Anti-dumping and anti-trust issues in free-trade areas

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Book

Reference

Anti-dumping and anti-trust issues in free-trade areas

MARCEAU, Gabrielle Zoe

MARCEAU, Gabrielle Zoe. Anti-dumping and anti-trust issues in free-trade areas . Oxford : Clarendon Press, 1994, XLI, 343 p.

Available at:

http://archive-ouverte.unige.ch/unige:35054

Disclaimer: layout of this document may differ from the published version.

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Anti-Dumping and Anti-Trust Issues in

Free-trade Areas

GABRIELLE MARCEAU

CLARENDON PRESS · OXFORD

1994

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Oxford University Press, Walton Street, Oxford ox2 6or Oxford New York Toronto

Delhi Bombay Calcutta Madras Karachi Kuala Lumpur Singapore Hong Kong Tokyo

Nairobi Dar es Salaam Cape Town Melbourne Auckland Madrid

and associated companies in Berlin Ibadan

Oxford is a trade mark of Oxford University Press Published in the United States

by Oxford University Press /ne., New York

Ali rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means,

without the prior permission in writing of Oxford University Press.

Within the UK, exceptions are allowed in respect of any fair dealing for the purpose of research or priva te study, or criticism or review, as permitted

under the Copyright, Designs and Patents Act, 1988, or in the case of reprographie reproduction in accordance with the terms of the licences

issued by the Copyright Licensing Agency. Enquiries concerning reproduction outside these terms and in other countries should be

sent to the Rights Department, Oxford University Press, at the address above

British Library Cataloguing in Publication Data Data available

Library of Congress Cataloging in Publication Data Marceau, G. z. (Gabrielle Z.)

Antidumping and antitrust issues in free-trade areas 1 G. z.

Marceau.

p. cm.

lncludes bibliographical references and index.

1. Antidumping dulies-Law and legislation. 2. Antitrust law.

3. Free trade. /. Tîtle.

K4635.M37 1994

343~0721-dc20

{342.3721] 94-12743

ISBN 0-19-825920-4 1 3 5 7 9 10 8 6 4 2

Typeset by Best-set Typesett.er Ltd., Hong Kong Printed ln Great Britain

on acid-free paper by Bookcraft Ltd., Midsomer Norton, Avon

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To my Godchildren, Camille and Xavier

who ensure that 1 keep things in perspective.

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Foreword

Enhancing the benefits of the elimination of trade barriers and promoting conditions of fair competition are two central thrusts of international trade agreements. Y et with the trends towards the globalization of international trade and production, and varions regional market integration arrangements around the world, the international trade policy agenda is increasingly turning its attention to what the appropriate raies of unfair !rade remedy and competition po licy instruments should be. ,. <'

\'The internationalization of competition policy is a complicated issue.

While theoretically anti-dumping could be replaced by competition rules, there are important differences between market access as defined by trade policy officiais and the concept of market entry as applied by competition officiais. This book by Gabrielle Marceau on Anti-Dumping and Anti-Trust Issues in Free-Trade A reas makes a very valuable and timely contribution to a better understanding of the critical and complex relationship between these major public policy instruments.

The author's legal review of the experience multilaterally, in regional arrangements like NAFTA and the European Union, and bilaterally as between the USA and Japan or the USA and the European Union, should provide a weil documented reference book for many readers, policymakers and practitioners alike. The fact that this impressive analysis was written before the Uruguay Round was completed, and the specifie changes to the GATT anti-dumping agreement became known, does not diminish the importance or the relevance of this contribution.

Quite the contrary, the sensitivity of regulating predatory pricing practices at the international leve! was further evidenced by the rather modes!

changes made to existing GATT rules in this area. In_fact, !Us~f_<;gming

increasingly clear that the interactions between. !rade .. agd ___ ÇQ.ffiJJelition policy will constitute a major element ofthe emergingp0st Vrl!gUiJY Round po licy agenda un(ier the neV/. WorldJra(le Organisation.

I know how difficult and sensitive sorne of these fair !rade issues are from experience as a Canadian representative during the negotiation of the 1988 Canada-USA Free Trade Agreement and the Uruguay Round, as weil as Chairman of the Market Access Negotiating Group in the Round. I thus particularly welcome the author's efforts to propose specifie options to respond to concerns of possible misuse of anti-dumping duty investigations or anti-competitive behaviour of firms within a free or freer !rade environment.

The author's suggestions for the graduai phasing out of anti-dumping

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viii Foreword

measures; for a greater reliance on the concept of public interest in anti- dumping enforcement; for the introduction of the European positive comity approach as the trade norm to action in cases of an ti-competitive behaviour;

or even the use of the GATT non-violation complaint procedures, are in- triguing and no doubt merit further examination. In this regard, Gabrielle Marceau's discussion of various models of economie and legal integration bilaterally or multilaterally is particularly helpful and illuminating.

G. A. Denis Senior Canadian Trade Negotiator for Canada-USA Free Trade Agreement and the Uruguay Round Chairman of the Market Access Negotiating Group in the Uruguay Round 28 June 1994

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Preface

Anti-trust law and anti-dumping law and action are important subjects in their own right, cach studied and discussed by its own academie and legal specialists. Discussion in the past few years, though, bas led to increasing scepticism as to whether the underlying rationale for anti-dumping laws, apparently distinct from that of anti-trust laws, is in fact different.

An ti-dumping law and action is now widely perceived as having degener- ated into a more-or-Jess straight forward protectionism; a state of affairs that raises the issue of what a 'proper' anti-dumping law would look like, and therefore the problem of what satisfactory justifications can be provided for such a law. The problem is acute. Sensible rationales for anti- dumping laws almost invariably rely on imperfect competition in one form or another. But if imperfect competition is the issue, wh y cannot allegations of dumping be dealt with under competition law- why is a separa te law for dumping either desirable or needed?

The question is sharpened by a broad agreement that an attempt should be made, in the context of the new World Trade Organisation, to negotiate hamonization or partial harmonization of competition laws across jurisdic- tions. Dumping accounts for a very high proportion of complaints about anti-competitive behaviour affecting international trade, even though the form of anti-dumping laws allows the allegation of anti-competitive behaviour to remain implicit. It would be anomalous were competition laws to be harmonized, but anti-dumping law and action allowed to lead a separate and undisturbed existence.

These problems become particularly acute in free-trade areas. Article XXIV(8)(b) of the GATT requires the elimination of 'duties and other restrictive regulations of commerce ... on substantially aU the trade between the constituent territories .. .'. Gabrielle Marceau is to be congra- tulated for ber examination of the legal implications of this rule for anti-dumping action and competition law within free-trade areas.

Analysis of the issue in the context of free-trade areas, however, leads ber naturally to an examination of the wider issues in the interaction of the two sets of laws and policies. Her book, exploring their intersection, is valuable and timely. Debate on the policy issues on which it focuses is likely to last for many years, and to take many twists and turns. As long as the debate lasts, however, the contribution to clear thinking of Gabrielle Marceau will be recognized by readers of this book.

London July 1994

Brian Hindley

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Acknowledgements

I am grateful to many friends and colleagues who have helped to make the writing of this book possible.

Thank you to my friend Bernard Colas who introduced me to Inter- national Economie Law and to Douglas Rosenthal who stimulated my curiosity with his article in 1988 on anti-trust and trade issues. In London, I would like to thank Alice Hemming for her generosity over the past four years. Mark Sherwood-Edwards criticized and revised many of my drafts.

