Guiriba, Jane Hazel-ASCM

8/7/2019 Guiriba, Jane Hazel-ASCM

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World Trade:Organization SUBSIDIES AND COUNTERVAILINGMEASURES

:Prepared by.JANE HAZEL M GUIRIBA


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;bsidy

,material injury to an established domestic industry or mate

- .th anti dumping and countervailing duties

of subsidies to exclusively domestic producers

HISTORY


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, -ith tariff concession constituting a non violation nullifi

;ort trade;n on the domestic market

HISTORY


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( ,disciplines

that is prohibition of subsidies that resulted

HISTORY


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HISTORY ,April 15 1994

The Final Act Embodying the Resultsof the Uruguay Round of Multilateral

,Trade Negotiationssigned by ministers in Marrakesh on 15

April 1994

, ,Marrakech MoroccoThe Final Act covers all thenegotiating areas cited in the Punta

del Este Declaration with two.important exceptions


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MISSION

t

he use of subsidiesthe actions countries can take to counter the effects of s


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WHAT IS A SUBSIDY?

:overnment or any public body,egone government revenue goods or service provided by gover

,ient not the cost to the government


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WHAT IS A COUNTERVAILING DUTY?

&o the regular duty other charges

ports which have been found to be subsidized in thefinal determination

Countervailing duty=______________subsidy_____________

subsidized exportedproduct


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TYPES OF SUBSIDIESYellow subsidies

( , ,ing adverse effects injury serious prejudice null

cess in all cases and through countervailing duty

erse effects of the subsidy or imposition of count


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ACTIONABLE SUBSIDIES:Industry

, al injury and material retardation of the establishment o

( , ).easure actions in fact sole basis for such actionsrment of Benefits

mbers Under

;f application of GATT Article XXIII:complaint when a member reduces its bound tariff for a good

.fect of the improved market access through subsidization


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ACTIONABLE SUBSIDIES.

product of another member in the same market or significant price suppr commodity as compared to the average share it had during the previous


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ACTIONABLE SUBSIDIES/IDIES are countervailable actionable

:ited to

group of enterpriseor or group of industries

graphic region within the jurisdiction of the grant


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TYPES OF SUBSIDIESidies

- -that are non specific determined on the basis of

a or conditionsly adhered to

e and horizontal in applicationses

tance to disadvantaged regions and for environment


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TYPES OF SUBSIDIES

idy can avail of remedy measures by bringing the ma


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Prohibited Subsidies Actionable

Request for consultations, including

statement of available evidence regardingexistence and nature of subsidy;

Request for consultations, including statement

of available evidence regarding existence andnature of subsidy and injury caused to domesticindustry (nullification or impairment, or seriousprejudice);

Consultations as quickly as possible; Consultations as quickly as possible;

If no solution w/In 30 days referral toDispute Settlement Body for immediateestablishment of panel;

If no solution within 60 days referral toDispute Settlement Body for establishment ofpanel; composition of panel and terms ofreference within 15 days

Panel may request assistance from PermanentGroup of Experts for binding advice onwhether it is a prohibited subsidy.

Circulation of panel report within 90 days ofdate of composition of panel andestablishment of terms of reference;

Circulation of panel report within 120 days ofdate of composition of panel &establishment ofterms of reference;

MULTILATERAL REMEDIES


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Prohibited Subsidies Actionable

If DSB recommendation is notfollowed within time periodspecified by panel (whichcommences from data of adoptionof the panel/AB report), DSB grants

authorization to complainingmember to take appropriateproportionate countermeasures.

If member does not take stepswithin 6 months from date ofDSBs adoption of panel orAB report, DSB authorizescomplaining member to take

appropriate countermeasures,commensurate to the degreeand nature of adverse effects.

Applicable DSU time periods shallbe half.

MULTILATERAL REMEDIES


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WHAT IS A COUNTERVAILING DUTY?

&o the regular duty other charges

ports which have been found to be subsidized in thefinal determination


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:l rules in ASCM, ,t is any specific subsidy must be causing injury t

.ust conform with ASCM rules

COUNTERVAILING DUTY


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IMPOSING COUNTERVAILING DUTY,sideration or

product under consideration

ed by the government of the country of export or origin

aterial injury or material retardation of growth or the pre


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IMPOSING COUNTERVAILING DUTY, ,potential negative effects on cash flow inventories emplo


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Procedural Process


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Steps in Calculating theSteps in Calculating theSubsidySubsidy

1.Calculation should reflect the amount ofsubsidy found to exist during the period oinvestigation and not simply the facevalue of the financial contribution.

2.Check whether benefit is expensed duringperiod of investigation. Else allocate

3.Calculate per unit subsidy (Article 19.4)during the period of investigation for each

scheme4.Arrive at the total per unit subsidy for all

schemes.


