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WTO ANALYTICAL INDEX: SUBSIDIES AND COUNTERVAILING MEASURES

Agreement on Subsidies and Countervailing Measures

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The texts reproduced here do not have the legal standing of the original documents which are entrusted and kept at the WTO Secretariat in Geneva.

> Article 1
> Article 2
> Article 3
> Article 4
> Article 5
> Article 6
> Article 7
> Article 8
> Article 9
> Article 10
> Article 11
> Article 12
> Article 13
> Article 14
> Article 15
> Article 16
> Article 17
> Article 18
> Article 19
> Article 20
> Article 21
> Article 22
> Article 23
> Article 24
> Article 25
> Article 26
> Article 27
> Article 28
> Article 29
> Article 30
> Article 31
> Article 32
> Relationship with other WTO Agreements
> Relationship with Ministerial decisions and declarations
> Annex I
> Annex II
> Annex III
> Annex IV
> Annex V
> Annex VI
> Annex VII
> Other Issues

 

> Analytical Index main page


Table of contents     back to top

I. Article 1     back to top

A. Text of Article 1
B. Interpretation and Application of Article 1

1. Article 1

(a) General

(i) “mandatory/discretionary subsidization”

2. Article 1.1

(a) General

(i) Object and purpose of Article 1.1

(ii) Distinction between “financial contribution” and “benefit”

3. Article 1.1(a)(1): “financial contribution”

(a) General

(b) Concept of “financial contribution”

4. Article 1.1(a)(1)(i): transfer of funds

(a) “Direct transfer of funds”

(b) “Potential direct transfers of funds”

(c) Timing of the transfer

5. Article 1.1(a)(1)(ii): “government revenue otherwise due is foregone or not collected”

(a) General

(b) “Categories of revenue”

(c) Members’ tax rules as normative benchmark

(d) “But for” test

(e) Tax exclusion of extraterritorial income as revenue foregone

(f) Footnote 1 to Article 1.1(a)(1)(ii)

6. Article 1.1(a)(1)(iii): government provision of goods or services

(a) “General”

(b) “provides”

(c) “goods”

(i) Concept of “goods”

(ii) Exception

7. Article 1.1(a)(1)(iv): funding mechanism, private bodies

(a) Purpose of Article 1.1(a)(1)(iv)

(b) Requirement for the existence of a financial contribution under Article 1.1(a)(1)(iv)

(i) Government-entrusted or government-directed provision of goods

(ii) “Private body”

(iii) “Type of functions”

(c) Relationship with Article 1.1(b)

8. Article 1.1(b): “benefit is thereby conferred”

(a) “benefit”

(b) “recipient of a benefit”

(c) “is … conferred”

(i) General

(ii) Mandatory/discretionary conferral of a benefit

(d) Passing the benefit through

(e) Rebuttal of a prima facie case of benefit

(f) Relationship of with Article 1.1(a)(1)

(g) Relationship with other Articles

(i) Article 14

(ii) Article 14(c)

(iii) Article 14(d)

(iv) Annex I, item (k)

(v) Annex IV

9. Relationship of Article 1.1 with other Articles

(i) Article 14

(ii) Footnote 1 and Footnote 59

10. Relationship with other WTO Agreements

(a) Article XVI of the WTO Agreement

 
II. Article 2     back to top

A. Text of Article 2
B. Interpretation and Application of Article 2

1. Article 2.1(c)

(a) General

(b) “other factors may be considered”

(c) “account be taken of”

2. Articles 2 3: subsidies falling under Article 3 deemed to be specific

 
III. Article 3     back to top

A. Text of Article 3
B. Interpretation and Application of Article 3

1. Article 3.1(a)

(a) General

(b) “contingent in law … upon export performance”

(c) “contingent … in fact… upon export performance”

(i) De facto contingency

(ii) Treatment of facts in the determination of de facto export contingency

(d) “Export performance”

(i) General

(ii) “produced within or outside the Member”

(e) Relationship with other Articles

(i) Article 4.7

(ii) Article 27

(iii) Footnote 59

(f) Annex VII(b)

(g) Footnote 4

2. Relationship with other WTO Agreements

(a) GATT 1994

(b) Agreement on Agriculture

3. Article 3.1(b)

(a) “subsidies contingent … upon the use of domestic over imported goods”

(i) Contingency

(ii) De facto contingency

(b) Relationship with other Articles

(i) Article 3.1(a)

(ii) Article 27

4. Article 3.2

(a) “grant”

(b) Relationship with other Articles

(i) Article 3.1

(ii) Article 27.4

 
IV. Article 4     back to top

A. Text of Article 4
B. Interpretation and Application of Article 4

1. General

(a) Accelerated procedure and the deadline for the submission of new evidence, allegations and affirmative defences

