise onthese terms willbeobserved.
Duration ofthedefinitive dutyorders
Korea question 3
(Also United States question 15)
Article 5ofDecree No.89/14506 stipulates thatthedefinitive measures shallremain inforce
aslongasnecessarytoremovetheeffectsofinjury.ButthisprovisionisalsocontradictorytoArticle11.3
oftheA-DAgreement which stipulates “thedefinitive anti-dumping dutyshallbeterminated notlater
thanfiveyears from itsimposition unless expiry ofanti-dumping dutywould belikely toleadto
continuation ofdumping andinjury ”.Thatmeans thattheauthority should review whether theexpiry
ofanti-dumping dutyoccur thedumping andinjury continuously inevery 5years. ButArticle 5ofDecree
No.89/14506 doesnotestablish anycondition orprocedure ofexpiry ofanti-dumping duty. Soitis
possible thattheanti-dumping dutymaylastpermanently.
What isyourcountry ’sposition onthis?
Answer
Thesecond paragraph ofArticle 5oftheDecree isinfullconformity withtheprovision of
Article 11.1oftheA-DAgreement.
Asforthefive-year ruletheLegislation onPrevention ofUnfair Competition inImportation
issilent. Therefore, theprovisions ofArticle 11oftheA-DAgreement andArticle 21oftheSubsidies
Agreement willbeobserved.G/ADP/Q1/TUR/1
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Undertakings
Korea question 4
Thefollowing Article isambiguous andcontrary totheA-DAgreement.
Article 11inLawNo.3577: thesuspension oftheinvestigation shallnotprevent thedefinite
collecting ofprovisional duties previously imposed. Article 10inOfficial Gazette 27.91989/20295:
however, theacceptance ofundertakings shallnotnecessarily mean thesuspension oftheinvestigation.
Ingeneral, theinvestigation should beterminated orsuspended without imposition ofany
provisional measures oranti-dumping dutyiftheprice undertaking isaccepted. Thisisadopted and
applied intheEU,USandtheA-DAgreement. Buttheregulation ofTurkey concerning thismatter
isfarfromtheabove general concept, ifourunderstanding iscorrect.
Howwould youexplain this?
Answer
Although theregulation doesnottrackverbatim Article 8oftheA-DAgreement, themeaning
ofArticle 10oftheRegulation andparagraphs 1and4ofArticle 8oftheA-DAgreement isthesame.
That is,theproceedings maybeterminated orcompleted upon receipt ofsatisfactory voluntary
undertakings.
Thesecond paragraph ofArticle 11oftheLawshallnotbeinterpreted toresult inthedefinitive
collection ofprovisional duties without finaldetermination ofdumping andinjury.
Market impairment
Argentina question 2
(Also Venezuela question 2.1)
Article 3ofLawNo.3577establishes thatanti-dumping orcountervailing duties maybeapplied
when imports "...cause material injury orconstitute threat ofmaterial injury toanindustry orcause
themarket impairment orphysical retardation ofanindustry ...".
ThisArticle introduces acategory -namely thatofmarket impairment -notprovided forin
thedefinition ofinjury infootnote 9totheWTO Anti-Dumping Agreement.
Answer
Turkey isaware ofthefactthattheconcept "market impairment" isnotinconformity with
theA-DandSubsidies Agreements. However, forthereasons explained earlier, determination ofinjury
shallbebased ontherelevant provisions oftheA-DandSubsidies Agreements andwithin thiscontext,
theconcept ofmarket impairment willbedisregarded. Ontheother hand, Turkey hasneither initiated
aninvestigation norimposed anymeasures onthebasisofmarket impairment criterion upuntilnow.G/ADP/Q1/TUR/1
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National interest
Argentina question 3
Article 12ofLaw3577 establishes thatprovisional measures shallbeadopted when "...the
national interest callsforimmediate intervention and/or adoption ofprovisional measures ...". The
concept ofnational interest isnotoneoftherequirements under Article 7.1oftheAnti-Dumping
Agreement fortheapplication ofprovisional measures.
Does thisimply thatthereference tothenational interest willallow non-compliance withthe
requirements laiddown intheabove-mentioned Article 7.1?
Answer
Theanswer tothisquestion is"No". Theprovisions ofArticle 7oftheA-DAgreement will
befullyobserved. Andwithin thiscontext theconcept "national interest" isdisregarded.
Duration ofprovisional measures
Argentina question 4
Article12ofLaw3577establishesthatprovisionalmeasuresmay"...beextendedfortwomonths
bytheMinistry ...". Thisprovision doesnotappear tomeettherequirements ofArticle 7.4ofthe
Agreement forextending suchmeasures.
HowdoesTurkey intend tocomply withtheprovisions oftheAgreement?
Answer
During thecourse ofaninvestigation, Turkey applies thelesser dutyrulesystematically.
