WORLD TRADE  
ORGANIZATION  G/ADP/Q1/MEX/8 
G/SCM/Q1/MEX/8 22 March 2004 
 
 
(04-1259) 
Committee on Anti-Dumping Practices Committee on Subsidies and Countervailing Measures Original:   Spanish 
 
 
 
NOTIFICATIONS OF LAWS AND REGULATIONS UNDER 
ARTICLE 18.5 AND ARTICLE 32.6 OF THE AGREEMENTS 
 
Compilation of Replies to Questions Posed by the UNITED STATES
1 
Regarding the Notification of MEXICO2 
   The following communication, dated 17 March 2004, is being circulated at the request of the delegation of Mexico. 
 
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  Further to the communication submitted by th e Permanent Mission of the United States on 
2 October 2003 and circulated to WTO Members on 6 October 2003, we submit the following replies: 
 
1. Please explain under what circumstances foreign counsel to a respondent company 
would be considered a "legal representative" of the respondent company, within the meaning of 
Article 51 of the Decree amending, supplemen ting, and repealing various provisions of the 
Foreign Trade Act (the "Decree"). 
 
Reply
 
  Foreign counsel to a respondent company is considered to be a "legal representative" when he 
fulfils the provisions of Article 51 of the Fore ign Trade Act, in other words when he proves 
possession of professional qualifications and a licen ce delivered in accordance with Mexican law, 
unless he is a member of the board of directors of the company or equivalent thereof, and provided that he designates a domicile in Mexico for the receipt of notifications.  
2. Please clarify whether interested parties w ill be required to furnish non-confidential 
summaries of confidential information, as requi red by Art. 12.4.1 of the Agreement on Subsidies 
and Countervailing Measures ("ASCM"). 
 
Reply
 
 
 Yes, under Article 153 of the Regulations of the Foreign Trade Act interested parties who 
classify their information as confidential must provide a public summary thereof. 
 
                                                      
1 G/ADP/Q1/MEX/2-G/SCM/Q1/MEX/2. 
2 G/ADP/N/1/MEX/1/Suppl.2-G/SCM/N/1/MEX /1/Suppl.1-G/SG/N/1/MEX/1/Suppl.1 
(24 April 2003). 
 G/ADP/Q1/MEX/8 
G/SCM/Q1/MEX/8 Page 2 
 
 
 3. Article 51 of the Decree appears to include within the term "legal representative" the 
members of the board of directors of an interested party, as well as in-house counsel for those parties.  Article 80 of the Decree provides that co nfidential information shall be made available 
to "legal representatives" of interested parties.  How is this apparent requirement for interested 
parties to turn over confidential information to members of  the board of directors or in-house 
counsel of their competitors consistent with ASCM Article 12.4?  
Reply
 
 
 A legal representative for a company who is also a member of its board of directors may have 
access to any public information submitted during th e proceedings, but may not consult confidential 
information submitted by other interested parties. Th e basis for this is Article 160 of the Regulations 
of the Foreign Trade Act, which states that in orde r to be a legal representative with authorization to 
review confidential information, a person must not during the previous year, have been a partner, a 
director or acted as a salaried agent or representativ e of the enterprise which he proposes to represent.  
 
4. Articles 57 and 59 of the Decree decrease the amount of time previously available to the 
authority to complete investigations.  What provisions, if any, permit the Administering Authority to extend these deadlines?  
Reply
 
 
 The period of time given to complete an investigation can be extended pursuant to 
Article 5.10 of the Anti-Dumping Agreemen t (ADA) and Article 11.11 of the ASCM.  
 5. Does the revision of Article 86 of the Decree require the administering authority to inform the competent Mexican authority of possible "monopolistic practices" discovered during a countervailing duty investigation?  Does it require the administering authority to inform competent foreign antitrust authorities?  If so, ho w is this provision consistent with Art. 12.4 of 
the ASCM, prohibiting disclosure of confidential information without the specific permission of the party submitting it?  What information would the administering authority provide to the 
competent authority in such a case? 
 
Reply
 
 
 Article 86 also provides for subsidy investiga tions and the provision refers only to Mexican 
antitrust authorities. 
 
6. Articles 39 (II) and 42 of the Decree refer to "threat of injury".  How is this consistent 
with footnote 45 of the ASCM, which refers to "threat of material injury"?  
Reply
 
 
 The expression "threat of injury" in Articles 39 (II) and 42 of the Foreign Trade Act should be 
taken to mean "threat of material injury" in accordan ce with footnote 9 of th e ADA. It should be noted 
that under the Mexican legal system the Agreemen t applies automatically; accordingly, where WTO 
Members are concerned, a determination of injury  (whatever its form) wi ll be carried out in 
accordance with the provisions of footnote 9 of the ADA. 
 
7. Article 39 (III) of the Decree refers to "[r]etardation of the establishment of a domestic 
industry."  How is this consistent with foot note 45 of the ASCM, which refers to "material 
retardation"?  G/ADP/Q1/MEX/8 
 G/SCM/Q1/MEX/8 
 Page 3 
 
 
  
Reply  
  The expression "retardation of the establishmen t of a domestic industry "under Article 39 (III) 
of the Foreign Trade Act should be taken to mean  "material retardation of the establishment of a 
domestic industry" in accordance with footnote 9 of the ADA. It should be noted that under the 
Mexican legal system the Agreement applies au tomatically; accordingly where WTO Members are 
concerned, a determination of injury (whatever its  form) will be carried out in accordance with the 
provisions of footnote 9 of the ADA. 
 
8. How are the provisions of the third paragr aph of Article 40 of the Decree, addressing 
the situation where all producers of the domestic  like product are related parties, consistent 
with Articles 15.1 and 16.1 of the ASCM?  
Reply
 
 
 Under Article 40 of the Foreign Trade Act, when all of the producers are related to the 
exporters or importers, Mexico may  take as the domestic industry the manufacturers of the goods 
produced during the immediately preceding stage in th e same continuous line of production, and will 
do so provided that the goods in question comply w ith the criteria set in Article 2.6 of the Anti-
Dumping Agreement. The article is thus consis tent with the provisions of the Anti-Dumping 
Agreement. 
 
9. (a) With respect to cumulation, Arti cle 15.3 of the ASCM requires that the 
investigations of the different countries be si multaneous, and also requires an analysis 
by the authority as to whether cumulation is  appropriate in light of the conditions of 
competition between the imported products  and between the imported and domestic 
products.  Article 43 of the Decree, concerning cumulation, does not contain any such provisions.  How will Mexico ensure that Arti cle 43 of the Decree is applied consistently 
with Article 15.3 of the ASCM? 
  (b) Is the cumulation provision set out in Article 43 mandatory or discretionary? 
 
Reply
 
 
 (a) In Mexico international treaties, including the ASCM, apply automatically; any 
determination by the investigating authority pe rtaining to cumulation must therefore comply 
with Article 15.3 of the Agreement.   Furthermore, it is important to note that the reform of the 
Regulations of the Foreign Trade Act provid es for more detailed requirements concerning 
cumulation. 
 
 (b) Article 43 is an optional provision.  
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