korea – anti-dumping duties on imports

of certain paper from indonesia

Request for the Establishment of a Panel by Indonesia

            The following communication, dated 16 August 2004, from the delegation of Indonesia to the Chairperson of the Dispute Settlement Body, is circulated pursuant to Article 6.2 of the DSU.

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            On 4 June 2004, the Republic of Indonesia ("Indonesia") requested consultations pursuant to Article 4 of the Understanding on Rules and Procedures Governing the Settlement of Disputes ("DSU"), Article XXII:1 of the General Agreement on Tariffs and Trade 1994 ("GATT"), and Article 17 of the Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade 1994 ("AD Agreement") regarding the imposition by the Republic of Korea ("Korea") of definitive anti-dumping duties on imports of business information paper and uncoated wood-free printing paper from Indonesia[1] and certain aspects of the investigation leading thereto.  The request was circulated on 10 June 2004 as document WT/DS312/1, G/L/681, G/ADP/D54/1.  Korea and Indonesia held consultations in Geneva on 7 July 2004.  However, consultations have failed to settle the dispute.

            Article 1 of the AD Agreement requires that "[a]n anti-dumping measure shall be applied only under the circumstances provided for in Article VI of GATT 1994 and pursuant to investigations initiated* and conducted in accordance with the provisions of [the AD] Agreement" [*footnote omitted].  Indonesia considers that Korea's definitive anti-dumping duties on imports of business information paper and uncoated wood-free printing paper from Indonesia do not meet these requirements.  In this regard, Indonesia notes the following:

Relating primarily to the initiation of the investigation

            1.         Korea initiated the investigation notwithstanding its failure to make a determination that the application had been made by or on behalf of the domestic industry.  This is inconsistent with Article 5.4 of the AD Agreement.

            2.         Korea's determination that business information paper and uncoated wood-free printing paper are like products is inconsistent with the definition of "like products" as set out in Article 2.6 of the AD Agreement. Consequently, the definition of "domestic industry" utilised by Korea in its determination that the application has been made by or on behalf of the "domestic industry" is flawed.  For this reason, Korea's initiation of the investigation is inconsistent with Article 5.4 of the AD Agreement.