In Brussels, I had an unforgettable stage in. the Competition Directorate of the EEC Commission, thanks to Paul Mairie-Smith and to Richard Larue, who supported me in so many ways. I am grateful to Jacques Bourgeois for his use fu! comments on the EC trade po licy with EFfA co un tries during the period while he was Head of the External Relations for the EC Com- mission. In New York, I am indebted to the Fordham Center for EC Law and International Anti-trust, where in the winter of 1993 I was research scholar.

In Ottawa, I am grateful to Jonathan Fried, Chief Legal Adviser for the NAFfA negotiations; Johane Osenbarp, External Affairs, NAFfA Nego- tiations; François Lecavalier of the International Economie Relations Div- ision of the Department of Finance; Prue Thomson from the Bureau of Competition Policy of Consumer and Corporate Affairs; Milos Barutciski, special adviser to the Director of the Bureau of Competition Policy of Consumer and Corporate Affairs; to Hugh Cheetnam from the CITT and to Martin St-Amant, Direction générale de la Politique commerciale of Québec, ali of whom have shared with me practical applications of complex

!rade issues. They provided me with detailed and practical comments on anti-dumping and competition enforcement and the policy of Canada and other NAFfA member states.

I have happy memories of trade discussions with Dr Brian Hindley, from the London School of Economies, my second Ph.D. supervisor. I am grateful to Professor Valentine Korah, Emeritus Professorat University College London, my main Ph.D. supervisor, who made possible my stays in New York and Brussels, experiences which greatly enriched my work.

I have sole responsibility for mistakes made in taking the risky course of addressing globally the difficult but fundamental interaction between regulation offirms' behaviour, other social considerations, and the requirements of indispensable healthy competition in international settings.

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.?;>

4. Co-ordination of Anti-Dumping and Competition

Considerations al the Domestic Leve! 133

1. Introduction 133

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xiv Contents

2. The Context for the Consideration of Competition Variables in Anti-Dumping Determinations and the

work of the OECD 134

3. Pressures to Reduce Anti-Dumping Dulies 138

3.1. The EEC System 138

3.2. The Canadian System 146

3.3. The US System 153

3.4. The Mexiean System 155

4. Anti-Trust Liability in Anti-Dumping Actions 156 5. Trade Measures for Competition Purposes 158

6. Conclusion 159

PART III. EFFORTS AT CO-ORDINATION OF ANTI-TRUST AND ANTI-DUMPING ACTIONS WITHIN FREE-TRADE AREAS

s.

Political, Economie, and Legal Aspects of Free· Trade Areas 167

1. Introduction 167

2. Definitions 167

3. Politieal Reasons for Regional Arrangements 169 4. The Politieal Impact of Regional Arrangements on

International Relations 172

5. The Economies of Regional Integration 173

5.1. The Free-Trade Area, Customs Union, Common Market, Economie Union, and Political Union

Compared 177

6. International Law on Free-Trade Areas 178

6.1. International Customary Law on Free-Trade Areas 179 6.2. Preparatory Work for the Havana Charter and

the GATT 180

7. GATT Law on Free-Trade Areas 183

7.1. The Place of Article XXIV in the GATT 183

7.2. Article XXIV ( 4) 184

7.3. Article XXIV(5) 186

7.4. Article XXIV (7) 187

7.5. Article XXIV(8)(b) 187

7.6. Article XXIV(10) 189

8. Interpretation of the GATT Practice 189

9. Conclusion 191

\<:

6. Experiences of Other Free· Trade Areas in Dealing

with Internai Trade Measnres 194

1. Introduction 194

2. Provisions on Restrictive Business Practices (Competition)

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Contents xv Cmnained in Agreements of Free-Trade Areas 194 2.1. The European Free Tracte Agreement, EFTA 195 2.2. The Free-Trade Agreements hetween the European

Economie Community and the Memher Countries of

the European Free Tracte Association 197

2.3. The European Economie Area, EEA 200

2.4. The So-Called Europe Agreements 205

2.5. The Australia-New Zealand Agreement for Closer

Economie Relations 209

Provisions on Restrictive Business Practices in the

Common Market of the EEC 215

3.1. The Functioning of the EEC Competition System

Supplementing Anti-Dumping Actions 217

Conclusion 220

PART IV. PHASING OUT ANTI-DUMPING LAWS WITHIN THE NAFTA

Regulation of Restrictive Business Practices

the NAFIA 231

Introduction 231

Existing National Anti-Dumping Laws and their Similar

Impact 231

2.1. Differences in the Determination of Injury 232 2.2. Differences in the Agencies Enforcing the Law 233 2.3. Legal Standing and Quasi-Judicial Process 233

2.4. Imposition of Dulies 234

2.5. A Public Interest Clause 235

2.6. The Lesser Duty Principle 235

The NAFTA Binational Tribunal 235

3.1. Criteria for Judicial Review 236

New Provisions on Competition and Monopolies in the

NAFTA 240

Proposais for Phasing Out Anti-Dumping Enforcement 243 Proposais for a System of Conflicts of Laws 245 6.1. The First Mode!: The Law of the Territory

Where the Restrictive Business Take Place 246 6.2. The Second Mode!: Allocation of Jurisdiction Based

on the Criterion of 33 per cent more of the Turnover

of the Firms Concerned 246

7. Conclusion 247

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xvi Contents

}<

8. Implementation of the Chosen Model for Regulation of

Restrictive Business Practices within the NAFfA 253

1. Introduction 253

2. US, Canadian, and Mexican Domestic Legislation on

Competition 254

2.1. Background and Policies of the Three Competition

Laws 254

2.2. Standing, Procedure, Enforcement, Costs, and Delay 258 2.3. The Treatment of Priee Discrimination 259 2.4. The Treatment of Predatory Pricing 261 2.5. Other Abusive Conduct by Firms with Market Power 263

2.6. Vertical Restraints 265

2.7. Horizontal Agreements 265

2.8. Joint Ventures and Mergers 266

2.9. Intellectual Property Rights 266

2.10. Conclusion on the Comparision of Domestic Laws 267 3. Application of the Models Proposed in Chapter 7 268

3.1. 'The Law of the Territory Where the Restrictive

Practice Takes Place' 268

4. Amendments to Existing Competition and An ti-Trust Laws 271

5. Abolishing Export Cartels 273

6. Parallel Amendments to Anti-Dumping Laws 274

7. Proposais for a Transition Period 275

7.1. Regional or Product-by-Product Reduction of Duties 276

8. Conclusion 277

PART V. TOWARDS AN INTERNATIONAL CODE OF CONDUCT

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^9.Parameters, Issues, and Comments on an International Code

on Competition 281

1. Introduction 281

2. Attempts to Move towards an International Code on

Competition 282

3. New Proposais 283

3.1. The GATT Trade Report Mechanism 283

3.2. The American Bar Association 284

3.3. European Positive Comity 285

3.4. The Continuous Work of UNCTAD, the World Bank,

and the OECD 286

3.5. The NAFTA Laboratory 287

3.6. US-Japan Structural Impediment Initiative, SII 287

4. Fundamental Social Differences 292

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4.1. Anti-Trust vs. Competition 292

4.2. lndustrial Policies 295

5. An International Code on Competition: General Issues

and Proposais 297

5.1. Should the Agreement be Binding? 298

5.2. Rule of Reason or perse 298

.l 5.3. Dominance vs. Market Power 299

~ 5.4. Practices which Would Constitute 'Abusive'

Behaviour 299

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5.5. A Single Infraction of Abuse of a Dominant Position 300 5.6. The Best Institution: GATT, MTO, UNCTAD,

