Mike Moore's speeches
Renato Ruggiero's speeches,
The WTO Agreement on Subsidies and Countervailing Measures prohibits subsidies on exports
or those conditioned on the use of domestic over imported goods. However, it specifically
defines certain subsidies for the adaptation of existing facilities to meet new
environmental requirements, for assistance to economically-disadvantaged regions of the
country, and for research and development activities of firms or higher education
establishments as non-actionable, or protected from countervailing-duty or
dispute-settlement actions by other WTO members. To qualify for non-actionable status, a
subsidy programme must satisfy specific criteria set forth in the Agreement.
The WTO framework on
non-actionable subsidies was completed on 2 June when the Committee on
Subsidies and Countervailing Measures adopted procedures for the conduct of binding
arbitration regarding the status of these types of subsidies. The Committee previously had
adopted the other elements of the framework, which are formats for the initial
notification of such programmes and for updating notifications.
Agreement provides that governments may notify in advance of implementation subsidy
programmes they consider to be non-actionable. The Subsidies Committee then
reviews these notifications. If there is no consensus in the Committee that a notified
programme meets the Agreement's criteria for non-actionability, any member may request
binding arbitration to resolve the status of the programme. The arbitration body is
required to present its conclusions within 120 days.
Click here for the full text of the arbitration procedures.