US Asks for Info on
Subsidies at WTO
· Revised proposal submitted by the United States for ensuring
timely responses to questions posed by members under Article 25.8 of the SCM Agreement.
Article 25.8 states that any member may, at any time, make a written request for
information on the nature and extent of any subsidy granted or maintained by another
member
The need to improve transparency through the submission of timely
and complete subsidy notifications was once again a key theme at the WTO’s Committee
on Subsidies and Countervailing Measures, which met on 26 April.
Eleven
members took the floor at the start of the meeting to express their strong opposition
to the invasion of Ukraine. The Russian delegate responded by saying that the WTO
was not the proper venue for a discussion of this nature.
The chair
of the committee, Ms Noriko Teranishi
of Japan, once again highlighted the problem of missing subsidy notifications. The
WTO's Agreement on Subsidies and Countervailing Measures (SCM) requires WTO members
to submit notifications of any subsidies they provide which are “specific”, i.e.
subsidies given to a particular enterprise or industry, or a group of enterprises
or industries.
The most
recent background
note
prepared by the WTO Secretariat shows that between 1995 and 2019, the percentage
of members that have failed to make a notification rose sharply as WTO membership
increased, from 25% to 58%, a record high.
Despite
reminders to members to submit their notifications in time, 94 members have still
not submitted their 2021 notifications, the chair noted, despite the deadline being
mid-2021. In addition, 78 members still have not submitted their 2019 subsidy notifications,
and 67 have still failed to submit their 2017 notifications. The chair strongly
urged all WTO members to submit their notifications as soon as possible and use
the technical assistance available through the WTO Secretariat if help is needed
in filing the notifications.
Seven
delegations took the floor to urge members to step up their efforts and ensure timely
submission of notifications.
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. Article 25.8 states that any member may,
at any time, make a written request for information on the nature and extent of
any subsidy granted or maintained by another member, or for an explanation of the
reasons for which a specific measure has been considered as not subject to the requirement
of notification.
The committee
reviewed new and full subsidy notifications for 2021 submitted by Albania, Australia,
Brazil, Canada, Chile, China, Costa Rica, Ecuador, El Salvador, the European Union
and its member states, Georgia, Honduras, Hong Kong China, Iceland, Israel, Japan,
Kazakhstan, the Republic of Korea, Liechtenstein, Madagascar, Malaysia, Mauritius,
New Zealand, Norway, the Philippines, Seychelles, Singapore, Chinese Taipei, Thailand,
Ukraine, the United Kingdom and the United States.
The committee
continued its review of 2021 subsidy notifications from Cambodia, Montenegro, Macao
China and Lao PDR as well as 2019 subsidy notifications from Argentina, China, the
Dominican Republic, the European Union, Indonesia, Mexico, Russia and the United
States. The committee also continued its review of a 2017 notification from Mexico,
a 2015 notification from China, and a 2009 notification from Gabon.
The committee
continued discussions on a proposal from Australia, Canada, the
European Union, Japan, New Zealand, Chinese Taipei, the United Kingdom and the United
States to amend procedures for the review of new and full subsidy notifications.
The committee
reviewed new notifications of countervailing duty legislation submitted by Brazil,
Cameroon, India and the United States and continued its review of the legislative
notifications of Cameroon, India, Saint Kitts and Nevis, Peru, Ghana and Kenya.
The committee
went over the semi-annual reports of countervailing duty actions submitted by Australia,
Brazil, Canada, China, Colombia, the European Union, India, Mexico, Peru, Chinese
Taipei, Turkey, 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, China, the European Union, India, the United
Kingdom and the United States were reviewed by members.
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.
Australia,
Canada, the European Union, Japan, the United Kingdom and the United States also
placed a separate item on the agenda regarding China’s publication and inquiry point
obligations under China's Protocol of WTO Accession.
Under
“other business”, China raised its questions posed to the United States under Article
25.8 of the Agreement.