RESTRICTED
GENERAL AGREEMENT
L/765210 November 1995
ON TARIFFS AND TRADE
Limited Distribution(94-3493)
REPORT (1995) OF THE COMMITTEE ON
SUBSIDIES AND COUNTERVAILING MEASURES
I. Organization of the work of the Committee
1. The Agreement on Interpretation and Application of Articles VI, XVI and XXIII of the General Agreement (the Agreement) entered into force on 1 January 1980. On 31 October 1995 the following were the signatories of the Agreement: Argentina, Australia, Austria, Brazil, Canada, Chile, Colombia, Egypt, the European Communities, Finland, Hong Kong, India, Indonesia, Israel, Japan, Korea, New Zealand, Norway, Pakistan, Philippines, Sweden, Switzerland, Turkey, and Uruguay. Poland has signed the Agreement subject to ratification. The signatories of the Agreement are ipso facto members of the Committee on Subsidies and Countervailing Measures established under the Agreement.
2. The United States on 30 December 1994 communicated its intention to withdraw from the Agreement, effective upon the expiration of sixty days from that date, i.e., on 28 February 1995 (SCM/188).
3. Twenty-seven contracting parties and four non-contracting parties have observer status. Furthermore, three international organizations (IMF, OECD and UNCTAD) have attended meetings of the Committee in an observer capacity.
4. During the period under review (November 1994-October 1995) the Committee held four meetings. Regular meetings were held on 13 June 1995 and 31 October 1995 (SCM/M/73 and 74 respectively). Special meetings were held on 8 December 1994 and 22 February 1995 (SCM/M/71 and 72 respectively).
II. Issues related to entry into force of the WTO Agreement
5. At its special meeting of 8 December, the Committee adopted two decisions proposed by the Preparatory Committee for the World Trade Organization:
(i) The decision on Transitional Co-Existence of the Agreement on Interpretation and Application of Articles VI, XVI and XXIII of the General Agreement on Tariffs and Trade and the Marrakesh Agreement Establishing the World Trade Organization (SCM/186) provides, inter alia, for the termination of the Agreement one year after the date of entry into force of the WTO Agreement unless, in the light of unforeseen circumstances, the signatories decide to postpone the date of termination by no more than one year, and establishes transitional provisions for dispute settlement during the two-year period following entry into force of the WTO Agreement.
(ii) The decision on Consequences of Withdrawal from or Termination of the Agreement on Interpretation and Application of Articles VI, XVI and XXIII of the General Agreement on Tariffs and Trade (SCM/187) provides that, in the event of withdrawal from or termination of the Agreement, the Agreement would continue to apply with respect to any countervailing duty investigation or review which is not subject to application of the WTO Agreement on Subsidies and Countervailing Measures, and further provides that the Committee shall remain in operation for two years from the date of entry into force of the WTO Agreement exclusively for the purpose of dealing with any such dispute.
6. At its meeting of 22 February 1995, the Committee adopted a decision on Avoidance of Procedural and Institutional Duplication (SCM/191), which provides for coordination of meetings and notification procedures between the Committee and the WTO Committee on Subsidies and Countervailing Measures.
7. At its regular meeting of 31 October 1995, the Committee considered issues relating to the derestriction of documents after the termination of the Agreement, including the status of SCM/M and SCM/W documents and of main series SCM documents not yet derestricted. The Committee decided to derestrict documents in the SCM/W and SCM/M document series in accordance with the normal derestriction procedures applicable to main series SCM documents. The Secretariat would issue a list of restricted documents in those document series, Signatories would be given an opportunity to object to derestriction of any document or any part of any document by a specified date, and in the absence of objection, the documents would be derestricted. The Committee did not reach any decision on derestriction of unadopted Panel Reports, which would therefore continue to be treated as restricted documents and not subject to the normal derestriction process.
