Past WTO
Ministerials:
>
Seattle,
1999
> Geneva,
1998
> Singapore,
1996
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The Committee on Subsidies and Countervailing Measures (“SCM
Committee”) shall follow the procedures set forth below in respect
of extensions of the transition period under Article 27.4 of the
Agreement on Subsidies and Countervailing Measures (“SCM Agreement”)
for certain developing country members. The programmes to which these
procedures shall apply are those meeting the criteria set forth in 2.
1.
Mechanism for extension back
to top
(a)
A member that maintains programmes meeting the criteria set forth
in 2 and that wishes to make use of these procedures, shall
initiate Article 27.4 consultations with the Committee in respect
of an extension for its eligible subsidy programmes as referred to
in 2, on the basis of documentation to be submitted to the
Committee not later than 31 December 2001. This documentation
shall consist of (i) an identification by the member of those
programmes for which it is seeking an extension under SCM Article
27.4 pursuant to these procedures; and (ii) a statement that the
extension is necessary in the light of the member's economic,
financial and development needs.
(b)
Not later than 28 February 2002, the
member seeking an extension
shall submit to the SCM Committee an initial notification as
referred to in 3(a) providing detailed information about the
programmes for which extension is being sought.
(c)
Following receipt of the notifications referred to in
1(b), the
SCM Committee shall consider those notifications, with an
opportunity for members to seek clarification of the notified
information and/or additional detail with a view to understanding
the nature and operation of the notified programmes, and their
scope, coverage and intensity of benefits, as referred to in 3(b).
The purpose of this consideration by the SCM Committee shall be to
verify that the programmes are of the type eligible under these
procedures as referred to in 2, and that the transparency
requirement referred to in 3(a) and 3(b) is fulfilled. Not later
than 15 December 2002, members of the SCM Committee shall grant
extensions for calendar year 2003 for those programmes notified
pursuant to these procedures, provided that the notified
programmes meet the eligibility criteria in 2 and that the
transparency requirement is fulfilled. The notified information on
the basis of which the extensions are granted, including
information provided in response to requests from members as
referred to above, shall form the frame of reference for the
annual reviews of the extensions as referred to in 1(d) and
1(e).
(d)
As provided for in SCM Article 27.4, the extensions granted by the
SCM Committee pursuant to these procedures shall be subject to
annual review in the form of consultations between the committee
and the members receiving the extensions. These annual reviews
shall be conducted on the basis of updating notifications from the
members in question, as referred to in 3(a) and 3(b). The purpose
of the annual reviews shall be to ensure that the transparency and
standstill requirements as set forth in 3 and 4 are being
fulfilled.
(e)
Through the end of calendar year 2007, subject to annual reviews
during that period to verify that the transparency and standstill
requirements set forth in 3 and 4 are being fulfilled, Members of
the Committee shall agree to continue the extensions granted
pursuant to 1(c).
(f)
During the last year of the period referred to in 1(e), a member
that has received an extension under these procedures shall have
the possibility to seek a continuation of the extension pursuant
to SCM Article 27.4, for the programmes in question. The Committee
shall consider any such requests at that year's annual review, on
the basis of the provisions of SCM Article 27.4, i.e., outside the
framework of these procedures.
(g)
If a continuation of the extension pursuant to 1(f) is either not
requested or not granted, the member in question shall have the
final two years referred to in the last sentence of SCM Article
27.4.
2.
Eligible
programmes back
to top
Programmes
eligible for extension pursuant to these procedures, and for which
members shall therefore grant extensions for calendar year 2003 as
referred to in 1(c), are export subsidy programmes (i) in the form of
full or partial exemptions from import duties and internal taxes, (ii)
which were in existence not later than 1 September 2001, and (iii)
which are provided by developing country members (iv) whose share of
world merchandise export trade was not greater than 0.10 per cent(1),
(v) whose total Gross National Income (“GNI”) for the year 2000 as
published by the World Bank was at or below US $ 20 billion(2),
(vi) and who are otherwise eligible to request an extension pursuant
to Article 27.4(3),
and (vii) in respect of which these procedures are followed.
