G/ADP/Q1/ SLV/14 
G/SCM/Q1/SLV/ 14 
G/SG/Q 1/SLV/ 13 
11 April 2023 
(23-2577) Page: 1/4 
Committee on Anti -Dumping Practices  
Committee o n Subsidies and Countervailing Meas ures 
Committee on S afeguards  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 EL SALVADOR1 
The following communication, dated and received on 11 April 2023, is being circulate d at the 
request o f the delega tion of the United States . 
 
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The United States thanks El Salvador for its notification containing its implementing regulations for 
its Special Law on Trade Defense, and poses the following questions:2 
 
Questio n 1 
In Article 4 , El Salvador states that for purposes of calculating the dumping margin , if there is not 
an identical like product to use as a match for the product under investigation, El Salvador will 
choose a similar product based on a set of criteria . How is the most si milar product chosen ? Is 
there a hierarchy for determining which criteria of those listed in Article 4 is the most important ? 
Does El Salvador make any sort of adjustment to account for the d ifference in cost and price 
between the produc t under investigati on and the chosen similar like product ? If so, how is the 
adjustment calculated ? If not, how does El Salvador determine when a product is considered too 
dissimilar to use as a comparison ? In such instances , what would El Salvador use as the basis for 
norma l value ? 
Question 2 
In Article 6 , El Salvador states that in determining support for , or against , a trade remedy petition 
DATCO may send notifications to domestic producers who, within five days from the day following 
the receipt of noti fication, shall exp ress in writing their support for, or opposition to, the 
application.  Is the five-day period bus iness or calendar days? How does El Salvador ensure the 
domestic producers received the notification ? How does DATCO determine when the notif ication is 
received , and the five-day period starts ? How does DATCO  ensure it has found all domestic 
producers ? Does DATCO do its own research or rely only the list of domestic producers named by 
the Petitioner in the petition?  
 
