What World Trade Organization Agreement on Subsidies and Countervailing Measures (SCM Agreement): Definition of a Subsidy, Specificity, Prohibited Subsidies, Adverse Effects, Serious Prejudice, Remedies, Investigation Procedures, and Imposition of Countervailing Duties requires
The Agreement on Subsidies and Countervailing Measures (SCM Agreement) is the WTO multilateral instrument governing subsidies and the use of countervailing measures and is administered by the WTO Committee on Subsidies and Countervailing Measures. SCM Agreement, Article 1 provides that for the purpose of the Agreement a subsidy shall be deemed to exist if there is a financial contribution by a government or any public body within the territory of a Member or any form of income or price support in the sense of Article XVI of GATT 1994, and a benefit is thereby conferred. SCM Agreement, Article 2 sets out the specificity discipline. SCM Agreement, Article 3 prohibits subsidies contingent in law or in fact, whether solely or as one of several other conditions, upon export performance or upon the use of domestic over imported goods. SCM Agreement, Article 5 sets out the adverse effects discipline. SCM Agreement, Article 6 governs serious prejudice. SCM Agreement, Article 7 sets out remedies including consultation and Dispute Settlement Body procedures. SCM Agreement, Article 11 governs the initiation and subsequent investigation of countervailing duty cases. SCM Agreement, Article 19 governs the imposition and collection of countervailing duties. The Agreement is the controlling WTO instrument for subsidies and countervailing measures.
Pillar: Trade Compliance & Export Controls · Authority: World Trade Organization · Version: 1.0.0 · Last updated:
Primary source: https://www.wto.org/english/docs_e/legal_e/24-scm_01_e.htm
SHA-256 integrity: 87e19c54be1863d9636a4434218dff9796a3344925b1a4563f311c8b2ffecb49
Primary Citations — 8 traced to source
- SCM Agreement, Article 1 - definition of a subsidy requiring financial contribution by a government and a benefit.
- SCM Agreement, Article 2 - specificity discipline.
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