Elena's Movie Review Madness

Reviews from my 11-year old mind!

A U.S. company harmed by unfairly subsidized imports into the U.S. may also file a complaint or “petition” with the U.S. Department of Commerce requesting the initiation of a countervailing duty investigation. A countervailing duty investigation is a unilateral measure taken by a WTO member government to determine whether a domestic industry is harmed by subsidized imports. Under the subsidy agreement, countries can impose a special import duty – called a countervailing duty (CVM) – to offset the benefit of prohibited or countervailable subsidies for imported products. Countervailing duties may be imposed only if the investigating body of the importing country finds that imports of the product concerned are subsidising and harming a domestic industry. The World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures contains rules on the use of state subsidies and on the application of remedies against subsidized trade with injurious trade effects. These remedies may be pursued in WTO dispute settlement proceedings or in the context of a countervailing duty investigation(s) that may be conducted unilaterally by any WTO member government. One of the advantages of WTO dispute settlement is that it provides not only remedies for subsidies that affect domestic competition, but also remedies for subsidies that affect competition in foreign markets. Prior to the subsidy agreement, the U.S. Countervailing Tariff Act, which applies only to subsidized products imported into the U.S., was the only practical way for U.S.

companies to counter subsidized foreign competition. A subsidy granted by a WTO member government is prohibited under the Subsidies Agreement if it depends, in law or in fact, on export performance or the use of domestic products in relation to imported products. These prohibited subsidies are commonly referred to as export subsidies or import subsidies. They are considered specific and are considered particularly harmful under the grant agreement and U.S. law. (Special rules apply to agricultural subsidies under the WTO Agreement on Agriculture.) A subsidy granted by a WTO member government is “countervailable” under the agreement (again, some exceptions apply to agricultural subsidies) if it “harms” the domestic production of another country or if it “seriously affects” the interests of another country. Serious harm can occur in cases where a subsidy is awarded: For more information on the Department of Commerce`s efforts to enforce subsidies, see the Grant Enforcement Office`s website. In addition, you can learn more about filing a countervailing duty complaint by visiting the Import Administration`s website. The petitioner`s advice is available by email: Petitioners_Support@ita.doc.gov. If a WTO member government considers that a prohibited or countervailable subsidy is being granted or maintained by another member government, it may request consultations with that government under WTO dispute settlement procedures. .

Categories: Uncategorized

Comments are closed.