OECD, or a New Forum? 301

6. Proposed Alternatives to Introduce Competition

Considerations into International Trade Litigation 303

6.1. Private Positive Comity 303

6.2. The Non-Violation Procedure of the GATT 303

6.3. An ICSID Type of Tribunal 304

6.4. A NAFT A Type of Tribunal 305

7. Domaine Réservé 305

8. Conclusion 305

Conclusion 310

1. How do Anti-Dumping and Anti-Trust Provisions Interact

within a Free-Trade Area 310

2. Does the Law Require Anti-Dumping Measures within

Free-Trade Areas to be Phased Out? 311

3. How Should Anti-Dumping Measures be Phased Out

within the NAFTA 312

4. Should (Could) Anti-Dumping Measures be Phased Out Multilaterally in Favour of an International Code on

Competition 315

5. Concluding Comments 317

Bibliography 320

Index 329

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Table of Cases

Australia

Queensland Wire Industries Pty Ltd. v. Broken Hill Pty Co. Ltd. ATPR (1989): 40-925 . . . 22

Canada

Alex Couture Inc. v. Le Tribunal de la Concurence 9 Sept. 1991, Judgment of the Cour d'Appel du Québec 200-09-000250-909. . . 256 Alpine Ski Poles from Norway, France, Germany, and Italy ADT-5-84 . . . 232 Beer (USA) Inquiry NQ-91-002 . . . 147 Beer (USA) Opinion PI-91-001 . . . 148, 149 Beer (USA) CDA-91-1904-01 . . . 237 Bicycles CITT Decision No. 92-002 . . . 149 Canada (Director of Investigation and Research) v. Nutra Sweet Co.

(1990) 32 CPR (3d) 1, Competition Tribunal . . . 264 Carpet Case Inquiry No. NQ-91-006, decision of 6 May 1992. 1990, p. 400 . . . 37 Countertop Microwave Ovens from J apan, Singapore, and the Republic of Korea ADT-9-81 . . . 232 Fresh Whole Yellow Onions (USA) CITT Decision No. CIT-1-87 . . . 149 Grain Corn . . . 148, 149 Hoffman-la-Roche (1980) 109 DLR (3d), affirmed (1981) 125 DLR

~~ . . . lW Hot-Rolled Carbon Steel Plate and High-Strength Low Alloy Plate from Belgium, Brazil, the Czech Republic, Germany, Remania, the UK, USA, and Macedonia in Yugoslavia Inquiry No. NQ-92-007 . . . 232 Korean Cars Case . . . 146 Leasing v. General Motors and Rocois Counstruction (1989) 1 RCS:

695. . . 256, 258 Libman v. The Queen (1985) 2 SCR 178 . . . 70 National Corn Growers Association v. Canada (1990) 2 SCR 1324 (Imports Tribunal) . . . 237 Nova Scotia Pharmaceutical Society v. The Queen 9 July 1992 . . . . 256 R. v. Campbell (1964) 2 OR 487 . . . 70

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Table of Cases xix R. v. Wholesale Travel Group Inc. (1991) 3 SCR 154 . . . 256 Special Imports Measures Act 'Respecting Machine Thfted Carpeting Originating in or Exported from the United States of America CDA-92- 1904-02, 7 Apr. 1993: 38 . . . 39, 238 Stainless Steel Plate from Belgium, Germany, France, Italy, Sweden, and the UK ADT-18-82 . . . 232 Tetanus Immune from USA ADT-3-74 . . . 146 Womens Footwear (Brazil) CITT Decision No. 89-003 . . . 149 Womens Shoes Inquiry No. NQ-89-003, Decision of 18 May 1990 . . . 37

European Commission Decisions

Acrylonitrile OJ 1983 Llül/29 . . . 145 Aluminium Imports from Eastern Europe OJ 1985 L92/1 . . . 73, 74 Apartame. . . 145 Barium Chloride OJ 1983 Ll10/11. . . . 142 Bisphenol OJ 1983 L199/4 . . . 142 Certain Sodium Carbonate Originating in the Soviet Union OJ 1980 L48/1 . . . 135 Codeine and its Salt (Czechoslovakia, Hungary, Poland, and Yugoslavia) OJ 1983 Ll6/30 . . . 143, 145 Commercial Solvents. See also Instituto Chemioterapico Italiana &

Commercial Solvents v. Commission (Cases 6 & 7/73) OJ L299/51; [1973]

CMLRD50 . . . 72 Continental Can. See a/so Europemballage Corp. & Continental Can Co.

Inc. v. Commission (ECJ Case 6/72) OJ 1972 L7/25; [1972] CMLR D11 . . . 72 Dot-Matrix Printers (Japan) OJ 1988 Ll30/32 . . . , . , 146 Dyestuffs. See also ICI Ltd. v. Commission (Cases 48, 49 & 51-7/69) OJ 1969 L195/11; [1969] CMLR D23 . . . , . . . 72 Ferro-Chromium from South Africa and Sweden EEC No.

1355-78 . . . , . . . 143 Ferro-silico-Calcium (Brazil) OJ 1987 L129/5 . . . 142, 143 Franco-Japanese Ballbearings OJ 1974 L343/19; [1975] 1 CMLR D8 . . . 72 French and Taiwanese Mushroom Packers, Re [1975] 1 CMLR D83;

0J 1975 L29/26 . . . 70 Furfural from China, Dominican Republic, and Spain OJ 1981 L189/57 . . . 143, 145, 146 Glycine (Japan) OJ 1985 L176/4 . . . 144-6 Glycine (Japan) OJ 1985 L218/1. . . , . 142 Hydraulic Extractors OJ 1985 L176/64 . . . 144

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xx Table of Cases

Japanese Hydraulic Excavators Case . . . . .. . . 145

Japanese Sensitised Paper OJ 1984 L124/45 . . . 142

Kraftliner (USA) OJ 1984 L64/25 . . . . .. . . .. 144-5 Mercury (USSR) OJ 1987 L346/27 . . . .... . . 142

Non Alloyed Unwrought (Norway, Surinam, USSR, Yugoslavia) OJ 1984 L57/19 . . . .. . . .. . . 145

Pentaerythriol OJ 1983 Ll3/1 . . . . . . . 145

Photocopier (Japan) OJ 1987 L54/29 . . . . . 142

Photocopiers (Japan) OJ 1987 L54/12. . . . . 146

Propyl Alcohol OJ 1984 L106/55. . . . . 142

Soya Meal from Brazil OJ 1985 L106/19 . . . 143

Synthetic Fibres of Polyester OJ 1987 L103/38. . . . . . . . 144

Typewriters (Japan) OJ 1985 L163/9 . . . . . . . . . . . . 144

Typewriters (Japan) OJ 1984 L335/43. . . . . . . . . . 142

Wrought Titanium from Japan OJ 1979 C207/4 . . . . . . . . . 143

European Court of Justice

Ahlstrom (A.) Osakeyhtio and Others v. Commission (Cases 89, 104, 114, 116, 117, 125-9/85) [1988] ECR 5193; [1988] 4 CMLR 901 . . . . 73, 74, 244-5 AKZO v. Commission (Case 62/86) [1991] I-ECR 3359; [1993] 5 CMLR 215 . . . .. . . 21, 123, 270 Allied Corporation v. Commission (Cases 239, 275/82) [1984] ECR 1005 . . . 139

Allied Corporation v. Counicl [1985] 3 CMLR 572 . . . 144, 148 Beguelin Import Co. v. G. L. Import Export SA (Case 22/71) [1971] ECR 949; [1972] CMLR 81 . . . . . . . . . . . . . . . . . . . . . 72

BEUC v. Commission (Case C-170/89) Judgment of 28 November 1991 .. . . .. . . .. . . .. . . . 139

