CELEX: 51979PC0584
Language: en
Date: 1979-10-25
Title: GATT - MULTILATERAL TRADE NEGOTIATIONS (Communication from the Commission to the Council) SUPPLEMENT TO THE FINAL REPORT ON THE GATT MULTILATERAL TRADE NEGOTIATIONS IN GENEVA (TOKYO ROUND) AND PROPOSAL FOR A COUNCIL DECISION (doc. COM(79) 514 final) ANTI-DUMPING(Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (79) 584
Vol. 1979/0201
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                   COM(79 ) 584 final
                                                   Brussels . 25th October 1979
 < "
                      GATT - MULTILATERAL TRADE NEGOTIATIONS
               ( Communication from the Commission to the Council )
             SUPPLEMENT TO THE FINAL REPORT ON THE GATT MULTILATERAL
                    TRADE NEGOTIATIONS IN GENEVA (TOKYO ROUND )
                       AND PROPOSAL FOR A COUNCIL DECISION
                              ( doc . COM(79 ) 514 final )
                                  : V ANTI-DUMPING
                                       ANTI-DUMPING:
                             /<>/          .     -
                    (Agreement on Implementation of Article VI
                           fV        "          V
                  of the General Agreement on Tariffs and Trade )
                            V
  COM ( 79 ) 584 final
 ---pagebreak---            6ATT MULTILATERAL TRADE NEGOTIATIONS
- Communication from the Commission to the Council
- Joint communication from MM Haferkamp , Davignon , Gundelach and Cheysson
Supplement to the " Final report on the GATT Multilateral Trade Negotiations
in Geneva ( Tokyo Round ) and proposal for a Council Decision "
( doc . C0M(79)514 final ).
 ---pagebreak---                                   " 2 -
I.    Introduction
1.    In its final report ( doc . C0M(79)514 final , Part II , page 26 ) the
      Commission reported on the existence of two versions of the Anti-Dumping
     Agreement and proposed that the Council conclude the widely-approved
     version of the Agreement , contained in 6ATT doc . MTN / NTM / W / 232 / Rev. 1 ,
     as amended by W / 258 .
II .   Points discussed
2.   In September and October 1979 , a series of meetings were held in Geneva
     between representatives of a number of developed and developing
     countries .   The main problem raised by the developing countries was
     that their home market prices may not form an appropriate basis for the
     calculation of a dumping margin because of the special economic
     situation of these countries .      After long discussions a compromise was
     reached which recognises this problem .          Where special economic conditions
     exist in developing countries , the dumping calculations may be based
     on export prices or on the costs of production .           This compromise is in
     full conformity with the provisions of Article VI GATT and with the
     Agreement .   It was agreed that the compromise found would be worded in
     the form of a 'statement' by certain named delegations and would be
     annexed to the Agreement as 'Addendum I * ( see attached document ).          It
     was further agreed by the delegations named in the statement that the
     proposal for an alternative version of the Anti-Dumping Agreement , as
     contained in GATT doc . MTN / NTM / W / 241 / Rev. 1 , would no longer be maintained .
3.   Secondary points raised by representatives of developing countries
     concerned the implementation of the Agreement in view of the adaptation
     of existing legislation and the lack of anti-dumping experience in
     developing countries .   Here too a solution was found in the form of a
     'statement' to be attached to the Agreement as 'Addendum % % ( see
     attached document ).                                           *
 ---pagebreak---                                   - 3 -
III . Conclusion
4 . The Commission considers the outcome of the discussions satisfactory
     and recommends the Council to approve the Anti-Dumping Agreement and its
     Addenda on the understanding that the Addenda will not be formally
     accepted on behalf of the Community until firm assurances are received
     from a sufficient number of developing countries that they intend to
     adhere to the Agreement .
