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oral report by hannes welge,
friend of the chair,
on the issue of product under consideration
i made a preliminary report at our meeting in january and we had some debate at that meeting. since that time, i have twice addressed an email to the contact list indicating that i would be available for further consultations, either in writing, or in person here in geneva. i received in reaction one request for a meeting, which was cancelled by that member before it took place, and one email of a few lines, repeating a position which had already been introduced in my report earlier. so there is not much i can add to what i said in january, except to take account of the debate we had after i delivered the preliminary report. i note as a side remark that the issue of product under consideration will show up in one of the contact group reports which you will hear tomorrow. accordingly, i will summarize my january report.
i consulted on this issue with the fans, the united states, canada, china, india, turkey, egypt, saudi arabia, new zealand, hong kong china, china, singapore and of course myself.
the basis of the discussion was the demand to have a provision in an area where there is no legal regulation for the time being and the consultations i had were more or less based on the solutions to that problem offered in the chair's text of november 2007. the reactions to the chair's text, which i have heard, are the following, in summary form.
proponents were more or less satisfied. others did not want any discipline at all. some criticized the prerogative of physical characteristics over market characteristics. some also pointed to the problem of the aggregate form of the product and mentioned in this context whether the product would come as a liquid or a powder, for example. some suggested that the word "quality" in the chair's text in article 2.6 bis should be deleted. one member also suggested that the word "grade" should be deleted. some suggested that article 2.6 bis should be moved to another position in the agreement, and mentioned article 5 in this context. some questioned the need for the article 5.6 bis at all.
some pointed to the positive vertical effect on circumvention and on the inclusion of parts and components in the definition. others rejected exactly this vertical effect and pointed to this negative effect with regard to any practice or law on circumvention.
some would rather prefer not to have a definition of product under consideration if the relationship to circumvention and, for others, also the relationship to rules of origin, is not clarified. some pointed to the situation that a product under consideration might have to be defined in relation with product definitions of existing measures.
almost all those with whom i had consultations confirmed that the problem had not occurred very often in their practice. almost all showed willingness to address the problem if the solution was carefully calibrated and would not have unwanted consequences in other areas of the anti-dumping agreement or even outside it.
i had, in these consultations, asked participants to consider some elements. first of all the place where a new rule on product under consideration in the agreement should be. also, the definition and the exact wording of the definition and the proposal to delete article 5.6 bis. finally, the relationship to a vertical extent of the definition of the product under consideration with other areas, for instance circumvention and rules of origin.
i have received some reactions, but none which is sufficiently definitive, in particular with regard to the discussion of the issue we had here in this group. many members mentioned that they would want to have a possibility to further clarify, for themselves, among themselves, if they represented groups. some mention that they would want to clarify that with their capitals, and they haven't done so yet, therefore i think this is work in progress. i don't think that the lack of requests for meetings with me or communicating otherwise is a lack of interest � it might have been a lack of time, or focus at this moment. therefore i think the consultations on this issue should continue.
however, i expect that the discussions and any solutions will centre around the placement of the provision in the agreement, the exact wording of the provision, and i think very importantly, the vertical implications of that definition, including the relationship with any rule or practice on anti-circumvention and probably also with the need to clarify the role of rules of origin.
thank you chairman.
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