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ARTICLES

LEGAL RESOURSES

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    • ARTICLE 64: ELEMENTS THAT THE SE (SECRETARÍA DE ECONOMIA) TAKES INTO ACCOUNT TO DETERMINE THE EXISTENCE OF DAMAGE

     

    For the purposes of article 41 of the Law (LCE: Art. 41), the Ministry (RLCE: Art. 1) will take into account:

  • Regarding the volume of the investigated imports, if there has been a considerable increase of them in absolute terms or in relation to the national production or internal consumption of the country. The Ministry will evaluate whether the investigated imports concur at the internal market to supply the same markets or to the same current or potential consumers of the national producers and if they use the same distribution channels;

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  • Regarding the effects of imports subject to investigation on internal prices:

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  • The behavior and trend of the prices of the investigated imports will be analyzed and if they show a decrease in the investigated period regarding to those observed in comparable periods, or if they are lower than the rest of the imports that are not carried out in conditions of price discrimination or subsidy;

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  • If there is a relationship between the decrease in import prices and the growth of imported volumes;

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  • If the investigated imports have a sale price considerably lower than the comparable sale price of the similar national product, or, if the effect of the investigated imports is to depress internal prices in another way, or prevent the reasonable increase that otherwise would have produced, and

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  • If the level of prices at which the investigated imports in the national market concur, is the determining factor in explaining their behavior and participation in the national market;

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  • Regarding the effects of the investigated imports on the national production of identical or similar merchandise, an evaluation of the operations of the industry in national territory must be carried out. Such evaluation should include the impact of the quantities and prices of the investigated imports on all relevant economic factors and indices that influence the condition of the national production, such as:

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  • The actual and potential decrease in sales, profits, production volume, market share, productivity, yields from investments or utilization of installed capacity;

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  • The factors that affect internal prices;

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  • The magnitude of the margin of price discrimination or, in the case of agricultural subsidies, if there has been an increase in the cost of government aid programs, and

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  • Actual or potential negative effects on cash flow, inventories, employment, salaries, growth, the ability to raise capital or investment.

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  • Other elements that it considers convenient, referring to economic factors or indices relevant to the industry in question not contemplated in the previous paragraphs. In this case, the Ministry must identify these factors and explain their importance in the respective determination.