RESTRICTEDWORLD TRADE
ORGANIZATIONG/ADP/Q1/ECU/11
G/SCM/Q1/ECU/11
11 April 2001
(01-1853)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  English
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5 AND 32.6 OF THE AGREEMENTS
Questions Posed by EUROPEAN COMMUNITY
Regarding the Notification of ECUADOR1
The following communication, dated 9 April 2001, has been received from the Permanent
Delegation of the European Commission.
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CENTRALLY -PLANNED ECONOMIES
1. In the Resolution No 52, article 3 states: “Economies in which the majority of enterprises are
wholly or partly owned by the State and in which the operating criteria, including prices, production,
investment programmes and levels of employment, are under the direct control of the Government"
Is it the Ecuador’s intention to make such a determination on a case-by-case basis, or will it
draw up a list of foreign countries deemed to be non-market economy countries for the purposes of an
anti-dumping or an anti-subsidy investigation?
Under Article 5, it is stated that " In the case of imports originating in or coming from non-
market economy countries, normal value shall be determined on the basis of the price or constructed
value of a like product in a market economy third country at a comparable level of development, for
domestic consumption or use  (…)"
Under what criteria would Ecuador determine that a market economy third country is at a
comparable level of development to a non-market economy country?
COMPARISON BETWEEN NORMAL VALUE AND EXPORT PRICE
2. Article 7 of the Resolution which describes the conditions for making comparisons between
export price and normal value appears to reflect Article 2.4 of the WTO Anti-dumping Agreement.
But could Ecuador explain how it intends to implement the provisions of Article 2.4.2 of the WTO
Anti-Dumping Agreement?
CUMULATIVE ASSESSMENT OF IMPORTS FROM MORE THAN ONE COUNTRY
3. Article 10 regarding the determination of injury states that " where imports of a product from
more than one country are subject to anti-dumping investigations, the investigating authority shall
                                                     
1 G/ADP/N/1/ECU/2-G/SCM/N/1/ECU/2-G/SG/N/1/ECU/2G/ADP/Q1/ECU/11
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accumulatively assess such imports if the margin of  dumping established in relation to the imports of
each country is more than de minimis and the volume  of imports from each country is not negligible ".
Could Ecuador please explain how it intends to comply with its obligations under Article 3.3
of the WTO Anti-Dumping Agreement, in particul ar with the requirement that the cumulative
assessment of the effects of the imports is appropriate in light of the conditions of competition
between the imported products and the like domestic product, and under Article 15.3 of the WTO
Subsidies and Countervailing Measures Agreement.
The EC notes that Article 12 regarding the determination of threat of injury has reproduced
the second requirement for a cumulative assessment, i.e. conditions of competition.
INJURY DETERMINATION
4. Article 13 of the Resolution states that " The review of the injury or threat of injury shall
comprise a period covering imports of the like product in the last 12 months for which information is
available ."
Could Ecuador please explain whether injury or threat of injury would be assessed only for
the period of review or for a longer period in order to look at the trends in time?
EX OFFICIO INITIATION
5. How does Ecuador reconcile the provisions of Article 16 of the Resolution with its
obligations under Article 5.6 of the WTO Anti-Dumping Agreement and Article 11.6 of the WTO
Subsidies and Countervailing Measures Agreement, and in particular with the requirement ofinitiations under special circumstances?
O
N-THE-SPOT INVESTIGATIONS
6. Could Ecuador please explain how it intends to  comply with its obligation to notify the
government of the country of origin or export of the products under Article 6.7 of the WTO Anti-
Dumping Agreement and Article 12.6 of the WTO Subsidies and Countervailing MeasuresAgreement?
E
VIDENCE AND INFORMATION REQUESTED DURING THE INVESTIGATION
7. Could Ecuador please explain how it intends to " request and gather (…) evidence " as
provided for in Article 29 of the Resolution?
Does Ecuador intends to send questionnaires to exporters, foreign producers or other
interested parties? If so, could Ecuador please explain which deadline will be granted to submit a
reply to such questionnaires?
BEST INFORMATION AVAILABLE
8. Could Ecuador please explain how it intends to comply with paragraph 7 of Annex II of the
WTO Anti-Dumping Agreement?G/ADP/Q1/ECU/11
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MUTUALLY AGREED SOLUTIONS
9. Could Ecuador please explain which mutually agreed solutions other than price undertakings
could be accepted under Section V of the Resolution?  In this context, could Ecuador also pleaseexplain who will participate in the conciliation meetings foreseen in Article 39 of the Resolution and,
in particular, would domestic producers also take part?  How does Ecuador intends to comply with
confidentiality requirements be warranted in this respect?
R
EDUCTION OF ANTI-DUMPING OR COUNTERVAILING DUTIES
10. Article 47 states that " The decision whether or not to impose an anti-dumping duty in cases
where all requirements for the imposition have been fulfilled, and the decision whether the amount of
the anti-dumping duty to be imposed shall be the fu ll margin of dumping or less, are decisions to be
made by the authorities of the importing Member.  It is desirable that the imposition be permissive in
the territory of all Members, and that the duty be less than the margin if such lesser duty would be
adequate to remove the injury to the domestic industry. "
Could Ecuador please explain under which criteria would Ecuadorian authorities decide
whether or not to impose an anti-dumping duty. Under what circumstances would Ecuador apply a
duty below the level of the dumping margin? Are these rules also applicable to countervailing duties?
INVESTIGATIONS AGAINST NON WTO M EMBERS
11. Article 11 of the Resolution states that " If the investigation relates to products originating in
or consigned from countries in respect of which there are no applicable international obligations,
consideration shall be given to whether the country of export or of origin would provide evidence ofinjury to Ecuadorian exports. If such evidence is not provided, Ecuador may impose anti-dumping or
countervailing duties simply on a finding of dumping or subsidization. "
Could Ecuador please explain on which basis will Ecuador determine its findings of dumping
or subsidization?
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