§ Mr. Teddy TaylorTo ask the Secretary of State for Trade and Industry if he will make a statement outlining the procedures of the EC Commission for determining normal prices under their anti-clearing procedures; if the producer firms have any entitlement to be advised of the basis of calculations of the Commission; and if the procedures have been approved by the General Agreement on Tariffs and Trade.
§ Mr. Redwood[holding answer 2 April 1990]: In establishing whether dumping is taking place, the Commission assesses whether a product is sold abroad at prices below what is termed the "normal value". In most cases this "normal value" is the price which the foreign supplier charges for comparable sales in his own country. Where there are no such sales, or when they do not permit a proper comparison or are made at a loss, then the normal 510W value may be established, that is to say "constructed", by reference to either the foreign supplier's domestic costs of production or his price to other export markets. The precise procedures are laid down in the Council regulation (EEC) No. 2423/88, which is available in the Library of the House.
Foreign producers involved in anti-dumping proceedings are entitled under the regulation to request to be informed of the essential facts and considerations on which Commission's proposals for definitive anti-dumping duties will be based. The procedures laid down in the regulation for assessing dumping conform with the GATT anti-dumping code.