Members Reiterate concerns on Lack of Transparency with Subsidy Notifications

· Deadline to submit new and full subsidy notifications is 30 June 2023.

· Committee went over the semi-annual reports of countervailing duty actions submitted by Australia, Brazil, Canada, China, Colombia, the European Union, India, the United Kingdom, the United States and Viet Nam.

· Republic of Korea raised concerns about the European Union's Foreign Subsidies Regulation that entered into force in 2023

Missing notifications regarding members’ subsidies continued to be the major matter of concern at a meeting of the WTO’s Committee on Subsidies and Countervailing Measures on 2 May. Both the Committee Chair, Sally Bardayán Rivera (Panama), and delegations highlighted the chronic low compliance with members’ WTO notification obligations.

The Chair noted that despite reminders to members to submit their subsidy notifications on time, 88 members - more than half of the WTO membership - have still not submitted their 2021 notifications, which were due by mid-2021. In addition, 75 members still have not submitted their 2019 subsidy notifications, while 64 have still failed to submit their 2017 notifications.

The Chair strongly urged all WTO members to submit their notifications as soon as possible, and to use the technical assistance available through the WTO Secretariat if help is needed in filing the notifications. She also reminded members of the 2023 notification cycle, noting that the deadline to submit new and full subsidy notifications is 30 June 2023.

Eight delegations took the floor to urge members to step up their efforts and ensure both timely submission of notifications as well as complete notifications, including all subsidy programmes that fall under the disciplines of the WTO's Agreement on Subsidies and Countervailing Measures (SCM Agreement).

The Committee continued to discuss the revised proposal submitted by the United States for ensuring timely responses to questions posed by members under Article 25.8 of the SCM Agreement.

Review of subsidy notifications from members

The Committee reviewed new and full subsidy notifications for 2021 submitted by the Dominican Republic, the European Union (pertaining to Malta), Guyana, Mali and Myanmar.

The Committee continued its review of 2021 subsidy notifications from Canada, China, the European Union (also pertaining to Denmark and Hungary), India, the Republic of Korea, Mexico, Montenegro, Philippines and Switzerland.

The Committee also continued its review of 2019 notifications from China, the Dominican Republic, the European Union (pertaining to Portugal) and the Russian Federation as well as a 2015 notification from China.

The Committee continued discussions on a proposal from Australia, Canada, the European Union, Japan, the United Kingdom and the United States to amend procedures for the review of new and full subsidy notifications.

National legislation

The Committee reviewed new notifications of countervailing duty legislation submitted by El Salvador, Iceland, the United Kingdom and the United States and continued its review of the legislative notifications from Saint Kitts and Nevis, Cameroon, the European Union, Ghana and the United Kingdom.

Semi-annual reports of members on countervailing duty actions

The Committee went over the semi-annual reports of countervailing duty actions submitted by Australia, Brazil, Canada, China, Colombia, the European Union, India, the United Kingdom, the United States and Viet Nam.

In addition to the semi-annual reports, the SCM Agreement requires members to submit notifications without delay of all preliminary and final countervailing duty actions taken. Reports received from Australia, Brazil, Canada, the European Union, India, Türkiye, the United Kingdom and the United States were reviewed by members.

Other matters

China placed a separate item on the agenda regarding alleged subsidies policies and measures adopted by the United States. China's intervention focused on the United States' Inflation Reduction Act of 2022 (IRA) and the CHIPS Act of 2022, both of which, according to China, contain provisions inconsistent with the SCM Agreement.

The United States reiterated that the relevant measures are in line with WTO commitments and urged China to be as transparent with its support programmes as the United States has been with its programmes.

Australia, Canada, the European Union, Japan, the United Kingdom and the United States once again placed a separate item on the agenda regarding subsidies and overcapacity. Co-sponsors referred to two reports by the Organisation for Economic Co-operation and Development (OECD) entitled “Government Support in Industrial Sectors: A Synthesis” and "Government Support and State Enterprises in Industrial Sectors: An Overview". China, along with the Russian Federation, reiterated that overcapacity is a problem with multiple causes other than subsidies.

Australia, Canada, the European Union, Japan, the United Kingdom and the United States again placed a separate item on the agenda regarding China’s publication and inquiry point obligations under China's Protocol of WTO Accession. Co-sponsors expressed their concerns with respect to China's commitment to publish all trade-related measures in a single journal and to provide, upon request of WTO members, all information relating to the measures required to be published.

In response, China emphasized that the COVID-19 pandemic brought difficulties to the internal work of the government, but that the inquiry point has worked hard to overcome these challenges. China also reiterated that members could contact the inquiry point and it would fulfil its transparency commitments as long as the requested information is within the scope of its publication and inquiry point obligations.

The Chair reported to the Committee on the reports she submitted to the Council for Trade in Goods, in the context of WTO reform, regarding the functioning of the Committee and the response to the pandemic. Members engaged in a discussion on how this Committee should pursue these issues.

The Chair reported to the Committee on the transparency session held on 12 April 2023 regarding joint work on subsidies by four international organizations (International Monetary Fund, OECD, World Bank Group and the WTO) and the related creation of a subsidy database by the Secretariat. Under this agenda item, WTO Deputy Director-General Anabel González informed members about the background to this project and provided explanations on the ongoing work.

Under other business, the European Union introduced its proposal (WT/GC/W/864) submitted in the context of the General Council regarding WTO deliberations on state interventions in support of industrial sectors. It suggested that members create, during the WTO's 13th Ministerial Conference next February, a member-driven dedicated space for these discussions, as their scope goes beyond the current parameters of the SCM Agreement.

In addition, the Republic of Korea raised concerns about the European Union's Foreign Subsidies Regulation that entered into force in 2023. In response, the European Union indicated that the relevant regulation did not fall within the scope of the SCM Agreement and noted that the implementation process was still ongoing and that comments would be considered in the public consultation process.