WTO: 2006 NEWS ITEMS

25 April 2006
COMMITTEE ON SUBSIDIES AND COUNTERVAILING MEASURES

15 small economies ask for extension of export-subsidy programmes

Fifteen small economies, on 25 April 2006, presented to the Committee on Subsidies and Countervailing Measures a proposal to extend until 2018 their ability to maintain export-subsidy programmes.

The Agreement on Subsidies and Countervailing Measures provided for an eight-year transition period (until end 2002) for most developing countries to eliminate export subsidies. Under procedures adopted in November 2001 at the Doha Ministerial Conference, the SCM Committee may grant annual extension to these countries until end 2007, subject to annual review of transparency and standstill obligations. The 19 developing countries benefiting from the extended transition period are Antigua and Barbuda, Barbados, Belize, Costa Rica, Dominica, Dominican Republic, El Salvador, Fiji, Grenada, Guatemala, Jamaica, Jordan, Mauritius, Panama, Papua New Guinea, St. Lucia, St. Kitts and Nevis, St. Vincent and the Grenadines, and Uruguay.

Barbados, on behalf of the other co-sponsors (Antigua and Barbuda; Belize; Dominica; Dominican Republic; El Salvador; Fiji; Grenada; Jamaica; Mauritius; Papua New Guinea; St. Kitts and Nevis; St. Lucia; and St. Vincent and the Grenadines), that as small and vulnerable economies, they need the policy space to maintain these programmes which it said are important components of their development strategies.

The Committee agreed that the incoming chair will hold informal consultations on this matter before the next regular meeting scheduled for late October 2006.

The Committee also reviewed new legislative notifications from the Former Yugoslav Republic of Macedonia and Mexico. China responded to follow-up questions from the US regarding China's notification.

Regarding the semi-annual reports of countervailing actions, Chairperson Victoria Campeanu (Romania) noted that four members have notified taking such action during the second half of 2005 (Canada, EU, Mexico and the US) and that 43 members have indicated they have not taken such action. She called on other members which have not notified to do so as soon as possible.

Under “Other Business”, the EU expressed concern about China's grant of what it said were subsidized export credits to Chinese firms participating in an open tender in Tunisia for telecom equipment. China took note of the EU's concern and said it was open to bilateral discussions on the matter.

At the end of the meeting, the Committee elected by acclamation Mr. Keiya Iida (Japan) as its new chairperson, and Mr. Pablo Klein Bernard as its new vice-chairperson.

At a special meeting held earlier in the day, the Committee discussed subsidy notifications from Australia, Brazil, Bulgaria, Canada, Cuba, the EU, Honduras, Iceland, Israel, Japan, Norway, Chinese Taipei, Singapore and Uganda. It also took note of the recent subsidy notification from China, which will be discussed at the next special meeting.