WTO NEWS: 1998 NEWS ITEMS
02 June 1998
WTO completes framework for environmental, regional and R&D subsidies
A WTO system
enabling governments to establish -- free from counter actions by other members -- certain
subsidy programmes aimed at protecting the environment, helping disadvantaged regions, and
promoting research and development is now fully operational.
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.
The Subsidies 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.