WORLD TRADE  
ORGANIZATION   
G/ADP/Q1/ECU/12 
G/SCM/Q1/ECU/12 
G/SG/Q1/ECU/5 
29 September 2011 
 (11-4726) 
Committee on Anti-Dumping Practices Committee on Subsidies on Countervailing Measures Committee on Safeguards Original:   English 
 
  
NOTIFICATION OF LAWS AND REGULATIONS UNDER  
ARTICLE 18.5, 32.6 AND 12.6 OF THE AGREEMENTS 
 
Questions posed by the UNITED STATES 
Regarding the Notification of ECUADOR1 
 
 
 The following questions, dated 27 September 2011, are being circulated at the request of the 
Delegation of the United States.   
 
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 The United States thanks Ecuador for its notifi cation and poses the following questions with 
regard to Ecuador's notification of "The Orga nic Code of Production, Trade and Investment", 
published in Official Journal No. 35 1 of 29 December 2010 (Annex I);  and "The Regulations to 
Implement Book IV of the Organic Code of Produ ction, Trade and Investment, Regarding Trade 
Policy, its Supervisory Bodies and Instruments", published in Official Journal No. 435 of 27 April 
2011 (Annex II) [hereinafter The Organic Code  and The Regulations to the Organic Code , 
respectively].  
Question 1 
 Are the WTO Agreements on Antidumping (hereinafter AD Agreement), Subsidies and 
Countervailing Measures (hereinafter SCM Agreemen t) and Safeguards (hereinafter Agreement on 
Safeguards) self implementing unde r Ecuadorian law? Assuming in the event that the AD Agreement, 
the SCM Agreement, and the Agreement on Safegua rds are self-implementing, please clarify what 
legal authority takes precedence in th e event of a conflict between the Organic Code , the Regulations 
to the Organic Code  and these World Trade Organization (WTO) Agreements.   
Question 2 
 
 Article 90. Refunds of the Organic Code  discusses the refund of provisional duties.  Please 
provide the process and procedures under which re funds of duties may be requested, including any 
possible avenues for appeal if requests are denied.   
                                                      
1 G/ADP/N/1/ECU/3-G/SCM/N/ 1/ECU/3-G/SG/N/1/ECU/5. G/ADP/Q1/ECU/12 
G/SCM/Q1/ECU/12 G/SG/Q1/ECU/5 
Page 2 
  
  Question 3 
 
Article 88.  Trade Defence of the Organic Code  discusses the appropriate trade measures that 
could be adopted.  Please explain in further detail the investigatory process, criteria to be examined, 
and type of potential restrictions to be considered  in an investigation conducted to determine whether 
there should be an imposition of restrictions on th e imports or exports of products on "social or 
economic grounds"?    Question 4 
 
 Article 89.  Duties and Article 91. Review of the Organic Code discuss the application and 
review of safeguard duties.  Article 7.4 of the Agreement on Safeguards requires that safeguard duties 
be progressively liberalized during the time period in which the measure was imposed.  Please 
confirm that any reviews that take place under Artic le 91 will not result in a more restrictive measure 
than the measure originally imposed and that Ecua dor will progressively liberalize the measure during 
the time of its imposition.  
Question 5  
 
 Article 67.  Determination of a threat of injury of the Regulations to the Organic Code  states 
that "[i]n making a determination regarding a threat of material injury, the authorities should consider 
the parameters established by COMEX for the purpos e."  Could Ecuador please explain the reference 
to "the parameters established by COMEX?"  In  what respects do these parameters differ from the 
provisions of Article 3.7 of the AD Agreement?  In  what respects do they differ from the factors for 
threat analysis in countervailing duty investigations  specified in paragraphs (b) through (e) of Article 
106 of the Regulations to the Organic Code ? 
Question 6 
 
 Article 70. Consultations of the Regulations to the Organic Code  states "...the Authority 
shall hold consultations...i n order to find a mutually agreeable  solution..."  Would Ecuador please 
provide additional explanation c oncerning these consultations includi ng when in the investigatory 
process the consultations will be held, who is able to request such consultations and the nature of 
mutually agreeable solutions that may be arrived at as a result of these consultations. 
 
Question 7 
  Articles 73 and 111. Application of provisional duties of the Regulations to the Organic 
Code  refers to customs legislation pertaining to the use of a bond or security as payment for 
provisional duties.  Could Ecuador please provide the citation to the Customs legislation allowing the 
use of bond or security as payment for provisional duties?  Question 8 
 
 What is the time frame for which reviews unde r Articles 78 and 118. Review of duties of the 
Regulations to the Organic Code  must be requested (e.g., prior to the anniversary date of the 
imposition of the final measure)?  In addition, wh at would be the potential end results of such a 
review, e.g., termination of the measure and th e amendment of any antidumping, countervailing or 
safeguard duties in effect?   G/ADP/Q1/ECU/12 
 G/SCM/Q1/ECU/12 
 G/SG/Q1/ECU/5 
 Page 3 
  
