|
|
espa�ol - fran�ais - portugu�s |
Search
|
EUROPEAN COMMUNITIES - ANTI-DUMPING DUTIES ON Report of the Panel
Note by the Secretariat: This Panel Report shall be adopted by the Dispute Settlement Body (DSB) within 60 days after the date of its circulation unless a party to the dispute decides to appeal or the DSB decides by consensus not to adopt the report. If the Panel Report is appealed to the Appellate Body, it shall not be considered for adoption by the DSB until after the completion of the appeal. Information on the current status of the Panel Report is available from the WTO Secretariat.
ANNEX A
First written submissions by the Parties and written submissions relating to
Parties' requests for preliminary rulings
ANNEX B
Third Party Submissions
ANNEX C
Second Submissions by the Parties
ANNEX D
Oral Statements, First and Second Panel meetings
ANNEX E
Questions and Answers
I. INTRODUCTION 1.1 On 21 December 2000, Brazil requested consultations with the European Communities pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes (the "DSU"), Article XXIII of the General Agreement on Tariffs and Trade 1994 (the "GATT 1994") and Article 17 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 (the "Anti-Dumping Agreement ") concerning the EC anti-dumping measures imposed in respect of imports of malleable cast iron tube or pipe fittings from Brazil.1 The European Communities and Brazil held consultations on 7 February 2001, but failed to settle the dispute. 1.2 On 7 June 2001, Brazil requested the establishment of a panel pursuant to Article XXIII of the GATT 1994, Article 17 of the Anti-Dumping Agreement and Article 6 of the DSU.2 1.3 At its meeting on 24 July 2001, the Dispute Settlement Body (the "DSB") established a Panel in accordance with Article 6 of the DSU to examine the matter referred to the DSB by Brazil in document WT/DS219/2. At that meeting, the parties to the dispute also agreed that the Panel should have standard terms of reference. The terms of reference are, therefore, the following:
1.4 On 5 September 2001, the parties agreed to the following composition of the Panel3 :
1.5 Chile, Japan, Mexico and the United States reserved their rights to participate in the Panel proceedings as third parties. 1.6 The Panel met with the parties on 4-5 December 2001 and 11-12 June 2002. It met with the third parties on 5 December 2001. 1.7 The Panel submitted its interim report to the parties on 7 October 2002. The Panel submitted its final report to the parties on 10 December 2002. II. FACTUAL ASPECTS 2.1 This dispute concerns the imposition by the European Communities of anti-dumping measures on imports of malleable cast iron tube or pipe fittings from Brazil. 2.2 Following the filing in April 1999 of an application for an anti-dumping investigation by the Defence Committee of Malleable Cast Iron Pipe Fittings Industry of the European Union4, the European Communities published, on 29 May 1999, a Notice of Initiation in its Official Journal5, initiating an investigation on malleable cast iron tube or pipe fittings originating in: Brazil, China, Croatia, the Czech Republic, the Federal Republic of Yugoslavia, Japan, South Korea and Thailand.6 Industria de Fundicao Tupy Ltda. ("Tupy") was the only Brazilian exporting producer investigated. Imports from certain third countries, including Bulgaria, Poland and Turkey, were not included in the investigation.7 2.3 The investigation of dumping and injury covered the period from 1 April 1998 to 31 March 1999 ("Investigation Period"). The EC examination of "trends" in the context of the injury analysis covered the period from 1 January 1995 to 31 March 1999 ("Injury Investigation Period").8 2.4 A 42 per cent devaluation of the Brazilian Real occurred in January 1999. 