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World Trade:Organization SUBSIDIES AND COUNTERVAILINGMEASURES
:Prepared by.JANE HAZEL M GUIRIBA
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;bsidy
,material injury to an established domestic industry or mate
- .th anti dumping and countervailing duties
of subsidies to exclusively domestic producers
HISTORY
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, -ith tariff concession constituting a non violation nullifi
;ort trade;n on the domestic market
HISTORY
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( ,disciplines
that is prohibition of subsidies that resulted
HISTORY
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HISTORY ,April 15 1994
The Final Act Embodying the Resultsof the Uruguay Round of Multilateral
,Trade Negotiationssigned by ministers in Marrakesh on 15
April 1994
, ,Marrakech MoroccoThe Final Act covers all thenegotiating areas cited in the Punta
del Este Declaration with two.important exceptions
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MISSION
t
he use of subsidiesthe actions countries can take to counter the effects of s
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WHAT IS A SUBSIDY?
:overnment or any public body,egone government revenue goods or service provided by gover
,ient not the cost to the government
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WHAT IS A COUNTERVAILING DUTY?
&o the regular duty other charges
ports which have been found to be subsidized in thefinal determination
Countervailing duty=______________subsidy_____________
subsidized exportedproduct
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TYPES OF SUBSIDIESYellow subsidies
( , ,ing adverse effects injury serious prejudice null
cess in all cases and through countervailing duty
erse effects of the subsidy or imposition of count
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ACTIONABLE SUBSIDIES:Industry
, al injury and material retardation of the establishment o
( , ).easure actions in fact sole basis for such actionsrment of Benefits
mbers Under
;f application of GATT Article XXIII:complaint when a member reduces its bound tariff for a good
.fect of the improved market access through subsidization
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ACTIONABLE SUBSIDIES.
product of another member in the same market or significant price suppr commodity as compared to the average share it had during the previous
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ACTIONABLE SUBSIDIES/IDIES are countervailable actionable
:ited to
group of enterpriseor or group of industries
graphic region within the jurisdiction of the grant
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TYPES OF SUBSIDIESidies
- -that are non specific determined on the basis of
a or conditionsly adhered to
e and horizontal in applicationses
tance to disadvantaged regions and for environment
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TYPES OF SUBSIDIES
idy can avail of remedy measures by bringing the ma
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Prohibited Subsidies Actionable
Request for consultations, including
statement of available evidence regardingexistence and nature of subsidy;
Request for consultations, including statement
of available evidence regarding existence andnature of subsidy and injury caused to domesticindustry (nullification or impairment, or seriousprejudice);
Consultations as quickly as possible; Consultations as quickly as possible;
If no solution w/In 30 days referral toDispute Settlement Body for immediateestablishment of panel;
If no solution within 60 days referral toDispute Settlement Body for establishment ofpanel; composition of panel and terms ofreference within 15 days
Panel may request assistance from PermanentGroup of Experts for binding advice onwhether it is a prohibited subsidy.
Circulation of panel report within 90 days ofdate of composition of panel andestablishment of terms of reference;
Circulation of panel report within 120 days ofdate of composition of panel &establishment ofterms of reference;
MULTILATERAL REMEDIES
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Prohibited Subsidies Actionable
If DSB recommendation is notfollowed within time periodspecified by panel (whichcommences from data of adoptionof the panel/AB report), DSB grants
authorization to complainingmember to take appropriateproportionate countermeasures.
If member does not take stepswithin 6 months from date ofDSBs adoption of panel orAB report, DSB authorizescomplaining member to take
appropriate countermeasures,commensurate to the degreeand nature of adverse effects.
Applicable DSU time periods shallbe half.
MULTILATERAL REMEDIES
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WHAT IS A COUNTERVAILING DUTY?
&o the regular duty other charges
ports which have been found to be subsidized in thefinal determination
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:l rules in ASCM, ,t is any specific subsidy must be causing injury t
.ust conform with ASCM rules
COUNTERVAILING DUTY
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IMPOSING COUNTERVAILING DUTY,sideration or
product under consideration
ed by the government of the country of export or origin
aterial injury or material retardation of growth or the pre
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IMPOSING COUNTERVAILING DUTY, ,potential negative effects on cash flow inventories emplo
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Procedural Process
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Steps in Calculating theSteps in Calculating theSubsidySubsidy
1.Calculation should reflect the amount ofsubsidy found to exist during the period oinvestigation and not simply the facevalue of the financial contribution.
2.Check whether benefit is expensed duringperiod of investigation. Else allocate
3.Calculate per unit subsidy (Article 19.4)during the period of investigation for each
scheme4.Arrive at the total per unit subsidy for all
schemes.
