The Chair noted that despite members' efforts, compliance with the subsidy notification obligation under the WTO's SCM Agreement remains concerningly low, affecting the Agreement's proper functioning.  He highlighted the current state of play: 101 members have not made their 2023 notifications, which were due by 30 June 2023; 85 members have yet to make their 2021 notifications, which were due more than two years ago; and 73 members still have not submitted their 2019 notifications, now overdue by more than four years.

The Chair strongly urged all non-compliant members to submit their notifications promptly, emphasizing that all members benefit from the collective effort of timely and complete notifications.

The Chair reminded members of the continuous support available from the WTO Secretariat regarding subsidy notifications and encouraged those facing challenges to engage with the Secretariat. He also underscored the recent technical assistance project launched by the Secretariat designed to enhance understanding and streamline the notification process, bringing together officials from developing and least-developed country members to share experiences and expertise. Commending the project's success, as evidenced by new notifications received from participating members, the Chair emphasized the value of tailored projects in aiding members' compliance with transparency obligations.

Nine delegations took the floor to urge members to step up their efforts and ensure both timely submission of notifications as well as complete notifications, including all subsidy programmes that fall within the scope of the SCM Agreement. Members also appreciated the Secretariat's ongoing efforts and technical assistance activities. 

Review of members' subsidy notifications

The Committee reviewed the 2023 new and full subsidy notifications submitted by Burkina Faso; the Gambia; Haiti; Honduras; Macao, China; Madagascar; Montenegro; New Zealand; and Chinese Taipei. It also reviewed the 2021 notifications of the European Union (pertaining to Portugal) and Kazakhstan.

The Committee continued its review of 2021 subsidy notifications from China, the European Union (pertaining to Malta), India, Mexico and Montenegro.

The Committee also continued its review of 2019 notifications from China, the Dominican Republic, the European Union (pertaining to Portugal) and the Russian Federation as well as a 2015 notification from China.

The Committee continued to discuss the revised proposal submitted by the United States concerning timely responses to questions posed by members under Article 25.8 of the SCM Agreement.

The Committee continued discussions on a joint proposal from Australia, Canada, the European Union, Japan, the United Kingdom and the United States to amend procedures for the review of new and full subsidy notifications.

National legislation

The Committee reviewed new notifications of countervailing duty legislation submitted by Brazil, Japan, Mauritania, Mauritius and the Kingdom of Saudi Arabia, and continued its review of the legislative notifications of Saint Kitts and Nevis, Cameroon, the European Union and Ghana.

Semi-annual reports of members on countervailing duty actions

The Committee considered the semi-annual reports of countervailing duty actions submitted by Australia, Brazil, Canada, China, Colombia, the European Union, India, Mexico, the United Kingdom, the United States and Viet Nam.

In addition to the semi-annual reports, the SCM Agreement requires members to submit without delay notifications of all preliminary and final countervailing duty actions taken. Reports received from Australia, Brazil, Canada, the European Union, India, the United Kingdom and the United States were reviewed by members.

Other matters

The Chair highlighted the now long-past 31 December 2015 deadline for the elimination of export subsidies by members that received “fast track” extensions under Article 27.4 of the SCM Agreement. He noted that while the benefiting members should have made their final transparency notifications by 30 June 2016 in respect of eliminating export subsidies, only 15 members out of 19 had done so. He urged the remaining four members to complete the final step in the mechanism of extending the elimination of export subsidies and terminating those programmes.

The Committee was not able to finalize the election of a new member to the Permanent Group of Experts to replace Mr Rabih Nasser, whose term expired last spring. The Chair said that there would be one additional vacancy in spring 2024 and indicated that he would initiate a new election process with the  aim of filling both vacancies at the next meeting of the Committee.

The Committee discussed a joint proposal submitted by Canada, the Republic of Korea, Japan, New Zealand, Norway, the United Kingdom and the United States, which pertains to the formation of an informal technical discussion group on items under the SCM Agreement. The Committee will revert to this proposal at the next meeting.

The Committee adopted its report to the Council for Trade in Goods (CTG) on the improvements it had agreed regarding the functioning of the Committee (G/SCM/167).

The Committee discussed a submission by the African Group (G/SCM/W/589) entitled “A Case for Rebalancing the Agreement on Subsidies and Countervailing Measures — Policy Space to Promote Industrialisation in Developing Countries” as well as a proposal by the European Union (WT/GC/W/864), submitted to the General Council, regarding WTO deliberations on state interventions in support of industrial sectors. Both of these submissions had been discussed at the retreat on WTO reform focusing on trade and industrial development, which was held on 25-26 September 2023.

Australia, Canada, the European Union, Japan, the United Kingdom, and the United States again placed a separate item on the agenda regarding “subsidies and overcapacity”.

Australia, Canada, the European Union, Japan, the United Kingdom and the United States again placed a separate item on the agenda regarding “China’s publication and inquiry point obligations under its Protocol of WTO Accession”.

China placed a separate item on the agenda regarding “discriminatory subsidies policies and measures by the United States”.

Under other business, the Republic of Korea raised concerns about France's revision to its “green bonus”, which was enacted on 10 October 2023.

The Committee also adopted its 2023 annual report to the CTG.

Next meetings

The spring and autumn 2024 meetings of the SCM Committee are scheduled to take place in the weeks of 22 April and 28 October 2024 , respectively.

More information about the SCM Agreement and the WTO's work on subsidies and countervailing measures can be found here.