BRT v. SABAM (No. 1) (Case 127/73) [1974] ECR p. 51. .. . . 217

Bulk Oil AG v. Sun International (Case 174/84) [1986] ECR 559 . .. ·. 76

Delev Noelle v. Hauptzollamt Bremen-Freihafen (Case C-16/90) Judgment · of 4 June 1991 . . .. . . 142

Delimitis (Stergios) v. Henninger Brau AG (Case C-234/89) [1991] ECR I-935; [1992] 5 CMLR 210 . . . .. . . 219 Direcci6n General de Defensa de la Compentencia v. Associaci6n Espafiola de Banca Privada (AEB) and Others (Case C-67/91) OJ 1992 C199/6; Judgment of 16 July 1992 . . . 85, 86, 157 Europemballage Corp. & Continental Can Co. Inc. v. Commission (Case 6/72). See also Continental Can (EC Decision) [1975] ECR 215; [1973]

CMLR 199 . . . .. . . .. 72,141

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---

Table of Cases xxi

Extramet Industrie SA v. Council (Case C-358/89) Judgrnent of 11 June 1992 . .. . . .. . . .. .. 116, 139, 141, 143 FEDIOL (EEC Seed Crushers' and Oil Pressers' Federation) v. Commis-

sion (Case 191182) [1983] ECR 2913 . . . 138 France v. Commission (Case C-327/91) OJ 1992 C28/4 . .. . . . .. .. 83 Hofner and Elser v. Macrotron (Case 41/90) [1991] ECR I-1979 . . . . 300 ICI Ltd. v. Commission (Cases 48, 49 & 51-7/69). See also Dyestuffs (EC Decision) [1972] ECR 619; [1972] CMLR 557; Commission Decision 69/243 [1969] CMLR D23 . . . . . . . . . . . . . . . . 72 Instituto Chemioterapico ltaliana & Commercial Solvents v. Commission (Cases 6 & 7173). See also Commercial Solvents (EC Decision) [1974]

ECR 223; [1974] 1 CMLR 309 .. . . 72 Merci Converzionale Porto di Genova v. Sidurgica Gabrielli (Case 179/90) [1991] ECR I-5923; [1992] 4 CMLR 78 . . . .. . . 300 Michelin v. Commission (Case 322/81) [1983] ECR 3461; [1985] 1 CMLR 282 .. . . .. . . . .. . . 293 Musique Diffusion Française v. Commission (Cases 100-3/80) [1983]

ECR 1825; [1985] 3 CMLR 221 .. . . 157 NTN Toyo Bearing Co. Ltd. and others v. Council (Cases 113, 118-21177) [1979] ECR 1185 . . . . . . . . . . . . . . . . . . . . . 138 Pioneer Case. See Musique Diffusion Française v. Commission (Cases

100-3/80)

Plaumann & Company v. Commission (Case 25/62) [1963] ECR 95; [1963]

3 CMLR 29 . . . . . . . . . . . . . . . . . . . . . 139 Porto di Genova. See Merci Converzionale Porto di Genova v. Sidurgica

Gabrielli (Case 179/90)

RIT v. GB-INNO (Case 18/88) [1991] ECR I-5923; Judgment of 13 December 1991 . . . 300 Spanish Banks Case. See Direcci6n General de Defensa de la Compentencia v. Associaci6n Espaiïola de Banca Privada (Case C-67/91) Timex v. Council and Commission (Case 264/82) [1985] ECR 849; [1985]

CMLR 550 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 138 Van Gend en Loos v. Nederlandse Tariefcommissie (Case 26/62) [1963]

ECR 1; [1963] CMLR 105 . . .. . . .. . . . .. 240 Woodpulp, Re. See Ahlstrôm (A.) Osakeyhtio and Others v. Commission

(Cases 89, 104, 114, 116, 117, 125-9/85)

GATI Panel Decisions

Cement Clinker from Mexico ADP-82, 7 Sept. 1992 . . . 41 Imported Agricultural Machinery GATT 7th Suppl. BISD 60 (1959) . . . .. . . .. .. . . 107

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xxii Table of Cases

International Court of Justice

Lotus Case PCIJ Ser. A, No. 10, p. 23 Nicaragua Case (1986) ICJ: 169 ff.

Texaco v. Libya ILM 17 (1978) 1 . . .

United Kingdom

. 66 . 91 . 91

Rio Tinto Zinc Corp. v. Westinghouse Electric Corp. [1978] 1 Ali ER

~ . . . ~

United States

AA Poultry Farms Inc. v. Rose Acre Farms Inc. 881 F 2d 1396 (7th Cir

1989) . . . 111

Alcoa. See United States v. Aluminium Cc. of America Banana Co. v. United Fruit Co. 213 US 347 (1909) . . . 67

Barry Wright Corp. v. ITT Grinnel Group 724 F 2d 227 . . . 110

British Steel Corp. v. United States 593 F Supp 405 . . . 36

Business Electronics Corp. v. Sharp Electronics Corp. 485 US 717 . . . 265

California Motor Transport v. Trucking Unlimited 404 US 508 (1992) . . . 75

Canadian Radio Patent Cases. See United States v. General Electric Company, Westinghouse Electric Company, NV Phillips Cargills Inc. v. Monfort of Colorado 479 US 104 (1984) . . . . 110

City Lumber Co. v. United States 457 F 2d 991 (1972) . . . . . 232

Continental TV Inc. v. GTE Sylvania Inc. 433 US 36 (1977) . . 265

Eastern Railroad Preoident Conference v. Noerr Motro Freight Inc. 365

us

127 (1961) . . . 75

Grand Jury Subpoena Duces Tecum Addressed to Canadian International Paper Co., Re 72 F Supp 1013 (SD NY 1947) . . . 79

Hawaii v. Ho 41 Hawaii 565 . . . 107

IBM 298 US 131 (1936) . . . 269

Insurance Antitrust Litigation, Re (ND Cal1989) MD 867 . . . 70

International Air Industries v. American Excelsior 517 F 2d 723 . . . . 22

International Salt 332 US 392 (1947) . . . 269

Kirkpatrick (W. S.) & Co. Inc. v. Environmental Tectonics Corp. 493 US 400 (1990) . . . 74

Kissinger 506 F 2d 136 . . . 158 Laker Airways Ltd. v. Sabena, Belgium World Airlines 731 F 2d 909

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Table of Cases xxiii (DC Cir 1984); 828 F 2d 24 (DC Cir 1987) . . . 68, 69 Matsushita Case (1986) US 116 . . . 24 Matsushita Electronic Industries v. Zenith Radio Corp. 475 US 574 (1986) . . . 110, 111, 114, 115, 122, 123, 262 Mosanto Co. v. Spray-Rite Service Corp. 465 US 752 (1984) . . . 265 National Bank of Canada v. Interbank Canada Assessment 666 F 2d 6 (1981) . . . 68 Red Raspberries from Canada USA-89-1904-01 . . . 237 Standard Fashion Co. v. Magrane-Hourston Co. 258 US 346 . . . 260 Suramerica De Aleaciones Laminadas CA v. United States 966 F 2d 660 (CAFC 1992) . . . 40, 233 Timberlane Lumber Co. v. Bank of America 549 F 2d 597 (1976) . . . 68, 70 Transamerica Computer Co. v. IBM Corp. 698 F 2d 1377 . . . 22 United States v. Aluminium Co. of America 148 F 2d 416 (1945) . . . 14, 20, 68 United States v. General Electric Company, Westinghouse Electric Company, NV Phillips (1962] Tracte Cases . . . 79 United States v. Grinnell Corporation 384 US 563 (1966) . . . 262 William Inglis & Sons Baking Co. v. ITT Continental Baking 668 F 2d 1014; cert denied 459 US 825 . . . 22

