COUNTERVAILING AND ANTI-DUMPING DUTIES BILL

Order for Second Reading read.

The Minister for Trade and Industry (Mr Yeo Cheow Tong): Mr Speaker, Sir, I beg to move, "That the Bill be now read a Second time."

The Countervailing and Anti-Dumping Duties Bill seeks to update and bring the existing Customs (Dumping and Subsidies) Act (Chapter 71) in line with the World Trade Organisation ("WTO") Agreement on Subsidies and Countervailing Measures as well as the WTO Agreement on Anti-Dumping Measures. When enacted, the new Countervailing and Anti-Dumping Duties Act will replace the existing Customs (Dumping and Subsidies) Act.

The existing Act has been in force since 1962. Since then, the international rules governing countervailing measures that can be taken against subsidised imports and anti-dumping measures against dumped imports have been re-negotiated under the various rounds of GATT multilateral trade negotiations, culminating with the conclusion of the Uruguay Round and the birth of the WTO.

As a WTO member, we need to update our existing laws on dumping and subsidies to meet our commitments under the WTO Agreements. This will reaffirm Singapore's status as a responsible trading partner. The detailed rules and procedures in the Bill will also give added assurance and certainty to the local and foreign parties concerned whenever an action is instituted.

New Provisions and Significant Amendments

Mr Speaker, the existing Act already contains the basic framework for anti-dumping and countervailing measures. The new Bill expands on this basic framework, clarifying and putting in place rules and procedures that are in line with the relevant WTO Agreements.

Let me now bring Members through the salient provisions of this Bill:

Definition

First, the Bill sets out clear interpretations of key terms, and expands on the definitions in the present Act.

For instance, the present Act does not specify who constitutes the "domestic industry", the scope of "interested parties" or what are considered "like goods" in any particular case. In the Bill, the scope of the "domestic industry" has been defined to mean domestic producers of like goods. "Like goods" in turn are defined to mean goods which are determined to be identical in all aspects or which most closely resemble the goods which are being dumped or subsidised. Similarly, "interested party" is now defined in the Bill to include producers, exporters, importers of the subject goods, trade or business associations representing these groups, the government or the producer's country and the domestic industry.

The definitions clearly explain who can file a petition against dumped or subsidised imports, and allow the authorities to assess whether the dumped or subsidised goods are in fact causing injury to the particular domestic industry. Provisions for Procedures on Anti-Dumping and Countervailing Actions

Another key improvement to the existing Act is the inclusion of clear and detailed provisions to ensure transparency and consistency in the procedures for anti-dumping and countervailing actions. These are in line with the disciplines set forth in the WTO Agreement on Subsidies and Countervailing Measures as well as the WTO Agreement on Anti-Dumping Measures.

For example, when a particular domestic industry has sufficient proof that it is suffering injury from unfairly-priced imports, it can petition the Government to take action. If there is sufficient proof, the authorities will carry out thorough investigations according to the detailed procedures stipulated in the new Bill. These include questionnaires, invitation for comments from interested parties and on-site verifications. These investigations must be concluded within a year after initiation, and within 18 months in special circumstances. This ensures that complaints are processed expeditiously, minimising interruptions to or uncertainties over the trade concerned.

If the investigations conclude that the goods have indeed been dumped or were subsidised and that the domestic industry in question was consequently injured, anti-dumping and countervailing duties can then be imposed. Such duties imposed under this Bill will be treated as customs duties and the provisions of the Customs Act will apply in relationship to the collection and enforcement of the duties.

To take into account developments which may take place following the imposition of anti-dumping or countervailing duties, the authorities will conduct periodic reviews to determine whether the duties should continue to remain in place.

In addition, to ensure transparency and fairness to all parties involved, the new Bill establishes an independent Anti-Dumping Tribunal. Interested parties can request the Tribunal to review the final determination in an investigation as well as the final results of a periodic review. Conclusion

Mr Speaker, let me end by assuring Members of this House that Singapore remains firmly committed to the policy of free trade. However, from time to time, unfair trade practices such as export subsidies and dumping may still occur. Where these unfair trade practices cause undue damage to our domestic producers, Singapore is entitled to take action against the injurious exports.

Let me also assure Members that the relevant authorities will carefully scrutinise any complaints made by our domestic producers that they are being injured by subsidised or dumped goods before taking action to impose any anti-dumping or countervailing measures.

Sir, I beg to move.

Question put, and agreed to.

Bill accordingly read a Second time and committed to a Committee of the whole House.

The House immediately resolved itself into a Committee on the Bill. - [Mr Yeo Cheow Tong].

Bill considered in Committee; reported without amendment, read a Third time and passed.