2.5 Numerous communications and exchanges, including the questionnaire and hearings, occurred between the European Communities and Tupy and/or Tupy's legal counsel in the course of the investigation.9 A verification visit occurred at the premises of Tupy in September 1999.10 Communications also occurred between government officials of the European Communities and Brazil relating to aspects of the investigation.11 2.6 On 28 February 2000, the European Communities imposed provisional anti-dumping duties on imports of malleable cast iron tube or pipe fittings from, inter alia , Brazil as reflected in the Provisional Regulation.12 2.7 On 11 August 2000, the European Communities adopted the Definitive Regulation imposing, inter alia , definitive anti-dumping duties of 34.8% on imports of malleable cast iron tube or pipe fittings from Brazil.13 III. PARTIES' REQUESTS FOR FINDINGS AND RECOMMENDATIONS
3.1 Brazil requests that the Panel:
3.2 The European Communities:
4.1 The arguments of the parties as submitted or as summarised in their executive summaries as submitted to the Panel, are attached as Annexes (see List of Annexes, page vi). 4.2 The parties' answers to the Panel's questions and their comments on each other's answers are also attached as Annexes (see List of Annexes, page vii). V. ARGUMENTS OF THE THIRD PARTIES 5.1 The arguments of those third parties which have made submissions to the Panel, i.e. Chile, Japan, and the United States, are attached to this Report as Annexes. The US responses as third party to the Panel's questions are also attached as Annexes (see List of Annexes, pages ii and iii). VI. INTERIM REVIEW 6.1 On 7 October 2002, we submitted our interim report to the parties. On 15 October 2002, Brazil submitted a written request for review of precise aspects of the interim report. On 22 October 2002, the European Communities submitted written comments on Brazil's request for interim review. 6.2 We have modified aspects of our report in light of the parties' comments where we deemed it appropriate. Those modifications limited to arguments made by Brazil are dealt with in section A.1 below. Those modifications involving our findings are dealt with in section A.2 below. 6.3 We have also made certain necessary technical corrections. 6.4 For greater clarity with respect to our terms of reference, we have appended Brazil's Panel request to our report.
6.5 Brazil requested that we modify our summary of its arguments in several places to more fully and/or accurately reflect Brazil's arguments. 6.6 The European Communities' view is that the Panel has properly represented those arguments, and that few changes would be justified. 6.7 In light of the parties' comments, the Panel has made modifications to our summary of Brazil's arguments in paragraphs 7.80, 7.121, 7.234, 7.298, 7.325, 7.339 and 7.343. We have also made the technical revision suggested by Brazil in footnote 167. 6.8 With respect to Brazil's suggested modification of its argument in paragraph 7.309 to reflect Brazil's argument that Brazil denies that an alleged examination, which is only implicitly (if at all) deductible from the other injury factors examined, can be considered a well-reasoned and meaningful analysis in view of the Appellate Body's findings in US - Hot-Rolled Steel,24 our analysis treats separately the issue of whether the European Communities addressed each Article 3.4 factor and the adequacy of the EC examination of Article 3.4 factors. We therefore decline to make the suggested modification in this paragraph. We assess the adequacy of the EC's implicit evaluation of "growth" in conjunction with our assessment of the EC's evaluation of other Article 3.4 factors.
6.9 Brazil submits that the Panel's ruling that Article 6.9 is outside our terms of reference makes no reference and takes no account of Brazil's argument that Article 6.9 was raised with the European Communities during consultations and that Brazil's hand-written notes of the consultations meeting, which were offered to the Panel but to which Brazil alleges we did not react, clearly demonstrate that this was indeed the case.25 6.10 The Panel has modified and supplemented paragraph 7.15 in light of Brazil's comments.