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REFERENCEREFERENCES http://ia.ita.doc.gov/pcp/pcp-subsidy-allegation.html Subsidies Agreement : Countervailing Duty Perspective.
www.icai.org/resource_file/8837Presentation_on_Subsidy.ppt
Trade Remedies: A Tool Kit.www.adb.org/documents/books/trade.../Trade-Remedies-Toolkit.pdf
TRADE POLICY COMMITMENTS AND CONTINGENCY MEASURES.http://docs.google.com/viewer?a=v&q=cache:mJ0f7i5KF1wJ:www.wto.org/english/res_e/boo
Module 3.7 - 3.7 Subsidies and Countervailing Measures.www.unctad.org/en/docs/edmmisc232add15_en.pd
Subsidy Definition. http://www.investopedia.com/terms/s/subsidy.asp
Subsidy -Wikipedia, the free encyclopedia. http://en.wikipedia.org/wiki/Subsidy
Uruguay Round Subsidies and Countervailing Measures (SCM) Agreement
Negotiating History. http://www.worldtradelaw.net/history/urscm/urscm.htm Agreement on Subsidies and Countervailing Measures, Apr. 15, 1994, Marrakesh Agreement
Establishing the World Trade Organization, Annex 1A, THE LEGAL TEXTS: THE RESULTS OFTHE URUGUAY ROUND OF MULTILATERAL TRADE NEGOTIATIONS 275 (1999), 1867 U.N.T.S.14. [Not reproduced in I.L.M.]
WTO|Subsidies and Countervailing Measures Gateway.http://www.wto.org/english/tratop_e/scm_e/scm_e.htm
The GATT Uruguay Round: a negotiating history (1986-1994).http://books.google.com.ph/books?id=_zdx2wjwNeAC&pg=PA221&lpg=PA221&dq=agreem
http://ia.ita.doc.gov/pcp/pcp-subsidy-allegation.htmlhttp://www.adb.org/documents/books/trade.../Trade-Remedies-Toolkit.pdfhttp://docs.google.com/viewer?a=v&q=cache:mJ0f7i5KF1wJ:www.wto.org/english/res_e/booksp_e/anrep_e/wtr09-0d_e.pdf+difference+in+multilateral+and+unilateral+track+in+subsidy&hl=tl&gl=ph&pid=bl&srcid=ADGEESjiDaIgkoInpdP7PmDzEvzqT4S_TxZCpi64mUOkPdtFGNSjjjOLT_XobKqtsKmVphi6tB_oRE7cPpmX418f-QFsdq4pD17dKF9a8by3fjcxK7wbdmlemTkB2_2JiwSPwYelkqEE&sig=AHIEtbQY0kLx3Gxf7OgXpPM9Qp4pDZET6whttp://www.unctad.org/en/docs/edmmisc232add15_en.pdhttp://www.investopedia.com/terms/s/subsidy.asphttp://en.wikipedia.org/wiki/Subsidyhttp://www.worldtradelaw.net/history/urscm/urscm.htmhttp://www.wto.org/english/tratop_e/scm_e/scm_e.htmhttp://books.google.com.ph/books?id=_zdx2wjwNeAC&pg=PA221&lpg=PA221&dq=agreement+on+subsidies+and+countervailing+measures+history&source=bl&ots=n4NKx5DXsi&sig=y6GqUSLHVq0SQnCjjXsboSAZ1qc&hl=tl&ei=Dnl9TMqtCIL-vQOXrbiiAg&sa=X&oi=book_result&ct=result&resnum=4&ved=0CDcQ6AEwAwhttp://books.google.com.ph/books?id=_zdx2wjwNeAC&pg=PA221&lpg=PA221&dq=agreement+on+subsidies+and+countervailing+measures+history&source=bl&ots=n4NKx5DXsi&sig=y6GqUSLHVq0SQnCjjXsboSAZ1qc&hl=tl&ei=Dnl9TMqtCIL-vQOXrbiiAg&sa=X&oi=book_result&ct=result&resnum=4&ved=0CDcQ6AEwAwhttp://www.wto.org/english/tratop_e/scm_e/scm_e.htmhttp://www.worldtradelaw.net/history/urscm/urscm.htmhttp://en.wikipedia.org/wiki/Subsidyhttp://www.investopedia.com/terms/s/subsidy.asphttp://www.unctad.org/en/docs/edmmisc232add15_en.pdhttp://docs.google.com/viewer?a=v&q=cache:mJ0f7i5KF1wJ:www.wto.org/english/res_e/booksp_e/anrep_e/wtr09-0d_e.pdf+difference+in+multilateral+and+unilateral+track+in+subsidy&hl=tl&gl=ph&pid=bl&srcid=ADGEESjiDaIgkoInpdP7PmDzEvzqT4S_TxZCpi64mUOkPdtFGNSjjjOLT_XobKqtsKmVphi6tB_oRE7cPpmX418f-QFsdq4pD17dKF9a8by3fjcxK7wbdmlemTkB2_2JiwSPwYelkqEE&sig=AHIEtbQY0kLx3Gxf7OgXpPM9Qp4pDZET6whttp://www.adb.org/documents/books/trade.../Trade-Remedies-Toolkit.pdfhttp://ia.ita.doc.gov/pcp/pcp-subsidy-allegation.html8/7/2019 Guiriba, Jane Hazel-ASCM
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THANK YOU.THANK YOU.