Minutes of the Special Meeting
held on 26 april 2016
Chair: Mr mitsuhiro fukuyama (JAPAN)
1.
The Committee on
Subsidies and Countervailing Measures ("Committee") held a special
meeting on 26 April 2016, convened in WTO/AIR/SCM/8 dated 15 April 2016.
2. The Committee adopted the following agenda:
1 Review of 2015 new and full subsidy
notifications (G/SCM/N/284/...) NOT PREVIOUSLY REVIEWED.. 2
1.1
Canada (G/SCM/N/284/CAN) 2
1.2
China (G/SCM/N/220/CHN–G/SCM/N/253/CHN-G/SCM/N/284/CHN) 3
1.3 Costa Rica (G/SCM/N/284/CRI-G/SCM/N/290/CRI) 4
1.4
Dominica (G/SCM/N/284/DMA-G/SCM/N/290/DMA) 4
1.5 Ecuador (G/SCM/N/284/ECU) 4
1.6 El Salvador
(G/SCM/N/284/SLV-G/SCM/N/290/SLV) 4
1.7
European Union (G/SCM/N/284/EU, Addenda 3, 4, 6, 9, 10, 11, 12, 13, 14, 15, 16,
17, 18, 19, 20, 21 and 27, pertaining to Bulgaria, Croatia, Czech Republic,
Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,
Luxembourg, Malta, Netherlands, Poland, and Sweden, respectively) 4
1.8
Hong Kong, China (G/SCM/N/284/HKG) 5
1.9
Japan (G/SCM/N/284/JPN and G/SCM/N/284/JPN/Corr.1) 5
1.10 Jordan (G/SCM/N/284/JOR–G/SCM/N/290/JOR) 5
1.11
Korea, Republic of (G/SCM/N/284/KOR) 5
1.12
Lesotho (G/SCM/N/220/LSO-G/SCM/N/253/LSO–G/SCM/N/284/LSO) 5
1.13
Liechtenstein (G/SCM/N/284/LIE) 5
1.14
Macao, China (G/SCM/N/284/MAC) 5
1.15
Mauritius (G/SCM/N/284/MUS-G/SCM/N/290/MUS) 6
1.16 Mexico (G/SCM/N/284/MEX) 6
1.17
Montenegro (G/SCM/N/284/MNE) 6
1.18
New Zealand (G/SCM/N/284/NZL) 6
1.19
Norway (G/SCM/N/284/NOR) 6
1.20
Peru (G/SCM/N/284/PER) 6
1.21
Qatar (G/SCM/N/253/QAT-G/SCM/N/284/QAT) 6
1.22
Saint Vincent and the Grenadines (G/SCM/N/284/VCT-G/SCM/N/290/VCT) 6
1.23
Switzerland (G/SCM/N/284/CHE) 7
1.24
Thailand (G/SCM/N/284/THA) 7
1.25
Chinese Taipei (G/SCM/N/284/TPKM) 7
1.26
Turkey (G/SCM/N/284/TUR) 7
1.27
Ukraine (G/SCM/N/284/UKR) 7
2 Review of 2013 new and
full subsidy notifications (G/SCM/N/253/…) not previously reviewed.. 7
2.1 Viet Nam (G/SCM/N/253/VNM) 7
3 REVIEW OF 2011 new and
full subsidy notifications (G/SCM/N/220/…) not previously reviewed.. 8
4 continuation of REVIEW
OF 2013 new and full subsidy notifications (G/SCM/N/253/…). 8
4.1 Brazil (G/SCM/N/253/BRA) 8
4.2 European Union (G/SCM/N/253/EU, Addenda
1, 2, 4, 6, 8, 17, 19, 24, 27, pertaining to Austria, Belgium, Cyprus, Denmark,
Finland, Hungary, Italy, Luxembourg, the Netherlands, Slovenia, and the United
Kingdom, respectively) 8
4.3 India (G/SCM/N/253/IND and
G/SCM/N/253/IND/Suppl.1) 9
4.4 Malaysia (G/SCM/N/253/MYS) 9
4.5 Russian Federation (G/SCM/N/253/RUS and
G/SCM/N/253/RUS/Rev.1) 9
4.6 Turkey (G/SCM/N/253/TUR) 9
4.7 United States (G/SCM/N/253/USA) 10
5 Continuation of review
of 2009 (G/SCM/N/186/...) new and full notifications 10
5.1 Gabon (G/SCM/N/186/GAB) 10
5.2 Turkey (G/SCM/N/186/TUR) 10
3.
