Transparency
Remains Core Priority in Work of Subsidies Committee
The Committee on Subsidies and
Countervailing Measures (SCM) met under the chairmanship of Mr. Jungsoo
Hur (Republic of Korea), with discussions centering
on transparency and compliance with subsidy notification obligations under the
SCM Agreement.
Chair Hur reiterated
that submission of subsidy
notifications is the Committee’s most fundamental transparency
obligation and expressed serious
concern over persistently low compliance despite ongoing
capacity-building efforts by the WTO Secretariat.
·
As of
the meeting date, 113
members had yet to submit their 2025 new and full subsidy notifications
(due 30 June 2025).
·
80
members had
not submitted 2023 notifications, and 81
had not submitted 2021 notifications.
·
Several
members have never
submitted notifications or have not done so in several years.
The Chair urged all
members to submit complete
notifications promptly, emphasizing the importance of
collective transparency. Nine members supported the Chair’s call and commended
the Secretariat’s continued technical assistance and training initiatives.
The Committee reviewed 2025 new and full notifications
from Cuba, Honduras, Jordan,
Macao (China), New Zealand, Chinese Taipei, and Timor-Leste, as well as
pending notifications from Jordan
and others from earlier cycles.
It also continued reviewing 2023
notifications from Albania,
Australia, China, Eswatini, India, Kazakhstan, and Norway, and a 2019 notification from the Russian
Federation.
Legislative
notifications from Argentina,
Iceland, Nepal, Sri Lanka, Türkiye, the United States, and Viet Nam were examined. The
Committee also continued reviewing those of the European Union, Saint Kitts and Nevis, and Solomon Islands.
Members considered semi-annual reports on
countervailing duty actions for January–June
2025 from Australia,
Canada, China, Colombia, the EU, India, Peru, Türkiye, the UK, the US,
and Viet Nam.
The Committee also reviewed notifications on preliminary and final countervailing measures
from Australia, Brazil,
Canada, the EU, the UK, and the US.
The Chair urged regular and timely submissions of such reports to ensure effective review and transparency.
·
The
Chair recalled the 31
December 2015 deadline for elimination of export subsidies by
members granted “fast-track” extensions under Article 27.4. Of 19 such members,
four are yet to submit
the required final notifications.
·
The
Committee adopted its
report to the Council
for Trade in Goods (CTG) on recent actions and potential future
measures to improve notification compliance.
·
Members
discussed specific agenda items, including:
o GNP
per capita calculations (UK
proposal)
o France’s
electric vehicle subsidy programme
and UK’s electric car grant
(Republic of Korea)
o US
discriminatory subsidy policies
(China)
o Subsidies
and industrial overcapacity
(Australia, Canada, EU, Japan, UK, US)
o China’s
First Set Technology Equipment Programme
(United States)
The Committee also
adopted its 2025 annual
report to the CTG.
At a meeting of
the Committee on Subsidies and Countervailing Measures (SCM) on 28 October, Chair
Jungsoo Hur (Republic of Korea) reiterated that members'
submission of subsidy notifications is the most fundamental transparency obligation
under the SCM Agreement. He expressed continued concern over chronically low submission
rates.
The Chair
drew attention to the WTO Secretariat's compendium on notification submission rates,
which is updated twice a year, and recalled the Secretariat's training on notification
obligations held on 21 January 2025. Despite these efforts, he expressed serious
concern over persistent low compliance with subsidy notification obligations.
As of
the meeting date, 113 members had yet to submit their 2025 new and full subsidy
notifications (due on 30 June 2025), 80 members had not submitted their 2023 notifications
while 81 had not submitted 2021 notifications. Many of these members have either
never submitted notifications or have not done so for several years.
The Chair
strongly urged all members to submit complete notifications as soon as possible,
stressing that all members rely on the collective effort to make notified information
available. He also highlighted the Secretariat's technical assistance activities
and encouraged delegations facing difficulties to contact the Secretariat.
Nine members
echoed these calls and commended the Secretariat's continued efforts to support
members in preparing and submitting their notifications, including through targeted
technical assistance.
During
the meeting, the Committee examined 2025 new and full subsidy notifications submitted
by Cuba; Honduras; Jordan; Macao, China; New Zealand; Chinese Taipei; and Timor-Leste.
Additionally, it reviewed outstanding notifications from earlier cycles, notably
from Jordan. The Committee also continued its review of 2023 subsidy notifications
from Albania, Australia, China, Eswatini, India, Kazakhstan and Norway. It also
continued its review of a 2019 notification from the Russian Federation.
The Committee
reviewed legislative notifications submitted by Argentina, Iceland, Nepal, Sri Lanka,
Türkiye, the United States and Viet Nam. It also continued its review of the legislative
notifications of the European Union, Saint Kitts and Nevis, and the Solomon Islands.
Members
reviewed semi-annual reports on countervailing duty actions submitted by Australia,
Canada, China, Colombia, the European Union, India, Peru, Türkiye, the United Kingdom,
the United States and Viet Nam for the period January to June 2025.
The Committee
also considered notifications on preliminary and final countervailing duty actions
from members including Australia, Brazil, Canada, the European Union, the United
Kingdom and the United States.
The Chair
reiterated the need for regular and timely submissions of these reports to ensure
ongoing transparency and effective review by the Committee.
The Chair
recalled the 31 December 2015 deadline for the elimination of export subsidies by
members that received "fast track" extensions under Article 27.4 of the
SCM Agreement. He noted that only 15 of the 19 members that had received extensions
have provided the final required notifications. He called on the remaining four
members to comply without delay.
The Committee
adopted its report to the Council for Trade in Goods (CTG) regarding the actions
taken and discussions on possible future actions to improve submission of notifications.
The Committee
also discussed a range of issues under the following separate agenda items: "GNP
per capita calculations for all WTO Members using the methodology in G/SCM/38"
(item sponsored by the United Kingdom); "France's electric vehicle subsidies
programme" (item sponsored by the Republic of Korea); "United Kingdom's
electric car grant" (item sponsored by the Republic of Korea); "discriminatory
subsidies policies and measures of the United States" (item sponsored by China);
"subsidies and overcapacity" (item sponsored by Australia, Canada, the
European Union, Japan, the United Kingdom and the United States); and "China's
first set technology equipment programme" (item sponsored by the United States).
The Committee
also adopted its 2025 annual report to the CTG.
The spring
and autumn 2026 meetings of the SCM Committee are scheduled to take place in the
weeks of 27 April and 26 October 2026, respectively.