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REFERENCEREFERENCES http://ia.ita.doc.gov/pcp/pcp-subsidy-allegation.html Subsidies Agreement : Countervailing Duty Perspective.

www.icai.org/resource_file/8837Presentation_on_Subsidy.ppt

Trade Remedies: A Tool Kit.www.adb.org/documents/books/trade.../Trade-Remedies-Toolkit.pdf

TRADE POLICY COMMITMENTS AND CONTINGENCY MEASURES.http://docs.google.com/viewer?a=v&q=cache:mJ0f7i5KF1wJ:www.wto.org/english/res_e/boo

Module 3.7 - 3.7 Subsidies and Countervailing Measures.www.unctad.org/en/docs/edmmisc232add15_en.pd

Subsidy Definition. http://www.investopedia.com/terms/s/subsidy.asp

Subsidy -Wikipedia, the free encyclopedia. http://en.wikipedia.org/wiki/Subsidy

Uruguay Round Subsidies and Countervailing Measures (SCM) Agreement

Negotiating History. http://www.worldtradelaw.net/history/urscm/urscm.htm Agreement on Subsidies and Countervailing Measures, Apr. 15, 1994, Marrakesh Agreement

Establishing the World Trade Organization, Annex 1A, THE LEGAL TEXTS: THE RESULTS OFTHE URUGUAY ROUND OF MULTILATERAL TRADE NEGOTIATIONS 275 (1999), 1867 U.N.T.S.14. [Not reproduced in I.L.M.]

WTO|Subsidies and Countervailing Measures Gateway.http://www.wto.org/english/tratop_e/scm_e/scm_e.htm

The GATT Uruguay Round: a negotiating history (1986-1994).http://books.google.com.ph/books?id=_zdx2wjwNeAC&pg=PA221&lpg=PA221&dq=agreem
http://ia.ita.doc.gov/pcp/pcp-subsidy-allegation.htmlhttp://www.adb.org/documents/books/trade.../Trade-Remedies-Toolkit.pdfhttp://docs.google.com/viewer?a=v&q=cache:mJ0f7i5KF1wJ:www.wto.org/english/res_e/booksp_e/anrep_e/wtr09-0d_e.pdf+difference+in+multilateral+and+unilateral+track+in+subsidy&hl=tl&gl=ph&pid=bl&srcid=ADGEESjiDaIgkoInpdP7PmDzEvzqT4S_TxZCpi64mUOkPdtFGNSjjjOLT_XobKqtsKmVphi6tB_oRE7cPpmX418f-QFsdq4pD17dKF9a8by3fjcxK7wbdmlemTkB2_2JiwSPwYelkqEE&sig=AHIEtbQY0kLx3Gxf7OgXpPM9Qp4pDZET6whttp://www.unctad.org/en/docs/edmmisc232add15_en.pdhttp://www.investopedia.com/terms/s/subsidy.asphttp://en.wikipedia.org/wiki/Subsidyhttp://www.worldtradelaw.net/history/urscm/urscm.htmhttp://www.wto.org/english/tratop_e/scm_e/scm_e.htmhttp://books.google.com.ph/books?id=_zdx2wjwNeAC&pg=PA221&lpg=PA221&dq=agreement+on+subsidies+and+countervailing+measures+history&source=bl&ots=n4NKx5DXsi&sig=y6GqUSLHVq0SQnCjjXsboSAZ1qc&hl=tl&ei=Dnl9TMqtCIL-vQOXrbiiAg&sa=X&oi=book_result&ct=result&resnum=4&ved=0CDcQ6AEwAwhttp://books.google.com.ph/books?id=_zdx2wjwNeAC&pg=PA221&lpg=PA221&dq=agreement+on+subsidies+and+countervailing+measures+history&source=bl&ots=n4NKx5DXsi&sig=y6GqUSLHVq0SQnCjjXsboSAZ1qc&hl=tl&ei=Dnl9TMqtCIL-vQOXrbiiAg&sa=X&oi=book_result&ct=result&resnum=4&ved=0CDcQ6AEwAwhttp://www.wto.org/english/tratop_e/scm_e/scm_e.htmhttp://www.worldtradelaw.net/history/urscm/urscm.htmhttp://en.wikipedia.org/wiki/Subsidyhttp://www.investopedia.com/terms/s/subsidy.asphttp://www.unctad.org/en/docs/edmmisc232add15_en.pdhttp://docs.google.com/viewer?a=v&q=cache:mJ0f7i5KF1wJ:www.wto.org/english/res_e/booksp_e/anrep_e/wtr09-0d_e.pdf+difference+in+multilateral+and+unilateral+track+in+subsidy&hl=tl&gl=ph&pid=bl&srcid=ADGEESjiDaIgkoInpdP7PmDzEvzqT4S_TxZCpi64mUOkPdtFGNSjjjOLT_XobKqtsKmVphi6tB_oRE7cPpmX418f-QFsdq4pD17dKF9a8by3fjcxK7wbdmlemTkB2_2JiwSPwYelkqEE&sig=AHIEtbQY0kLx3Gxf7OgXpPM9Qp4pDZET6whttp://www.adb.org/documents/books/trade.../Trade-Remedies-Toolkit.pdfhttp://ia.ita.doc.gov/pcp/pcp-subsidy-allegation.html


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THANK YOU.THANK YOU.

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Guiriba, Jane Hazel-ASCM