Agreement On Subsidies And Countervailing Measures (Ascm)

(d) The subsidy results in the subsidizing member`s market share in a specific primary product or subsidized product (17) increasing from the average share it held in the previous three-year period, and this increase follows a steady trend during a period in which subsidies were granted. 9.4 When a case is referred to the Committee, the Committee immediately reviews the facts and evidence of the effects referred to in paragraph 1. If the Panel finds that such effects exist, it may recommend that the granting member modify the program to eliminate its effects. The Committee presents its findings within one hundred and twenty days from the date the question referred to paragraph 3. If the recommendation is not challenged within six months, the committee authorizes the requesting member to take appropriate action that is consistent with the nature and degree of the effects. Substantive Rules A member cannot impose a countervailing measure unless he finds that there are subsidized imports, harm to a domestic industry and a causal link between subsidized imports and the injury suffered. As noted above, the existence of a specific subsidy must be determined on the basis of the criteria of the first part of the agreement. However, the criteria for injuries and causes are in Part V. One of the main developments of the new SCM Convention in this area is the explicit authorisation to combine the effects of subsidised imports from more than one Member State if certain criteria are met. In addition, Part V contains rules for determining the existence and amount of a benefit. Industrialised countries that cannot receive special and differentiated treatment will be granted for three years from the date the SCM Convention enters into force for them in order to put an end to prohibited subsidies. These subsidies must be communicated to the notifying member within 90 days of the WTO agreement coming into force.

After graduation, countries are no longer allowed to grant export subsidies for non-agricultural products. Starting in mid-2020, a proposal from the LDC group will be considered, which would allow progressive LDCs to continue to provide non-agricultural export subsidies, while their GNI per capita is less than $1,000. According to the latest information available in mid-2020, Bangladesh, PDR, Nepal and the Solomon Islands remained below this threshold. In the absence of a decision or clarification on this issue, LDCs would no longer benefit from the exemption. Few LDCs provide this type of subsidy. According to the latest WTO analyses, Bangladesh and Nepal would be affected by the loss of this flexibility among countries approaching graduation in 2020 (WTO/FEI, 2020). Applied Subsidies Most subsidies, such as production aid, fall into the applicable category.

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