EUROPEAN COMMUNITIES – EXPIRY REVIEWS OF ANTI-DUMPING AND COUNTERVAILING DUTIES IMPOSED ON IMPORTS OF PET FROM INDIA
Document: Request for Consultations by India
Date: 10 December 2008
Document codes: WT/DS385/1; G/L/877; G/ADP/D77/1; G/SCM/D80/1
Complainant: India
Respondent: EU
Dispute stage: Consultation
Agreements cited: Art. 6.1, 6.2, 6.5, 6.6, 6.8, 11.1, 11.3, 11.4, 11.5, 18.4, Annex II  Anti-dumpingArt. 12.1, 12.5, 12.7, 21.3, 21.4, 32.5  Subsidies and Countervailing Measures (SCM)Art. XVI:4  Agreement Establishing the World Trade Organization

EUROPEAN COMMUNITIES – EXPIRY REVIEWS OF ANTI-DUMPING AND
COUNTERVAILING DUTIES IMPOSED ON IMPORTS OF PET FROM INDIA

Request for Consultations by India

 The following communication, dated 4 December 2008, from the delegation of India to the
delegation of the European Communities and to th e Chairman of the Dispute Settlement Body, is
circulated in accordance with Article 4.4 of the DSU.

Article 17 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and
Trade 1994 (the "AD Agreement") and Article 30 of the Agreement on Subsidies and Countervailing
Duties (the "SCM Agreement") with respect to, but not limited to, the following measures of the EC:
(a) Article 11(2) of Council Regulation (EC) No. 384/96 of 22 December 1995 on protection
against dumped imports from countries not members of the European Community
1 (the
"Basic AD Regulation") read together w ith Regulation (EEC, EURATOM) no. 1182/71
of the Council of 3 June 1971 determining the rules applicable to periods, dates and time
limits2 ("Regulation 1182/71");

(b) Article 18(1) of Council Regulation (EC) No. 2026/97 of 6 October 1997 on protection
against subsidized imports from countries not members of the European Community 3
(the "Basic CVD Regulation") read together with Regulation 1182/71;

(c) Council Regulation (EC) No. 192/2007 of 22 Fe bruary 2007 imposing a definitive anti-
dumping duty on imports of polyethylene te rephthalate ("PET") originating in India
following an expiry review4 (the "AD Measure"); and

(d) Council Regulation (EC) No. 193/2007 of 22 February 2007 imposing a definitive
countervailing duty on imports of PET origina ting in India following an expiry review 5
(the "CVD Measure").6

1 Official Journal of the European Communities, L56, pp. 1-20, published on 6 March 1996.
2 Official Journal of the European Communities, L124, pp. 1-2, published on 8 June 1971.
3 Official Journal of the European Communities, L288, pp. 1-33, published on 21 October 1997.
4 Official Journal of the European Communities, L59, pp. 1-33, published on 27 February 2007.
5 Official Journal of the European Communities, L59, pp. 34-59, published on 27 February 2007.
WT/DS385/1, G/L/877,
G/ADP/D77/1, G/SCM/D80/1