6.11 In respect of our ruling that Exhibits BRL 47-52 are inadmissible in these Panel proceedings (paras. 7.28 ff), Brazil asserts that we "completely ignore" Brazil's reasoning for putting forward these Exhibits. Brazil argues that these did not relate at all to any substantive claim (as wrongly assumed by the Panel) and were thus not concerned by Article 17.5(ii) at all. Brazil recalls that it had submitted these Exhibits in order to: refute the EC's contention in its first written submission on Brazil's "wild allegations" (Brazil submits that, in this respect, these Exhibits demonstrated that Brazil's claims were factually correct); and demonstrate to the Panel that the EC's refusal to investigate the same claims which had been made by Tupy during the EC investigation clearly indicated the failures of the EC's investigating authority to conduct a comprehensive investigation and examination of facts presented to it by the Brazilian exporter and by other interested parties. 6.12 With respect to the reason for which Brazil submitted the Exhibits in question, the Panel refers to Brazil's argumentation. For example, in its additional oral statement regarding Exhibits BRL-47 through 52 at the first Panel meeting26, Brazil indicates that it was uncertain as to whether this information existed "in the same way" during the EC investigation, that the European Communities was asked to examine certain information in the course of the investigation, but that Brazil could find no indication that the EC had conducted an adequate examination. We find support in Brazil's argumentation in these proceedings for our understanding that Brazil submitted these Exhibits with a view to having us examine the EC injury and causation determinations on the basis of facts other than those made available in accordance with appropriate domestic procedures of the European Communities. In light of these considerations, we do not believe that we have ignored Brazil's reasons for putting forth these Exhibits. We have, however, clarified our view in paragraph 7.35.
6.13 In respect of paragraph 7.104, Brazil states that it has never suggested that the European Communities should have focused exclusively on data from the end of the investigation period. 6.14 The Panel recalls Brazil's argument that the European Communities imposed measures in the present case "regardless of its findings for the last months of the investigation where the actual situation did not require counter-measures."27 We further recall that, in response to Panel questioning concerning the time period to which Brazil's claim relates, Brazil clarified that it viewed the "dividing line" as the date of devaluation. Brazil continued: "As of that date and in view of the lasting effect of the devaluation, any proper imposition of anti-dumping measures, or a decision to maintain such measures had to be assessed, as the case may be, against the need to offset or counteract dumping."28 6.15 We therefore understand Brazil to suggest that the European Communities should have focused exclusively or particularly on the situation following the devaluation - that is, the latter part of the investigation period -- in considering whether to impose AD measures. We have slightly modified this paragraph in light of Brazil's comments.
6.16 In respect of our finding in paragraph 7.265, Brazil submits that it has not argued that the investigating authority's determinations under Article 2.4 are relevant under Article 3.3. Brazil states that it has argued that, on the basis of its determination under Article 2.4, the European Communities was fully aware of the Brazilian exporter's distribution channels on the EC market and, thus, of the fact that almost one third of the sales were made to OEM-customers.29 In view of the EC's statement quoted in paragraph 280 that "[a]ll of the countries concerned operate within the same or similar channels of distribution" (emphasis added), Brazil argues that it logically follows that either the EC's conclusion is incorrect or (at least) some exports from all of the other countries concerned were made at the OEM-level of trade. Brazil submits that given that the European Communities has not even argued that the latter factual situation prevails, the Panel does not discuss this important part of Brazil's argument at all. 6.17 The Panel notes that the EC determination cites the following as confirmation for its statement that all the countries concerned operate within the same or similar channels of distribution: "some traders imported or purchased the product under consideration from both various countries concerned and the Community producers".30 Given that there is, as we have stated, no explicit requirement in Article 3.3(b) to examine levels of trade as a component of the "conditions of competition" examination and thus that there is no guidance as to the manner in which such an examination is to be conducted, and that the OEM sales in question did not pertain to all (or most) of the sales of the product concerned in the EC market, we do not believe that these EC statements are, in themselves, inherently contradictory. We believe that we have adequately addressed Brazil's argument in this connection. We therefore make no modification.