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Table of International Legislation and Agreements

Australia

Evidence Act 1905

s. 23 . . . 214 Trade Practices Act

s. 46 . . . . . . . . . . . . . . . . . . . . . 22, 212 s. 46A . . . . . . . . . . . . . . . . . . . . 212, 214, 215

Canada

Anticombines Act 1889 . . . . . . . . . . . . . 255 Antidumping Act 1904 .. . . 8 art. 125 . . . . . . . . . . . . . . . . . . . . . . . 146 Business Concerns Records Act 1958 (Quebec) . . . 79 Business Records Protection Act 1949 (Ontario) . . . 79 Competition Act. . . . . . . . . . . . . . . . 82, 256 art. 31. . . . . . . . . . . . . . . . . . . . . . . . 152, 158 art. 36(1) . . . .. . . 258 art. 45 . . . 71, 266 (5) . . . 76, 273 art. 50(1)(a) . . . .. .. . 259 (b) . . . .. . .. . . .. . . 259, 262 (c) . . . 262 art. 61(1)(a), (b) . . . 265 art. 75 . . . · . . . .. 265 art. 78 . . . 258, 260, 263, 264, 314 (a) . . . 264 (d) . . . 264 art. 79 . . . 71, 258, 262, 263, 264, 272, 314 arts. 82-84 . . . . . . . . . . . . . . . . 71 Constitution

art. 91 . . . .. . . . .. .. .. . .. . . 256 Criminal Code

art. 6(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Customs Tariff 1897 s. 19 .. .. . . 8

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Table of International Legislation and Agreements xxv Federal Act

art. 18 . . . 239 art. 18.1(4)(f) . . . 238 Foreign Extraterritorial Measures Act 1984 .. . . .. . . . .. . 81 Foreign lnvestment Act . . . . . . . . . . . . . . . . 107 Special Import Measures Act (SIMA)

art. 2 . . . . . . . . . . . . . . . . . . . . . . . 134 (1) . . . . . . . . . . . . . . . . . . 232 art. 14 . . . 159 art. 15 . . . .. . . 159 art. 38 . . . . . . . . . . 234 art. 41 . . . .. . . .. . . .. 147 art. 42 . . . 232 (1) . . . 37 (3) . . . .. . 234 art. 43(1) .. . . 10 art. 45 . . . 147, 148, 152 (2) . . . 149 art. 76 . . . .. .. .. . . 238 (1) .. . . 237 (5) . . . . . . .. . . 234 art. 45(1). . . . . . . . . . . . . . 147 arts. 84 -88 . . . . . . . . . . . . . . . . . . . . . . . . . . 156 Uranium Information Security Regulation

(PC 1976-2368, SOR/76-644) . . . .. . . 80

European Communities

European Economie and Social Committee . . . . . . . . . . . . . . 63 European Economie Area Agreement . .. . . 194, 199,200, 201 art. 1(2)(a) . . . .. 202 art. 3 . . . . . . . . . . . . . . . . . . . . . . . . . . 202 art. 11(2) .. . . .. . . 201 art. 11(3) . . . . .. . . .. . .. .. .. 201 art. 26 . . . .. .. 203 art. 53 .. . . .. . . 202, 203, 241 (1) .. . . 203 art. 54 . . . .. . . 202, 203, 241 art. 55(2) . . . .. . . .. 203 art. 56 . . . . . . . . . . . . . . . . . . . 202, 203 art. 57(2)(a) . . . . . . . . . . . . . . . . . . . . .. .. 204 art. 58 .. . . " .. .. . .. 204

- -

(25)

xxvi Table of International Legislation and Agreements

art. 59 . . . 202, 204 art. 92 . . . 201 (1) . . .

w

art. 93 . . . 201, 204

w... . .. w

art. 94(3). . . 201

art. 102 . . . 201

art. 104. . . 201

art. 108. . . 203

art. 111 . . . 204

Protocol13 . . . 203

Protocol 21 . . . 203

Protocol 23 . . . 204

Protocol 24 . . . 204

Europe Agreements (EEC-Poland, Czechoslovakia and Hungary) 244

4th Prearnble . . . 205

11th Prearnble. . . .. 206

12th Preamble. . . .. 205

13th Preamble. . . .. 206

arts. 30-32. . . 208

art. 30 . . . 208

art. 34(2). . . . 208

art. 34(3). . . 208

art. 56 .. .. .. .. .. . . 207

art. 63 .. .. .. .. .. . . 208

art. 63(1) . . . 206, 207

w,~..

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arts. 68-70 . . . 206

art. 101. . . 207

art. 102 . . . 207

art. 103 . . . 207

art. 118. . . 207

Regulation 17/62

art. 2 . . . 157,217

(1J,w ...

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art.3 . . . 217

w ...

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art.4 . . . 157 art. 5 . . . 157 art. 6 . . . 217 art. 7 . . . 206, 207 art. 9(3) . . . 217

(26)

Table of International Legislation and Agreements xxvii art. 10 . . . 85 arts. 11-14 . . . 86 art. 11 . . . 157

~.1~~ . . . n8 art. 20(1) . . . 85 Regulation 459/68

art. 2 . . . 36 Regulation 1411/77 (OJ 1977 L160/4)

art. 1. . . . 216 Regulation 3017/79/EEC General antidumping Regulation (OJ 1979 L339/1) . . . 134, 135 art. 8(1) . . . 156 art. 10(1) . . . 140 art. 11 . . . 140 art. 12 . . . 141 art. 40 . . . 146 Regulation 2176/84

ar.t. 14(1). . . . . . 142 Regulation 1877/85 (OJ 1985 L176/1). . . . . . 145 Regulation 2423/88 Antidumping Regulation

~~1... . . . . 1~

art. 13(3). . . . . . 139 Regulation 4064/89 Merger Regulation . . . 204 Regulation 1391/91 (OJ 1991 L134/1) . . . 145 Treaty of Rome 1957 . . . 127 art. 3 . . . 124

~

... w

(f) . . . 85, 141, 142, 202 art. 5 . . . 202 art. 85 . . . 67, 71-4, 76, 83, 85, 142, 195, 199, 202,203,215-19,240,244,271 (1) . . . D9

0J . . . n9,m

art. 86 . . . 67, 72, 83, 85, 88, 142, 158, 195, 191,202,203,215-19,240,244,256 art. 88 . . . 217 art. 90 . . . 202, 204, 217, 300 arts. 91 . . . 216 (2) . . . 196, 217, 276 arts. 92-94 . . . 216 art. 113 . . . 142 art. 164. . . . . . " . . . 201 art. 173 . . . 138

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xxvüi Table of International Legislation and Agreements

art. 177 . . . . . . . . . . . . . . . . . . . . . . 96, 120, 218 art. 228 . . . . . . . . . . . . . . . . . . . . . . . . . . . 169 art. 238 . . . 201, 205 Treaty of Accession (Greece) . . . 216

(Portugal and Spain)

art. 380. . . . . . . . . . . . 216 (UK, Denmark, and Ireland) . . . . . . . . . . . . . . . 216