Therefore, inaccordance withtheA-DAgreement provisional measures maybeapplied forfourmonths
andcanbeextended tosixmonths bythedecision oftheauthorities. Within thiscontext, atwomonth
extension decision oftheMinistry isincompliance withArticle 7.4oftheA-DAgreement.
Bytheway,since theAgreement prevails inthecaseofnon-compliance, asexplained earlier,
relevant provisions oftheAgreement willbeapplied.
Comments ofimporters
Argentina question 5
Article 2ofDecree 89/14506 establishes therequirements forimposing anti-dumping or
countervailing duties retroactively. TheArticle doesnotrefer totheneed togiveimporters the
opportunity tocomment before suchretroactive application, asisrequired under Article 10.6(ii) of
theAnti-Dumping Agreement.
WillTurkey comply withthisrequirement?G/ADP/Q1/TUR/1
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Answer
Although Article 2oftheDecree doesnottrack verbatim Article 10.6oftheA-DAgreement,
itdoesnotpreclude theauthorities from giving importers concerned opportunities tocomment.
Ontheother hand, because ofthereasons explained earlier, Turkey willobserve therelevant
provisions oftheA-DAgreement.
Individual margins
Argentina question 6
Article 3ofDecree 89/14506 establishes that"...incaseofseveral exporters fromthesame
countryandimpossibilityofdeterminingallexporters,provisionalanddefinitivemeasuresmaybeapplied
toalltheimports ofinvestigated products fromthatcountry ...".
Where importers sorequest, mayindividual margins becalculated foreachparticular importer?
WillTurkey apply theprovisions ofArticles 9.4and9.5oftheAnti-Dumping Agreement?
Answer
SaveforthecircumstancesspecifiedinArticle6.10oftheA-DAgreement,Turkeywilldetermine
anindividual margin ofdumping foreachknown exporter orproducer concerned oftheproduct under
investigation, andwithin thisframework Turkey willobserve Article 9oftheAgreement.
Non-conforming provisions ofLawNo.3577 withtheAgreements
United States question 2
Under Turkish lawwhatlegal authority would administrators havetodisregard theLawon
Prevention ofUnfair Competition inImportation (theLaw) when thatlawisnotinconformity with
theUruguay Round Agreements?
Answer
There arenospecific written rulesontheverysituation. Theimplementation willbedirected
towards ourinternational obligations.
Provisional measures
United States question 4
Under Article 12(Page 5)whatistheearliest time, afterinitiation ofaninvestigation, that
aprovisional measure canbeimposed?
Answer
There isnoprovision onthisissue. Hence therelevant provisions oftheA-DandSubsidies
Agreements willbeobserved. Thatistosay;provisional measures shallnotbeapplied sooner than
60daysfrom thedateofinitiation oftheinvestigation.G/ADP/Q1/TUR/1
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United States question 5
Under Article 12(Page 5)dopreliminary findings ofdumping andinjury havetobemade prior
toimposing apreliminary duty?
Answer
Theanswer tothisquestion is"Yes". Provisional measures maybeapplied onlyifapreliminary
affirmative determination hasbeenmade ofdumping andconsequent injury toadomestic industry.
Newshipper
United States question 6
Whatprovision hasbeenmade forgranting reviews ofnewshippers asprovided forunder Article
9.5oftheA-DAgreement?
Answer
There isnospecific provision concerning newshippers intheLegislation onPrevention of
Unfair Competition inImportation. Hence Article 9.5oftheA-DAgreement willbeobserved.
Specificity
United States question 7
(Also Venezuela question 2.3)
Section sixoftheRegulation onPrevention ofUnfair Competition inImportation (page 16)
makes noreference tospecificity asdefined byArticle 2oftheSCM. Under Turkish lawisafinding
thatasubsidy isspecific required inorder toimpose acountervailing duty?
Answer
Theconcept of"specificity" isnotmentioned intheLegislation onPrevention ofUnfair
Competition inImportation. However, forthereasons mentioned earlier therelevant provisions of
theSubsidies Agreement willbeobserved.
Injury determination
United States question 9
Does Turkey follow therequirements ofArticle 3oftheA-DAgreement andArticle 15ofthe
SCM Agreement inreaching material injury determinations?
Answer
Theanswer tothisquestion is"Yes". Article 3oftheA-DAgreement andArticle 15ofthe
Subsidies Agreement willbefullyobserved.G/ADP/Q1/TUR/1
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Definition ofdomestic industry
United States question 10
Inconducting aninjury investigation, doesTurkey apply thedefinition ofdomestic industry
contained inArticle 4oftheA-DAgreement andArticle 16oftheSCM Agreement?
Answer
Theanswer tothisquestion is"Yes". Article 4oftheA-DAgreement andArticle 16ofthe
Subsidies Agreement willbeobserved.
Threat ofmaterial injury
United States question 11
Inananalysis ofthreat ofmaterial injury, doesTurkey construe orapply itslawconsistent
withArticle 3.7oftheA-DAgreement andArticle 15.7oftheSCMAgreement which require thatthreat
“mustbeclearly foreseen andimminent, ”andwhich require theauthority toexamine certain factors
initsanalysis ofthreat?