6.18 In respect of paragraph 7.283, Brazil submits that the Panel refers to the EC's assertion that the practical result of "zeroing" in the EC's price undercutting analysis in this case was de minimis (0.01%). However, according to Brazil, the Panel is not reflecting the fact that neither Brazil nor the Brazilian exporter were able to comment on the accuracy of the EC's assessment (i.e. whether the practical result was de minimis or not), as the European Communities did not disclose its calculations with regard to the "negative" undercutting margins.31 6.19 The European Communities contends that, as it made clear in its second oral statement,32 the information necessary for calculating the EC's use of 'zeroing' in this context was available to Tupy in data provided in the Provisional disclosure (Exhibit BRL-11) document, Annex III, part 4. According to the European Communities, Brazil has made no attempt to refute this statement, nor has it indicated, even if its allegation were true, how its claim would be affected. 6.20 The Panel recalls that due to our finding that the European Communities has not violated its obligations under Articles 3.1 and 3.2, we did not consider it necessary to address the practical result of zeroing in the EC consideration of undercutting in this case. It is consequently not necessary for us to address Brazil's arguments concerning alleged non-disclosure of certain data, which, in any event, would seem to relate more to disclosure and transparency, for example, under Article 6, than to the substance of the EC undercutting calculation under Article 3. We do not understand Brazil to have made any such allegations in this context. For these reasons, we decline to make any modifications in this respect.
6.21 In respect of para. 7.327, Brazil submits that the Panel does not take into account Brazil's argument contained in paragraph 237 of Brazil's second written submission, which states that: "Brazil recalls that Article 3.6 provides that the effect of the dumped imports 'shall be assessed in relation to the domestic production of the like product'. According to Brazil, the European Communities has never claimed that 'separate identification of that production was not possible' and, in view of the other injury factors specifically pertaining to the like product, was not even able to do so." 6.22 The Panel has modified this paragraph to expressly reflect and more fully address Brazil's argument. 6.23 In respect of paragraph 7.332, Brazil asserts that the sentence referring to investments "Brazil observes that the absolute value of the EC producers' investments decreased by 7% between 1995 and the IP" is from Brazil's point of view meaningless and should be replaced by certain language in paragraph 282 of its second written submission. 6.24 The Panel has not deleted the former statement which is taken from paragraph 713 of Brazil's first written submission, but has added certain language to reflect Brazil's argument made in paragraph 282 of its second written submission. 6.25 Brazil also asserts that, with respect the issue of data discrepancies, Brazil's argumentation has not been properly presented and requests that we insert certain language. Firstly, Brazil pointed out in its first written submission that the data related to inventories and discernible from the EC producers' non-confidential questionnaire responses was contradictory.33 Given that the European Communities provided during the dispute settlement processing the domestic industry's exports allowing Brazil to check the general consistency of the EC data, Brazil recalls that it provided a reconciliation in its second written submission:34 Brazil states that in relation to figures provided for 1998, the said discrepancy represents 3.4% of the EC consumption (2,120/62,232 tonnes), 4.3% of the domestic production (2,120/49,875 tonnes), 5.5% of the EC producers' domestic sales (2,120/38,670 tonnes), 12.1% of the imports under investigation (2,120/17,581 tonnes) and 39.3% of the other third country imports (2,120/5,388 tonnes).35 Therefore, according to Brazil, paragraph 348 is misleading and reflects one-sidedly the EC's explanations.36 6.26 The European Communities objects to Brazil's misuse of this stage of the proceedings to introduce arguments that could have been made during its submissions to the Panel. According to the European Communities, Brazil appears to assume that presenting data in various relationships, so as to produce nominally higher and higher percentages, is itself a persuasive argument. The European Communities rejects this approach as empty rhetoric. The figures given by the European Communities in its second oral statement, and quoted by the