The Chair
recalled that, at its April 2015 regular meeting the Committee decided to
continue to apply the same procedures in G/SCM/117 according to which only
notifications that had been circulated to Members in all three WTO working languages
not later than 28 December 2015 could be reviewed at this meeting. Those
notifications were listed in WTO/AIR/SCM/7. Written questions pertaining to
those notifications had been due by 25 January 2016, and written
answers by 28 March 2016.
4. Written questions and answers concerning this notification can be
found in:
·
G/SCM/Q2/CAN/65 –
questions from the United States
·
G/SCM/Q2/CAN/66 –
replies to the United States
5. There were no other questions or comments from the floor.
6. The Chair noted that because the answers to the United States
had been submitted after the applicable deadline, the Committee would return to
this notification at its October 2016 special meeting.
7.
The Committee took
note of the notification, questions and answers, and statements made.
8. Written questions and answers concerning this notification can be
found in:
·
G/SCM/Q2/CHN/54 –
questions from Canada
·
G/SCM/Q2/CHN/55 –
questions from Japan
·
G/SCM/Q2/CHN/56 –
questions from Mexico
·
G/SCM/Q2/CHN/57 –
questions from the United States
·
G/SCM/Q2/CHN/58 –
questions from Chinese Taipei
·
G/SCM/Q2/CHN/60 –
questions from the European Union
·
G/SCM/Q2/CHN/61 –
replies to Canada
·
G/SCM/Q2/CHN/62 –
replies to Japan
·
G/SCM/Q2/CHN/63
and G/SCM/Q2/CHN/63/Corr.1 – replies to Mexico
·
G/SCM/Q2/CHN/64 –
replies to the United States
·
G/SCM/Q2/CHN/65 –
replies to Chinese Taipei
9. China stated that the
United States, Canada and Japan had asked questions about China's notification
on subsidy programmes at the sub-central government level, that it was
preparing that notification for the period between 2001 and 2014, and had
completed the draft of the notification and entered the final stage of domestic
procedures. It would submit the notification as soon as it was finalised.
10. With regard to the questions posed by the United
States, Canada and Japan about the reason for not disclosing the subsidy amount
for some notified programmes, this was because the statistics system for tax
expenditure had not been established in China and therefore the amount of
fiscal tax revenue foregone resulted from the implementation of preferential
tax policies was not available.
11. Regarding questions from Canada and Chinese Taipei
on its preferential tax policies for foreign-invested enterprises (FIEs),
specifically with respect to Programmes 7, 9 and 10 in its subsidy
notification, these were transitional preferential policies for FIEs after the
implementation of the new Enterprise Income Tax Law of the People's Republic of
China in 2008, and would be invalidated at the expiration of the transitional
period. China noted that after that transitional period FIEs would enjoy the
same enterprise income tax rate as that for domestic enterprises and there
would be no tailor-made preferential tax treatment for FIEs.
12. With respect to questions posed by Canada and
Mexico about preferential tax treatment for building materials products
manufactured with integrated utilization of resources, China stated that it had
made clear explanations on that issue in Programme 15 of its latest subsidy
notification and referred to the Notice on the Catalogue of Comprehensive Use
of Resources for Preferential Enterprise Income Tax Treatment (Circular CaiShui
No. 117 of 2008) for further details. China’s written response provided the
website on which the document was accessible.
13. With regard to questions raised by the European
Union, China would provide its written response in due course.
14. The United States was somewhat disappointed
that the responses had come in so late and without an electronic copy at the
moment. This made it difficult to have any kind of substantive discussion. The
United States looked forward to the sub-central subsidy notification, which had
been promised for quite some time. The United States expected that this item
would be on the agenda for the fall meeting of the Committee.
15. Japan indicated that
it would review the answers, and noted that China's notification did not
include local government subsidies, which Japan looked forward to seeing.