8. At its regular meeting of 31 October 1995, the Committee decided that this would be its last regular meeting. The Committee further decided that, should there be future meetings of the Committee for the purpose of dealing with any dispute arising out of any countervailing duty investigation or review not subject to the WTO Agreement on Subsidies and Countervailing Measures, the Chairman of the WTO Committee on Subsidies and Countervailing Measures would chair such meetings. If the Chairman is not from a signatory of the Agreement, the Vice-Chairman of the WTO Committee would chair the meeting. If neither the Chairman or the Vice-Chairman is available, or in the event neither is from a signatory of the Agreement, the Committee would elect a Chairman at the meeting in question.
III. Notification and examination of countervailing duty laws and/or regulations of signatories of the Agreement (Article 19:5)
9. As of 31 October 1995, twenty-three signatories had submitted their legislation concerning countervailing duty procedures or made communications in this respect to the Committee (SCM/1 and addenda).
10. Recognizing that notification of legislation was required under the WTO Agreement on Subsidies and Countervailing Measures, and that a process for the review of legislation and regulations was planned in the WTO Committee on Subsidies and Countervailing Measures, the Committee at its regular meeting on 13 June 1995 decided not to repeat the review process in the Committee. As a consequence, no legislations were discussed by the Committee during the period under review.
IV. Semi-annual reports on all countervailing duty actions
11. Article 2:16 of the Agreement provides that the signatories shall submit, on a semi-annual basis, reports of any countervailing duty actions taken within the preceding six months. Observers are also encouraged by decision of the Committee of 27 October 1993 (SCM/M/67, paras. 3-16) to submit semi-annual reports. Pursuant to a decision of the Committee taken at its 22 February meeting (SCM/191), semi-annual reports submitted to the WTO Committee on Subsidies and Countervailing Measures would be deemed also to be notifications to the Committee. During the period under review, the following reports were submitted and circulated to the Committee:
(a) reports for the period 1 July 1994-31 December 1994 have been circulated in addenda to SCM/190. The following signatories and observers informed the Committee that during this period they had not taken any countervailing duty action: Austria, Colombia, Cuba (observer), Czech Republic (observer), Egypt, Finland, Hong Kong, Hungary (observer), India, Indonesia, Israel, Jamaica (observer), Japan, Korea, Malaysia (observer), Malta (observer), Nicaragua (observer), Norway, Pakistan, Philippines, Poland (observer), Romania (observer), Singapore (observer), South Africa (observer), Sri Lanka (observer), Sweden, Switzerland, Tanzania (observer), Thailand (observer), Turkey, and Uruguay. Countervailing duty actions have been notified by the following signatories and observers: Argentina, Australia, Brazil, Canada, Chile, EC, New Zealand, Peru (observer), and Venezuela (observer).
(b) reports for the period 1 January 1995-30 June 1995 have been circulated in addenda to SCM/192. The following signatories and observers have notified the Committee that during this period they had not taken any countervailing duty action: Colombia, Cuba (observer), Czech Republic (observer), Egypt, Hong Kong, Hungary (observer), India, Japan, Korea, Malaysia (observer), Norway, Philippines, Poland (observer), Romania (observer), South Africa (observer), Switzerland, Tanzania (observer), Thailand (observer), Trinidad & Tobago (observer), Turkey, Uruguay and Venezuela (observer). Countervailing duty actions have been notified by the following signatories and observers: Argentina, Australia, Brazil, Canada, Chile, the EC, Mexico (observer), New Zealand and Peru (observer). No report has been received from the following signatories: Indonesia, Israel and Pakistan.
12. The Committee has examined the reports circulated in addenda to SCM/190 and SCM/192. A table summarizing the cases where investigations have been opened and provisional or final actions taken during the period 1 July 1994-30 June 1995 is reproduced in Annex A.
V. Reports on all preliminary or final countervailing duty actions
13. Notifications under the procedures provided for in Article 2:16 have been received from Australia, Canada, Mexico (observer), and the United States and circulated in documents SCM/W/322, 323, 324 and 325.
