Page 596 - MANUAL OF SOP

Relevant Wto Jurisprudence

product models. In a situation in which it performs a price comparison
on the basis of a 'basket' of products or sales transactions, the authority
must ensure that the groups of products or transactions compared on both
sides of the equation are sufficiently similar so that any price differential
can reasonably be said to result from 'price undercutting' and not merely
from differences in the composition of the two baskets being compared.
Alternatively, the authority must make adjustments to control and adjust for
relevant differences in the physical or other characteristics of the product.”
24.46. In a WTO dispute US – Hot-Rolled Steel (DS-184), the Appellate Body
interpreted "the term 'positive evidence as follows:

“Positive Evidence relates to the quality of the evidence that authorities may
rely upon in making a determination." It further explained that "[t]he word
'positive' means, that the evidence must be of an affirmative, objective and
verifiable character, and that it must be credible.”

24.47. In a WTO dispute Mexico – Anti-Dumping Duties on Rice (DS-295), the
Appellate Body observed that assumptions by an investigating authority should be
based on positive evidence.

“An investigating authority enjoys certain discretion in adopting a
methodology to guide its injury analysis. Within the bounds of this
discretion, it may be expected that an investigating authority might
have to rely on reasonable assumptions or draw inferences. In doing so,
however, the investigating authority must ensure that its determinations are
based on "positive evidence". Thus, when, in an investigating authority's
methodology, a determination rests upon assumptions, these assumptions
should be derived as reasonable inferences from a credible basis of facts,
and should be sufficiently explained so that their objectivity and credibility
can be verified.”

24.48. In a WTO dispute US – Hot-Rolled Steel (DS-184), the Appellate Body laid
down that Article 3.5 imposes certain requirements on the investigating authorities
when performing a causation analysis

“This provision requires investigating authorities, as part of their causation
analysis, first, to examine all 'known factors', 'other than dumped imports',
which are causing injury to the domestic industry 'at the same time' as
dumped imports. Second, investigating authorities must ensure that injuries

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