WORLD TRADE  
ORGANIZATION  G/ADP/N/1/ARG/1/Suppl.8 
30 October 2006 
 
 (06-5215) 
Committee on Anti-Dumping Practices Original:   Spanish 
  
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER 
ARTICLE 18.5 OF THE AGREEMENT 
 
ARGENTINA 
 
Supplement
 
  
 The following communication, dated 6 October 2006, is being circulated at the request of the delegation of Argentina. 
 
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  Pursuant to Article 18.5 of the Agreemen t on Implementation of Article VI of the 
GATT 1994, I have the honour to transmit herewith a copy of Decree No. 1219 of 
12 September 2006, published in the Official Jour nal of 20 September 2006, by which the National 
Executive Power instituted the pro cedure for calculating normal value in respect of unfair trading 
practices in the form of dumping in non-market economies or economies in transition.   The Decree also repeals Article 66 of Decree 1326/98, which was notified in a timely fashion. G/ADP/N/1/ARG/1/Suppl.8 
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  FOREIGN TRADE 
Decree 1219/2006 
 Dumping.  Procedure applicable to imports fr om non-market economy countries or countries in 
transition to a market economy, for the purpose of determining price comparability, when such 
countries are involved in investigations and reviews  on unfair trading practices in the form of 
dumping.    
Buenos Aires, 12 September 2006 
 
 HAVING REGARD TO File No. SO1:0116082/2006 in the Registry of the Ministry of the 
Economy and Production, and    WHEREAS:  
 The 1994 General Agreement on Tari ffs and Trade, which contains, inter alia , the Agreement 
on Implementation of Article VI of the Gene ral Agreement on Tariffs and Trade 1994 – 
Anti-Dumping Agreement – regulated by Decree No . 1326 of 10 November 1998, was incorporated 
in the domestic legal system of the Argentine Republic by Law No. 24.425.   The second supplementary provision to Article VI , paragraph 1, of the General Agreement on 
Tariffs and Trade 1994 provides that, in the case of imports from a country which has a complete or 
substantially complete monopoly of its trade and wh ere all domestic prices are fixed by the State, 
special difficulties may exist in determining price comparability for the purposes of paragraph 1 in the above-mentioned Agreement, and in such cases impor ting contracting parties may find it necessary to 
take into account the possibility that a strict comp arison with domestic prices in such a country may 
not always be appropriate. 
  The Anti-Dumping Agreement provided no detailed explanations on this issue, leaving it up 
to country Members to establish the range of the circumstances in which "normal values" or "the 
ordinary course of trade" cannot be said to be determined by direct or  indirect State intervention in the 
market. 
 
 Up to the present time, the Argentine Republic , in the context of anti-dumping investigations, 
has considered certain countries as non-market  economy countries covered by Article 20 of 
Decree No. 2121 of 30 November 1994 or Article 66 of  Decree No. 1326/98, in accordance with the 
applicability of those provisions.   
 
 Following the enactment of the above-mentione d provisions, and the definitive accession of 
new Members to the World Trade Organization (W TO), Argentina assumed the obligation to notify 
the methodologies used in respect of this matter to the Committee on Anti-Dumping Practices of the 
WTO.  
 At the same time, having regard to the ch anges introduced in the economies of specific 
countries, it is necessary to enact regulations whic h embody the objective criteria to be applied to 
these countries when they are involved in investiga tions concerning unfair trading practices in the 
form of dumping.  
 Without prejudice to the foregoing, the Argentine Republic notifies to the exporters of 
countries considered as non-market economy countries the criteria to be applied in the course of the investigations concerned.   G/ADP/N/1/ARG/1/Suppl.8 
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   The Directorate-General for Legal Affairs of the Ministry of the Economy and Production has 
taken appropriate action within  its sphere of competence. 
  The National Executive Power is competent to promulgate this act by virtue of the provisions of Article 9, paragraph 2, of the National Constitution. 
 
 Wherefore,    THE PRESIDENT OF THE ARGENTINE NATION  
 HEREBY DECREES: 
  Article 1  – In the case of imports from non-market economy countries or countries in 
transition to a market economy, for the purpo se of determining price comparability under the 
Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994, 
approved by Law No. 24.425, normal value shall be determined on the basis of the selling price to the 
domestic market of a market economy third country, or the price applied by such third country to other countries, including the Argentine Republic, or the constructed price in the market economy 
third country concerned, or where this is not po ssible, on any other reasonable basis, including the 
price actually paid or payable in the Argentine Repub lic for the like product, duly adjusted to include 
a reasonable profit margin.  The method of selec ting a market economy third country shall be 
appropriate and reasonable, taking due account of any reliable informa tion available at the time of 
selection, and a third country which is subject to  the same investigation may also be used.   
  Article 2 – The administrative decision by which th e investigation is declared open shall 
specify the market economy third country considered at  that stage.  The interested parties shall have 
ten (10) working days from the day following pub lication of the above-mentioned decision in the 
Official Journal to make any comments they deem  relevant concerning the selection of the third 
country in question.  
  Article 3  – The producers/exporters subject to i nvestigation may demonstrate that they 
operate under market economy conditions on the basis of duly certified positive evidence, which shall 
be used by the implementing authority to determ ine whether normal value can be ascertained on the 
basis of information from that producer/exporter.     For that purpose, they shall be required to demonstrate that:  
(a) Decisions of firms regarding prices, cost factors (including, for example, raw 
materials, cost of technology and labour), output, sales and investment are made in 
response to market signals reflecting suppl y and demand, without State interference; 
(b) Firms have one clear set of basic accountin g records which are independently audited 
in line with international accounting sta ndards and are applied for all purposes; 
(c) The production costs and financial situation of firms are not subject to distortions 
carried over from the former non-market econo my system, in particular in relation to 
the depreciation of assets, other write-offs, barter trade and payment via compensation of debts; 
(d) The firms concerned are subject to bankr uptcy and property laws which guarantee 
legal certainty and stability for the financing of firms; 
(e) Exchange rate conversions are ca rried out at the market rate. G/ADP/N/1/ARG/1/Suppl.8 
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   The above list is not exhaustive, and the implementing authority may request such other 
evidence as it deems relevant.     Article 4  – If it is shown, on the basis of the evidence presented and in accordance with the 
criteria set out in Article 3 of this Decree, th at one or more producers/exporters subject to 
investigation operate under market  economy conditions in respect of the manufacture and sale of the 
product concerned, the provisions of Article 2 of the Agreement on Implementation of Article VI of 
the General Agreement on Tariffs and Trade 1994  shall apply to that producer/exporter for the 
calculation of normal value.  
 If the implementing authority, after analysing the information submitted by the 
exporters/producers, concludes that they do not  operate under market conditions or that the 
requirements of Article 3 of this Decree have not be en fulfilled, normal value shall be determined in 
accordance with the provisions of Article 1 of this Decree.  
 Article 5  – This Decree shall be applicable to i nvestigations and reviews of existing measures 
initiated after the date of its entry into force.   Article 6  – The Secretariat of Industry, Trade and Small and Medium-Sized Enterprises of the 
Ministry of the Economy and Production shall be  the implementing authority responsible for 
promulgating the supplementary regulations to this Decree. 
 
 Article 7 – This Decree shall enter into force from th e day following its publication in the 
Official Journal.   Article 8 – Article 66 of Decree No. 1326 of 10  November 1998 is hereby revoked. 
 
 Article 9 – This Decree shall be proclaimed, published, transmitted to the National 
Directorate of Official Records and filed.  – KIRCHNER – Alberto A. Fernández. – Felisa Miceli. – Jorge E. Taiana. 
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