The Chair noted that despite calls for members to notify their subsidies, compliance with the subsidy notification obligation under the WTO's SCM Agreement remains concerningly low, affecting the Agreement's proper functioning. 

He highlighted that 84 members have not made their 2023 notifications, which were due by 30 June 2023, while 82 members have yet to make their 2021 notifications, which were due more than three years ago. He also noted that 71 members still have not submitted their 2019 notifications, now overdue by more than five years. Many of these members have either never notified or have done so only in the distant past, he said.

The Chair emphasized that all members benefit from the collective effort of timely and complete notifications. "Ultimately, all members, in addition to being required to notify, have an interest in the notified information of other members," he stated. He called on non-compliant members to fulfil their obligations, noting that transparency is fundamental to the SCM Agreement's proper functioning.

Highlighting efforts to improve compliance, the Chair drew attention to the WTO Secretariat's technical assistance project on subsidy notifications. The first round of the project, completed in 2023, invited 43 members to take part, with 23 agreeing to participate. Of these, 11 members subsequently submitted their 2023 subsidy notifications in a timely fashion, accounting for 13% of all notifications received for that cycle. The Chair praised these tangible outcomes as evidence of the effectiveness of well-structured, customized assistance projects. He also informed members that a 2024-2025 round of the same technical assistance project will be launched towards the end of this year. He encouraged active engagement of the participating members.

Several delegations took the floor to echo the Chair's concerns, stressing the importance of timely and complete subsidy notifications for the SCM Agreement's effective functioning. They also expressed appreciation for the Secretariat's ongoing support and technical assistance efforts.

Training session on subsidy notifications

In response to a suggestion to organize a training session on the obligation to make subsidy notifications, the Chair acknowledged the potential benefits of such an initiative. He noted that holding a training session would be particularly useful given that a new notification cycle will begin in 2025. Recognizing the timeliness of such a session, he proposed that the Secretariat arrange this training early next year. The Secretariat will communicate the exact date and venue of the session in due course.

Review of members' subsidy notifications

The Committee reviewed the 2023 new and full subsidy notifications submitted by Australia, Cabo Verde, Cambodia, the European Union (pertaining to Croatia, Luxembourg, and Slovenia), Democratic Republic of the Congo, Dominican Republic, El Salvador, Honduras, Iceland, Nepal, and Uruguay.

The Committee also continued its review of 2023 subsidy notifications from Brazil, Canada, China, Eswatini, the European Union, Japan, Kenya, the Republic of Korea, Malaysia, Mauritius, Montenegro, Norway, Türkiye, the United Kingdom, the United States, and Vanuatu. It also continued its review of a 2019 notification from the Russian Federation.

National legislation

The Committee reviewed new notifications of countervailing duty legislation submitted by Brazil, Cabo Verde, Solomon Islands, and the United States. It also continued its review of the legislative notifications of Saint Kitts and Nevis, the European Union, and Ghana.

Semi-annual reports of members on countervailing duty actions

The Committee considered the semi-annual reports of countervailing duty actions submitted by Australia, Brazil, Canada, the European Union, India, Mexico, the United Kingdom, and the United States.

In addition to the semi-annual reports, the SCM Agreement requires members to submit without delay notifications of all preliminary and final countervailing duty actions taken. Reports received from Australia, Brazil, Canada, the European Union, India, Mexico, Chinese Taipei, the United Kingdom, and the United States were reviewed by the Committee.

Other matters

The Chair recalled the 31 December 2015 deadline for the elimination of export subsidies by members that received "fast track" extensions under Article 27.4 of the SCM Agreement. He noted that only 15 of the 19 members that had received extensions have provided the final required notifications. He called on the remaining members to comply without delay.

The Committee discussed a separate item China placed on the agenda regarding discriminatory subsidies policies and measures of the United States.

The Committee discussed a separate item the Republic of Korea placed on the agenda regarding France's electric vehicle subsidies programme.

The Committee also discussed a separate item Australia, Canada, the European Union, Japan, the United Kingdom, and the United States placed on the agenda regarding subsidies and capacity.

In addition, the Committee discussed a separate item the United States placed on the agenda regarding Kazakhstan's proposed preferences for domestically produced agricultural machinery.

The Committee discussed a separate item the United States placed on the agenda regarding the WTO Secretariat's activities on subsidies. The United States highlighted certain Secretariat-initiated activities relating to subsidies, calling for greater transparency and consultation between the Secretariat and the membership.  Australia, the European Union, India, and the United Kingdom commented on the issues raised by the US, including by expressing support for the call for greater transparency.

The Secretariat informed the Committee that it has been working on a transparency portal that will allow members to access information about Secretariat-initiated activities and explained that it expected this portal would be rolled-out towards the end of November.

Under other business, the United States provided an update on proposed guidelines for submission of questions and answers under Articles 25.8 and 25.9 of the SCM Agreement, previously submitted by Australia, Canada, the European Union, Japan, the United Kingdom, and the United States, and discussed at the Committee's regular meeting in April 2024.

The Committee also adopted its 2024 annual report to the CTG.

Next meeting

The spring and autumn 2025 meetings of the SCM Committee are scheduled to take place in the weeks of 28 April and 27 October 2025, respectively.

More information about the SCM Agreement and the WTO's work on subsidies and countervailing measures can be found here.

Share