Mexico

Economie Competition Act . . . 110, 127, 257 Ch. 3 .. . . 266 art. 1 .. . . .. . . .. . . 271 art. 6 . . . .. . . 72, 76, 273, 274 art. 9 . . . .. . . 258 art. 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . 258, 264, 265 art. 10-VII . . . . . . . . . . . . . . . . . . . . . . . 261, 263 art. 11 . . . 271 art. 12 . . . 271 art. 30 ff . . . . . . . . . . . . . . . . . . . . . . . 258 art. 38 . . . 258 Regulation against Unfair International Tracte Practices

art. 1, para. VIII . . . . . . . . . . . . . . . . . . . 232 art. 13 .. . .. . . .. . 237 art. 15 . . . .. . .. . . . .. .. . 233

art. 16 . . . . . . 234

art. 17.6 . . . . . . . . . . . . . . .. .. . 237 art. 30 . . . . . . . . . . . 233 art. 12 . . . . . . . . . . . . . . .. . 134 Taxation Code

art. 238 . . . . . . . 238

art. 239 . . . . . . . 238

New Zealand

Commerce Act 1986

s. 36 . . . .. 212 s. 36A . . . .. . . 212, 214, 215

United States

Antidumping Act 1916 . . . .. . . 67, 115 Anticumping Act 1921 . . . .. . . .. .. . . 9, 44

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Table of International Legislation and Agreements xxix Clayton Act 1914 . . . . . . . . . . . . . . . . . . 88 s.1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 67 s. 7 . . . .. .. . . 266

Export Trading Company Act 1982. . . . . . . 75

Federal Trade Commission Act 1914

s. 5. . . . . . . . . . . . .. . . 67 s. 45 . . . . .. . . . .. .. . .. .. . . .. . . 261 Foreign Sovereign Immunity Defence Act . . . .. . . 74 Foreign Trade Antitrust Improvement Act 1982 . . . .. .. 69, 75-6, 274 National Critical Technologies Development Corporation Act 1992 296 Omnibus Trade and Competitiveness Act 1988 . . . . .. . . .. 155 s. 1330 . . . .. . . 39 Revenue Act 1916 .. . .. . . .. . .. . . . .. . . 8, 9 Robinson-Patman Act . . . 36,294 s. 2(a) . . . . . . . . . . . . . 260 (b) . . . 261 s. 13 . . . . .. . . .. . . .. .. 261 Sherman Act 1890. . . . . . . . . . . . . . . . 8, 88, 254, 255 s. 1. . . 25, 67, 195, 266, 271 s. 2 . . . . . . . . 67, 195,256, 261,'264, 285 Tariff Act 1930

s. 337. . . . . . . .. . . 153 s. 731. . . . . . . .. 134 Tariffs Act 1816. . . . . . . . . . . . . . . . . . . . . . . 7 Trade Act 1930

s. 337 . . . .. .. . . . 103-9, 114 Trade Act 1974 . . . . . . . . . . . . . . . . . . . . . . . 29 Trade Act 1979 . . . .. .. . . .. . . 9 s. 1673(b)(1)(A) . . . 234 Trade Reform Act 1974 .. . . . .. . . . .. .. . . 29 US-Japan Structural Impediment Initiative. SII . . . .. . . . 287-92, 294 Webb-Pomere Act 1918 . . . 75, 274 19 USC #art 1677(7)(A) (1988) . . . 232

International Agreements

Australia-New Zealand Agreement for Closer Economie Relations art. 21 . . . .. 209 Canada-USA Free Trade Agreement . . . .. .. . . 231-47, 253 Covenant of the League of Nations 1921 ...

art. 21 . . . .. . . .. .. .. 169 EFTA-EEC Agreements . . . 218, 220, 312,215

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xxx Table of International Legislation and Agreements

art. 15 . . . 195-7, 241 art. 17 . . . 198 art. 17(2) . . . 196, 276

~n . . . 1n.1~

art. 25(1) . . . 198 art. 27 . . . 197, 199

w ...

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General Agreement on Trade and Tariffs . . . 232, 233, 285, 301 art. I. . . . 103, 183, 187

w ...

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~ll . . . 1~

art. III . . . 2, 103-6, 187, 310 (4) . . . 105,107, 108, 129 art. VI . . . 9, 10, 35, 36, 41, 64, 103, 106, 134, 208 (1) . . . ~.113

(a) . . . 29, 106 (b )(ii) . . . 112 art. VI(12) . . . 138 art. VI(2) . . . 105 art. VI(4) . . . 28, 113 art. IX(2) . . . 94 arts. XI-XIV . . . 188 arts. XI-XV . . . 187 art. XVI. . . , . . . 27 art. XIX . . . 35, 47, 48

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art. XX . . . 48, 187, 188 art. XXI . . . 48, 316 art. XXIII(1)(b) . . . 303,304

w ...

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art. XXIV . . . 167, 170, 180-2, 185, 189-92, 312 ( 4 )-(9) . . . 184 (4) . . . 185, 186 (5)-(9) . . . 184, 185

0) ...

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oo ...

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m ...

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(~ . . . 1@

(b) . . . 1, 168, 187, 188, 195 (10) . . . 183, 185, 189 (12) . . . 183 art. XXV(5) . . . , . . . 183

(30)

Table of International Legislation and Agreements xxxi Antidumping Code 1967. . . 9 Antidumping Code 1979 . . . 7 art. 1 . . . 185

~.M . . . 9 Antidumping Code 1980 . . . 10

~1 . . . ~

art. 1.4 . . . 106

~2.1 . . . , . . . ~.~

~.22 . . . ~

art. 2.4 . . . 29, 38, 106, 112

~.~ . . . ~113

art. 3 . . . 232 art. 3.1 . . . 35, 113

~32 . . . ~.~

art. 3.3 . . . 38, 39 art. 3.4 . . . 35, 36, 38, 52, 134, 135, 161

~5 . . . ~

art. 5.1. . 40

~52.. .~

art. 5.4. . . 41

~5.8.. .~

art. 6.12 . . . 154, 162 art. 8 . . . 139, 152, 235 art. 8.1 . . . 41, 134

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art. 92. . . . . 49 art. 11.3 . . . 42 Resolution of 5 Nov 1958 GATT Documents BISD: 29 . . . 64 Havana Charter-Final Act of the United Nations Conference on Tracte and Employmen-1948 . . . 9, 27, 59, 182, 282 h.ll . . . 1~

Ch.

rr ...

283

~w.. .~

Ch. VIII . . . 62 art. 1 . . . 60 art. 15 . . . 180

~~.... .~

arts. 46-54 . . 61

art. 46(1)-(3) . 61

~.~.... .~

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~.n

~.51 . . . , . . . ~ . . . ~

International Chamber of Commerce Code on Investment . . . 89-90

(31)

xxxii Table of International Legislation and Agreements Memorandum of Understanding between US and Canada

art. 2( 6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 art. 5 . . . .. . . .. . . 81 art. 6 . . . .. . . ." . .. . . .. . 81 art. 7 . . . ... . . .. .. . . .. 81 art. 8 . . . .. . . .. . . 81 Multilateral Agreement on Steel Trade Liberalization (Draft)

art. 4.3 . . . .. .. . . .. . . 94 North American Free Trade Agreement . . . 67,71-7, 133, 171, 176, 199, 209-11,221,231-47,254,283,285,302,305 Ch. 15. . . . . . . . . . . . . . . . . . . . 240, 242 Ch. 17 . . . .. . . 266 Ch. 19 .. . . .. .. . . 232, 238, 240 art. 301 . . . .. .. . . 2, 103, 105, 310 art. 1501 . . . . . . . . . . . . . . . . . . . . . . . . . 240 art. 1501.1 . . . . . . . . . . . . . . . . . . . . . . . . . . 257 art. 1502.3 . . . .. . . 241 art. 1502.3(d) . . . 241, 242 art. 1503( d) . . . . . . . . . . . . . . . . . . . . . . . . 71 art. 1504 . . . . . . . . . . . . . . . . . . . . . . . . . . . . 243 art. 1507 . . . . . . . . . . . . . . . . . 287 arts. 1714-1718 . . . .. . . 267 art. 1903 . . . . . . . . . . . . . . . 196, 240 art. 1904.13(a)(iii) .. . . .. .. . . .. . . 239 art. 1904.3 . . . . . . . . . . . . . . . . . . . . . . . . . 236 art. 1905 . . . .. . . 239, 240 art. 1907.2 . . . .. . . 243 art. 1909 .. . . .. . . .. . . 236 art. 2001 . . . . . . . . . . . . . . . . . . . . . . . . . . 236 art. 2020 . . . . . . . . . . . . . . . . . . . . . . . 242 Annex. 1904.13(2) .. . .. . . .. .. . . 240 Annex. 1904.15 . . . 233 Annex 1904.15, Sched. C, point 20 . . . . . . . . . . . . . . . 239 OECD Code on Multinationals 1976 .. . . 92