Panel, refer to the discrepancies regarding stocks as a percentage of production levels. Of course, if they were compared to reported stocks they would be much higher. The European Communities argues that it presented the data in this way because, as it explained, and as the Panel reports, it believed that the discrepancy was due to the inclusion of scrap in the gross production figures. While the amount of scrap has an obvious direct relationship with production levels, it has no meaningful connection with existing stock levels. Brazil's arguments, even now, completely ignore this explanation. In view of Brazil's allegations that in 1998 the discrepancy would have amounted to 13% of production, the European Communities has reviewed the calculations. The precise figures are the following: 1996 - 1.3981%; 1997 - 1.4401% and 1998 - 4.2506 %. There is, therefore, a small difference with respect to the percentages originally reported by the EC for 1996 (1%) and 1998 (4%), which is probably due to the fact that only the percentages for those two years were rounded to one figure. On the other hand, the European Communities fails to understand how Brazil arrives at the percentage of 13 % for 1998. The correct figure for production in 1998 is 49.875 tonnes and not 16.300 tonnes. Indeed, Brazil itself states elsewhere that the percentage is 4.3%. 6.27 The Panel has made certain modifications in this paragraph to more fully reflect Brazil's arguments made in its second written submission. The record of the investigation indicates that the 1998 figure for production is 49 875 tonnes (and not 16 300 as Brazil seems to argue); the relevant figure is therefore 4% (and not 13% as Brazil seems to argue). 6.28 Brazil submits that a sentence should be added indicating that Brazil contested the EC's conclusions that the market for malleable fittings is "highly price sensitive", although the prices of imported fittings had demonstrably not affected the prices of the EC industry. 6.29 The Panel has modified paragraph 7.336 in light of these comments.
6.30 Brazil asserts that its arguments concerning the impact of data discrepancies concerning stocks on the EC's assessment of the consequential effects of the dumped imports on the EC industry were not fully reflected, and requests that we reflect its arguments made in paragraph 317 of its second written submission, as follows: "Moreover, Brazil observes that the EC correctly attributes the injury to one injury factor, i.e. the increase in stocks. However, given that the data used by the EC was manifestly inaccurate, Brazil submits the consequential effects of the dumped imports on the EC industry were not properly established on the basis of positive evidence"; see Brazil's Second Submission, para 317."37 6.31 The Panel has inserted footnote 320 in order to reflect more fully Brazil's arguments made in paragraphs 316 and 317 of its second written submission and to clarify our findings. 6.32 Brazil alleges that paragraph 7.380 did not reflect its argumentation and suggests that we amend it, either by deleting a certain phrase , or by indicating the source of this phrase. 6.33 The Panel has modified our findings in paragraph 7.380 in response to Brazil's request that we indicate the source of our statement that we do not understand that Brazil has invoked Article 6.5 of the Anti-Dumping Agreement . 6.34 Brazil submits, in respect of paragraph 7.385, that the Panel combines two different sets of arguments into one. However, Brazil contests the EC's conclusion that the imports from Poland had not caused any injury to the EC industry, although the import volume from Poland increased significantly, Polish unit prices were undercutting the EC producers' prices and the EC classified the product as "highly price sensitive". Thus, according to Brazil, the Panel has not reflected Brazil's argumentation provided in paragraph 324 of its second written submission at all. 6.35 The Panel has modified paragraph 7.385 in order to more fully reflect Brazil's argument, and have expanded upon our findings in paragraphs 7.387-7.388. 6.36 Brazil argues that paragraph 7.409 did not reflect Brazil's arguments concerning the rate of decrease in consumption and requests that we amend it. Brazil further submits that this suggested amendment pointing out the EC's contradictory argumentation may also help to resolve the Panel's confusion which Brazil argues is indicated in paragraph 7.412, which Brazil suggests that we clarify by deleting a certain sentence. 6.37 The Panel has added certain language in paragraph 7.409 to reflect Brazil's argument concerning the rate of decrease in consumption from 1995-IP and we have clarified our findings in paragraph 7.412.
