WORLD TRADE
ORGANIZATIONG/ADP/Q1/CRI/6
G/SCM/Q1/CRI/6
7 May 2003
(03-2426)
Committee on Anti-Dumping Practices
Committee on Subsidies and Countervailing MeasuresOriginal:  Spanish
NOTIFICATION OF LAWS AND REGULATIONS UNDER
ARTICLES 18.5 AND 32.6 OF THE RELEVANT
AGREEMENTS
Replies to Questions Posed by the EUROPEAN UNION1, and the
UNITED STATES2 Regarding the Notification of COSTA RICA3
The following communication, dated 1 May 2003, has been received from the Permanent
Mission of Costa Rica.
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REPLIES TO QUESTIONS POSED BY THE EUROPEAN UNION,
G/ADP/Q1/CRI/3-G/SCM/Q1/CRI/3
Q1. Chapter III concerning the "Regional Pro cedure" seems to allow the Secretariat for
Central American Economic Integration ("SIECA") to conduct anti-dumping investigations at
the request of a party to the General Treaty on  Central American Economic Integration, the
Guatemala Protocol and the Convention on the Central American Tariff and Customs Regime.
Could Costa Rica please explain how the Regional Procedure complies with WTO rules and
clarify in particular the following issues:
• Have the State Parties defined in Article 1 reached such a level of integration
that they have the characteristics of a single, unified market within the meaning
of Article 4.3 of the Anti-Dumping Agreement ("ADA")?  If not, does theterritory of the State Parties constitute a customs union or a free-trade area
respectively?
• How do the role and competence of th e SIECA comply with the WTO rules?
• Would the SIECA determine the existence of dumping, injury and causality with
regard to one or several State Parties?
• Could Costa Rica explain the possibilities for judicial review of the decisions of
the Executive Committee (see Article 43)?
                                                     
1 G/ADP/Q1/CRI/3-G/SCM/Q1/CRI/3 ; G/ADP/Q1/CRI/5-G/SCM/Q1/CRI/5
2 G/ADP/Q1/CRI/4-G/SCM/Q1/CRI/4
3 G/ADP/N/1/CRI/2-G/SCM/N/1/CRI/2G/ADP/Q1/CRI/6
G/SCM/Q1/CRI/6
Page 2
Reply
The Central American Regulations on Unfair Business Practices (the Regulations) do not
contain any provisions contrary to those to be found in the WTO Agreements.  As Article 2 of theRegulations states, the object is to develop the provisions established in the Agreement on
Implementation of Article VI of the General Agreement on Tariffs and Trade (Anti-Dumping
Agreement) and the Agreement on Subsidies and Countervailing Measures (SCM Agreement).  It is
important to note that Article 4 of the Regulations provides that all substantive aspects relating to
unfair business practices shall be determined by the provisions of the aforementioned WTO
Agreements.  Consequently, the provisions in the Regulations are essentially limited to developing
some aspects of a procedural nature in the aforesaid Agreements and meet their provisions rather thancontravene them.
Central American States are party to the General Treaty on Central American Economic
Integration, the Guatemala Protocol and the Convention on the Central American Tariff and Customs
Regime.  They are still in the process of becoming a customs union so Article 4.3 of theAnti-Dumping Agreement does not apply.
Chapter III of the Regulations establishes special procedural rules when it is intended to apply
an anti-dumping measure in favour of a Central American country other than the importer.  This type
of situation is covered by Article 14 of the Anti-Dumping Agreement, so Chapter III of theRegulations sets out regional rules in relation to this provision.
The State concerned must submit an application for initiation of an investigation to the
SIECA, which in turn adopts a resolution to proceed with the case.  After the resolution has been
adopted, the SIECA transmits a copy of the file to the investigating authority in the importing Stateparty so that it can follow the procedure laid  down in Chapters I and II of the Regulations.
If the importing State party does not initiate the investigation within the time-limit established
in the Regulations, the SIECA carries out the anti- dumping investigation, gathering information and
requesting any evidence or reports it considers necessary.  After the SIECA has concluded the
investigation, it convenes the Executive Committee and transmits the file, together with a report and
the recommendations it deems pertinent.  The Executive Committee takes a final decision, making therecommendations to be taken individually or jointly by the States party.  Decisions of the Executive
Committee are taken by consensus of all Central American countries.  Consequently, the purpose of
this provision is to facilitate the procedure laid down in Article 14 of the Anti-Dumping Agreement
and not to contravene it.
In accordance with the foregoing, the SIECA may determine the existence of dumping in one
or more Member States and this must be dealt with by each importing country in accordance with its
domestic legislation.  The decisions of the Executive Committee must therefore be implemented by
each State Party in accordance with the provisions of the WTO Agreements, which form part of its
domestic legislation.  Parties can thus only be affected by a resolution adopted by the countryimposing the measure or duty and each country's domestic legislation contains provisions allowing for
appeals against such resolutions.
Costa Rica has instruments to contest decisions by the investigating authority, both at the
administrative and judicial levels.G/ADP/Q1/CRI/6
G/SCM/Q1/CRI/6
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Q2. Could Costa Rica please clarify whether the Central American Regulations on Unfair
Business Practices entered into force on 12 Janua ry 1996, as laid down in the Decree or at a
later date?
Reply
The Central American Regulations on Unfair Business Practices were incorporated into Costa
Rican legislation by means of Decree No. 24868 of 12 January 1996.
REPLIES TO QUESTIONS POSED BY THE EUROPEAN UNION,
G/ADP/Q1/CRI/5-G/SCM/Q1/CRI/5
Q1. Chapter IV, Article 36, outlines the duration of definitive measures.  Can Costa Rica
please explain the circumstances under which the ti me-limit of five years for definitive measures
can be extended?  Can Costa Rica confirm that a review will have to take place in order todetermine the extension of measures?
