Wto Agreement On Countervailing Measures

17.2 Interim measures may take the form of interim countervailing duties guaranteed by cash deposits or by obligations equal to the amount of the grant calculated on an interim basis. Compensatory Laws and Measures All members are required to disclose their countervailing rights laws and regulations to the SCM Committee in accordance with Section 32.6 of the SCM Convention. Members are also required to notify all semi-annual compensatory measures as well as interim and final compensatory measures at the time of completion. Members are also required to disclose to their authorities responsibility for opening and conducting compensatory investigations. Substantive Rules A member cannot impose a countervailing measure unless he finds that there are subsidized imports, harm to a domestic industry and a causal link between subsidized imports and the injury suffered. As noted above, the existence of a specific subsidy must be determined on the basis of the criteria of the first part of the agreement. However, the criteria for injuries and causes are in Part V. One of the main developments of the new SCM Convention in this area is the explicit authorisation to combine the effects of subsidised imports from more than one Member State if certain criteria are met. In addition, Part V contains rules for determining the existence and amount of a benefit.

Dumping and subsidies, as well as anti-dumping and countervailing duties (CVDs), have a number of similarities. Many countries treat them under a single law, apply a similar procedure to deal with them, and assign responsibility for investigations to a single authority. From time to time, the two WTO committees dealing with these issues meet together. 16.3 If the domestic industry has been interpreted to refer to producers in a given region, i.e. in a market within the meaning of paragraph 2, countervailing duties are levied only on the affected products shipped to that area for final consumption. If the constitutional law of the importing member does not authorize the imposition of countervailing duties on this basis, the importing member may collect the countervailing duties without restriction only if: (a) exporters have had the opportunity to cease exporting at subsidized prices to the territory concerned or to give other guarantees in accordance with Article 18 and, to the extent that no appropriate guarantee has been given. , and in this regard, no reasonable guarantee has been given. , and b) these duties cannot be applied solely to the products of certain producers who supply the area concerned.