TN/RL/GEN/194  
 
2 August  2017 
(17-4208) Page: 1/4 
Negotiating Group on Rules  Original: English  
 
 
FOLLOW -UP PAPER ON SPECIAL CONSIDERATION AND TR EATMENT OF  
SMALL AND MEDIUM -SIZED ENTERPRISES IN  ANTI -DUMPING AND  
COUNTERVAILING PROCE EDINGS  
COMMUNICATION  FROM CHINA 
The follow ing communication, dated 2 August  2017, is being circulated at the request of the 
Delegation of China . 
 
_______________  
 
 
1  BACKGROUND AND INTRO DUCTION  
The Proposal on Trade Remedies  (TN/RL/GEN/185) submitted by China on 21 April 2017 was 
circulated among the Members on 24 April , in which China highlighted initiatives and proposals, 
inter alia, on special consideration and treatment of Small and Medium -sized Enterprises (SMEs) in 
anti-dumping and countervailing proceedings.  
 
It is well -accepted that SMEs with their vigor and competitiveness are among the powerhouses for 
creating job o pportunities and promoting technology innovation as well as economic development.  
Acknowledging SMEs ' increasingly important role in international trade  in recent years, facilitat ing 
SMEs ' integration  into international trade has become a common interest a mong Members .1 In 
light of the global and local economic difficulties , it is the Members ' shared  responsibility to help 
create a free trading environment for  the SMEs and facilitate their participation in international 
trade and cooperation.  
 
Considering the multifarious difficulties and heavy burden confronted by SMEs in responding to 
trade remedy proceedings due to their limited capacities and lack of experience, China further 
clarifies its  suggestions contained in the proposal TN/RL/GEN/185  and hereby submits this 
proposal  on special consideration and treatment of  SMEs in AD and CVD proceedings . This paper is 
thus meant to serve as the basis for further discussion . 
 
In general, this paper aims at encouraging the investigating authorities to m ake positive efforts to 
identify small and medium -sized enterprises when appropriate, take due account of the unique or 
disproportionate  difficulties confronted by them in responding to proceedings , and provide them 
with any practicable assistance or help to reduce their burden thereof. Although it focuses on the 
SMEs ' participation as respondents, any proposal from the Membership with  respect to SMEs ' 
participation as petitioners is welcome  as basis for subsequent discussions on this topic.  
 
2  DESCRIPTION A ND ANALYSIS  
With respect to SMEs ' participation in responding to AD and CVD proceedings, we note that ADA 
Article 6.13 and ASCM Article 12.11 both provide s that  "[t]he authorities shall take due account of 
any difficulties experienced by interested parties , in particular small companies, in supplying 
information requested, and shall provide any assistance practicable ". On 29  June 2005, Norway 
proposed amending Article 6.13 to include a requirement that "[i]n particular the authorities shall 
respond in a timely manner  to questions for  clarifications of the questionnaires, and provide 
                                                
1 See Annual Report 2017 ，www.wto.org/english/res_e/booksp_e/anrep_e/anrep17_chap4_e.pdf - 86k 
- 2017-05-31 TN/RL/GEN/194  
 
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  assistance in identifying the information that is neede d".2 Norway 's proposal was partially 
incorporat ed into the Chair 's consolidated text of 2011 (TN/RL/W/254) in the form o f "including by 
responding in a timely manner to requests for clarification of questionnaires ".3 China values th ese 
efforts made b y Members  with respect to this issue.  
 
Further, China notes that SMEs face multifarious difficulties and bear heavy burden in responding 
to trade remedy proceedings  in practice,  which may involve several  procedural aspects  such as 
access to information,  questionnaire, extension, sampling, and price undertaking . For instance, 
they may have difficulty in obtaining qualified professional assistance from lawyers or experts due 
to high financial  expenses. Because of lack of experience  and expertise, even when SMEs have 
already done their best in cooperating, their ques tionnaires may still be less than ideal or even 
incomplete , which could often lead to unfavorable  or even excessively highest rates for them. 
Their applications for price undertaking are also easily disregarded  due to their small percentage of 
industrial representativeness . The above has, in turn, contributed to SMEs ' reluctance in 
responding to other AD and CVD proceedings, resulting in a worse -off situation for SMEs  in 
international trade.  
 
