Third Country Dumping Investigation Termination: ACE Inhibitors from Germany and Switzerland
[ Last Updated 24 January 2006 ]
Proceedings
1 On 8 April 1999 a Senior Investigator in the Trade Remedies Group, acting under delegated authority from the Secretary of Commerce, formally initiated an investigation into the alleged dumping of ACE inhibitors from Germany and Switzerland. ACE inhibitors are a pharmaceutical used to treat high blood pressure and heart failure.
2 Application for an investigation was made by the Australian Government on behalf of the Australian industry producing ACE inhibitors. The original application for an investigation was lodged with the Australian Government by Merck Sharp & Dohme Australia Pty Ltd (Merck Sharp & Dohme). The application by Merck Sharp & Dohme was supported in writing by another Australian producer of ACE inhibitors, Bristol Meyers Squibb Australia Pty Ltd (Bristol Meyers Squibb). There is no ACE inhibitor industry in New Zealand.
3 An application for a third country dumping investigation involves an industry in a third country (in this case Australia) alleging that goods imported into New Zealand are being dumped and as a result material industry to an industry in that third country has been or is being caused or is threatened. Third country dumping investigations are provided for in section 18 of the Act as follows:
Where the Government of a third country advises the Secretary that--
(a) Goods imported or intended to be imported into New Zealand--
(i) Were produced or manufactured in another country; and
(ii) Have been dumped or subsidised; and
(b) By reason of the dumping or subsidisation,--
(i) Material injury to a domestic industry of a third country (being a country other than New Zealand and other than the country in which the goods were produced or manufactured) has been or is being caused or is threatened; or
(ii) The establishment of a domestic industry of such a country has been or is being materially retarded,--
the provisions of this Act (including, without limitation, sections 10, 11, 14, 15, 16, and 17 of this Act) shall, with all necessary modifications, apply with respect to the effect of those goods on that third country's domestic industry in the same manner as they apply with respect to the effect of those goods on a New Zealand industry.
Termination
4 Section 11(1) of the Act provides as follows:
(1) Where the Minister, at any time before making a final determination under section 13 of this Act, is satisfied in respect of some or all of the goods under investigation, that--
. . .
(d) The application for the investigation has been withdrawn in writing by those New Zealand producers by or on whose behalf the application was made; or
(e) New Zealand producers who previously expressed support for the application for the investigation have withdrawn that support in writing to such an extent that, by reason of section 10 (3) of this Act, the investigation could not have been initiated, --
the Minister shall--
(f) Terminate the investigation with respect to those goods; and
(g) Give notice of such termination.
5 The application for the investigation has been withdrawn in writing by Merck Sharp & Dohme and Bristol Meyers Squibb.
Conclusion
6 The withdrawal of the application in writing by Merck Sharp & Dohme and Bristol Meyers Squibb meets the criteria for the termination of the investigation in section 11(1) of the Act, and the Minister is therefore required to terminate the investigation.
Recommendation
7 If you are satisfied that the application for the investigation has been withdrawn in writing by those Australian producers by or on whose behalf it was made, it is recommended that, pursuant to section 11(1) of the Act, you terminate the investigation and sign the attached Gazette notice notifying the termination of the investigation.
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