1 G/ADP/N/1/SLV/3/Suppl.2 - G/SCM/N/1/SLV/3/Suppl.2 - G/SG/N/1/SLV/3/Suppl.2 . 
2 For the sake of efficiency,  the United States suggests that committee review for questions 1-6 and 
13-15 be conducted in the Committee on Anti -Dumping P ractices , while questions 7 -9 be reviewed in the 
Committee on Subsidies and Countervailing Measures and questio ns 10 -12 be reviewe d in the Committee on 
Safegua rds. G/ADP/Q1/SLV/ 14 • G/SCM/Q1/SLV/ 14 • G/SG/Q1/SLV/ 13 
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  Question 3 
Article 7  states that any party with  a legitimate interest in an investigation into unfair trade 
practices  may inform the investigating authority in writing of its interest in participating in the 
investigation within 15 days following the publication in the Official Journ al of the resolutio n 
initiating the investigation.  Please explain how "legitimate interes t" is defined in your Law . How is 
legitimate interest different from  "interested parties "? Are there opportunities for members of the 
public to participate or make sub missions  in El Salv ador's trade remedy investigations?  
If an interested party is not abl e to register to participate in a trade remedy proceeding within the 
initial 15-day period , does this preclude the party from participation in later stages of the 
investigation  (e.g., su bmitting comments )? Does the 15 -day period apply to each of the dumping, 
subsidy, and injury stages of the investigation?  Can the 15-day period be extended ? If so, under 
what circumstances?  
Question 4 
Article 8 states that "non-market ec onomy countries " shall be understood to mean a country in 
which the government determines economic activity through  a central planning mechanism . How 
does El Salvador determine whether a country is a non-market economy ? Are there specific criteria 
it exami nes? If so, what ar e the criteria ? Does El Salvador maintain a list of countries it considers 
to be non -market economies ? Are these countries pre -determined to be non-market economies or 
does El Sa lvador  need to conclude , in the context of an antidumping i nvestigation or pro ceeding, 
that a country is a non -market economy country?  
Question 5 
Article 9 lists three criteria that El Salvador examines to pick a substitute country for purposes of 
determin ing normal value in non -market economy cases (i.e., product ion processes in th e 
substitute country and non -market economy country , the scale of pr oduction , and the product 
quality) . Does El Salvador consider any additional criteria or factors in selecting the substitute 
country (e.g., the economic similarity betwe en the non -market c ountry and the third country )? 
Question 6 
Article 10 states that, in determining whether lesser duty is appropriate , El Salvador considers the 
impact of the measure on the domestic market . How does El Salvador measure the impact of the 
measure on the domes tic market ? Does El Salvador consider public interest in determining 
whether to apply lesser duty ? Is lesser duty automatically examined by DATCO in every 
investigation or is examination of lesser duty something that must be prompted (e. g., requested  
by an  interested party )? 
Question 7 
Article 18 states that allocable subsidies are those for which the subsidy amount may be allocated 
over the average useful life  (AUL)  of the recipient 's operational assets , and that s uch subsidies 
shall me et one or more of the criteria in Article 18.  
• Please explain how El Salvador determines the AUL for assets.  
• How does El Salvador defin e "non-recurring " subsidies ? 
• Does El Salvador ha ve any exceptions when determining if a subsidy is "recurring " or 
"non-recurring"? If so, pl ease explain.  
• Please also explain what is meant by "be transferred forward in the recipient 's accounting 
records " and how does El Salvador consider the future produ ction when determining the 
allocation of a subsidy?  
• Please confirm how a firm's relevant sales during the period of investigation and period of 
review are defined . Are they defined  as: total sales, export sales, sales of a particular 
product , or sales to a particular market? If not, please explain.  G/ADP/Q1/SLV/ 14 • G/SCM/Q1/SLV/ 14 • G/SG/Q1/SLV/ 13 
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  Question 8 
Article 18 also  states  that "{w}here the number of years between the date of receipt of the 
subsidy and the subsidy POI is greater than the average useful life of the assets, no subsidy 
amount shall be attributed to the subsidy POI. " Please clarify whether this is meant to say that 
El Salvador will not find a benefit for subsidies provided prior to the AUL?  If not, please  provide 
further explanation.  
Question 9 
Articles 39 and 40 describe the provision of goods or services for less than adequate remuneration.  
The article s state that when d etermining the amount of benefit, El Salvador 's first preference is to 
consider  an actual private market transaction within the country under investigation.  If that is not 
available, the next step is to calculate the benefit by assessin g whether  the price  paid to the 
government is sufficient to cover total costs, including selling, general and administrative 
expenses, to provide the goods or services supplied, plus a reasonable amount for profit, or such 
other reasonable basis  as may be determine d (i.e., constructed price).  
Does El Salvador take world market prices into consideration when calculating a benefit under the 
provision of goods and services for less than adequate remuneration?  
Question 1 0 
In Article 49, Chapter III  El Salvador  uses the  term "like product " instead of the term "like or 
directly competitive products. " Article 49 then lists seven factors that may be appropriate in 
considering what might be "a like product. " Article 2 of the Agreement on Saf eguards and 
Article  XIX of the GAT T use the  term "like or directly products " whereas "like product " is used in 
Article VI of the General Agreement and Article 32.6 of the Agreement on Subsidies and 
Countervailing Measures.  The terms "like product " and "like or directly competitiv e product " do not 
necessarily have the same meaning.  However, we note that Article 50 of El Salvador 's notification 
refers to "a comparison between the product under investigation and the like or directly 
competitive product. " 
• Please explain how El Salvad or's defini tion of  like product comports with the 
Safeguard  Agreement definition of the domestic industry as "producers . . . of the like or 
directly competitive products . . . " WTO Safeguard Agreement Article 4.1(c).  
• Additionally, please reconcile Artic les 49 and 50 . They  appear to contain different definitions 
of "like product ". 
Question 1 1 
Article 51 states that "the investigating authority shall examine the adjustment plan and shall 
consider whether the proposal is realistic and sufficient ." Who will make this det ermina tion? What 
are the consequences if the amended plan does not meet these criteria?  
Question 1 2 
The factors relating to the existence of a threat of serious injury in Article 52 raise quest ions. 
Article 52 refers correctly to "a threat of serious injur y caus ed by increased imports ", but the first 
of the factors listed for consideration refers to "{t}he possibility of an increase in imports due " to 
several listed causes . This suggests that a thre at of serious injury may exist when there is "the 
possibili ty of an increase in imports " and without an actual increase in imports as required by 
Article 2 of the Agreement on Safeguards.  Is this accurate or  is there a translation error ? Please 
explain.  Additionally, please explain whether this analys is will look at the  listed factors for all 
global suppliers of the product under investigation . 
Question 13 
Article 58 states that "in their first written representation, the interested parties shall clearly 
indicate an address within the jurisdiction of the investiga ting a uthority…. " Are foreign 
producers/exporters required to have a representative physically located in El Salvador to 
participate in a trade remedy investigation ? Additionally, how is confidential data treated in G/ADP/Q1/SLV/ 14 • G/SCM/Q1/SLV/ 14 • G/SG/Q1/SLV/ 13 
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  El Salvador 's trade remed y proceedings ? Is confidential data only viewed by DATCO or is it made 
available to all interested parties to a proceeding ? How does DATCO ensure that information and 
data submitted by interested parties in its trade remedy proceedings remains secure?  
Ques tion 1 4 
Article s 57 and 59 reference procedural manuals or guides provided by the investigating authority 
for purpose  of putting together applications/petitions for trade remedy investigations . Have the 
referenced "procedural manuals or guides " been create d? If not, when  will they be availab le? Are 
these manuals to made available to the public?  Do you have a website where the se manuals will 
be published ? 
Question 15 
Articles 60 through 69 discuss the "System Committee. " Please describe the role of the 
Syste m Committee in the conduct and imposition of trade remedy measures in El Salvador . Is the 
System Committee involved in conduct ing trade remedy investigations ? Who has the final say in 
determining whether to impose trade remedy measures in El Salvador  (DATCO, the 
System  Committee or another entity )? Does the System Committee have a say in determining 
whether lesser duty is applied ? Who examines and has the final say regarding public interest in 
El Salvador 's trade remedy investigations ? What triggers an evaluation of the public interest (e. g., 
is public interest examined in every trade remedy investigation  or only upon request )? 
 
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