WORLD TRADE
ORGANIZATIONG/ADP/N/59/PRY
1 August 2002
(02-4284)
Committee on Anti-Dumping Practices Original:  Spanish
SEMI-ANNUAL REPORT UNDER ARTICLE 16.4
OF THE AGREEMENT
PARAGUAY
Reproduced herewith is the semi-annual report for the period 1 July to 31 December 1999
from Paraguay.G/ADP/N/59/PRY
Page 2SEMI-ANNUAL REPORT OF ANTI-DUMPING ACTIONS
For the Period 1 July to 31 December 1999
Final measures No final measures
Country Product InitiationProvisional
measures/
determinationsDefinitive
dutyPrice
undertakingNo
dumpingNo injuryCase
withdrawnOtherTrade
volumeDumped
imports as % of
domestic
consumption% of trade
volume
investigated (of
the exporting
country)Basis for
determi-
nation
Date Date, dumping
marginDate, dumping
marginDate,
dumping
marginDate Date Date Date
1 2 34 56 7 8 9 1 0 1 1 1 21 3 1 4
ArgentinaInsecticides,
aerosol, BaygonUltra Green and
Baygon Ultra
Blue.Both 440 cc.
MERCOSUR
Nomenclature
(NCM)
3808.10.1018.1.1999 17.11.1999
US$ 0.69
Baygon Green
US$ 0.43
Baygon Blue580,032 l.
in 1995
to
741,091 l.
in 19980% in 1995
to
57.53% in 1998138.14%
Percentage
variation from
1995 to 1998Decline in
production
Decline in
quantity
sold
Increase in
stock
Loss of
profitG/ADP/N/59/PRY
Page 3
RATIONALE AND EXPLANATION OF TABLE COLUMN ENTRIES
COLUMNS 1 AND 2 :  On 26 November 1998, the company Molinos Asuncenos de Alberto
Heibrunn S.A. (MAAHSA) submitted an application for the initiation of an investigation into dumped
imports of the aerosol insecticides B AYGON ULTRA GREEN and BLUE, 440 cc, MERCOSUR
Nomenclature (NCM) 3808.10.10, originating in and coming from the Argentine Republic. This
application was processed by the Ministry of Industry and Trade (MIC) as File No. 1,802/98.
COLUMN 3 :  Ministry of Industry and Trade Resolution No. 77/98 established the
admissibility of the application submitted by MAAHSA, in accordance w ith the administrative
procedures provided for in Decree No. 15,286/96. S ubsequently, pursuant to Ministry of Industry and
Trade Resolution No. 21 of 18 January 1999, published in the Official Gazette No. 14 ( Bis), an
investigation was initiated in accordance with the legal sureties provided for in Article 8 and onwards,
Chapter IV, of the Procedure of this Decree.
COLUMN 4 :  Following its analysis of the data furnished by the interested parties, at the
preliminary stage of the investigation the Undersecretariat established the existence of dumped pricesfor exports of insecticides of the brands Baygon Ultra Green and Baygon Ultra Blue, as well as the
threat of material injury to the domestic industry which manufactures the like products. The
preliminary determination in Joint Ministerial Re solution No. 283 of 23 July 1999 established that it
would be advisable to continue the investig ation without applying provisional measures.
COLUMN 5 :  On 14 October 1999, the Undersecretariat of Trade submitted the draft final
report on the investigation to the Trade Defen ce and Safeguards Commission, which was approved at
its Session No. 6/99 of 21 October 1999. Subsequently, on 27 October 1999, the interested parties
were informed of the close of the period for th e presentation of evidence, after which a five-day
period was established for the submission of the closing arguments. By way of Joint MinisterialResolution No. 576 of 17 November 1999, the Ministries of Industry and Trade and of Finance
decided to terminate the investigation and to impose definitive anti-dumping duties of US$ 0.69 for
Baygon Ultra Green and US$ 0.43 for Baygon Ultra Blue. In view of the relationship between
exporter and importer, it was considered advisable when determining the dumping margins to
construct the export price to the Republic of Paraguay. The average price of the 1998 monthly sales ofthe company BAYER DEL PARAGUAY S.A. to the first independent buyer was taken as the basis
for this construction of the export price of the products under investigation, and the weighted average
of the prices (excluding VAT) charged to its different marketing channels was calculated. The
amounts corresponding to product resale costs, import costs and profits, as reported by the importer,
were deducted from these monthly prices. An analysis of the sale price of the products in contention
on the Argentine market (origin) was considered relevant when establishing the normal value,
considering that these sales are representative in quantity and subject to the normal terms of trade ofthis market. The average normal value for the period January to December 1998 was calculated on the
basis of the list of sales on the Argentine market furnished by the firm BAYER ARGENTINA S.A.,
less expenses specific to the sale of the product on the Argentine market. To this end, a comparison
was made of the replies on the form sent to the exporter, as well as of additional information and
reports provided at a later date.
