Given that the governments of WTO member states have the right to impose countervailing duties and that many countries have countervailing duties similar to those of the United States, it is important to keep in mind that your company, as a U.S. exporter, could face an investigation against the tax in another country. Any company in the United States or another WTO member state that is commercially harmed by products from another Unwarranted Member State can benefit from the subsidy agreement. If your business is the subject of a counter-rights investigation in another country, the subsidy agreement provides many procedural and substantial safeguards to ensure that countervailing duties are not arbitrarily applied to your company`s exports. Industries or businesses may require their government to take protections. The WTO agreement sets out the requirements for protection investigations conducted by national authorities. The emphasis is on transparency and compliance with established rules and practices to avoid arbitrary methods. The investigating authorities must publicly announce the hearing date and make other appropriate evidence available to interested parties. The evidence must contain arguments as to whether a measure is in the public interest. 27.9 With respect to applicable subsidies, developing countries granted or maintained by another developing country benefiting from Article 6, paragraph 1, may not be authorized or taken under Article 7, unless the cancellation or invalidation of tariff concessions or other commitments under the 1994 GATT is due to such a subsidy , so that imports of a similar product from another member are ousted or hindered in the subsidizing market. Member States or unless there is prejudice to a domestic industry in the market of an importing member.
As of December 2015, 16 WTO members were able to subsidize exports for products for which they had pledged to reduce subsidies. Those who have not made commitments would not be able to subsidize agricultural exports at all. Of the 16, some had decided to reduce or completely eliminate their use of these subsidies. In parentheses is the number of products concerned for each country. (5) In determining whether the amount of waste claimed is normal, the investigating authority should take into account the production process, the average industry experience in the exporting country and, if so, other technical factors. The investigating authority must bear in mind that an important question is whether the exporting member`s authorities have reasonably calculated the amount of waste when such an amount is to be included in the reduction or remission. 1. Export subsidies that are not listed in Article 9, paragraph 1, are not applied in a way that circumvents export subsidy commitments or is at risk of being circumvented; Non-commercial transactions should also not be used to circumvent these obligations. 27.6 The competitiveness of a product`s export product exists when exports of that product by a developing country have reached at least 3.25% of world trade in that product in two consecutive calendar years. Export competitiveness is either (a) based on the notification of the member of the developing country who has achieved export competitiveness, or b) on the basis of a calculation made by the secretariat at the request of a member. For the purposes of this paragraph, a product is defined as the title of the harmonized system nomenclature. The committee is reviewing the application of this provision five years after the WTO agreement came into force.
The agricultural agreement prohibits the use of Article 9.1 export subsidies for any agricultural product for which there is no obligation to reduce it in accordance with the corresponding part of the members` calendar (with the exception of the period of hereditary export aid for persons receiving special and different treatment).