./.WORLD TRADE
ORGANIZATIONWT/GC/W/240
6 July 1999
(99-2815)
General Council Original:  English
PREPARATIONS FOR THE 1999 MINISTERIAL CONFERENCE
Proposal on Anti-Dumping
Communication from Japan
The following communication, dated 6 July 1999, has been received from the Permanent
Mission of Japan.
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Proposal
1. A number of WTO Members, including develo ping-country Members, share the concerns
about the adequacy and the fair implementation of rules governing trade remedies such as anti-
dumping measures.  Based on these circumstances, a review of the current provisions of the
Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994
(Anti-Dumping Agreement) and appropriate ame ndments of the current Anti-Dumping Agreement
should be undertaken with a view to ensuring appropriate implementation of the Anti-Dumping
Agreement by clarifying relevant Articles, and to strengthening its disciplines.
Background
2. Successive rounds of negotiations have reduced trade barriers and the benefits of free trade
have spread widely throughout the world.  This is one of the most important achievements of the
GATT and WTO regimes.  On the other hand, anti-dumping measures have been invoked with
increased frequency and by increasing number of Members.  Japan is concerned that easy access toand increased dependence on such trade remedies will nullify the benefits of tariff reductions.  While
an anti-dumping measure is one of legitimate trade remedies permitted under current WTO regimes,
due attention should always be paid to avoid its abuse for protectionist purposes.
3. Anti-dumping measures are the most frequently used trade remedies.  Currently over
900 measures by WTO Members are in force.  The number of WTO Members initiating anti-dumpinginvestigations tripled in the last ten years.  An anti-dumping measure is an exception to the rule of
non-discrimination (MFN treatment) as well as to the rule prohibiting customs duties that exceed the
bound rates.  Therefore an anti-dumping measure should be taken with great care.  However, in
reality, resort to anti-dumping measures has become a tool for protectionist purposes in many cases,
since they can be invoked relatively easily compared to other trade measures.  In addition, seriousproblems exist even if final duties are not imposed, such as that anti-dumping investigations entail
huge burdens on respondents, and that restrictive effects on the trade of the countries in question are
significant.WT/GC/W/240
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4. The reasons of the above-mentioned problems are, inter alia ;  (i) lack of appropriate
implementation of the Anti-Dumping Agreement due to its ambiguous provisions;  and
(ii) insufficient disciplines in the relevant provisions of the Anti-Dumping Agreement to avoid
inappropriate anti-dumping measures.
5. As to the former point, as a prerequisite of appropriate implementation, it is one of essentials
to eliminate ambiguities in relevant Articles in th e Anti-Dumping Agreement thus clarifying standards
for judgement entrusted to the investigating author ities.  This can prevent arbitrary implementation
and have the advantage of facilitating implementation when measures are truly necessary.
Clarification of procedures and standards for implementation can contribute to preventing unjustified
petitions or investigations as well.  As to the latter point, relevant Articles should be improved in
order to ensure that anti-dumping measures address only dumping to be condemned and are limited to
the extent necessary to eliminate the injurious effects, etc.  Japan is prepared to raise specific points tobe reviewed in the current Anti-Dumping Agreement at the General Council and other appropriate
fora.
6. Japan shares the view of many developing-country Members which have expressed concerns
about the abuse of anti-dumping measures and insisted on removing ambiguity and excessive
discretion inherent in the Anti-Dumping Agreement.  These characteristics have dangerously made it
an instrument of protection rather than an instrument to counteract unfair dumping.  Japan is
concerned that this situation poses a threat to the multilateral trading system.  Therefore, Japan
supports clarifying and strengthening disciplines in the Anti-Dumping Agreement.
7. As to the anti-dumping measures targeted to products exported from developing countries,
due consideration should be made taking into account Article 15 of the Anti-Dumping Agreement.  Inaddition, as necessary, technical assistance for transferring know-how to developing-country
Members on implementation of the Anti-Dumping Agreement is also important.
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