Subsidy And Countervailing Measures Agreement

4.3 At the request of a consultation under paragraph 1, the alleged member granting or maintaining the grant in question will take these consultations as quickly as possible. The purpose of the consultations is to clarify the facts and reach an amicable solution. (a) the subsidy has the effect of ousting or obstructing imports of a similar product from another member in the subsidizing member`s market; 6.2 Notwithstanding paragraph 1, no serious infringement is found if the subsidizing member demonstrates that the subsidy in question did not produce any of the effects covered by paragraph 3. (c) subsidies to cover a company`s operating losses, with the exception of one-off measures that are not recurrent and cannot be repeated for that company and are granted only to create time for the development of long-term solutions and to avoid acute social problems; A company wishing to ask the U.S. government to initiate a WTO dispute resolution procedure should contact the Department of Commerce`s Office of Enforcement for Subsidies (SEO) to review the steps to be taken under the grant agreement. The role of SEO is to review complaints and concerns of U.S. exporters regarding subsidies and to monitor foreign subsidy practices to determine whether they impede U.S. exports to foreign markets and are inconsistent with the subsidy agreement. The Subsidies and Countervailing Measures Agreement (MCS) addresses two separate but closely related issues: multilateral disciplines governing the granting of subsidies and the application of countervailing measures to compensate for the damage caused by subsidized imports. 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. A subsidy granted by a WTO member government is prohibited by the subsidy agreement if it depends, legally or effectively, on export performance or the use of domestic imported goods.

These prohibited subsidies are commonly referred to as export subsidies or import substitution subsidies. They are considered specific and are considered particularly harmful under the subsidy agreement and U.S. law. (Specific provisions apply to agricultural subsidies under the WTO Agreement on Agriculture.) (c) if, despite the emergence of non-specificity resulting from the application of the principles set out in paragraphs (a) and b), there is reason to believe that the subsidy may indeed be specific, other factors may be taken into account. These factors include: the use of a subsidy program by a limited number of firms, the overriding use of certain firms, the granting of disproportionate amounts of subsidies to certain firms, and the manner in which the responsible authority has exerted great force in the decision to grant a subsidy (3). The application of this paragraph takes into account the extent of the diversification of economic activities under the jurisdiction of the granting authority and the duration of the grant program. The SCM agreement creates two basic categories of subsidies: those that are prohibited, those that can be implemented (i.e. challenged in the WTO or that take countervailing measures).