DS: China — Grants, Loans and Other Incentives

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Summary of the dispute to date

The summary below was up-to-date at

Consultations

Complaint by Guatemala.

On 19 January 2009, Guatemala requested consultations with China with regard to certain measures offering grants, loans and other incentives to enterprises in China. Guatemala indicated that these grants, loans and other incentives are reflected in a number of measures, as well as in any amendments or any related or implementing measures, including measures relating to the China World Top Brand Programme and the Chinese Famous Export Brand Programme.

Guatemala considers that these measures appear to provide grants, loans, and other incentives that are contingent upon export performance. Accordingly, the measures appear to be inconsistent with Article 3 of the SCM Agreement. Additionally, to the extent that these measures provide subsidies for agricultural products, they appear to be inconsistent with Articles 3, 8, 9, and 10 of the Agreement on Agriculture. The measures also appear to be inconsistent with China's obligations under paragraph 12.1 of Part I of its Accession Protocol, as well as paragraph 1.2 of Part I of its Accession Protocol (to the extent that it incorporates paragraph 234 of the Report of the Working Party on the Accession of China), which forms part of the terms of accession agreed between China and the WTO and is an integral part of the WTO Agreement. Finally, the grants, loans, and other incentives appear to be inconsistent with Article III:4 of the GATT 1994 to the extent that the measures benefit products of Chinese origin but not imported products.