RESTRICTED
WORLD TRADE G/ADP/W/10
G/SCM/W/18
ORGANIZATION 11July1995
(95-1917)
Original: English Committee onAnti-Dumping Practices
Committee onSubsidies andCountervailing Measures
QUESTIONS CONCERNINGTHE NOTIFICATIONS PROVIDED
BYTHE GOVERNMENT OFTHE UNITED STATES OFLAWS
AND REGULATIONS UNDER ARTICLES 18.5AND 32.6THE AGREEMENTS
Thefollowing communication, dated 3July,hasbeenreceived fromthePermanent Delegation
oftheEuropean Community.
_______________
Please findenclosed thewritten questions submitted bytheEuropean Community inviewof
thelegislation review tobecarried outinthenextmeeting oftheAnti-Dumping andSubsidies and
Countervailing Measures Committees.
Withregard totheUScountervailing legislation, notified on16March 1995under Article 32.6
oftheWTO Subsidies Agreement (Document G/ADP/N/1/USA/1-G/SCM/N/1/USA/1), theEuropean
Community would liketoaskthefollowing questions:
1. Section 701(b)Subsidies Agreement Country
Please explain what criteria theUSPresident applies "todetermine whether acountry has
assumed obligations withrespect totheUnited States". Which countries arefalling under thecategories
2and3ofthisSection?
2. Section 701(d)Treatment ofinternational consortia
TheUSwillcumulate allsubsidies provided tothemembers ofaninternational consortium
bytherespective home countries. Isitpossible thattheaverage countervailable subsidy found exceeds
thesubsidy found toexistperunitofthesubsidized product ofonecountry? Howwould thissquare
withArticle 19.4SCM? Would production manufactured within theUSalsobetaken intoaccount
forthepurpose ofcumulating calculation?
3. Section 703(d)(1)(A)(ii) andSection 777(A)(e)(2)(B)
TheUScandecide toapply asingle country-wide subsidy ratetobeapplied toallexporters
andproducers, incaseofsampling. CantheUSexplain whether under itssystem itispossible that
acompany obtains ahigher CVD ratethanitssubsidy margin, evenifthiscompany hasbeensubject
toanindividual investigation? What procedural remedies areforeseen inorder toprevent asituation
arising thatwould conflict withArticle 19.4SCM?
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G/SCM/W/18
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4. Section 705(c)(5) Thecountry widesubsidy rate
CantheUSexplain whyitexcludes fromtheweighted average tocome toacountry widerate,
theexporters forwhich azeroordeminimis ratewasfound? Canitalsoexplain more detail what
approaches maybeusedifallexporters havezeroordeminimis rates?
5. Section 771(5F)Change inownership (page 273)
Thissection preserves thepossibility fortheUStocontinue tocountervail subsidies granted
prior toaprivatization (atarm'slength) atfullmarket value, astheUShasdoneinrecent steelcases.
CantheUSexplain whether itconsiders thatinsuchasituation allrequirements ofthedefinition of
asubsidy (Article +1SCM) arefulfilled, i.e.afinancial contribution and,mostimportant, abenefit
tothecompany whose products willbecountervailed?
6. Section 771(5A)(D)(ii)
TheUSomitted apartoffootnote 2toArticle 2SCM, which deals withtheobjective criteria
orconditions tobetaken intoaccount inadejurespecificity determination. TheUSomitted "the
economic nature andhorizontal application". Would itbepossible toexplain this?
7. Section 771(E)notified subsidy programme (page 278)
CantheUSexplain whatthesituation willbeifinaninvestigation itcomes across asubsidy
programme which hasnotbeennotified butthatfulfils theconditions ofArticle 8.2SCM?
Code ofFederal Regulation
8. Section 355.11 (b)
Thissection makes reference tocountries "entitled toaninjury test". Willthisrequirement
remain intherevised Regulations? Ifso,howwould theUSreconcile thiswiththeprovisions under
theSCM?
9. Injury threshold
WilltheUSimpose countervailing duties oflessthanthetotalamount ofthesubsidy ifsuch
lesser dutywould beadequate toremove theinjury tothedomestic industry? (Article 19.2SCM).