Wto Agreement On Subsidies And Countervailing Measures

All members are required to notify the SCM Committee of their laws and regulations on countervailing taxes in accordance with Article 32.6 of the SCM Convention. Members are also required to notify all six-monthly countervailing measures and provisional and definitive countervailing measures at the time of their implementation. Members must also indicate which authorities are responsible for initiating and conducting compensatory investigations. Article 4 shall not apply to a developing country Member in the case of export subsidies consistent with paragraphs 2 to 5. In this case, the provisions of Article 7 are decisive. subsidies which are not specific within the meaning of Article 2; The Committee shall, at the request of an interested developing country Member, examine a specific countervailing measure to verify that it is consistent with the provisions of paragraphs 10 and 11 applicable to the developing country Member concerned. Once completed, countries will no longer be allowed to provide export subsidies for non-agricultural products. From mid-2020, a proposal submitted by the LDC Group will be considered that would allow multi-level LDCs to continue to provide non-agricultural export subsidies while having their GNI per capita below $1,000. According to the latest information available in mid-2020, Bangladesh, PdR Laos, Nepal and Solomon Islands remained below this threshold. Without a decision or clarification of this issue, graduated least developed countries would no longer benefit from the exemption. Few DPJ offers this type of subsidy. According to a recent WTO analysis, Bangladesh and Nepal would be affected by the loss of this flexibility among countries approaching completion in 2020 (WTO/EIF, 2020).

For other countervailable subsidies, the provisions of Article 27(9) shall apply. (34) The provisions of Part II or III may be invoked in conjunction with the provisions of Part V. However, as regards the effects of a given subsidy on the internal market of the importing Member State, only one form of exemption (either a countervailing duty if the conditions of Part V are met, or a countermeasurance under Articles 4 or 7) is available. The provisions of Parts III and V shall not be invoked in respect of measures that are deemed non-countervailable under the provisions of Part IV. However, the measures referred to in Article 8(l)(a) may be examined in order to determine whether or not they are specific within the meaning of Article 2. In addition, in the case of a subsidy referred to in Article 8(2) awarded under a programme which has not been notified in accordance with Article 8(3), the provisions of Part III or V may be invoked but which shall be considered non-countervailable if it is found to comply with the standards referred to in Article 8, paragraph 2. You should also be aware that the Subsidies Agreement obliges the governments of WTO Member States to conduct countervailing duty investigations in a fair manner and in accordance with the procedures set out in the Subsidies Agreement. Governments have the right to lodge a complaint with the WTO under dispute settlement proceedings when countervailing duties are arbitrarily imposed. In particular, under the grant agreement, procedures must be transparent and interested parties must have sufficient opportunities to defend their interests.


Lucio • 17 octubre, 2021

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