./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/ADP/AHG/W/121
27 September 2001
(01-4615)
Committee on Anti-Dumping Practices
Ad Hoc 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
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 conditions of compeition might be relevant in this regard.
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 industry and
market.  Moreover, the Committee is mindful that the relevance of any particular condition of
competition may vary from case to case.  Nonetheless, the Committee considers that it would be
useful to have guidelines as to conditions of competition that may be relevant to a decision whether a
cumulative assessment of the effects of imports is appropriate.
The Committee recognizes that investigating authorities may consider other or different
conditions of competition than those set out below in deciding whether a cumulative assessment of the
effects of imports is appropriate in a particular case.  Moreover, the Committee recognizes that one or
more of the conditions of competition listed below may not be relevant in the context of a particular
Member's market.  The Committee emphasizes that no one or several of the conditions of competitionlisted below will necessarily give determinative guidance in a particular case.
In light of the foregoing considerations, the Committee recommends that, in general, the
following conditions of competition may be relevant in deciding whether a cumulative assessment of
the effects of imports is appropriate as provided for in Article 3.3(b) of the Agreement:
1. Physical characteristics and uses of the domestic like product and imports from each of the
countries proposed for cumulation.  Considerations such as quality, function, technical specifications,
specific customer requirements, customer perceptions, and the degree of interchangeability,
fungibility or substitutability, may be relevant in this regard;
2. The levels and trends in the volume of imports from each of the countries proposed for
cumulation, either in absolute terms or relative to production or consumption in the importing
country;G/ADP/AHG/W/121
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3. The existence of sales of the domestic like product and imports from each of the countries
proposed for cumulation
(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;
4. The levels and trends of
(a) prices for the domestic like product and imports from each of the countries proposed
for cumulation,
(b) price undercutting by imports from each of the countries proposed for cumulation.
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