2. Article 4.2

(a) “include a statement of available evidence”

(i) Concept of statement of available evidence

(ii) Relation with request for establishment of a Panel

(b) Relationship with other WTO Agreements

(i) DSU

3. Article 4.3

(a) “shall be to clarify the facts of the situation”

4. Article 4.4

(a) Relationship between the matter before a panel as defined by its terms of reference and the matter consulted upon

(b) Relationship with other WTO Agreements

5. Article 4.5

(a) Relationship with other Articles

6. Article 4.7

(a) “withdraw the subsidy”

(b) Time-period for withdrawal of measures

(c) Relationship with other Articles

(i) Article 7.8

(ii) Article 19.1

(d) Relationship with other WTO Agreements

(i) DSU

(ii) Agreement on Agriculture

7. Article 4.10

(a) “appropriate countermeasures”

(i) Countermeasure

(ii) “appropriate”

(iii) Footnote 9 of the SCM Agreement

(b) Amount of subsidy as the basis for the calculation of countermeasures

(i) Exception to the requirement of equivalence to level of nullification or impairment

(ii) Factors relevant for the calculation of countermeasures

(c) Relationship with other Articles

(d) Relationship with other WTO Agreements

(i) DSU

8. Article 4.11

(a) Task of the Arbitrators under Article 4.11

(b) Article 4.11 provisions as special or additional rules

(c) Burden of proof

(d) Treatment of data supplied by private entities

(e) Relationship with other WTO Agreements

(i) DSU

 
V. Article 5     back to top

A. Text of Article 5
B. Interpretation and Application of Article 5

1. General

2. Article 5(b)

(a) “nullification or impairment”

(i) General

(ii) Application of a measure

(iii) Existence of a benefit

(iv) Nullification or impairment of a benefit

3. Relationship with other Articles

(a) Article 6.3(c)

(b) Article 7.1

 
VI. Article 6     back to top

A. Text of Article 6
B. Interpretation and Application of Article 6

1. Article 6.1

(a) Expiry of Article 6.1

(b) Relationship with other Articles

(i) Article 27

(ii) Article 31

2. Article 6.3

(a) “The effect of the subsidy”

(b) “like product”

3. Article 6.3(a)

(a) Standing as claimant

(b) Demonstration of displacement or impedance

(c) Relationship with other Articles

(i) Article 6.4

4. Article 6.3(c)

(a) Standing as claimant

(b) “significant price undercutting”

(c) Relationship with other Articles

5. Article 6.7

(a) “imports from the complaining Member” and “exports from the complaining Member”

 
VII. Article 7     back to top

A. Text of Article 7
B. Interpretation and Application of Article 7

1. Article 7.8

(a) General

(b) Relationship with other Articles

(i) Article 4.7

2. Article 7.9

(a) “commensurate with the degree and nature of the adverse effects determined to exist”

(b) Relationship with other Articles

 
VIII. Article 8     back to top

A. Text of Article 8
B. Interpretation and Application of Article 8

1. General

(a) Expiry of Article 8

(b) The Doha Round

2. Article 8.2

(a) Relationship with other Articles

(i) Article 8.3

3. Article 8.3

(a) “notified”

(b) “updates of … notifications”

(c) Relationship with other Articles

4. Article 8.5

(a) Procedures for arbitration

5. Relationship with other Articles

 
IX. Article 9     back to top

A. Text of Article 9
B. Interpretation and Application of Article 9

1. Expiry of Article 9

2. Relationship with other Articles

 
X. Article 10     back to top

A. Text of Article 10
B. Interpretation and Application of Article 10

1. The Doha review mandate

2. Footnote 36

(a) “offsetting”

(b) “any subsidy bestowed directly or indirectly upon the manufacture”

3. Relationship with Article VI of the GATT 1994

4. Relationship with other Articles

 
XI. Article 11     back to top

A. Text of Article 11
B. Interpretation and Application of Article 11

1. Article 11.4

(a) “by or on behalf of the domestic industry”

(i) Requirement to make a determination

(ii) “evidence of industry-wide concern of injury”

(iii) “the Act in effect mandates domestic producers to support the application”

(b) “good faith”

(c) Relationship with Article 5.4 of the Anti-Dumping Agreement

2. Article 11.9

(a) General

(b) Non-application of “de minimis” standard to sunset reviews

 
XII. Article 12     back to top

A. Text of Article 12
B. Interpretation and Application of Article 12

 
XIII. Article 13     back to top

A. Text of Article 13
B. Interpretation and Application of Article 13

 
XIV. Article 14     back to top

A. Text of Article 14
B. Interpretation and Application of Article 14

1. General

(a) “calculate the benefit to the recipient conferred pursuant to paragraph 1 of Article 1”

