First Anti-dumping Duty and Countervailing Duty Investigation to Target China in Mexico

For the first time in the history of the country's trade remedy system, Mexico will investigate whether certain Chinese programmes fall within the definition of a 'subsidy' and, if so, whether such subsidies are specific, pursuant to the Agreement on Subsidies and Countervailing Measures under the General Agreement on Tariffs and Trade.(1) The investigation also involves imports from India.

The investigation also raises the issue of whether two forms of corrective measure - anti-dumping duties and countervailing duties - are permitted by the World Trade Organisation using a methodology that is based on a price or cost comparison in a surrogate market economy country (ie, Singapore or Spain, with the normal value being determined on the basis of domestic prices in Spain).

The petition relates to tri-hydrated amoxicillin,(2) taking account of the differences between sterile and non-sterile amoxicillin, although both are being considered for the purpose of the investigation. The period of investigation for dumping data is January 1 2010 to December 31 2010; the period of investigation for injury data is January 1 2007 to December 31 2010.

The Chinese subsidy programmes relate to income tax and other tax incentives, other subsidy programmes, the supply of public goods and services by the government at below-market prices and financing programmes and preferential loans.

The named Chinese respondents are Harbin Pharma Group Co Ltd, Hebei Zhongrun Co Ltd, Wenda Co Ltd and Zhuhai United Laboratories Co Ltd. The named Indian respondents are Aurobindo Pharma Ltd, Elder Pharmaceuticals Ltd, Nectar Lifesciences Ltd, Parabolic Drugs Ltd, Surya Pharmaceutical Ltd and Unimark Remedies Ltd.

Responses are to be submitted 28 business days after initiation. A public hearing is scheduled for December 9 2011.

Endnotes

(1) File 26/2010: an investigation into importation of amoxicillin from China and India, as classified under Item 2941.10.12 of Mexico's Harmonised Tariff Schedule.

(2) Chemical Abstract Service Number 61336-70-7.