. /.  WORLD TRADE  
ORGANIZATION  TN/RL/GEN/107 
6 March 2006 
 (06-0957) 
Negotiating Group on Rules Original:   English 
  
 
EXCHANGE RATES (ADA ARTICLE 2.4.1) 
 
Paper from the United States
 
  
 The following communication, dated 2 March 2006, is being circulated at the request of the 
Delegation of the United States   The submitting delegation has requested that th is paper, which was submitted to the Rules 
Negotiation Group as an informal document (JOB(06)/47), also be circulated as a formal document. 
 
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  The United States has previously observed that the exchange rate used under Article 2.4.1 of 
the ADA is extremely important because dumping comparisons almost always require converting the 
currency of the normal value sales into the currency of the sales of the product under consideration.  
However, Article 2.4.1 provides Members w ith very little guidance in this regard.
1  Other Members 
have made similar observations.2   
  The United States has also observed that there are numerous sources of recognized authority 
from which information about exchange rates may be gathered, and numerous reasonable ways to 
implement Article 2.4.1.  While some Members have expressed an interest in harmonizing all 
practices in this regard, in our view, such an effo rt is unlikely to produce consensus.  However, the 
goal of guarding against arbitrary application of Ar ticle 2.4.1 can be met equally well by requiring 
that Members make clear how they will implement th at provision.  With these considerations in mind, 
the United States proposes th e following amendment.  
 
Proposed Text:  
2.4.1 When the comparison under paragraph 4 requires a conversion of currencies, such 
conversion should be made using the rate of exchange on the date of sale [FN 8] taken from a 
source of recognized authority [FN 8 bis], provided that when a sale of foreign currency on 
forward markets is directly linked to the expor t sale involved, the rate of exchange in the 
forward sale shall be used.  Fluctuations in exchange rates shall be ignored and in an 
investigation the authorities shall allow exporters at least 60 days to have adjusted their export 
prices to reflect sustained movements in excha nge rates during the period of investigation.  
The source of recognized authority normally  used, and the specific method normally 
followed, by authorities in applying this para graph shall be provided for in the national 
legislation or implementing regul ations of the Member concerned, and their application to 
each particular case shall be transparent and ade quately explained.  If, in a particular case, a 
                                                      
1 See, Further Issues Identified under the Anti-Dumping and Subsidies Agreements for Discussion by 
the Negotiating Group on Rules  (Issue 2:  “Exchange Rates”) , TN/RL/W/130 (20 June 2003). 
2 See Paper from Egypt, Currency Conversions , TN/RL/W/183 (1 July 2005). TN/RL/GEN/107 
Page 2  
 
  Member does not use the source of recognized authority or specific method provided for in its 
national legislation or implementing regulations , the Member shall provide in its relevant 
public notices and explanations of determinations  under Article 12 a reasoned explanation for 
not using such source or method.  
 
FN 8:  Normally, the date of sale would be  the date of contract, purchase order, order 
confirmation, or invoice, whichever establishes the material terms of sale.  FN 8 bis:  Sources of recognized authority may include central banks, widely distributed 
financial journals, or other sources not cr eated for the purpose of conducting antidumping 
proceedings.  
 
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