. /.   WORLD TRADE  
ORGANIZATION  TN/RL/W/216 
12 February 2008 
 (08-0623) 
Negotiating Group on Rules Original:   English 
  
 
PROPOSED PROVISION OF ANTI-CIRCUMVENTION 
 
Statement of China;  Hong Kong, China;  Pakistan
 
 
 
 The Delegations of China; Hong Kong, China;  Pakistan jointly present this Statement on 
22 January 2008 concerning the issue of Anti-circumven tion in the Chair's first consolidated text in 
Anti-dumping Agreement.  This is without prejudice to the views the Delegations may have regarding 
other parts of the text.   
 
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Discussion 
 1. The issue of anti-circumvention has always b een one of the most contentious issues in the 
Uruguay Round and was not incorporated in the final result of the Agreement on Implementation of 
Article VI of the General Ag reement on Tariffs and Trade 1994  (the Anti-dumping Agreement).  It 
remains contentious and controve rsial until the Doha Round.   
 
2. Since the kick-off of the Rules Negotiati on under this Round, quite a few discussions and 
negotiations on circumvention and anti-circumvention have been held.  So far big discrepancies still 
exist and convergence has not be reached among Me mbers participating in these discussions and 
negotiations.  Given the complexity of the issue and,  in particular, integration into the existing Anti-
dumping Agreement, the issue of anti-circumventi on is currently still in great need of further 
discussion and clarification among Members.   
 
3. The Chair's text fails in a number of accounts.  First of all, it does not give a precise and clear 
definition of circumvention.  Secondly, it only  enumerates some circumstances that may cause 
circumvention to anti-dumping measures.  Thirdly,  it lays down some conditions which may or may 
not constitute circumvention.  Given the gaps in th e basic text, the proposed Article 9bis is unable to 
even constitute a precise and clear definition of ci rcumvention.  And because of this lack of a 
definition, further discussion on the issue becomes groundless and of little use.    4. Furthermore, the lack of a precise and clear definition of circumvention leaves a large amount of discretion for the investigating authorities to make anti-circumvention investigations and anti-
dumping measures.  They can easily be extended to th e products which are not within the scope of the 
product under consideration, and to the countries (regi ons) that are not the origin of the product under 
consideration.  In respect of the latter, the rights of the third parties (and Members) not involving in 
the original investigations may be seriously underm ined.  That will inevitably result in the abuse of 
the Anti-dumping Agreement, and is completely opposite to the aims of the DDA, whose aim is 
"clarifying rules and improving disciplines" of  rules negotiations (especially, the Anti-dumping 
Agreement), not further weakening and obscuring.   
 TN/RL/W/216 
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  5. The proposed provision of anti-circumvention in the text is contrary to the spirit and idea of 
the current anti-dumping rules, that is, measures s hould only be imposed if positive determinations on 
dumping, injury and causation are made.  The provisi on may also cause conflicts with other relevant 
Agreements under the framework of WTO, such as the Agreement on Rules of Origin .  The parallel 
application of such rules under different regi mes within the exiting WTO framework will be 
contradictory to each other, thus undermining th e credibility and uniformity of the multilateral trade 
system.    6. The proposed anti-circumvention provision will result in more uncertainty and unpredictability to the environment of business co mmunity.  It will pose a negative impact on the 
international investment, particularly to the De veloping Members, who are in advantage of labour-
intensive industries.  Finally, the newly incor porated anti-circumvention provision will negatively 
influence the normal trade flow and its legitimate  adjustments in response to changes in market 
conditions.    Conclusion 
 
7. Based upon the above discussions, we think it  is inappropriate and premature for the anti-
circumvention provision to be incorporated in the current Chair's Text.  Therefore, we call upon the 
Chair to take serious account of concerns expr essed by many Members on this issue during the 
meeting on 12-14 December 2007, and strongly recomme nd that the anti-circumvention provision be 
removed from the Chair's Text to reflect the spirit of DDA.   
   
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