Constitution

art. 6 . . . .. . . .. 92 Declaration on Multinational Corporations . . . . . . . . . . . . . 86-7 Recommendation of 5 October 1967 . . . 77, 80 Recommendation of 14 December 1971 . .. . . .. . . 136 Recommendation of 3 July 1973 . . . . .. . . .. . . 77, 84 Recommendation of 21 Januory 1974 . . . 78 Recommendation of 25 September 1979. . . . . . . . . 78, 81 Recommendation of 21 May 1986 . . . 78, 79, 83, 93, 241, 272, 315

(32)

Table of International Legislation and Agreements Recommendation of 23 October 1986 . . . . .

Pt. 5 . . . .. . Protocol on the Acceleration of Pree Trade in Goods

xxxiii . .. 136 . . 137 art. 4 . . . . . . . . . . . . . . . . 211 Statute of the International Court of Justice

art. 38(1)(c) . . . . . . . . . . . . . . . . . . . 118 Structural Impediment Initiative (Japan and US) . . . .. . 32 Trans-Tasman Agreement for Closer Economie Relations . . . . 209, 210, 221,244,268,271,312

art. 12 . /..11

art. 13 . 211

art. 15 . 210

art.17(1). . 211

(3) . . 211

(6) . . 211

art. 22 . . . . . . 211

Treaty of Mutual Assistance on Criminal Matters 1985 (US &

Canada) . . . .. . . 81, 273 art. III, para. 1 . . . . . . . . . . . . . . . . . . . . . 82 UNCTAD Code on Restrictive Business Practices . . . 88, 92, 302 United Nations Charter

art. 2(7) . . . .. 292, 305, 318 art. 52 . . . .. .. . . .. .. . . .. .. 169 US-Australia Antitrust Agreement 1982

art. 1. . . 82

art. 2. . 83

art. 5. . . 83

art. 6. . . 83

GUS-CEC Agreement on Competition Laws 1991 (US & European Community) . . . .. . . .. 94, 208, 241, 271, 282

art. I( d) . . . . 85

art. II . . . . . 83

art. III-1 (b) . . 84

art. IV. . 83

art. V . . . . . 84

art. V-4 . . 86

art. VI. . . . . . . . . . . . . . . . . . . 85 art. VI-l. . . . . . . . . . . . . . . . . 85 art. VII. . . . . . . . . . . . . . . . . . . . 306

art. VII-2 . . 84

art. VIII . . . . . . . . . . . . . . 85 art. IX. . . . . . . . . . . . . 86 US-Germany Agreement of 1976

(33)

xxxiv Table of International Legislation and Agreements art. 3 . . . .

art. 4(1) . . . US-Germany Agreement on REPs of 1984

art. 6.

art. 7 . . . .

. 82 . 82 . 83 . 83

(34)

List of Abbreviations

ABA AG

Am. Univ. J

!nt. L. & Pol.

Am. Univ. L.R.

Ann. fran. droit int.

Antidumping L. & Prac.

Antitrust L.J.

APO

Aus. Bus. L.R.

Aus. Var R. BEUC BLR Boston Coll.

!nt. & Camp. LR.

Brooklyn J. !nt. L.

CAFC Calif J. !nt. L.

Calif W !nt. L.J Can. BarR.

Can. Bus. L.J.

Canada-US L.J.

Case West. Reserve L.R.

CCA CITI CMLR

Colum. J. !nt. L.

Colum. J Transn. L.

Colum. L.R.

Cornell !nt. L.J.

Cornell L.R.

DGIV DLR DOJ Duke L.J. ECLR

American Bar Association Advocate General

American Universities Journal of International Law and Policy American Universities Law Review Annales français de droit international Antidumping Law and Practice Antitrust Law Journal

administrative protection arder Australian Business Law Review Australian Bar Review

Bureau Européen de l'Union des Consomateurs

Business Law Review

Boston College International and Comparative Law Review

Brooklyn Journal pf International Law Cour d'Appel, Cour Federal

California Journal of International Law California Western International Law Journal

Canadian Bar Review

Canadian Business Law Journal Canada and United States Law Journal Case Western Reserve Law Review Canadian Competition Act

Canadian International Trade Tribunal Common Market Law Review

Columbia Journal of International Law Columbia Journal of Transnational Law Columbia Law Review

Cornelllnternational Law Journal Cornell Law Review

Directorate General IV Dominian Law Reports US Department of Justice Duke University Law Jouc..nal European Competition Law Review

(35)

xxxvi List of Abbreviations ECR

EEA ELR EFTA

EFTA-EEC FTAs EIPR

ELR

Euro. Bus. L.R.

Europe Agreements

Fed. L.R.

FT FTC

Ga. J. Int. & Comp. L.

GATS GATT Geo. L.J.

Geo. Wash. J. Int. L. Econ.

Germ. Yb. Int. L.

GUS-CEC

Harv. Bus. Rev.

Harv. Int. L.J.

Harvard Bus. R.

Hastings Int. & Camp. L.R.

HLR ICC ICLQ ICSID

ILM

Int. Bus. Lawyer Int. Herald Trib.

Int. L. & Pol.

European Court Reporter European Economie Association Agreement

European Law Review

European Free Trade Agreement

Free trade areas between the EEC and the EFTA countries

European Intellectual Property Review European Law Review

European Business Law Review The free-trade agreements between the EEC and Poland, Czechoslovakia, and Hungary

Federal Law Review Financial Times, London Federal Trade Commission

Georgia Journal of International and Comparative Law

General Agreement of Trade and Services General Agreement on Tariffs and Trade Georgetown Law Journal

George Washington Journal of International Law and Economies

German Yearbook of International Law Agreement on Competition between the Government of the USA and the

Commission of the European Communities Harvard Business Review

Harvard International Law Journal Harvard Business Review

Hastings International and Comparative Law Review

Harvard Law Review

International Chambers of Commerce International and Comparative Law Quarter/y

International Centre for the Settlement of Investment Disputes between States and Nationals of States

International Legal Materials International Business Lawyer International Herald Tribune International Law and Politics

(36)

!nt. Lawyer

!nt. R. L. & Econ.

Israel L.R.

ITC

J. Comm. Mark. Studs.

!. Droit !nt.

J. !nt. L. & Econ.

J. Pol. Econ.

J.L. & Econ.

JWT JWTL

L. & Pol. !nt. Bus.

LDC

Leg. Issues Euro. Integ.

LGDJ LPIB MCA

Melb. Univ. L.R.

MFN

Mich. J. !nt. L.

MNE Mon. U.L.R.

MOU

N.C.J. !nt. L. & Corn. Reg.

NAFT A NW.J. !nt. L.

NW.J. !nt. L. & Bus.