2 WT/DS219/2.
3 WT/DS219/3.
4 Exhibit BRL-1. The EC producers on whose behalf the
application was made - indicated as representing 100 per cent of the EC industry
-- are: Georg Fischer Fittings Gmbh. of Austria; R. Woeste Co. Gmbh & Co. KG. of
Germany; Ferriere e Fonderie di Dongo SPA. and Raccordi Pozzi Spoleto S.P.A. of
Italy; Accesorios de Tuberia, S.A. of Spain; and Crane Fluid Systems of the
United Kingdom.
5 O.J. C 151/21, 29 May 1999. Exhibit BRL-2.
6 The proceeding against Croatia and the Federal Republic of
Yugoslavia was terminated. See Commission Regulation (EC) No. 449/2000, O.J. L
55, 29.02.2000 (the "Provisional Regulation"), Exhibit BRL-12, para. 7.2.2;
Council Regulation (EC) No. 1784/2000, O.J. L 208, 18.08.2000 (the "Definitive
Regulation"), Exhibit BRL-19, para. K.2. Turkey was listed in the application,
but the European Communities decided to exclude it from the investigation as its
market share was considered de minimis pursuant to Article 5(7) of the
Council Regulation (EC) No. 384/96 of 22 December 1995 on protection against
dumped imports from countries not members of the European Community. O.J. L
56/6, 6 March 1996 (the "EC basic Regulation"). See Notice of Initiation,
supra, note 5.
7 Definitive Regulation, Exhibit BRL-19, paras. 7 and 8.
8 Provisional Regulation, Exhibit BRL-12, para. 6.
9 These included the following that have been submitted in
these Panel proceedings as forming part of the record of the EC investigation
(in chronological order): 15 July 1999: first submission of Tupy in the EC
investigation, Exhibit BRL-5, and Tupy's questionnaire response, Exhibit BRL-4;
9 August 1999: EC deficiency letter to Tupy, Exhibit BRL-6; 20 August 1999;
Tupy's reply to deficiency letter, Exhibit BRL-7; 22 November 1999: second
submission of Tupy in the EC investigation, Exhibit BRL-9.; 7 December 1999:
hearing and third submission of Tupy in the EC investigation, Exhibit BRL-10; 28
February 2000: EC Disclosure Preceding the Provisional Regulation, Exhibit
BRL-11; 30 March 2000; fourth submission of Tupy, Exhibit BRL-13; 29 May 2000:
hearing, Exhibit BRL-14; 30 May 2000: Tupy's post-hearing document, Exhibit,
BRL-15; 31 May 2000: EC Disclosure Preceding the Definitive Regulation, Exhibit
BRL-16; 13 June 2000: fifth submission of Tupy in the EC investigation, Exhibit
BRL-17; 20 July 2000: EC transparency letter, Exhibit BRL-18.
10
An EC letter dated 7 September 1999 to Tupy's legal counsel
concerning the verification was submitted in these Panel proceedings as Exhibit
BRL-8.
11 These included: meetings between EC and Brazilian officials
that occurred on: 23 March 2000 (including the EC Trade Commissioner, Mr. Lamy,
and a Brazilian delegation that included Brazil's Minister of Development,
Industry and Trade and the Executive Secretary of the Brazilian Foreign Trade
Chamber, reflected in Exhibit EC-6); 9 May 2000 (preparatory meeting, reflected
in Exhibit EC-2); and 25-26 May 2000 (the European Community-Brazil Joint
Committee, reflected in Exhibit EC-4) and written communications from Brazil's
Ambassador in Brussels to EC officials dated 10 December 1999, 29 January 2000
and 23 February 2000 (Exhibits EC-27-29).
12 Provisional Regulation, Exhibit BRL-12.
13 Definitive Regulation, Exhibit BRL-19.
14 Brazil first written submission, para. 938.
15 Brazil subsequently withdrew its claims related to the
application and initiation of the investigation under Article 5.2, 5.3, 5.8 and
6.2 of the Anti-Dumping Agreement (referred to by Brazil as "Issue 2").
Brazil second written submission, para. 24.
