./.WORLD TRADE
ORGANIZATIONG/ADP/AHG/W/121/Rev.3
2 September 2003
(03-4579)
Committee on Anti-Dumping Practices
Working Group on Implementation
DRAFT RECOMMENDATION CONCERNING CONDITIONS OF
COMPETITION THAT MAY BE RELEVANT TO A DECISION
WHETHER A CUMULATIVE ASSESSMENT OF THE
EFFECTS OF IMPORTS IS APPROPRIATE
Revision
The following reflects specific drafting suggestions and other comments concerning the text
of the draft recommendation made by Members at the Meeting of the Working Group onImplementation on 1 May 2003.
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The Committee notes that Article 3.3 of the Agreement on Implementation of Article VI of
GATT 1994 provides that the investigating authoritie s may cumulatively assess the effects of imports
of a product from more than one country if, inter alia , a cumulative assessment of the effects of the
imports is appropriate in light of the conditions of competition between imported products and the
conditions of competition between the imported products and the like domestic product.  The
Committee further notes that the Agreement does not establish any criteria or give any direction as to
what factors might be relevant in this consideration of the conditions of competition.
The Committee recognizes that a decision whether a cumulative assessment is appropriate in
light of the conditions of competition must be made by the investigating authorities in each case on
the basis of the particular facts in that case, in the context of the relevant domestic market.  Moreover,
the Committee is mindful that the relevance of any particular factor examined for the consideration of
the conditions of competition may vary from case to case.  Nonetheless, the Committee considers thatit would be useful to have guidelines as to such factors that may be relevant.
The Committee recognizes that investigating authorities may consider other or different
factors than those set out below in deciding whether a cumulative assessment of the effects of imports
is appropriate in any given situation.  Moreover, the Committee recognizes that one or more of the
factors listed below may not be relevant in the context of a particular Member's market.  TheCommittee emphasizes that no one or several of the factors listed below will necessarily be
determinative in any given situation.
In light of the foregoing, the Committee reco mmends that[,] Members consider the following
factors, among others, to the extent they are relevant, in deciding whether to assess cumulatively the
effects of imports as provided for in Article 3.3 (b) of the Agreement:
1a. Physical characteristics and uses of the domestic like product and imports from each of the
countries whose imports may be cumulated, as well as the degree of interchangeability, fungibility or
substitutability.  Considerations such as quality, [function], technical specifications, [tariffG/ADP/AHG/W/121/Rev.3
Page 2
classification] [and specific customer requirements] [and customer perceptions] may be relevant in
this regard;
1b. Physical characteristics and uses of the domestic like product and imports from each of the
countries whose imports may be cumulated, as well as the degree of interchangeability or
substitutability;
2a. Whether the domestic like product and imports from each of the countries whose imports may
be cumulated have, for example:
(a) common or similar channels of distribution.
Other factors which may be relevant to cumulation for some Members could include whether the
domestic like product and imports from each of the countries whose imports may be cumulated are
present in, or will be present in:
[(b) the same or overlapping geographical areas of the domestic market, [as appropriate],
and;]
(c) during the period of investigation.
2b. Other factors which may be relevant to the consideration of the conditions of competition,
which could include whether the domestic like product and the imports from each of the countries
whose imports may be cumulated are sold or offered for sale:
(a) through common or similar channels of distribution,
[(b) in the same or overlapping geographical areas of the domestic market, and]
(c) during the same or overlapping time-periods within the period of investigation;
3. [Prices for the domestic like product and imports from each of the countries whose imports
may be cumulated.  This analysis could cover [levels of prices, or the relative prices – OR –  e.g.
levels and trends of prices, as well as the level of price undercutting];
4a. [For the purpose of analyzing material injury and threat of material injury, the levels or trends
in the volume of imports from each of the countries whose imports may be cumulated, either in
absolute terms or relative to production or consumption in the importing country];
4b. [For the purpose of considering cumulation for the assessment of [material injury or] threat of
material injury, the levels or trends in the volume of imports, either in absolute terms or relative to
production or consumption in the importing country, and pricing patterns from each of the countries
whose imports may be cumulated];
[The analysis of the conditions of competition should refer to the period of data collection for the
injury investigation.]
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