NYJILP NYJILP NYLJ NYULR OECD OJ PCIJ

R. belge D. int.

List of Abbreviations International Lawyer

International Review of Law and Economies

Israel Law Review

International Trade Commission Journal of Common Market Studies Journal de Droit International Journal of International Law and Economies

Journal of Political Economy Journal of Law and Economies Journal of World Trade

Journal of World Trade Law

xxxvii

Law and Policy of International Business less developed country

Legal Issues of European Integration Librairie Générale de Droit et de Jurisprudence

Law and Policy in International Business Mexican Competition Act

Melbourne University Law Review most-favoured nation

Michigan Journal of International Law Multi-national Enterprise

Monash University Law Review Memorandum of understanding North Caro/ina Journal of International Law and Commercial Regulation North American Free Trade Are a

Northwestern Journal of International Law Northwestern Journal of International Law and Business

New York Journal of International Law and Po licy

New York Journal of International Law and Politics

New York Law Journal

New York University Law Review

Organization for European Co-operation and Development

Official Journal

Permanent Court of International Justice Revue belge de droit international

(37)

xx:xviü R. Econ. Stud.

R. Int. Bus. L.

RBP

Rec. de Cours Res.

RGD RSC S. Dak. L.R.

SCR SII SIMA SRQ Stanf L.R.

Texas Int. L.J.

Trans-Tasman CER

TRIP Tulane L.R.

Univ. Chic. L.R.

Univ. Chic. Leg. Forum Univ. Penn. L.R.

Vand. L.R.

Virg. J. Int. L.

WTO Yale L.J.

List of Abbreviations

Review of Economie Studies

Review of International Business Law restrictive business practice

Recueil de Cours de la Hague Resolution

Revue générale de droit Reformed Statute of Canada South Dakota Law Review Supreme Court Reports

Structural Impediment Initiative Special Import Measures Act Status Refondus du Quebec Stanford Law Review

Texas International Law Journal

New Zealand-Australia: Closer Economie Relations Trade Agreement

Trade-Related Intellectual Property Tulane Law Review

University of Chicago Law Review University of Chicago Legal Forum University of Pennsylvania Law Review Vanderbilt Law Review

Virginia Journal of International Law World Treaty Organization

Yale Law Journal

(38)

A Note on the GATT 1994/WTO

After the closing date for publication, on 15 December 1993, the Final Act Embodying the Results of the Uruguay Round of Multilateral Trade Negotiations (the 'Final Act') was agreed by the Trade Negotiations Comrnittee representing the 114 contracting parties of the GATI. On the same day, the Final Act was notified to the US Congress. It constitutes the most comprehensive trade package since the Havana Charter, but enjoys much more international support than that still-born post-war agreement.

The Final Act generally follows the structure of the Draft Final Act introduced in December 1991 by the former Director-General Mr Dunkel to reinvigorate negotiations. In this book when the discussion concerns issues treated differently in the so-called 'Dunkel Text' and the actual GATI, reference was made to the Dunkel Text. Comments on the Dunkel Text are therefore directly applicable to the GATI 1994.

One of the most important elements of the Final Act is the establishment of a permanent international organization, the World Trade Organization (WTO), which is intended to supervise and co-ordinate activities under GATI 1994 and integrate all agreements and arrangements concluded under the auspices of the GATI, including an integrated dispute-settlement procedure.

Sorne of the changes brought about by the GATI 1994 in the area of dumping law include the following:¹

1. ·Precisions on terms such as 'profits', 'start-up costs', 'general expenses', and expressions such as 'in the ordinary course of trade'.

2. The introduction of a paragraph on cumulation.

3. The introduction of a requirement that the collective output of the domestic producers initiating an investigation must constitute more than 50 per cent of the total production of the like good of that portion of dornes tic industry expressing support or opposition. No investigation may be undertaken unless initiated by domestic producers representing at least 25 per cent of total domestic production of like product.

4. The de minimis rule on margin of dumping is now based on 2 per cent of the export priee; the de minimis volume of dumped imports has risen from 1 per cent of the domestic market to 3 per cent of imports and/or 7 per cent of the total import share.

5. Rules on access to the information collected during the investigation.

' For a discussion of the new anti-dumping code under the GAIT1994 see Horlick, G., 'How the GATT became Protectionist', JWT 27/5 (1993): 83.

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xl Note on the GATT1994/WTO 6. Criteria for the analysis of threat of injury.

7. A clear statement that there are three conditions-dumping, injury, and causation-which must be respected before anti-dumping duties are imposed.

8. An 18-month duration for investigations.

9. The introduction of considerations for commercial users opposed to the investigation.

10. The introduction of a minimum period of 60 days before preliminary duties may be imposed for a period not exceeding six months.

11. The introduction of a 12- to 18-month retrospective period of analysis and an obligation to refund duties within 90 days of final determination.

12. An express requirement that individual margin of dumping be assessed.

13. The introduction of accelerated proceedings for new exporters.

14. The introduction of a 90-day maximum period after the entry of imports within which duties are to be imposed.

15. New provisions on the duration and review of anti-dumping duties and priee undertakings including the introduction of a five-year manda tory sunset clause.

16. The introduction of various public notice and accessibility obligations by national anti-dumping authorities.

17. The introduction of an obligation for importing states to provide for judicial review mechanisms; grounds for review by panels are determined together with the provisions in a related decision.

18. An interesting provision to the effect that panels shall interpret the relevant provisions of the agreement in accordance with customary rules of interpretation of public international law.

19. Procedures for on-the-spot investigations.

20. Provisions on the 'best information available' used by importing states.

21. A Decision on anti-circumvention procedures.

22. A Decision on the standard of review for Dispute SeUlement Panels.

None of the above amendments affect the discussion within this book. If it is hoped that the GATT 94 will force states to improve transparency in the administration of their national anti-dumping laws, the adopted changes cannat resolve the most fundamental problems of an infiated dumping margin and the quasi presumption of injury. Anti-dumping measures remain restrictions on trade and protection against foreign production.

Changes to Article XXIV may reduce the discretion of member states in drafting the parameters and the content of free-trade agreements and other regional economie arrangements if the new Understanding on the Inter- pretation of Article XXIX of the General Agreement on Tariffs and Trade 1994 is effectively implemented. However, it can still be argued that the right of states to form regional economie arrangements is customary inter-

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Note on the_GATT1994/WTO xli national law and the various expressions of this right can be curbed only by the express desire of member states. Moreover the results of the new bargaining power established by the new binding provisions on procedure, revision, and implementation matters are still to be experienced. It is sug- gested that preferential and discrimina tory treatment in favour of members of free-trade areas during the transition period would remain acceptable and a potentially very beneficiai strategy. The effects on non-members states, and on world tracte generally, will be even more difficult to assess.

Due to important political variables involved in the realization of any free- trade area, valuable assessments will continue to be on a case-by-case basis.

The Final Act is scheduled to be signed by the members in April1994 and its provisions are to enter into force on 1 January 1995 or after the date of the entry into force of the WTO. After all member states ratify the Final Act of the Uruguay Round, obligations und er the old GATT will de facto be phased out. ln the mean time, and in the eventuality that sorne contracting parties do not ratify the Final Act, obligations under the old GATT would still bind the contracting parties. This could lead to a complex situation with different treatments between trading partners depending on what agreements they have signed, and this contrary to the main goal of the negotiations of the Uruguay Round. At the time of the publication of this· book, analysts are optimistic that all114 states are going to ratify the Final Act fairly quickly. These successful negotiations of the Uruguay Round seem to have reinvigorated the hopes of the negotiators of the Havana Charter.

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