16 Brazil subsequently withdrew its claims related to
advertisement and promotional expenses under Article 2.4 (referred to by Brazil
as "Issue 7"). Brazil second written submission, para. 75.
17 Additional oral statement of Brazil regarding Exhibits
BRL-47-52 - First Meeting, Annex D-4.
18 Brazil request for preliminary ruling, Annex A-3.
19 Brazil second written submission, paras. 226-233 and 252;
Comments of Brazil on EC responses to Panel question 114 following the first
Panel meeting, Annex E-6.
20
EC first written submission, paras. 570-571. The European
Communities subsequently submits that should the Panel find infringements
arising only from the claims under Issues 9 (concerning currency conversion), 10
(concerning PIS/COFINS indirect taxes) and 11 (concerning "zeroing"), no finding
of nullification or impairment would be appropriate. See EC second oral
statement, paras. 162-165; Executive summary of EC oral statement - second
meeting, Annex D-9, para. 32. The European Communities also requests that, if
the Panel were to find that the European Communities acted in breach of its WTO
obligations by applying zeroing in the calculation of Tupy's anti-dumping
margin, or by not re-examining Tupy's margin of dumping following the
devaluation, the Panel should make no recommendation in respect of these
findings as the European Communities would already have done what was necessary
to remedy the situation by initiating a review in December 2001 in respect of
the anti-dumping measures imposed by the Definitive Regulation (Exhibit EC-26).
See EC second oral statement, para. 168 and EC answer to Panel question 144;
Executive summary of EC oral statement - second meeting, Annex D-9, paras. 33
and 34.
21 EC first submission, paras 19-24. Executive summary of EC
first written submission, Annex A-2, paras. 5 and 6. EC second oral statement,
para. 9.
22 See executive summary of EC oral statement, first meeting,
Annex D-2, para. 28.
23 EC reply to Brazil's request for preliminary ruling, Annex
A-4.
24 Brazil cites Brazil second written submission, para. 230.
25 Brazil refers to statements made by Brazil during the first
meeting with the Panel.
26 Annex D-4.
27 See Brazil second written submission, para. 28 and Brazil
first written submission, paras. 162-203.
28 See Brazil's response to Panel Question 22 following the
first Panel meeting, Annex E-1.
29 According to Brazil, this is the only reason why Brazil
refers to the determination of dumping in paragraph 214 of its second written
submission.
30
Definitive Regulation, Exhibit BRL-19, recital 73.
31 Brazil refers to Brazil second written submission, paragraphs
146 and 147.
32 The European Communities refers to EC second statement,
paragraph 95.
33 Brazil refers to paragraphs 716 to 724 of Brazil�s first
written submission.
34 Brazil refers to its second written submission, para 286.
Brazil asserts that it is important to note that this test is used to verify the
general consistency of the EC�s data and not only data related to the stocks.
Indeed, according to Brazil, any discrepancy between ��input� (i.e.
opening stock, production and purchases) and �output� (i.e. domestic
sales, exports and closing stocks) indicates that the figures related to
either input or output (or both) are
inaccurate. Stocks are used as a threshold against which the general consistency
is measured.
35 Brazil states that it is also to be noted that the domestic
producers were also importers of the product concerned. Therefore, Brazil
submits, Brazil�s reconciliation, where the unknown volume of the EC producers�
own imports is not included to the equation, is a very conservative
(under) estimate of the discrepancy in the EC�s data; Brazil refers to footnote
315 of Brazil�s second written submission.
36 Brazil submits that according to the EC assertion reprinted
in paragraph 348 of the Interim Report (although without any reference to the
source), the discrepancy �amount to 1% in 1996, 1.4% in 1997 and 4% in 1998�.
Brazil submits that, the EC�s calculation for 1998 is incorrect: not 4% but 13%
(2,120/16,300 tonnes).
37 Brazil second written submission, paragraph 317.
Agreements | Disciplines | Trade Policy Developments | Countries | Trade & SMEs |