. /.  RESTRICTED  WORLD TRADE  
ORGANIZATION  G/ADP/AHG/R/24 
19 December 2008 
 (08-6230) 
Committee on Anti-Dumping Practices 
Working Group on Implementation  
 
 
 
SUMMARY REPORT OF THE MEETING OF THE 
WORKING GROUP ON IMPLEMENTATION OF THE 
COMMITTEE ON ANTI-DUMPING PRACTICES, 
27 OCTOBER 2008 
 
Note by the Secretariat  
  
1. The Working Group on Implementation ("the Group") met in informal session on 
27 October 2008 and held substantiv e discussions concerning one of th e topics referred to it by the 
Committee on Anti-Dumping Practices ("the Committee") on May 2003
1 and another topic 
subsequently proposed by the European Communities2.  The Group adopted the agenda for the 
meeting, which was previously circulated as doc ument WTO/AIR/3266, dated 17 October 2008.   
2. The Chairperson, Mr. Jorge Huerta Goldma n (Mexico), noted that the Group would take up 
the two topics for discussion in the order set forth in the agenda, as adopted.  These were:  (a) export 
prices to third countries or constructed normal value – Article 2.2; and (b) determination of significant 
price undercutting by dumped imports – Article 3.2.   
3. Turning to the first item on the age nda, the Chairperson recalled that the 
European Communities had submitted a paper on this issue prior to, and a revised version of it during, 
the previous meeting of the Group.  The EC's pape r had been discussed in the Spring meeting of the 
Group and several Members had asked questions a bout it.  At that meeting, the European 
Communities had stated that it would provide answer s to those questions in the Autumn meeting of 
the Group.  The Chairperson gave the floor to  the European Communities which presented its 
responses to these questions.  No follow up questions were put forward regarding the EC's paper.   
 4. The Group then moved on to the second item on the agenda, determination of significant 
price undercutting by dumped imports – Article 3.2.  The Chairperson recalled that the 
European Communities had, in its submission dated 23 July 2007, proposed three topics for discussion in the Group, including Members' practices with regard to determining significant price 
undercutting by dumped imports.  In its October 2007 meeting, the Committee had referred this topic 
to the Group for discussion.  The first submission on  this topic came from New Zealand, circulated as 
document G/ADP/AHG/W/179.  The Chairperson gave th e floor to New Zealand for its explanations.  
After explaining its practice on determining signifi cant price undercutting, New Zealand identified 
several questions on this matter and invited other Me mbers to explain how they would approach such 
questions in their own practice.  The European Communities, Japan, Hong Kong, China, India and the 
United States made comments on New Zealand's paper.   
 
                                                     
 
1 The list of topics referred to the Working Group was circulated to Members in document 
G/ADP/W/433.   
2 The list of topics proposed by the European Communities for discussion in the Group is contained in 
G/ADP/AHG/W/176.   G/ADP/AHG/R/24 
Page 2  
 
  5. In its statement, the European Communities addr essed the issue of the prices that have to be 
compared in determining significant price undercutti ng, the difference between price undercutting and 
what the European Communities calls "underselling", the level of trade at which the comparison has 
to be made, the determination of non-injuriou s selling price, and the determination of what 
New Zealand calls "import parity price".  The Eu ropean Communities also stated that imports from 
Australia had to be considered as an "other f actor" in the causation analyses in investigations 
conducted by New Zealand.  Japan mentioned that  it did not have specific legislation on the 
determination of significant price undercutting and that  it applied Article 3.2 as it stood.  Hong Kong, 
China asked whether New Zealand authorities would also  consider a comparison closer to the point of 
final consumption given that such prices could be more representative of the price competition in the 
market, and made comments on the issue of Australian  imports.  India raised three specific questions 
regarding New Zealand's practice and explained that the Indian investigating authorities' practice with 
regard to determining significant price undercutting was to compare the non-injurious price with the 
price of dumped imports, just as they did for dete rmining the injury margin for purposes of applying 
the lesser duty.  The United States  explained that in determining wh ether underselling is significant, 
the United States International Trade Commission ("the USITC") compared actual prices of the 
domestic like product and the subject imports.  The Un ited States then provide d detailed explanations 
on the USITC's determinations.  The United States directed three questions to New Zealand on the 
latter's practice regarding the determination of significant price undercutting and one question to 
Australia as to how imports from New Zealand are treated in investigations conducted by Australia 
against third countries.  In response to questions, New Zealand drew Members' attention to the fact 
that its paper reflected New Zealand's practice regarding the determination of significant price 
undercutting only in general terms and that the actual determinations in a give n investigation varied 
depending on the circumstances.  New Zealand th en answered the questions posed by different 
Members.  Australia, for its part, stated that the FTA between New Zealand and Australia was one in which anti-dumping actions were waived.  Chile mentioned that EFTA and the FTA between Chile 
and Canada also contained pr ovisions on anti-dumping.   
 6. The Chairperson noted that the following topics were under active discussion before the Group:  export prices to third countries or construc ted normal value – Article 2.2;  foreign exchange 
fluctuations – Article 2.4.1;  judicial, arbitral  or administrative Review – Article 13;  and 
determination of significant price undercutting by dumped imports – Article 3.2.  The Chairperson 
encouraged Members that had not submitted papers on these topics to do so for the next meeting in 
the Spring and/or propose new topics that they found worth discussing in the Group.  The Group agreed that its next meeting would take place during the week of 4 May 2009, with the exact date to 
be communicated to Members in due course.    
 
 
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