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Trade Remedies. US Cartel Law Price Discrimination Predatory Pricing GATT Law Price Discrimination from abroad Reduction: only with material injury.

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Presentation on theme: "Trade Remedies. US Cartel Law Price Discrimination Predatory Pricing GATT Law Price Discrimination from abroad Reduction: only with material injury."— Presentation transcript:

1 Trade Remedies

2

3 US Cartel Law Price Discrimination Predatory Pricing GATT Law Price Discrimination from abroad Reduction: only with material injury AD Law Price Discrimination International Aspect Material Injury Sources Art. VI and XVI GATT Antidumping Agreement (AD) of the WTO

4 Dumping Material Injury Causation AD Investigation and determination

5 Normal Value – Export Price = Dumping margin If positive: Dumping

6 Price in the domestic market (= home market method) Sale in the ordinary course of trade Of like products Destined for consumption in the exporting country Comparable Price of the like products If not in the ordinary course of trade Price in third countries (= third country method) Price constructed by adding costs (= constructed cost method)

7 Ordinary Export Price Sale in the ordinary course of trade Of like products Destined for consumption in the exporting country Comparable Price of the like products If not in the ordinary course of trade Constructed export price

8 Independant partners of a sales transaction Exceptions Affiliated companies (arms length transactions) Low volume or absence of trade Sales below cost Non-market economies

9 Normal value vs. Export Price Comparison methods Weighted average of both prices Transaction-to-transaction comparison of both prices Mixed method (2.4.2) Weighted average normal value To individual export prices

10 Article 5 (initiation and subsequent investigation) Article 6 (rights of the parties) Article 12 (requirements to decisions of the authorities) Article 13 (opening of a judicial review) Recommendation Concerning the Periods of Data Collection for Anti-Dumping Investigation (G/ADP/6 v. 29.10.98): normally between 6 and 12 months

11 Definitive AD duties (art. 9) Provisional Measures (art. 7) Accepting Price undertakings (art. 8)

12 Sources Art. VI and XVI GATT SCMA of the WTO

13 Financial Contribution of a State Or import or price support Specificity Conferring a benefit

14 Prohibited Subsidies Export Subsidies Import Substitution Subsidies Actionable Subsidies All other specific subsidies Non-actionable Subsidies Non-specific subsidies Research Regions Environment

15 Not prohibited Specific Adverse effects Material Injury Or threat of material injury Or material retardation of the establishment of an industry Nullification or impairment of benefits under GATT Serious prejudice or threat thereof To the domestic industry of another member

16 Prohibited Subsidies DSU procedure with special rules (4 SCMA) Actionable Subsidies Track 1 – DSU procedure with special rules (7 SCMA) Track 2 – National Countervailing Duties procedures Non-actionable Subsidies Consultations Authorized Remedies (9 SCMA)

17 Provisional measures after preliminary findings Voluntary undertakings Definitive CVDs after definitive findings

18 Unforeseen developments Effect of the obligations under GATT Imported products In the importing or a requesting other member state In increased quantities Absolute or relative Causing or threatening serious injury To a domestic industry Of like or directly competitive products

19 Necessity to prevent or remedy injury Suspension of the obligation in whole or in part Withdrawal or modification of concessions

20 Duty to maintain level of concessions Negotiations Agreement on compensation Unilateral suspension after 30 days Countermeasures as compensation Waiting period 3 years If safeguard results from and absolute increase in imports And is in conformity with SCMA

21 Parallelism Member states may be excluded from safeguards If they have not been considered when calculating serious injury

22 Direct or indirect safeguards Limits Necessary Most suitable Expressly justified Exclusivity (11) Surveillance


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