WORLD TRADE  
ORGANIZATION  WT/DS327/1 
G/L/731 
G/ADP/D61/1 
24 February 2005 
 
 (05-0773) 
 Original:   English 
 
 
 
EGYPT – ANTI-DUMPING DUTIES ON MATCHES FROM PAKISTAN 
 
Request for Consultations by Pakistan  
 
 
 The following communication, dated 21 February 2005, from the delegation of Pakistan to the 
delegation of Egypt and to the Chairman of the Dis pute Settlement Body, is ci rculated in accordance 
with Article 4.4 of the DSU.  
_______________ 
 
  My authorities have instructed me to request consultations with the Arab Republic of Egypt ("Egypt") pursuant to Article 4 of the Unde rstanding on Rules and Procedures Governing the 
Settlement of Disputes ("DSU"), Article XXIII:1 of  the General Agreement on Tariffs and Trade 1994 
("GATT") and Article 17 of the Agreement on Im plementation of Article VI of the General 
Agreement on Tariffs and Trade 1994 (the "AD Ag reement") with respect to the imposition of 
definitive anti-dumping duties on imports of ma tches in boxes from Pakistan under Decree 
No. 667/2003 dated 18 November 2003, as well as any amendments or extensions to this Decree. 
 
2. These measures appear to be inconsistent with Egypt's obligations under the GATT and the 
AD Agreement.  Pakistan is particularly concerne d about the following aspects of the imposition of 
these anti-dumping duties and the investigation leading thereto:  (1) Egypt's failure to furnish the applica tion to the known Pakistani exporters and the 
Government of Pakistan (Articles 6.1.3 and 6.4 of the AD Agreement).    
 (2) Egypt's granting of confidential treatment to information contained in the domestic industry's 
application without requiring the applicants to provide showing of good cause for such a 
treatment and without requiring the applicants  to furnish non-confidential summaries "in 
sufficient detail to permit a reasonable unders tanding of the substance of the information 
submitted in confidence", or  to give any i ndication that such information could not be 
summarized and the reasons why summarization was not possible (Article 6.5, Article 6.5.1 and Article 6.5.2 of the AD Agreement). 
 (3) Egypt's failure to disclose the essential facts under consideration that formed the basis of the 
decision to impose definitive m easures in Egypt's Essential Facts and Conclusions Report and 
to provide the Pakistani exporters a full opportuni ty to defend their interests while taking due 
account of the difficulties faced by them (Article 6.2, Article 6.4, Article 6.9 and Article 6.13 
of the AD Agreement). 
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 (4) In its determination of dumping: 
  (i) Egypt's resort to constructed value to  determine the normal value for the Pakistani 
exporter Mohsin Match Factory (Pvt.) Ltd.  ("Mohsin") without properly establishing 
that no sales of the like product were made in the ordinary course of trade or that domestic sales do not permit a proper compar ison (Article VI:1 of the GATT, and 
Article 2.1, Article 2.2,  and Article 6. 8 read with Annex II of the AD Agreement). 
 
 (ii) Egypt's failure to use actual data from the Pakistani exporter Khyber Match Factory 
(Pvt) Ltd. ("Khyber") in calculating the ad ministrative, selling, and general costs 
("SG&A costs") and profits for this company in the context of constructing its normal 
value (Article VI:1 of the GATT, and Article 2.2, Article 2.2.1.1,  Article 2.2.2, and 
Article 6.8 read with Annex II  of the AD Agreement). 
 
 (iii) Egypt's failure to use a reasonable me thod to calculate SG&A costs and profits for 
Khyber and Mohsin (Article 2.2.2 and Ar ticle 6.8 read with Annex II of the 
AD Agreement). 
  (iv) Egypt's failure to properly determin e the constructed normal value for Khyber and 
Mohsin (Article VI:1 and Article VI:2 of the GATT, and Article 2.1, Article 2.2 and 
Article 6.8 read with Annex II of the AD Agreement). 
  (v) Egypt's failure to properly determin e the export price for Khyber and Mohsin 
(Article VI:1 and VI:2 of the GATT, a nd Article 2.1 and Article 2.2 of the AD 
Agreement). 
  (vi) Egypt's failure to make a fair comp arison between the normal value and the export 
price for Khyber and Mohsin, including, Egyp t's failure to make a due allowance for 
the duty drawback claimed by both companies (Article VI:1 and Article 2.4 of the AD Agreement). 
 
(5) In its determination of the existence of  material injury to the domestic industry: 
  (i) Egypt's failure to base its examination of the volume of the dumped imports, the 
effect of the dumped imports on prices in the domestic market and the consequent 
impact of these imports on domestic pr oducers on positive evidence because of its 
reliance on inaccurate information regarding the volume of dumped imports (Article 
3.1, Article 3.2 and Article 6.6 of the AD Agreement). 
  (ii) In its analysis of price effects, Egypt' s failure to examine whether the dumped imports 
resulted in significant undercutting, suppression or de pression of domestic prices 
(Article 3.1 and Article 3.2 of the AD Agreement).   
  (iii) Egypt's failure to base its examination of the impact of the dumped imports on the 
domestic industry on positive evidence regard ing the relevant economic factors and 
indices having a bearing on the state of the industry; in particular, Egypt's evaluation 
of the market share of the domestic industry  based on inflated figures for total market 
volume resulting from inaccurate estimates of the volume of imports from Pakistan (Article 3.1, Article 3.4 and Ar ticle 6.6 of the AD Agreement). 
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  (iv) Egypt's reliance on information collect ed from only one domestic producer to analyse 
certain economic factors and indices having a bearing on the state of the domestic industry, despite the participation of ot her domestic producers in the investigation 
(Article 3.1 and 3.4 of the AD Agreement). 
 (6) In its determination that there is a causa l link between the alleged dumping and the alleged 
material injury to the domestic industry, Egyp t's failure to examine any known factors other 
than dumped imports which at the same time we re injuring the domestic industry; including 
Egypt's failure to examine inter alia : (i) the impact of imports from third countries on the 
domestic industry, (ii) the effects of the re moval of a safeguard measure on the products 
subject to investigation; and (iii) the effects of financial and managerial difficulties faced by 
the largest domestic producer (Article  3.1 and 3.5 of the AD Agreement). 
 
(7) Egypt's failure to provide in the final report containing the determination of dumping, injury 
and causal link all relevant information on the matters of fact and law and reasons, which led 
to the imposition of the definitive anti-dumping duty (Article 12.2 and Article 12.2.2 of the AD Agreement). 
3. It appears to Pakistan that the foregoing ca nnot be reconciled with Article VI of the GATT, 
Articles 1 and 18 of the AD Agreement, and the speci fic provisions of the AD Agreement cited above.  
Pakistan considers that the benefits accruing to it directly or indirectly under the WTO Agreement 
may be nullified or impaired within the meaning of Article XXIII:1(a) of the GATT. 
4. Pakistan looks forward to receiving your reply to  this request at your earliest convenience.  I 
propose that the date and venue of these consu ltations be agreed between our two Missions. 
 
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