3.
Transparency back
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(a)
The initial notification referred to in
1(b), and the updating
notifications referred to in 1(d), shall follow the agreed format
for subsidy notifications under SCM Article 25 (found in G/SCM/6).
(b)
During the SCM Committee's consideration/review of the
notifications referred to in 1(c) and 1(d), notifying members can
be requested by other members to provide additional detail and
clarification, with a view to confirming that the programmes meet
the criteria set forth in 2, and to establishing transparency in
respect of the scope, coverage and intensity of benefits (the “favourability”)
of the programmes in question(4).
Any information provided in response to such requests shall be
considered part of the notified information.
4.
Standstill back
to top
(a)
The programmes for which an extension is granted shall not be
modified during the period of extension referred to in 1(e) so as
to make them more favourable than they were as at 1 September
2001. The continuation of an expiring programme without
modification shall not be deemed to violate standstill.
(b)
The scope, coverage and intensity of benefits (the “favourability”)
of the programmes as at 1 September 2001 shall be specified in the
initial notification referred to in 1(b), and standstill as
referred to in 4(a) shall be verified on the basis of the notified
information referred to in 1(d) and 3(b).
5.
Product graduation on the basis of export competitiveness back
to top
Notwithstanding
these procedures, Articles 27.5 and 27.6 shall apply in respect of
export subsidies for which extensions are granted pursuant to these
procedures.
6.
Members listed in Annex VII(b)
back
to top
(a)
A
member listed in Annex
VII(b) whose GNP per capita has reached
the level provided for in that Annex and whose programme(s) meet
the criteria in 2 shall be eligible to make use of these
procedures.
(b)
A
member listed in Annex
VII(b) whose GNP per capita has not
reached the level provided for in that Annex and whose programme(s)
meet the criteria in 2 may reserve its right to make use of these
procedures, as referred to in 6(c), by submitting the
documentation referred to in 1(a) not later than 31 December 2001.
(c) If the per capita GNP of a member referred to in
6(b) reaches
the level provided for in that Annex during the period referred to
in 1(e), that member shall be able to make use of these procedures
as from the date at which its per capita GNP reaches that level
and for the remainder of the period referred to in 1(e), as well
as for any additional periods as referred to in 1(f) and 1(g),
subject to the remaining provisions of these procedures.
(d)
For a member referred to in 6(b), the effective date for the
standstill requirement referred to in 4(a) shall be the year in
which that member's GNP per capita reaches the level provided for
in Annex VII(b).
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7.
Final provisions back
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(a)
The decision by
ministers, these procedures, and the SCM Article
27.4 extensions granted thereunder, are without prejudice to any
requests for extensions under Article 27.4 that are not made
pursuant to these procedures.
(b)
The decision by ministers, these procedures, and the SCM
Article 27.4 extensions granted thereunder, shall not affect any
other existing rights and obligations under SCM Article 27.4 or
under other provisions of the SCM Agreement.
(c)
The criteria set forth in these procedures are solely and
strictly for the purpose of determining whether members are
eligible to invoke these procedures. Members of the Committee
agree that these criteria have no precedential value or relevance,
direct or indirect, for any other purpose.
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Notes:
1.
According to the calculations performed by the WTO Secretariat as
reflected in Appendix 3 to the Report of the Chairman (G/SCM/38). back
to text
2. The SCM Committee shall consider other
appropriate data sources in respect of members for whom the World Bank
does not publish total GNI data. back
to text
3. The fact that a member is listed in
Annex VII(b) shall not be deemed to make that member otherwise
ineligible to request an extension pursuant to Article 27.4. back
to text
4. The scope, coverage and intensity of the
programmes in question will be determined on the basis of the legal
instruments underlying the programmes. back
to text
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