COLUMNS 11 - 12 - 13 :  During the period under analysis, i.e., 1995 to 1998, the indicators
of domestic production of aerosol insecticides for domestic use and designed specifically to combat
flying and crawling insects,  MAPEX YELLOW and GREEN respectively, were as follows:
1. A decline of 12 per cent and 33 per cent in the quantity of Mapex Yellow and Green
produced, with sales in Guaranis falling by 19 per cent and 38 per cent and a resulting
decrease of 27 per cent and 42 per cent respectively in the quantity sold. Both products under
analysis also suffered a decline in their share of domestic consumption from 40 per cent andG/ADP/N/59/PRY
Page 4
27 per cent in 1995 to 22 per cent and 12 per cent in 1998, respectively. Product prices,
expressed in Guaranis, rose 17.29 per cent and 10 per cent in nominal terms, whilst in
constant terms (using the Producers Price Index) they dropped 5.7 per cent and 11 per cent,
respectively.
2. Inventories at 31 December of each year of the period under analysis, with the sole exception
of 1996, showed an upward trend. Annual varia tion was as follows: -94 per cent for Mapex
Yellow and -35 per cent for Mapex Green in 1996 in relation to the previous year, climbing
4,214 per cent and 367 per cent at the end of 1997 and 249 per cent and 87 per cent in 1998,
respectively, with a resulting increase in financial costs.
As mentioned above, the company MAAHSA experienced a marked contraction in the
production of both its insecticides in the period 1995 to 1998. The Mapex Yellow line suffered a12 per cent decline in production, whilst the Mapex Green line fell 33 per cent. Domestic sales of like
products in this period decreased 19 per cent for Mapex Yellow and 38 per cent for Mapex Green.
Throughout this period, the domestic sales of both domestic products saw a decline in their
share of apparent consumption of aerosol insecticides from 67 per cent in 1995 to 35 per cent in 1998,or a 47.59 per cent loss of market share. The share of the product Mapex Yellow declined from 40 per
cent in the base year to 22 per cent, or 43 per cent percentage points. A similar trend was reflected by
the product Mapex Green, the share of which fell from 27 per cent at the beginning of the period in
question to 12 per cent in 1998, i.e., a 54 per cent loss of market share.
It should be noted that insecticide consumption increased by 28 per cent in terms of quantity
between 1995 and 1998. 1996 marked the beginning of the export from the Argentine Republic to
Paraguay of the products in contention, BAYER having previously exported these products from its
production plant in Brazil. Thus, from 1996 to 1998 the imported quantities of the product under
investigation increased by 138 per cent.  Moreover, total imports climbed 152 per cent between 1995and 1998.
The share of apparent consumption of the imports in contention has increased. In 1996,
Baygon Green represented 17 per cent of consumptio n and Baygon Blue three per cent, whilst in 1997
the Baygon Green line represented 23 per cent of co nsumption and the Baygon Blue line six per cent.
Finally, in 1998, the share of the Baygon Green line stood at 28 per cent and that of the Baygon Blue
line at nine per cent. At the end of the period in question, the joint share of both products amounted to
37 per cent of total apparent consumption of aerosol insecticides for domestic use.
Furthermore, imports of Baygon Green represented 59.5 per cent of total imports of aerosol
insecticides in 1996, 53.3 per cent in 1997 and finally 43 per cent in 1998. The Baygon Blue line
accounted for 9.6 per cent of total imports in 1996, increasing to 14.3 per cent in 1997 and accountingfor 14.18 per cent in 1998. Imports of both products represented 57.5 per cent of total imports of
insecticides in 1998.
Of particular note is the decline in the US dollar sale prices of both insecticides on the
Paraguayan market in the period September 1996 to July 1998. This decline in actual prices is a resultof both the fall in the net product price and an increase in the tax rebates granted. The actual price of
Baygon Green has thereby decreased by 9.37 per cent in this period and that of the Baygon Blue line
by 7.62 per cent.
When the two products of what is known as the "Ultra" line were introduced into the market
in August 1998, the sale prices of both increased, that of Baygon Ultra Green by 15 per cent and that
of the Baygon Ultra Blue line by 26 per cent.G/ADP/N/59/PRY
Page 5
COLUMN 14 :  Following an evaluation of the above-mentioned factors and an analysis of
the closing arguments of the interested parties, whic h were then used as a basis for the determination,
it was found that domestic production was materially injured as a result of exports at dumped prices of
the aerosol insecticides of the brands Baygon Green and Blue, produced and exported to Paraguay by
the company BAYER ARGENTINA S.A.G/ADP/N/59/PRY
Page 6
ANTI-DUMPING MEASURES IN FORCE
(At 31 December 1999)
Country/customs territory Product Date imposed
Argentina Insecticides, aerosol, Baygon
Ultra Green and Baygon Ultra
Blue
MERCOSUR Nomenclature
(NCM) 3808.10.1017.11.1999
__________