(i) “benefit”

2. Article 14(c)

3. Article 14(d)

(a) General

(b) Relationship with other Articles

 
XV. Article 15     back to top

A. Text of Article 15
B. Interpretation and Application of Article 15

1. Footnote 46

(a) “characteristics closely resembling”

2. Relationship with other Articles

 
XVI. Article 16     back to top

A. Text of Article 16
B. Interpretation and Application of Article 16

 
XVII. Article 17     back to top

A. Text of Article 17
B. Interpretation and Application of Article 17

1. Article 17.3

(a) General

(b) Relationship with other Articles

(i) Article 20

2. Article 17.4

(a) General

(b) Period of application

(c) Relationship with other Articles

(i) Article 20.1

 
XVIII. Article 18     back to top

A. Text of Article 18
B. Interpretation and Application of Article 18

 
XIX. Article 19     back to top

A. Text of Article 19
B. Interpretation and Application of Article 19

1. Article 19.1

(a) Relationship with other Articles

(i) Article 4.7

(ii) Article 19.4

2. Article 19.3

3. Article 19.4

(a) General

(b) Relationship with other Articles

 
XX. Article 20     back to top

A. Text of Article 20
B. Interpretation and Application of Article 20

1. Retroactive application of countervailing duties

2. Relationship between paragraphs 1, 2 and 6 of Article 20

3. Relationship with other Articles

(a) Articles 17.3 and 17.4

 
XXI. Article 21     back to top

A. Text of Article 21
B. Interpretation and Application of Article 21

1. Article 21.1

(a) Relationship with other Articles

2. Article 21.2

(a) General

(b) Types of review under Article 21.2

(c) Reviews not yet requested

(d) “necessary to offset subsidization”

3. Article 21.3

(a) Self-initiation of sunset reviews

(i) General

(ii) Evidentiary requirements for self-initiation of sunset reviews

(iii) De minimis standard

(b) Determination of likelihood of continuation/recurrence of subsidization

(i) General

(ii) Sufficient factual basis for the non-determination

(c) Relationship with other paragraphs of Article 21

(i) Articles 21.2 and 21.4

(d) Relationship with other Articles

(i) Article 11.6

(ii) Article 11.9

(iii) Article 15.3

(e) Relationship with other WTO Agreements

 
XXII. Article 22     back to top

A. Text of Article 22
B. Interpretation and Application of Article 22

1. Article 22.1 and 22.7

2. Relationship with other Articles

 
XXIII. Article 23     back to top

A. Text of Article 23
B. Interpretation and Application of Article 23

 
XXIV. Article 24     back to top

A. Text of Article 24
B. Interpretation and Application of Article 24

1. Rules of procedure

2. Subsidiary bodies

(a) Permanent Group of Experts (PGE)

(b) Informal Group of Experts (IGE)

(c) Working Party on Subsidy Notifications

3. Relationship with other Articles

 
XXV. Article 25     back to top

A. Text of Article 25
B. Interpretation and Application of Article 25

1. General

(a) Questionnaire format for subsidy notifications

(b) Periodicity of submission and review of subsidy notifications

2. Article 25.7

3. Article 25.11

(a) “shall report … all preliminary or final actions”

(b) “semi-annual reports”

(c) Relationship with other Articles

(i) Article 27.4

 
XXVI. Article 26     back to top

A. Text of Article 26
B. Interpretation and Application of Article 26

 
XXVII. Article 27     back to top

A. Text of Article 27
B. Interpretation and Application of Article 27

1. General

(a) The Doha Round

(b) Relationship with item (k) of the Illustrative List

2. Article 27.2

(a) “subject to compliance with the provisions in paragraph 4”

(b) Exception for LDCs

(c) Relationship with other Articles

(i) Article 3.1(a)

(ii) Articles 27.3

(iii) Article 27.4

(iv) Article 27.7

3. Article 27.3

(a) General

(b) Termination of transition period

(c) Relationship with other Articles

(d) Relationship with other WTO Agreements

4. Article 27.4

(a) “shall phase out its export subsidies”

(b) “a developing country Member shall not increase the level of its export subsidies”

(i) “Granting” of subsidies for the purposes of Article 27.4

(ii) Constant or nominal values

(iii) Benchmark period

(iv) Actual expenditures or budgeted amounts

(c) Footnote 55

(d) “use of subsidies inconsistent with its development needs”

(e) Burden of proof

(f) Extension of Article 27.4 transition period

(g) Relationship with other Articles

5. Articles 27.5 and 27.6

(c) Export competitiveness

(b) Review of the operation of Article 27.6

(c) Period for establishment of export competitiveness under Article 27.5

6. Article 27.7

(a) Relationship with other Articles

7. Article 27.8

(a) “in accordance with the provisions of paragraphs 3 through 8 of Article 6”