VI. Notification of subsidies
14. In accordance with the Decision of the CONTRACTING PARTIES at their twentieth session (BISD, Eleventh Supplement, page 58), contracting parties should submit, every third year, new and full responses to the questionnaire on subsidies (BISD, Ninth Supplement, pages 193-194) and bring these notifications up-to-date in the intervening years. New and full notifications were due in 1993 (L/7162 and addenda). Updating notifications were due in 1994 and 1995 (L/7375 and addenda and L/) . The present status of new and full notifications for 1993 and updating notifications for 1994 and 1995 by signatories is reproduced in Annex B.
VII. Dispute settlement proceedings
15. During the period under review, the following developments took place in disputes referred to the Committee under the dispute settlement provisions of the Agreement:
(i) Report of the Panel on EEC subsidies on export of wheat flour (SCM/42).
This Report was circulated to the Committee on 21 March 1983 and was considered by the Committee at its regular meetings of 13 June and 31 October 1995. This Report remains before the Committee.
(ii) Report of the Panel on EEC subsidies on export of pasta products (SCM/43)
This Report was circulated to the Committee on 19 May 1983 and was considered by the Committee at its regular meetings of 13 June and 31 October 1995. This Report remains before the Committee.
(iii) Report of the Panel on the imposition by Canada of countervailing duties on imports of boneless manufacturing beef from the EEC (SCM/85)
This Report was circulated to the Committee on 13 October 1987 and was considered by the Committee at its regular meetings of 13 June and 31 October 1995. This Report remains before the Committee.
(iv) Report of the Panel on countervailing duties on non-rubber footwear from Brazil (SCM/94)
This Report was circulated to the Committee on 4 October 1989. It was adopted by the Committee at its regular meeting of 13 June 1995.
(v) Report of the Panel on the German exchange rate scheme for Deutsche Airbus (SCM/142) This Report was circulated to the Committee on 28 April 1992 and was considered by the Committee at its regular meetings of 13 June and 31 October 1995. This Report remains before the Committee.
(vi) Report of the Panel on the imposition by the United States of countervailing duties on certain hot-rolled lead and bismuth carbon steel products originating in France, Germany and the United Kingdom (SCM/185)
This Report was circulated to the Committee on 15 November 1994 and was considered by the Committee at its regular meetings of 13 June and 31 October 1995. This Report remains before the Committee.
(vii) Panel on United States - countervailing duties on certain carbon steel flat products from several Member States of the EEC