Reply
The purpose of Article 36 on the duration of definitive measures is to reflect the provisions in
Article 21 of the SCM Agreement and Article 11 of the Anti-Dumping Agreement.  According to
Article 4 of the Regulations, substantive rules relating to unfair business practices are determined in
the WTO Agreements.  Consequently, where there are no express provisions in the Regulations, the
relevant provisions in the Agreements prevail.  A countervailing or anti-dumping duty will therefore
remain in force for the time necessary to counteract  the subsidy or dumping which is causing injury,
provided that this does not exceed five years, and all other aspects are governed by Article 21 of the
SCM Agreement and Article 11 of the Anti-Dumping Agreement.
Q2. Chapter IV, Article 39, refers to "conciliation meetings" and the possibility of
"settlement".
Can Costa Rica confirm that this is a reference to "undertakings" in the sense of
Article 18 of the SCM Agreement?
It appears that the legislation does not foresee the possibility for an interested party
agreeing to an undertaking to request the completion of the investigation.  Can Costa Rica
confirm that this possibility will be granted a ccording to Article 18.4 of the SCM Agreement?
Reply
As we have already stated, pursuant to Article 4 of the Regulations, all substantive aspects
relating to unfair business practices are determined by the provisions in the WTO Agreements.Article 39 seeks to reflect the provisions in Article 18 of the SCM Agreement.  The provisions of the
SCM Agreement apply to any aspects not specifically dealt with in that article or other articles of the
Regulations. (This also applies to the Anti-Dumping Agreement.)G/ADP/Q1/CRI/6
G/SCM/Q1/CRI/6
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Q3. Law No. 30637-MEIC Article 8(g) entrusts the Office of Unfair Business Practices to
carry out relevant studies and make determinations.  Can Costa Rica please elaborate on how
evidence is collected for investigations?
Reply
Pursuant to Executive Decree No. 30637-MEIC, the Office of Unfair Business Practices and
Safeguard Measures, attached to the Office of th e Minister for the Economy, Industry and Trade, is
responsible for receiving, dealing with and exam ining complaints to determine whether they are
justified and whether it is necessary to impose measures or duties.  This Office was established as a
result of Costa Rica's international commitments under the WTO Agreements.  In accordance withCosta Rica's legal system, as international treaties they constitute laws of the Republic upon their
entry into force and take precedence over domestic laws and regulations.  The Office of Unfair
Business Practices and Safeguard Measures, when collecting evidence for the investigation, must
therefore follow the procedures and time-limits laid down in the relevant WTO Agreements in
relation to the imposition of measures or duties.
REPLIES TO QUESTIONS POSED BY THE UNITED STATES
G/ADP/Q1/CRI/4-G/SCM/Q1/CRI/4
Q1. Are the Central American Regulations on Unfair Business Practices ("Regulations") the
sole legal authority by which Costa Rica can impose anti-dumping or countervailing duties?
Q2. Article 4 of the Regulations states that "[a]ll substantive aspects relating to unfair
business practices shall be determined by the provisions of the instruments referred to in
Article 2 of these Regulations".  These instruments include the AD and SCM Agreements.
Could Costa Rica explain whether it believes any requirements of the AD and SCM Agreements
are not binding on Costa Rica pursuant to Article 4 of the Regulations?
Q3. Article 6 of the AD Agreement and Article 12 of the SCM Agreement contain provisions
concerning procedures that inve stigating authorities must use in conducting anti-dumping and
countervailing duty investigations.  There are several provisions of these articles that are notexpressly addressed in the Regulations.  These include:
(a) The requirement that authorities provide interested parties with the opportunity to
present information orally (Articles 6.2 of the AD Agreement and 12.2 of the
SCM Agreement);
(b) The requirement that authorities provide timely opportunities for interested parties to
see all information relevant to the presenta tion of their cases (Articles 6.4 of the
AD Agreement and 12.3 of the SCM Agreement);
(c) The requirement that authorities protect confidential information (Articles 6.5 of the
AD Agreement and 12.4 of the SCM Agreement);
(d) The requirement that authorities inform all interested parties of the essential facts
under consideration before a final determination is made (Articles 6.9 of the
AD Agreement and 12.8 of the SCM Agreement) .
Does Costa Rica consider these requirements of the AD and SCM Agreements ones
pertaining to "substantive aspects" of investigations that are binding on Costa Rica pursuant toG/ADP/Q1/CRI/6
G/SCM/Q1/CRI/6
Page 5
Article 4 of the Regulations?  If not, how does Costa Rica implement these requirements of
Article 6 of the AD Agreement and Article 12 of the SCM Agreement?
Combined reply to questions 1 to 3
The Uruguay Round Agreements, including the Anti-Dumping Agreement and the Agreement
on Subsidies and Countervailing Measures, were ratified by Costa Rica and entered into force on
27 December 1994.  According to Costa Rica's legal system, international treaties with other States or
with international organizations become laws of the Republic upon entry into force and take
precedence over domestic legislation and regulations.  Consequently, the Anti-Dumping Agreement is
the instrument with the highest legal status regulating this question.  The purpose of the CentralAmerican Regulations on Unfair Business Practices, as stated in Article 2 thereof, is to develop the
provisions established in the Anti-Dumping Agreement and the SCM Agreement.  In accordance with
Article 4 of the Regulations, substantive rules relating to unfair business practices are determined in
the WTO Agreements.  Aspects not expressly covered in the Regulations are therefore governed by
the relevant provisions in the Agreements, without exception.
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