G/ADP/Q1/BRA/41  
G/SCM/Q1/BRA/41  
G/SG/Q1/BRA/10  
 
3 April 2019 
(19-2127) Page: 1/2 
Comm ittee on Anti -Dumping Practices  
Committee on Subsidies and Countervailing Measures 
Committee on Safeguards  Original: English  
 
  
NOTIFICATION OF LAWS AND REGULATIONS UNDER  
ARTICLES 18.5, 32.6  AND 12.6 OF THE AGREEMENTS  
QUESTIONS POSED BY THE UNITED STATES  REGARDING  
THE NOTIFICATION OF BRAZ IL1 
The following c ommunication, dated 2 April  2019, is being circulated at the requ est of the delegation 
of the United States.  
 
_______________  
 
 
The United States thanks Brazil for its notification regarding the information necessary to qualify 
national production as a fra gmented industry for purposes of trade remedy proceedings (i.e., 
Ordinance 41 of 31  July 2018), and poses the following questions:  
 
Question 1  
 
In paragraph 1 of Article 1, Brazil states that, for purposes of trade remedy proceedings, DECOM 
considers a fragmented industry to be one that involves "a large number of domestic producers ". 
Please explain how many producers DECOM considers to be a "large number " of producers. Is there 
any specific threshold that must be met?  
 
Question 2  
 
In paragraph 2 of Article 1, Brazil states that, in determining whether the domestic industry is 
fragmented, DECOM will consider, among other factors, the degree of pul verization of the national 
production as well as the distribution by size of national producers . Please explain the analysis that 
would be undertaken and factors considered by DECOM when deciding whether the national 
production of a particular product qual ifies as a fragmented industry .  
 
Question 3  
 
In Article 2, Brazil states that DECOM will determine whether the domestic industry is fragmented 
prior to the date the application (i.e., petition) for the trade remedy proceeding is filed with DECOM . 
Article 12 states that "Upon initiation of the trade remedy investigation, interested parties may 
submit their comments on DECOM 's decision to qualify the national production of the product 
concerned as fragmented industry ". Please provide responses to the  following:  
 
(a) Is there any opportunity for interested parties to comment on the petitioner 's request to find 
an industry to be fragmented, as well as DECOM 's analysis and decision, prior to the initiation of the 
trade remedy proceeding ?  
 
                                                
1 G/ADP/N/1/BRA/3/Suppl.11 -G/SCM/N/1/BRA/2/Suppl.14 -G/SG/N/1/BRA/3/Suppl.5 (dated 
31 January  2019). For the sake of efficiency, the United States suggests that committee review for a ll 
questions be conducted in the Committee on Anti -Dumping Practices.  G/ADP/Q1/BRA/41 • G/SCM/Q1/BRA/41 • G/SG/Q1/BRA/10  
 
- 2 - 
 
  (b) Once a tra de remedy investigation has been initiated, will DECOM take into consideration 
comments submitted by interested parties that oppose its earlier finding that the domestic industry 
is fragmented ? If so, how will these arguments and comments be addressed ?  
 
Question 4  
 
If, as a result of the procedures laid out in Ordinance 41 of 31  July 2018, DECOM finds that the 
national production of a particular product qualifies as a fragmented industry, and an application 
seeking a trade remedy investigation for such pro duct is subsequently filed, how will DECOM go 
about determining industry support for the application ? Will DECOM poll the industry ? If so, how will 
DECOM go about doing so ? What procedures will be followed ? Please explain any additional 
consequences of an administrative finding of a fragmented industry on the investigation.  
 
 
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