5 . To this end the Commission proposes the following amendments to its
     proposal for a Council decision , as contained in Annex 1 to Part II of
      its Final report   ( doc . C0M(79)514 final ):
      In the list of agreements in the Preamble and in Article     the words
      " and the Addenda annexed thereto" should be inserted after the words
      "Agreement on Implementation of Article VI of the General Agreement
     on Tariffs and Trade ".
 ---pagebreak---   Multilateral Trade ?ferotiations
  Crouo " Non-Tar if f y^ssures **
                                                     .1
                                            •   %
                                   A-Tri - DUMPI^G 1
                    Afferent on Irplenentation of Article VI
                  of the General Arreenent on Tariffs and Trade
              ■ ι          .
                                      Add?ndua
      The folloving statesent is circulated at .the request of the delegations
                                    f
      With regard to the Agreement on Icplenentation of Article VI of the
General Agreement on Tariffs and Trade (MTN/!rTM/V/2^2/Rev.l ) the above-
noted delegations , cognizant of the comnitcent in Article 13 of the Agreement
                                                        * .     /     .
that special regard nust be given by developed countries co the special
situation • f developing countries vhen considering the replication of
anti-durpir.g seas-res Under this Code , agree that :       -
 ---pagebreak---                                - 2   -
                      /
     1-     In developing countries , governments play a large role
     in promoting economic grovth and development in accordance vith
     their national priorities, and their econonic regimes for the
     export sector can be different from those relating to their
     domestic sectors resulting inter alia in different cost
      %
    structures .   This Agreement is not intended to prevent deve­
    loping countries from adopting measures in this context ,
    including ceasures in the export sector , as long as they are
   used in a manner vhich is consistent vith the provisions of
   the General Agreement on Tariffs and Trade , as applicable to
' ..           .             /                  •
   these countries .  .
    2«    In the case of imports from a developing country the fact
                                              %
   that the export price nay be lover than the comparable price
  for the like product vhen destined for domestic consumption in
                                      Φ
                                                                     t
  the exporting country does not per se justify an investigation
  or the determination of dumping unless the other factors
 mentioned in Article 5:1 are also present .      Due consideration
 should be &iren co all cases where , because special econcxic condi­
 tions aff' -X prices in the home market , these prices do not provide
 ---pagebreak---       a commercially realistic basis for dumping calculations .    In
    v such cases the normal value for the purposes of ascertaining
      whether the goods are being dumped shall be determined by
      methods such as a comparison of the export price vith the
      comparable price of the like product when exported to any
      third country or with the qost of production of the exported
      goods in the country of origin plus a reasonable amount for
      administrative , selling and any other costs and for profits .
                             ^.t would be the understanding of the above-noted
delegations that the proposal for an amendment to the text of the Agreement
on the Implementation of Article VI of the General Agreement on Tariffs
   /
and Trade as set out in document WTN/ NTM/W/ 2Ul/ irev.l is po longer
maintained .
 ---pagebreak--- Multilateral Trade Negotiations
Group " Non-Tariff Measures "                             \.
                                ANTI-DUMPING
       ' .                    '              • •                   I
                   Agreement on Implementation of Article VI
                of the General Agreement on Tariffs and Trade
                                  Addendum
     The following statement is circulated at the request of the
delegations of ...
       It is recognized that developing countries may face special
 problems' initially in adapting their legislation^ to the requirements
 of the Code , including administrative' and infrastructural problems ,
 in carrying out anti-dumping investigations initiated by them .
 Accordingly , the Committee on Anti-Dumping Practices may grant ,
 upon specific request and on conditions to be negotiated on a case-
 by-case basis , time-limited exceptions in whole or in part from
 obligations which relate to investigations undertaken by a developing
 country    under this Agreement .          ^ •
      Developed countries Parties to this Agreement shall endeavour
to furnish , upon request and on terms to be agreed , technical
assistance to developing countries Parties to this Agreement , with
regard to the implementation of this Agreement , including training
                                                                 *
of personnel , and the supplying of information on methods ,
techniques and other aspects of conducting investigations on dumping
practices .