METI-RIETI International Seminar
Recent State of Play on Anti-dumping and Other
Trade Remedy Measures:
With overviews of Brazil and Japan
Handout
Marco Cesar Saraiva DA FONSECA
Director, Department of Trade Remedies, Ministry of Development,
Industry and Foreign Trade, Brazil
November 4, 2015
Research Institute of Economy, Trade and Industry (RIETI)
http://www.rieti.go.jp/en/index.html
DECOM ‐
State of Play
Marco César Saraiva da Fonseca Director
November 4th, 2015
Tokyo
BACKGROUND
Decree 93.941, 1987
• Introduced the Anti‐dumping Code in the Brazilian Legal System
• The first AD investigation – 1988
• Not a specialized Department
• Based on the European Experience
High tariffs
Several administrative restrictions
3
BACKGROUND
Early 90’s
•
•
•
•
Trade Opening
Unilateral Tariff Reduction
Treaty of Asunción – set up the Mercosur (1991)
Elimination of Administrative Restraints
4
BACKGROUND
1995
• Creation of the WTO
• Claim of the Brazilian Private Sector
• Department dedicated exclusively to deal with trade remedies
• Establishment of DECOM – Department of Trade Remedies
• AD, CVD and Safeguards Regulations
• Based on the European Experience
– Lesser Duty Rule
– Public Interest Assessment
5
Ministry of Development, Industry and Foreign Trade
MDIC
MDIC
DECOM
DECOM
SECEX
SECEX
SI
STI
DECEX
DECEX
DEINT
DEINT
SDP
SDP
SCS
SCS
DEAEX
DEPLA
DECOE
DENOC
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Trade Remedies Institutions in Brazil
‐ DECOM (Department of Trade Remedies)
o
o
o
o
Investigating Authority
Dumping, Actionable Subsidies
Injury and Causality
Safeguards
‐ CAMEX (Chamber of Foreign Trade)
o Decision Authority
o Public Interest Analysis
o Formal proceeding apart from the investigation
‐ RFB (Secretariat of Federal Revenue)
o Collection of duties
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Decision Making Process
Dumping, Subsidies,
Increased Imports
DECOM
Technical
Decision
DECOM
Investigation
Injury and causal link
Final Decision
Chamber of
Foreign Trade
(CAMEX)
GTDC
Recommendation
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CAMEX – Brazilian Foreign Trade Chamber Ministers Council
Higher and Final Resolution Body, composed by the following Ministers:
 Minister of Development, Industry and Foreign Trade (chairman
of the board)
 Minister Chief of Staff
 Minister of Finance
 Minister of Planning, Budget and Management
 Minister of Foreign Affairs
 Minister of Agriculture, Livestock and Food Supply
 Minister of Agrarian Development
9
NEW AD REGULATION ‐ BACKGROUND
o Financial Crisis of 2008
o Great evaluation of Brazilian currency
o Increase of imports
o Consequent impact on the domestic producers
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NEW AD REGULATION ‐ BACKGROUND
o Presidential Elections ‐ 2010
o “Defense” of Brazilian Market (central issue)
o Trade Remedies (relevant instrument)
o Brazilian Industrial and Foreign Trade Policy
o Shorter deadlines (from 15 to 10 months)
o Mandatory preliminary determinations (120 days from the initiation)
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DECOM’S Development
• INCREASED WORK FORCE
• NEW REGULATION
– PUBLIC CONSULTATIONS
– MANDATORY PRELIMINARY DETERMINATION
– PHASES OF THE INVESTIGATION
– DECISIONS OF THE WTO’S DSB
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DECOM’S Development
• IT TOOLS
• REDUCING LANGUAGE BARRIERS:
– NOTIFICATIONS
– QUESTIONNAIRES
– SUBMISSION OF DOCUMENTS IN EITHER ONE OF
THE THREE OFFICIAL LANGUAGES OF THE WTO
13
DSB’S DECISIONS INCORPORATION INTO THE NEW BRAZILIAN AD REGULATION
• DUMPED IMPORTS
• INJURY THREAT
• ZEROING PROHIBITION
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IMPROVEMENTS – WTO PLUS
• PERIOD OF GRACE
• DEFINITION OF PRODUCT UNDER CONSIDERATION
• DOMESTIC INDUSTRY DEFINITION
• LESSER DUTY
• PUBLIC INTEREST
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Current Structure of DECOM
 Director’s Office
 Registration Office
 1 Director
 1 Division Manager
 1 Chief of Cabinet
 5 Administrative Staff
 3 Foreign Trade Analysts
 5 Administrative Support
 Each General Coordination
 1 General Coordinator
 13 Foreign Trade
Analysts
16
Statistics Data
• If an investigation covers imports from 3
countries, it is counted as 3
initiations/measures.
• Both originals investigations as reviews are
included.
17
Brazilian Experience in Operating
Trade Remedy Systems
• Concentration on dumping investigations
– 96,5% of all trade remedies proceedings initiated by
Brazil were related to dumping (original investigations
and reviews);
– 2,4% were subsidies investigations; and
– 1,1% were related to safeguards (original investigations
and reviews).
18
Petitions (2005‐2015)
140
125
120
100
80
60
73
72
56
55
40
53
48
45
41
33
29
20
0
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
19
Petitions (2005‐2015)
1%
26%
Initiated
57%
16%
Denied
Withdrawn
Under analysis
20
Investigations Initiated (1988‐2015)
80
70
65
67
60
50
45
40
40
30
30
29
22
20
11
10
20
19
18
17
19
24
19
19
16
15
10
27
24
13
13
10
5
0
2
2
2
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
212015
Investigations Initiated (1988‐2015)
1988‐2009 Sum
2010‐2015 Sum
44%
56%
22
Measures applied (1988‐2015)
50
45
43
42
40
35
31
30
25
20
20
19
16
15
9
8
5
0
4
3
3
10
9
6
5
6
17
16
13
10
19
15
12
11
8
6
3
0
0
1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
23
Investigations Initiated by Brazil (1988‐2015)
4%
37%
Definitive duty
55%
Duty and undertaking
Undertakings
No measure applied
Ongoing investigation
2%
2%
24
Thank you!
ありがとう
marco.fonseca@mdic.gov.br
+55 61 2027‐7770
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