This Panel was established by the Committee at a special meeting on 4 June 1993 at the request of the EEC. On 19 December 1994, at the request of the EEC, the Panel proceedings were suspended pending further notification from the parties (SCM/189).
VIII. Other Matters discussed in the Committee
Mexico - Provisional measures on pork meat from Denmark.
Brazil - Countervailing measures on desiccated coconut from the Philippines.
ANNEX A *
Summary of Countervailing Duty Actions
(1 July 1994-30 June 1995)
| Initiation |
Provisional Measures (negative preliminary determination not included) |
Definitive Duties |
Price Undertakings |
Measures in force on 30 June 1995 (definitive duties and price undertakings) |
||||||||||||
|
No. |
Countries involved |
No. |
Countries involved |
No. |
Countries involved |
No. |
Countries involved |
|||||||||
|
ARGENTINA |
||||||||||||||||
|
2 |
EEC(2) |
0 |
0 |
0 |
NA |
|||||||||||
|
AUSTRALIA |
||||||||||||||||
|
1 |
ZAF(1) |
0 |
0 |
0 |
13 |
|||||||||||
|
BRAZIL |
||||||||||||||||
|
0 |
5 |
CIV(1) |
IDN(1) |
LKA(2) |
0 |
0 |
1 |
|||||||||
|
PHL(1) |
||||||||||||||||
|
CANADA |
||||||||||||||||
|
2 |
EEC(1) |
USA(1) |
0 |
1 |
IND(1) |
0 |
6 |
|||||||||
|
CHILE |
||||||||||||||||
|
1 |
BRA(1) |
0 |
1 |
CHN(1) |
0 |
0 |
||||||||||
|
EEC |
||||||||||||||||
|
0 |
0 |
0 |
0 |
1 |
||||||||||||
|
MEXICO (Observer) |
||||||||||||||||
|
1 |
DNK(1) |
1 |
DNK(1) |
0 |
0 |
NA |
||||||||||
|
NEW ZEALAND |
||||||||||||||||
|
1 |
THA(1) |
0 |
0 |
0 |
1 |
|||||||||||
|
PERU (Observer) |
||||||||||||||||
|
4 |
ARG(1) |
CHN(1) |
KOR(2) |
2 |
ARG(1) |
CHN(1) |
0 |
0 |
NA |
|||||||
|
UNITED STATES |
||||||||||||||||
|
5 |
AUT(1) |
ITA(3) |
TUR(1) |
3 |
AUT(1) |
ITA(2) |
6 |
AUT(1) |
IND(1) |
ISR(1) |
0 |
103 |
||||
|
ITA(2) |
VEN(1) |
|||||||||||||||
|
VENEZUELA |
||||||||||||||||
|
0 |
0 |
0 |
0 |
3 |
||||||||||||
LIST OF ABBREVIATIONS USED IN ANNEX A
AFG AFGHANISTAN
ALB ALBANIA
DZA ALGERIA
ATG ANTIGUA AND
BARBUDA
ARG ARGENTINA
ARM ARMENIA
AUS AUSTRALIA
AUT AUSTRIA
AZE AZERBAIJAN
BHS BAHAMAS
BHR BAHRAIN
BGD BANGLADESH
BRB BARBADOS
BLR BELARUS
BEL BELGIUM
BLZ BELIZE
BEN BENIN
BMU BERMUDA
BOL BOLIVIA
BIH BOSNIA-HERZEGOVINA
BWA BOTSWANA
BRA BRAZIL
BRN BRUNEI DARUSSALAM
BGR BULGARIA
BFA BURKINA FASO
BUR BURUNDI
CMR CAMEROON
CAN CANADA
CAF CENTRAL AFRICAN
REPUBLIC
TCD CHAD
CHL CHILE
CHN CHINA
CHT CHINESE TAIPEI
COG CONGO, REPUBLIC
COL COLOMBIA
CRI COSTA RICA
CIV COTE D'IVOIRE
HRV CROATIA
CUB CUBA
CYP CYPRUS
CZE CZECH REPUBLIC
DNK DENMARK
DJI DJIBOUTI
DMA DOMINICA
DOM DOMINICAN REPUBLIC
EEC EUROPEAN COMMUNITY
ECU ECUADOR
EGY EGYPT
SLV EL SALVADOR
EST ESTONIA
FJI FIJI
FIN FINLAND
FRA FRANCE
MKD FORMER YUOGOSLAV
REPUBLIC OF
MACEDONIA
GAB GABON
GMB GAMBIA
GEO GEORGIA
DEU GERMANY
GHA GHANA
GRC GREECE
GRD GRENADA
GTM GUATEMALA
GNB GUINEA-BISSAU
GIN GUINEA, REP. OF
GUY GUYANA
HTI HAITI
HND HONDURAS
HKG HONG KONG
HUN HUNGARY
ISL ICELAND
IND INDIA
IDN INDONESIA
IRN IRAN
IRQ IRAQ
IRL IRELAND
ISR ISRAEL