  Question 9 
 
 Article 88.  Provisional measures of the Regulations to the Organic Code states that a 
provisional safeguard measure may be applied "in critical circumstances where delay would cause 
serious injury".  This suggests a different standard  from that in Article 6 of the WTO Agreement on 
Safeguards, which permits application of a provisi onal safeguard measure "In critical circumstances 
where delay would cause damage which it would be difficult to repair."  Please explain.     Question 10 
 
 Article 107.  Period of analysis of the injury or threat thereof of the Regulations to the 
Organic Code specifies that the period of investigation in injury investigations in countervailing duty 
proceedings should be the most recent 12 months for which information is available.  Why does 
Ecuador use a 12-month period of investigation fo r injury proceedings, instead of one covering 
multiple years?  Does Ecuador also use a 12-month peri od of investigation in in jury investigations in 
antidumping proceedings?  
Question 11 
  Article 109.  Initiation of investigation proceedings of the Regulations to the Organic Code  
states that "The proceedings for an investigation regarding countervailing duties shall be initiated ex 
officio or on application by an interested party."  Article 11.1 of the SCM Agreement provides that an 
investigation of any alleged subsid y shall be initiated upon a written app lication by or on behalf of the 
"domestic industry". Furthermore, "domestic i ndustry" is defined under Article 16 of the SCM 
Agreement as domestic producers as a whole of the li ke products or to those whose collective output 
of the products constitutes a major proportion of the total domestic production. Please explain what is 
considered to be an "interested party" in Ecuador's Regulations to the Organic Code . 
 
Question 12 
  Article 11 of the SCM Agreement provides re quirements for accepting applications for and 
initiating investigations of alleged subsidies. Please clarify whether Ecuador's Regulations to the 
Organic Code requires similar standards for an application, as well as for initiating an investigation of 
an alleged subsidy.  Question 13 
 
 Article 12.6 of the SCM Agreement permits investigating authorities to carry out investigations in the territory of other Members as required. Please explain whether Ecuador's Regulations to the Organic Code  provides for this procedure as part of the investigation of an alleged 
subsidy. If so, please explain the requirements for this procedure. 
 
Question 14 
 
 Article 13 of the SCM Agreement provides fo r consultations between Members as soon as 
possible after the application has been accepted a nd throughout the period of investigation. Please 
clarify whether these procedures, including when the consultations will be held  and who is able to 
request such consultations will be provided to Members under Ecuador's Regulations to the Organic 
Code . 
  G/ADP/Q1/ECU/12 
G/SCM/Q1/ECU/12 G/SG/Q1/ECU/5 
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  Question 15 
 
 Article 17.4 of the SCM Agreement only permits  provisional measures to last a maximum of 
four months. Article 111. Provisional Measures of the Regulations to the Organic Code appears not to 
contain this requirement. Please clarify how you intend to modify your law to provide for this 
provision.   
Question 16 
 
 Article 22.3 of the SCM Agreement stipulat es that public notice shall be given of any 
preliminary or final determination, whether affi rmative or negative, of any decision to accept an 
undertaking, of the termination of an undertaking, and of the termination of  a definitive countervailing 
duty. Ecuador's Regulations to the Organic Code however only require that an initiation of an 
investigation be given public notice. Please explain whether public notice will be given of the other 
segments of an investigation included within the SCM Agreement.  
Question 17 
 
 Article 23 of the SCM Agreement requires that  national legislation must contain provisions 
for some form of judicial review of final determinations.  Ecuador's Section III to the Regulations to 
the Organic Code  does not appear to have any provision fo r judicial review.  Please clarify how you 
intend to modify your law to provide for judicial review.  
Question 18 
 
 In the event Ecuador initiates simulta neous antidumping and countervailing duty 
investigations concerning the same product from th e same country, will its investigating authority 
conduct a single injury investigation or will it conduct separate injury investigations for the 
antidumping and countervailing duty proceedings?  If it should conduct a single investigation, how 
will the authority reconcile any discrepancies in  the provisions of Section I and III of the Regulations 
to the Organic Code  concerning determinations of injury? 
 
Question 19 
 
 Article 3.1 of the WTO Agreement on Safeguards requires that a member, as part of an 
investigation, provide for "public hearings or ot her appropriate means in which importers , exporters, 
and other interested parties could present eviden ce and their views, including the opportunity to 
respond to the presentations of other parties and to submit their views, inter alia , as to whether or not 
the application of a safeguard measure would be in the public interest."  Please explain where in the 
legislation these requirements are reflected, and how Ecuador intends to meet these requirements. 
 
Question 20 
 
 Article 3.1 of the WTO Agreement on Safegua rds requires a member to publish a report 
setting forth its findings and reasoned conclusions on all pertinent issu es of fact and law, and Article 
4.2(c) requires a member to publish promptly, in acco rdance with Article 3, a detailed analysis of the 
case under investigation and a demonstration of the re levance of the factors examined.  Please explain 
where in the legislation these requirements are re flected, and how Ecuador intends to meet these 
requirements.  
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