Answer
Theanswertothisquestionis"Yes".TurkishofficialswillactinfullconformitywithArticle3.7
oftheA-DAgreement andArticle 15.7oftheSubsidies Agreement.
Evidence
United States question 13
HowdoestheTurkishlawfulfiltherequirementsofArticle6oftheA-DAgreementandArticle12
oftheSCMAgreement, which require thatinterested parties begiven notice oftheinformation which
authorities require andample opportunity topresent evidence inanti-dumping andcountervailing duty
proceedings?
Answer
Although thereisnospecific provision intheLegislation onPrevention ofUnfair Competition
inImportation thattrackverbatim Article 6.1oftheA-DAgreement andArticle 12.1oftheSubsidies
Agreement, itdoesnotpreclude thatinterested parties begiven notice ofinformation which Turkish
officials require andample opportunity topresent evidence inanti-dumping andcountervailing duty
proceedings.
Furthermore, thetarget ofthecompetent authorities istoputtheunderstanding oftheAgreement
intoeffect. Having thisinmind andforthereasons explained earlier, theywilldirectly apply Article 6
oftheA-DAgreement andArticle 12oftheSubsidies Agreement which arefairly precise.G/ADP/Q1/TUR/1
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Public notice
United States question 14
HowisTurkish lawconsistent withtherequirements ofArticle 12oftheA-DAgreement and
Article 22oftheSCM Agreement concerning public notice andexplanation ofdeterminations?
Answer
Althoughsomeprovisionsconcerningpublicnoticearelackingthereisnoinconsistencybetween
theLegislation onPrevention ofUnfair Competition inImportation andAgreements. Furthermore,
because ofthereasons explained earlier Turkish officials willabide bytheprovisions ofArticle 12
oftheA-DAgreement andArticle 22oftheSubsidies Agreement.
Infact,Turkey fulfilled theobligations concerning public notice ofinitiation ofaninvestigation
inthereview investigation initiated fordifferential gearunits originating inHungary.
Thisistheonlyinvestigation initiated foraMember country aftertheestablishment oftheWTO.
Price comparison
Venezuela question 2.5
DotheTurkish authorities takeintoaccount theprovisions ofArticles 2.4,2.4.1 and2.4.2
oftheWTO'sA-DAgreement which requires afaircomparison between theexport priceandthenormal
value atthesameleveloftrade, normally attheex-factory level, andacurrency conversion thatshould
bemade using therateofexchange onthedateofsale? Moreover, dotheyconsider thattheexistence
ofdumping during theinvestigation phase should normally beestablished onthebasis ofacomparison
ofaweighted average normal value withaweighted average ofprices ofallcomparable export
transactions orbyacomparison ofnormal value andexport prices onatransaction-to-transaction
basis?
Answer
Theanswers tothequestions asked inparagraph 2.5ofVenezuela are"Yes". Turkish officials
willactinfullconformity withArticle 2.4oftheA-DAgreement.
Material injury
Venezuela question 2.6
DotheTurkish authorities takeintoaccount thelastsentence ofArticle 15.2oftheWTO's
SCM Agreement which states thatnooneorseveral ofthese factors cannecessarily givedecisive
guidance?
Answer
Theanswer tothisquestion is"Yes". Article 15.2oftheSubsidies Agreement willbeobserved.G/ADP/Q1/TUR/1
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Separate identification
Venezuela question 2.7
What isthesignificance andscope ofthisprovision within thecontext ofArticle 2.6oftheA-D
Agreement andfootnote 46toArticle 15oftheSCMAgreement, where itisstated thatintheabsence
ofalikeproduct theterm"likeproduct" shallbeinterpreted tomean another product which, although
notalikeinallrespects, hascharacteristics closely resembling those oftheproduct under consideration?
Answer
Thesecond paragraph ofArticle 30oftheRegulation reproduces theprovisions ofArticle 3.6
oftheA-DAgreement andArticle 15.6oftheSubsidies Agreement. Therefore, thesignificance and
scope ofthisparagraph shallbeinterpreted within thecontext ofArticle 3.6oftheA-DAgreement
andArticle 15.6oftheSubsidies Agreement.
Exofficio
Venezuela question 2.8
DotheTurkish authorities takeintoconsideration thecriterion established inArticle 5.6of
theWTO'sA-DAgreement, according towhich theauthorities should proceed withtheinitiation of
aninvestigation exofficio onlyiftheyhavesufficient evidence ofdumping, injury andacausal link
tojustify suchaction?
Answer
IftheTurkish authorities decide toinitiate aninvestigation without having received awritten
application byoronbehalf ofthedomestic industry fortheinitiation ofsuchinvestigation, theywill
proceed onlyiftheyhavesufficient evidence ofdumping, injury andacausal link,asdescribed in
Article 5.2oftheA-DAgreement, tojustify theinitiation oftheinvestigation.