2. The Government of India considers that (a) Article 11(2) of the Basic AD Regulation read
together with Regulation 1182/71 and (b) Article 18 (1) of the Basic CVD Regulation read together
with Regulation 1182/71, are inconsistent as such wi th the EC's obligations under Article 11.3 of the
AD Agreement and Article 21.3 of the SCM Agreemen t, respectively, to the extent that these
provisions of the EC's regulations do not require the termination of definitive anti-dumping or
countervailing duties, as the case may be, on a date not later than five years from the imposition of
such duties and permit the initiation of an expiry revi ew on or after that date. These provisions of the
EC's regulations are also inconsistent as such with the EC's obligations under Article 18.4 of the AD
Agreement, Article 32.5 of the SCM Agreement a nd Article XVI: 4 of the Marrakesh Agreement
Establishing the World Trade Organization.
3. Further, the Government of India considers that the AD Measure is inconsistent with the EC's
obligations under Article VI of the GATT 1994, Articles 11.1, 11.3, 11.4, 11.5, 6.1, 6.2, 6.5, 6.6, 6.8
and Annex II of the AD Agreement and that the CVD Measure is inconsistent with the EC's
obligations under Articles 21.3, 21.4, 12.1, 12.4, 12.5 and 12.7 of the SCM Agreement. In particular:
(i) The European Commission (the "Commission") initiated the expiry reviews in the case
of the AD Measure and the CVD Measure inconsistently with the provisions of
Article 11.3 of the AD Agreement and Article 21.3 of the SCM Agreement, respectively,
because the Commission could not have done so (a) on the basis of requests that were not
duly substantiated and (b) on or after the da te on which the definitive duties should have
been terminated, that is to say, on or after th e date not later than five years from the date
of the imposition of the definitive duties.
(ii) The Commission determined that the expiry of the definitive duties would be likely to
lead to continuation or recurrence of (a) dumping and injury and (b) subsidization and
injury, inconsistently with the provisions of Article 11.3 of the AD Agreement and
Article 21.3 of the SCM Agreement, respectively, insofar as:
(a) The Commission misapplied the relevant legal standards;
(b) The conclusions on which the Commission based the above determinations are
not reasoned and adequate;
(c) The above determinations of the Commi ssion are not based on positive evidence
and an objective examination of the factual basis, which is provided for also in
Article 3.1 of the AD Agreement and Article 15.2 of the SCM Agreement; and
(d) In the case of the AD Measure, the factual basis for cumulation of imports of
PET was not sufficient.

6 The Government of India clarifies that the follo wing are also included within the scope of the
measures at issue: (i) Price undertakings by exporter-producers from India given or extended pursuant to the AD
Measure; (ii) Notice of initiation of an expiry review of the anti-dumping measures applicable to imports of
certain polyethylene terephthalate originating in India, Indonesia, the Republic of Korea, Malaysia, Taiwan and
Thailand and a partial interim review of the anti- dumping measures applicable to imports of certain
polyethylene terephthalate originating in the Republic of Korea and Taiwan , dated 1 December 2005,
 published
in the Official Journal of the European Communities on 1 December 2005 (C304, pp. 9-13), and (iii) Notice of
Initiation of an expiry review of countervailing measures applicable to imports of certain polyethylene
terephthalate originating in, inter alia, India , dated 1 December 2005,
 published in the Official Journal of the
European Communities on 1 December 2005 (C304, pp. 4-8).
WT/DS385/1, G/L/877,
 G/ADP/D77/1, G/SCM/D80/1

(iii) The Commission did not comply fully with the requirements of the provisions of Article
6.5 (including Articles 6.5.1 and 6.5.2) of the AD Agreement and of Article 12.4
(including Articles 12.4.1 and 12.4.2) of the SCM Agreement relating to confidential
information.
(iv) The Commission acted inconsistently with the provisions of Articles 11.4, 6.1 and 6.2 of
the AD Agreement in the case of the AD Measure and Articles 21.4 and 12.1 of the SCM
Agreement in the case of the CVD Measure by fa iling to give interested parties sufficient
opportunity to submit information and defend their interests in the expiry reviews.
(v) The Commission acted inconsistently with the provisions of Articles 11.4, 6.6, 6.8 and
paragraph 3 of Annex II of the AD Agreement in the case of the AD Measure and
Articles 21.4, 12.5 and 12.7 of the SCM Agre ement in the case of the CVD Measure by
failing to take into account vital information and evidence submitted by interested parties
in reaching its conclusions.
4. The Government of India reserves its right to ra ise additional factual claims and legal matters
during the course of the consultations.
5. We look forward to receiving your reply to the present request and to fixing a mutually
convenient date and venue for consultations.