ITA ITALY
JAM JAMAICA
JPN JAPAN
JOR JORDAN
KAZ KAZAKHSTAN
KEN KENYA
KOR KOREA
KWT KUWAIT
KGZ KYRGYZSTAN
LVA LATVIA
LBN LEBANON
LSO LESOTHO
LIE LIECHTENSTEIN
LTU LITHUANIA
LUX LUXEMBOURG
MAC MACAU
MDG MADAGASCAR
MWI MALAWI
MYS MALAYSIA
MDV MALDIVES
MLI MALI
MLT MALTA
MRT MAURITANIA
MUS MAURITIUS
MEX MEXICO
MDA MOLDOVA, REP. OF
MNG MONGOLIA
MAR MOROCCO
MOZ MOZAMBIQUE
NAM NAMIBIA
NLD NETHLANDS
NZL NEW ZEALAND
NIC NICARAGUA
NER NIGER
NGA NIGERIA
NOR NORWAY
OMN OMAN
PAK PAKISTAN
PAN PANAMA
PNG PAPUA NEW GUINEA
PRY PARAGUAY
PER PERU
PHL PHILIPPINES
POL POLAND
PRT PORTUGAL
PRI PUERTO RICO
QUT QUATAR
ROM ROMANIA
RUS RUSSIAN FEDERATION
RWA RWANDA
KNA SAINT KITTS & NEVIS
LCA SAINT LUCIA
SAU SAUDI ARABIA
SEN SENEGAL
SYC SEYCHELLES
SLE SIERRA LEONE
SGP SINGAPORE
SVK SLOVAK REPUBLIC
SVN SLOVENIA
ZAF SOUTH AFRICA
ESP SPAIN
LKA SRI LANKA
VCT SAINT VINCENT &
GRENADINES
SDN SUDAN
SUR SURINAME
SWE SWEDEN
CHE SWITZERLAND
TJK TAJIKISTAN
TZA TANZANIA
THA THAILAND
TGO TOGO
TTO TRINIDAD & TOBAGO
TUN TUNISIA
TUR TURKEY
TKM TURKMENISTAN
UGA UGANDA
UKR UKRAINE
ARE UNITED ARAB EMIRATES
GBR UNITED KINGDOM
USA UNITED STATES
URY URUGUAY
UZB UZBEKISTAN
VUT VANUATU
VEN VENEZUELA
VNM VIET NAM
ZAR ZAIRE
ZMB ZAMBIA
ZWE ZIMBABWE
ANNEX B
Notifications under Article XVI:1 of the General Agreement
by Signatories of the Code on Subsidies and
Countervailing Measures (1993, 1994 and 1995)
|
L/7162 New and Full Notifications for 1993 |
L/7375 Updating Notifications for 1994 |
L/7611 Updating Notifications for 1995 |
|
|
Argentina |
n.a.1 |
||
|
Australia |
Add.5 |
Add.3 |
Add.16 |
|
Austria |
Add.13 & Suppl.1 |
Add.212 |
|
|
Brazil |
Add.11 |
||
|
Canada |
Add.6 |
Add.6 |
Add.2 |
|
Chile |
Add.9 |
||
|
Colombia |
Add.8 |
Add.11 & Suppl.1 |
|
|
Egypt |
|||
|
Finland |
Add.7 |
Add.212 |
|
|
Hong Kong |
Add.1 |
Add.1 |
Add.18 |
|
India |
Add.13 & Suppl.1 |
||
|
Indonesia |
Add.16 |
Add.8 |
|
|
Israel |
|||
|
Japan |
|||
|
Korea |
Add.5 |
||
|
New Zealand |
Add.2 |
Add.7 |
Add.12 |
|
Norway |
Add.12 |
Add.4 & Corr.1 |
Add.14 & Corr.1 |
|
Pakistan |
|
Philippines |
Add.17 |
||
|
Sweden |
Add.15 |
Add.2 |
Add.212 |
|
Switzerland |
Add.14 |
Add.19 |
|
|
Turkey |
Add.18 |
Add.15 |
|
|
United States |
n.a.3 |
||
|
Uruguay |
Add.10 |
1 The Agreement entered into force for Argentina on 16 April 1994.
2 Included in notification provided by the EC.
3 The United States withdrew from the Agreement effective 28 February 1995.
|
L/7162 New and Full Notifications for 1993 |
L/7375 Updating Notifications for 1994 |
L/7611 Updating Notifications for 1995 |
|
|
EC |
Add.19 |
Add.8 |
Add.21 |
|
Belgium |
Add.21 |
||
|
Denmark |
Add.21 |
||
|
France |
Add.21 |
||
|
Germany, F.R. |
Add.21 |
||
|
Greece |
Add.21 |
||
|
Ireland |
Add.21 |
||
|
Italy |
Add.21 |
||
|
Luxembourg |
Add.21 |
||
|
Netherlands |
Add.21 |
||
|
Portugal |
Add.21 |
||
|
Spain |
Add.21 |
||
|
United Kingdom |
Add.21 |