Wto Agreement On Subsidies And Countervailing Measures

Where domestic industry is designed to relate to producers in a particular region, i.e. a market within the meaning of paragraph 2, countervailing duties are levied only on the affected products that are shipped to that area for consumption. If the constitutional law of the importing member does not authorize the imposition of countervailing duties on this basis, the importing member may collect the countervailing duties without restriction only if: (a) exporters have had the opportunity to cease exporting at subsidized prices to the territory concerned or to give other guarantees in accordance with Article 18 and, to the extent that no appropriate guarantee has been given. , and in this regard, no reasonable guarantee has been given. , and b) these duties cannot be applied solely to the products of certain producers who supply the area concerned. The establishment of a system of multilateral remedies to enable MEPs to challenge harmful subsidies is a major step forward from WTO regulation. However, in most cases, the difficulty will continue for a complaining member to demonstrate the adverse commercial effects resulting from the subsidies, a fact-intensive analysis that panels can hardly find in some cases (2). The total amount of subsidies granted for the product in question does not exceed 2% of its unit value; or, notwithstanding paragraphs 1 and 2, any final countervailing duty is terminated no later than five years after its introduction (or from the date of the last review in paragraph 2, where the review covered both subsidies and prejudice, or under this paragraph), unless the authorities submit before that date , originally or on the basis of a duly reasoned request for the fact that the expiry of the tariff would likely lead to the continuation or reappearance of subsidies and harm. The obligation may remain in effect until the outcome of such a review.

But there are also fundamental differences that are reflected in the agreements. Interim measures may take the form of interim countervailing duties guaranteed by cash deposits or by obligations equal to the amount of the grant calculated on an interim basis. Article 4 does not apply to a member of a developing country for export subsidies that comply with paragraphs 2 to 5. In this case, the provisions of section 7 apply. Substantive Rules A member cannot impose a countervailing measure unless he finds that there are subsidized imports, harm to a domestic industry and a causal link between subsidized imports and the injury suffered. As noted above, the existence of a specific subsidy must be determined on the basis of the criteria of the first part of the agreement. However, the criteria for injuries and causes are in Part V. One of the main developments of the new SCM Convention in this area is the explicit authorisation to combine the effects of subsidised imports from more than one Member State if certain criteria are met. In addition, Part V contains rules for determining the existence and amount of a benefit.