16 Apr World Trade Organisation Agreement On Subsidies And Countervailing Measures
Applied Subsidies Most subsidies, such as production aid, fall into the applicable category. The applicable subsidies are not prohibited. However, they can be challenged either through a multilateral dispute settlement or by compensatory measures where they infringe the interests of another member. There are three types of side effects. First, there is harm caused to a domestic industry by subsidized imports into the complainant`s territory. This is the only basis for compensatory measures. Second, there is serious prejudice. Severe prejudice is usually due to adverse effects (for example. B relocations) on the subsidizing member`s market or in a third-country market. Unlike prejudice, it can therefore serve as the basis for a grievance related to the injury suffered by a member. Finally, the 1994 GATT benefits are being cancelled or invalidated.
Cancellation or depreciation usually occurs when improved market access, which is likely the result of a reduction in tariffs, is under-subsidized. Part I provides that the SCM agreement applies only to subsidies granted specifically to a company or industry or group of companies or industries and defines both the subsidy and the concept of specificity. In Parts II and III, all specific grants are categorized into two categories: prohibited and applicable (1), and they define specific rules and procedures for each category. Part V defines the physical and procedural requirements that must be met before a member can apply a countervailing measure against subsidized imports. Parts VI and VII define the institutional structure and the modalities for notification and monitoring of the implementation of the SCM Convention. Part VIII contains specific and differentiated treatment rules for different categories of members from developing countries. Part IX contains transitional rules for members of the developed country and the former central plan economy. Parts X and XI include dispute resolution and final rules.
For more information on the Department of Commerce`s efforts to implement the grants, visit the Grant Administration Office`s website. In addition, you can learn more about filing a compensatory tax claim by visiting the import administration website. The petitioners` advice is available via e-mail: Petitioners_Support@ita.doc.gov. Developing countries The SCM agreement recognises three categories of members from developing countries: the least developed countries (LDCs), members with a per capita GNP of less than US$1000 per year, listed in Schedule VII of the SCM Convention, and other developing countries.