Negotiating Group on Rules - Currency Conversions - Paper from Egypt

World Trade Organization TN/RL/W/183 1 July 2005 (05-2845) Negotiating Group on Rules Original: English CURRENCY CONVERSIONS Paper from Egypt The following submission, dated 30 June 2005, is being circulated at the request of the Delegation of Egypt. _______________ The determination of dumping almost always require a currency conversion since the normal value and the export price are normally not expressed in the same currency. Currency conversions for the purpose of determinations are governed by Article 2.4.1 of the WTO Anti-Dumping Agreement (hereinafter, the "AD Agreement"). This Article provides that when a conversion of currencies is required, it should be made using the rate of exchange on the date of sale or, when a sale of foreign currency on forward markets is directly linked to an export sale, the rate of exchange in the forward sale should be used. Since currencies fluctuate in relation to one another, and these fluctuations can ha