8. Article 27.9

9. Article 27.10

10. Article 27.11

(a) “notified”

11. Article 27.13

(a) “notified”

 
XXVIII. Article 28     back to top

A. Text of Article 28
B. Interpretation and Application of Article 28

1. Article 28.1

(a) “inconsistent with the provisions of this Agreement”

 
XXIX. Article 29     back to top

A. Text of Article 29
B. Interpretation and Application of Article 29

 
XXX. Article 30     back to top

A. Text of Article 30
B. Interpretation and Application of Article 30

1. List of disputes

2. Standard of review

 
XXXI. Article 31     back to top

A. Text of Article 31
B. Interpretation and Application of Article 31

1. Review of Articles 6.1, 8 and 9

 
XXXII. Article 32     back to top

A. Text of Article 32
B. Interpretation and Application of Article 32

1. Article 32.1

(a) “in accordance with the provisions of GATT 1994, as interpreted by this Agreement”

(b) Relationship with other Articles

(i) Article 10

(ii) Article 14

2. Article 32.3

(a) Transitional rule

(b) “this Agreement”

(c) “investigations”

(d) “reviews of existing measures”

3. Article 32.5

(a) “to ensure … the conformity of its laws … with the provisions of this Agreement”

4. Article 32.7

(a) Relationship with other Articles

 
XXXIII. Relationship with other WTO Agreements     back to top

A. GATT 1994

1. Article III

(a) Absence of conflict between the SCM Agreement and Article III of GATT 1994

(b) Absence of conflict between the SCM Agreement and Article III:2 of GATT 1994

2. Article VI

3. Article XVI

B. TRIMS Agreement
C. DSU

1. Article 3.8

2. Article 4

3. Article 11

4. Article 13.2

5. Article 23.1

D. Agreement on Agriculture
E. GATT Subsidies Code

 
XXXIV. Relationship with Ministerial Decisions and Declarations     back to top

A. Text of Declaration
B. Interpretation and Application

1. Standard of review

 
XXXV. Annex I     back to top

A. Text of Annex I
B. Interpretation and Application of Annex I

1. Items (c), (d), (j) and (k)

(a) “Provided or mandated by governments”

2. Item (d)

3. Items (e), (f), (g), (h) and (i)

4. Footnote 59 of Item (e)

(a) Fifth Sentence: “double taxation of foreign source-income”

(i) Scope of application

(ii) Scope of discretion to avoid double taxation

(iii) Design, structure and architecture of double taxation to target foreign-source income

(b) “foreign source income”

(i) Recourse to international tax law

(ii) Link between income of taxpayers and their activities in a foreign State

(c) Burden of proof

(d) Relationship with other Articles

5. Item (j)

6. Item (k)

(a) First paragraph of item (k) — “material advantage” clause

(i) General

(ii) “payments of all or part of the costs incurred by exporters or financial institutions in obtaining credits”

(iii) “used to secure a material advantage”

(b) First paragraph of item (k) as an affirmative defence

(c) Second paragraph of item (k) — “the safe haven”

(i) General

(d) “in the field of export credit terms”

(e) “international undertaking on official export credits”

(f) “a successor undertaking”

(g) OECD Arrangement

(h) “export credit practice”

(i) “in conformity” with “interest rates provisions”

(i) “interest rate provisions”

(ii) “in conformity”

(j) Burden of proof

(i) Second paragraph of item (k) as an affirmative defence

(ii) “Matching of a derogation”

(iii) Mandatory/discretionary distinction in the context of an affirmative defence under item (k) second paragraph

(k) Relationship with other Articles

 
XXXVI. Annex II     back to top

A. Text of Annex II
B. Interpretation and Application of Annex II

1. Footnote 61

 
XXXVII. Annex III     back to top

A. Text of Annex III
B. Interpretation and Application of Annex III

1. Relationship with other Articles

(a) Article 3.1(a)

(b) Article 27.2(a)

 
XXXVIII. Annex IV     back to top

A. Text of Annex IV
B. Interpretation and Application of Annex IV

1. Expiry

2. Relationship with other Articles

 
XXXIV. Annex V     back to top

A. Text of Annex V
B. Interpretation and Application of Annex V

1. Relationship with other WTO Agreements

 
XL. Annex VI     back to top

A. Text of Annex VI
B. Interpretation and Application of Annex VI

 
XLI. Annex VII     back to top

A. Text of Annex VII
B. Interpretation and Application of Annex VII

1. Annex VII(b)

(a) Rectification to include Honduras

(b) Graduation methodology

(c) Re-inclusion of Member in Annex VII(b)


XLII. Other Issues      back to top

A. Object and purpose of the SCM Agreement

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