G/ADP/AHG/W/200  
 
21 March 2014  
(14-1778)  Page: 1/2  
Committee on Anti-Dumping Practices 
Working Group on Implementation Original: English  
 
 ARTICLE 3.5 – OTHER KNOWN CAUSES OF INJURY 
PAPER BY BRAZIL 
The following communication, dated 20 March 2014, is being circulated at the request of the 
Delegation of Brazil. 
 
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The Antidumping Agreement does not offer an exhaustive list of other factors that must be 
examined in order to ensure that there is a clea r causal link between injury and dumped imports. 
The non-attribution language in article 3.5 requires  the separation and distinguishing of the effects 
of other factors from those of the dumped import s. Therefore investigating authorities are allowed 
to develop methods for determining which evidence is relevant to a particular case.  
The Brazilian investigating authority understands that a more wide-ranging methodology to the 
analysis of other known factors contributes to an open-minded conclusion about injury and, therefore, it adds impartiality to the result of an investigation.   
Brazilian regulation requires that the effects of the dumped imports shall be separated and 
distinguished from those caused by other factors. In order to do so, the regulation indicates a non exhaustive list of 10 (ten) other factors that must be examined. 
 
The applicants, as well as the respondents to the questionnaires destined to the investigation (foreign producers/exporters and Brazilian impo rters), are required to provide information 
regarding each of the 10 factors typically considered, plus any other known factor that might have 
contributed to the injury to the domestic industry . Also the Secretariat of the Federal Revenue of 
Brazil is a regular source of information.  
Each one out of the 10 other known factors is examined individually in every investigation, 
regardless of a previous petition to do so. Moreover, any other known factor may be considered by DECOM by request of any interested party. 
 
The other factors listed in the Brazilian regulation and usually examined reads as follows:   
1. Volume and price of imports from other countries: under this topic, the goal is to evaluate 
whether imports from third countries are exported to Brazil at lower prices and higher volumes than dumped imports. 
 
2. Effects of eventual process of liberalization of imports on domestic prices: the aim is to 
examine the impact of any reduction on import duty during the period of investigation on 
inland price of dumped imports. At the same time it must be analyzed if the reduction has 
led to an increase of dumped imports. 
 3. Contraction in demand or changes in patterns of consumption: the target is to evaluate 
whether changes in consumer preferences have led to adjustments in commerce. The 
investigating authority usually observes a relation between an eventual contraction in demand and the volume of imports. 
 G/ADP/AHG/W/200 
 
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  4. Trade restricting factors in commerce affecting foreign and domestic products: the basic 
topic is to evaluate if there had been imposed any restriction that halted trade, for instance, an environmental regulation. Furthermore, the investigating authority must ensure that the domestic industry did not put in place any policy to favor its distributors. As a consequence 
Brazilian independent importers may direct their business towards imports. 
 5. Competition between domestic producers and exporters: the goal is to examine if sales from 
other domestic producers or from exporters from other countries may be injuring the 
domestic industry.  
 6. Developments in technology:  the target is to examine if the launching of a new type of 
product led consumers to prefer a different product, instead of the like product 
manufactured by the domestic industry. 
 
7. The export performance of the domestic producer: under this section the investigating 
authority considers whether the export perfor mance has caused the observed injury. It 
considers, for instance, if the domestic indust ry chose to increase exports to the detriment 
of home market sales. On the other hand, it is also examined whether any decrease of 
exports has led to reduction on production level or adversely affected the profitability of the domestic industry. 
 
8. Productivity of the domestic industry: this topic aims at observing whether gains in 
productivity may have led to decline in employment. 
 
9. Captive consumption:  considering that increase in captive consumption may be responsible 
for the injury, in this section the investigating authority examines if the domestic industry may have preferred to consume its own like product in order to trade greater value added 
products; 
 10. Imports or resales by the domestic industry: the investigating authority must examine 
whether the domestic industry decided to import the product instead of producing it.  
 
In conclusion, provided that an investigating authority's practices are in accordance with article 3.5, it is free to choose the methodology most suitable to avoid attributing injury caused by 
any other factor to the dumped imports. Brazilian choice of distinguishing and separating each 
other known factors adds to a more comprehensive approach and, therefore, to a more solid conclusion about causal link. 
 
 
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