As the existing  Article 6.13  of ADA and Article 12.11 of ASCM, or  the previously proposed 
amendments to Article 6.13  of ADA are insufficient  to cover all the typical difficulties confronted by 
SMEs, China holds that it is necessary  to add a self -standing article "Small and Medium -sized 
Enterprises " to ADA and ASCM  to address the issues highlighted.  
 
3  PROPOSAL  
In light of the above, China proposes  for discussion the following article .  
 
In principle, the authorities sh all, when appropriate or requested,  make positive  effort s to identify 
SMEs as respondents, take due account of the unique or disproportionate  difficulties experienced 
by them in the process of investigations and provide them with any practicable assistance.  
 
In detail, a ssistance to SMEs may include but not limited to : 
 
a. The authorit ies shall take due account of difficulties of SMEs in gaining access to 
information  and take appropriate measures to ensure their easier access to relevant 
information including initiation, questionnaire , disclosure and public notice  etc. 
b. The authorities shal l give full consideration to SMEs ' comments and opinions when 
sampling for limited examination. If SMEs have genuine  difficulties in providing full 
cooperation and present justifiable explanation therefor , the authorities  may decide not 
to select them for limited examination.  
c. If SMEs are unable to submit questionnaires on time with  good cause , the authorities 
shall grant them reasonable extension upon request unless such extension will 
significantly impedes the investigation.  
d. The authorities shall provide a ny assistance practicable to SMEs when they  supply 
information requested by the authorities, including responding in a timely manner to 
requests for clarification of questionnaires and permitting SMEs to submit questionnaires 
in less burdensome ways . 
e. The a uthorit ies shall take due account of price undertaking s offered by SMEs where 
appropriate.  
f. Even when information provided by SMEs may not be ideal in  all respects, this  situation 
shall not lead to a result which is less favorable  to SMEs if they have provi ded 
cooperat ion to the best of their abilities.  
 
                                                
2 See Norway in TN/RL/GEN/49 , Proposal on issues relating to evidence, public notice and explanation of 
the determinations und er Articles 6 and 12 of the ADA . 
3 See TN/RL/W/254.  TN/RL/GEN/194  
 
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  China recalls from previous discussions in the context of this issue that some Members raised the 
question of how to define SMEs. It is our understanding that there is no established or generally 
accepted  definition or test of SMEs among the Membership, particularly for the purpose of AD and 
CVD proceedings. Therefore, we believe it would be better to leave this issue  to be decided upon  
by investigating authorities  based on their domestic regulation s, industry -specific  standard , 
common practice  or the case by case situation . Nevertheless, any suggestions regarding th e 
definition  would be  appreciated.  
 
China is also conscious of the additional administrative burden that may come to bear on the 
authoritie s of some of the developing Members as a result of the above proposed amendments. 
China thus recommends  an incremental approach for the adoption by such Members and extension 
of technical assistance to them under the principle of special and differential t reatment.  
 
 
 
 
  TN/RL/GEN/194  
 
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  ANNEX 1  
 
Proposed Amendments to ADA/ASCM  
  
Article X 
 
Special consideration  and treatment of SMEs  
 
 
The authorities sh all, when appropriate or requested,  make positive  effort s to identify Small and 
Medium -sized Enterprises (SMEs), take due account of the unique or disproportionate  difficulties 
experienced by  them in the process of investigations and provide them with any practicable 
assistance.  Assistance to SMEs may include but not limited to : 
 
a. The authorit ies shall take due accoun t of difficulties of SMEs in gaining access to 
information  and take appropriate measures to ensure their easier access to relevant 
information including initiation, questionnaire , disclosure and public notice  etc. 
b. The authorities shall give full considerat ion to SMEs ' comments and opinions when 
sampling for limited examination. If SMEs have genuine  difficulties in providing full 
cooperation and present justifiable explanation therefor , the authorities  may decide not 
to select them for limited examination.  
c. If SMEs are unable to submit questionnaires on time with  good cause , the authorities 
shall grant them reasonable extension upon request unless such extension will 
significantly impedes the investigation.  
d. The authorities shall provide any assistance practica ble to SMEs when they  supply 
information requested by the authorities, including responding in a timely manner to 
requests for clarification of questionnaires and permitting SMEs to submit questionnaires 
in less burdensome ways . 
e. The authorit ies shall take due account of price undertaking s offered by SMEs where 
appropriate.  
f. Even when information provided by SMEs may not be ideal in  all respects, this  situation 
shall not lead to a result which is less favorable  to SMEs if they have provided  
cooperat ion to the best of their abilities.  
 
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