G/ADP/Q1/KGZ/ 8 
G/SCM/Q1/KGZ/ 8 
G/SG/Q1/KGZ/ 4 
27 April 2017 
(17-2316) Page: 1/2 
Committee 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  
REPLY TO QUESTION1 FROM MEXICO REGARDING THE  
NOTIFICATION  FROM THE KYRGYZ REPUBLIC2 
The following communication, dated 26 April 2017, is being circulated at the reque st of the 
delegation of the Kyrgyz Republic . 
 
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The Kyrgyz Republic thank s Mexico for the question posed in connection with paragraph 90 of the 
Protocol on Application of Safeguard, Anti -Dumping and Countervailing Measures with Respect to 
Third Countries (Annex No. 8 to the Treaty on the Eurasian Economic Union).  
Question  
Article  IV.7.90 of the Protocol on Application of Safeguard, Anti -Dumping and 
Countervailing Measures with respect to Third Countries  states that the investigating 
authorit y may suspend or terminate the investigation without imposition of a provisional 
anti-dumping duty or an anti -dumping duty upon receipt of price undertakings from an 
exporter of the product subject to investigation to revise its prices for this product or to 
cease exports to the customs territory of the Union at prices less than its normal value 
(if there are parties related to the exporter in the Member States, applications indicating 
their support of the undertakings shall also be required from these part ies), if the 
investigating authority concludes that these undertakings will remove the injury caused 
by dumped imports, and the Commission takes a decision to accept them . 
In this respect, could the Kyrgyz Republic  please explain the purpose of requesting that 
parties related to the exporter indicate their support of the undertakings?  
Where one or more of the parties related to the exporter offering the undertaking do not 
support it, would this be a reason for rejecting the proposed price undertaking ? If so, 
why would this be a sufficient reason  for rejecting  it? 
Reply  
The Protocol envisages the necessity to provide an approval of price undertakings from the related 
companies. The objective of this provision is to ensure the effectiveness of price undertakin gs and 
to enable investigating authority to monitor a possible breach of the respective agreement on price 
undertakings. If r elated companies are not part of the price undertakings, their pricing behavior 
may undermine the effectiveness of price undertakin gs and may raise the risk of circumvention of 
the undertaking offer. Specifically, the exporting company may declare the value of the product 
concerned equal to the level of the price undertaking, while the related importers may resale the 
                                                
1 G/ADP/Q1 /KGZ/ 7-G/SCM/ Q1/KGZ/ 7-G/SG/ Q1/KGZ/3 . 
2 G/ADP/N/1/KGZ/3 -G/SCM/N/1/KGZ/3 -G/SG/N/1/KGZ/3.  G/ADP/Q1/KGZ/ 8 • G/SCM/Q1/KGZ/ 8 • G/SG/Q1/KGZ/ 4 
- 2 - 
  product concerne d at a lesser price. Therefore, the price undertakings should prevent possible 
evasion of minimum prices resulting from such resale.  
The investigating authority may reject the offer of price undertakings when the product concerned 
is sold to related compan ies and these companies do not approve the price undertakings. 
The significance of this reason is explained by the necessity to ensure effective and workable 
implementation of price undertakings.  
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