Dec 222020

Prohibited subsidies: subsidies that require recipients to meet certain export targets or to use domestic products instead of imported goods. They are prohibited because they are specifically aimed at distorting international trade and are therefore likely to harm other countries. They can be challenged under the WTO dispute settlement process if implemented on an expedited schedule. If the dispute resolution procedure confirms that the subsidy is prohibited, it must be withdrawn immediately. Otherwise, the complaining country may take counter-measures. If domestic producers are harmed by the importation of subsidized products, countervailing duties may be applied. What is the name of this agreement? Agreement on Subsidies and Countervailing Measures The agreement establishes the general principle that both provisional and final anti-dumping duties can only be applied from the date of dumping, harm and causation. In recognizing that the harm may have occurred during the investigation period or that exporters may have taken steps to prevent the establishment of an anti-dumping duty, Article 10 contains provisions relating to the retroactive institution of dumping duties in certain circumstances. If the institution of anti-dumping duties is based on the finding of material damage, as opposed to the threat of material harm or a significant delay in establishing a domestic industry, anti-dumping duties may be levied from the date of provisional measures being taken. Where interim duties in excess of the final tariff have been collected or the collection of these duties is based on the finding of imminent material harm or significant delay, a refund of the interim duties is required. Article 10.6 provides for the retroactive application of final tariffs to a date of 90 days at the latest before the application of the interim measures, in certain exceptional circumstances, involving a history of dumping, imports subject to massive dumping and a possible violation of the corrective measures of the final duty. The AD agreement contains certain substantive requirements that must be met to impose an anti-dumping measure, as well as detailed procedural requirements for conducting anti-dumping investigations and the institution and maintenance of anti-dumping measures. Non-compliance with material or procedural requirements can be led to dispute resolution and may form the basis for the cancellation of the measure.

Unlike the agreement on subsidies and countervailing measures, the AD agreement does not set disciplines for dumping itself, not least because dumping is a price practice practice practiced by companies and is therefore not directly within the scope of multilateral disciplines. 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. Article 18.3 determines the entry into force of the AD agreement, provided it applies to investigations and reviews of existing measures that were initiated as a result of requests made at or after the AD agreement came into force.

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