Grants: A form of financial support or support that is extended to a sector of the economy. There are two general types of subsidies: export and domestic. An export subsidy is a subsidy granted to a company by the government that depends on exports. A domestic subsidy is a subsidy that is not directly related to exports. The reaction to dumping and subsidies is often a special countervailing import charge (countervailing duty in the case of a subsidy). This tax is levied on products from certain countries and therefore violates the principles of gatt customs liaison and equal treatment of trading partners (MOST-FAVORED). The agreements provide for an exit clause, but both also say that before collecting a duty, the importing country must conduct a detailed investigation that correctly shows that domestic production is being harmed. The full text of the WTO Agreement on Subsidies and Countervailing Measures is available on the website of the Office of Trade Agreements Negotiations and Compliance (TANC) in the United States. Chamber of Commerce. TANC assists U.S.
exporters facing barriers to foreign trade and ensures that foreign countries meet their trade obligations to the United States. You can contact TANC by e-mail. These proposals have met with some support and resistance, particularly in the event of the complete removal of export subsidies. 27.5 A member of a developing country that has become export competitive for a particular product shall phase out its export subsidies for those products over a period of two years. However, for a developing country Member included in Annex VII which has achieved export competitiveness of one or more products, export subsidies for those products shall be phased out over a period of eight years. Multilateral disciplines are the rules that determine whether or not a member can receive a grant. They are applied on the basis of the WTO dispute settlement mechanism. Countervailing duties are a unilateral instrument that may be applied by a Member following an investigation by that Member and a determination of compliance with the criteria set out in the SCM Agreement. .