16. Canada stated that it
was looking forward to reviewing China's responses as well as receiving the
notification with respect to its sub-central programmes.
17. The Chair noted that because some questions and answers had
been submitted after the deadline and some questions remained pending, the
Committee would return to this notification at its autumn 2016 special
meeting.
18.
The Committee took
note of the notification, questions and answers, and statements made.
19.
This
double-symbolled notification was a new and full 2015 notification as well as a
transparency notification in respect of extensions under Article 27.4 of the
SCM Agreement. No Member raised any questions or comments.
20.
The Committee took
note of the notification.
21. This double-symbolled notification was a new and full 2015
notification as well as a transparency notification in respect of extensions
under Article 27.4 of the SCM Agreement. No Member raised any questions or
comments.
22.
The Committee took
note of the notification.
23. No Member raised any questions or comments about this notification.
24.
The Committee took
note of the notification.
25.
This
double-symbolled notification was a new and full 2015 notification as well as a
transparency notification in respect of extensions under Article 27.4 of the
SCM Agreement. No Member raised any questions or comments.
26.
The Committee took
note of the notification.
27. Written questions and answers concerning this notification can be
found in:
·
G/SCM/Q2/EU/47 –
questions from the Russian Federation
·
G/SCM/Q2/EU/48 –
questions from Canada
·
G/SCM/Q2/EU/49 –
replies to Canada
·
G/SCM/Q2/EU/51 –
replies the Russian Federation[1]
28.
With respect to
questions raised by Russia, the European Union indicated that its
written answers covered 10 of the 16 questions that had been posed. The
European Union would provide answers to the remaining questions as soon as they
had been received from the relevant Member States.
29.
The Chair noted that because answers had been submitted after the deadline
and some questions remained pending, this notification would be placed on the agenda of the October special
meeting for continuing review.
30.
The Committee took
note of the notification, questions and answers, and statements made.
31.
No Member raised
any questions or comments about this notification.
32.
The Committee took
note of the notification.
33. Written questions and answers concerning this notification can be
found in:
·
G/SCM/Q2/JPN/72 –
questions from Canada
·
G/SCM/Q2/JPN/73 –
replies to Canada
·
G/SCM/Q2/JPN/74 –
questions from the United States
·
G/SCM/Q2/JPN/75 –
replies to the United States
34.
The Committee took
note of the notification, questions and answers.
35.
This
double-symbolled notification was a new and full 2015 notification as well as a
transparency notification in respect of extensions under Article 27.4 of the
SCM Agreement. No Member raised any questions or comments.
36.
The Committee took
note of the notification.
37. Written questions and answers concerning this notification can be
found in:
·
G/SCM/Q2/KOR/54 –
questions from the United States
·
G/SCM/Q2/KOR/55 –
questions from Chinese Taipei
·
G/SCM/Q2/KOR/56 –
replies to Chinese Taipei
·
G/SCM/Q2/KOR/57 –
replies to the United States
38. The Chair noted that because the questions from Chinese
Taipei and the replies to both set of questions had been submitted after the
applicable deadlines, this notification would be placed on the agenda of the October special
meeting for continuing review.
39.
The Committee took
note of the notification, questions and answers, and statements made.
40.
This notification
was a multi-symbolled new and full notification for 2011, 2013 and 2015. No
Member raised any questions or comments in respect of this notification.
41.
The Committee took
note of the notification.
42. No Member raised any questions or comments about this notification.
43.
The Committee took
note of the notification.
44. No Member raised any questions or comments about this notification.
45.
The Committee took
note of the notification.
46. This double-symbolled notification was a new and full 2015
notification as well as a transparency notification in respect of extensions
under Article 27.4 of the SCM Agreement. No Member raised any questions or
comments.
47.
The Committee took
note of the notification.
48. No Member raised any questions or comments about this notification.
49.
The Committee took
note of the notification.
50. No Member raised any questions or comments about this notification.
51.
The Committee took
note of the notification.
52. No Member raised any questions or comments about this notification.
53.
The Committee took
note of the notification.
54. No Member raised any questions or comments about this notification.
55.
The Committee took
note of the notification.
56. No Member raised any questions or comments about this notification.
57.
The Committee took
note of the notification.
58.
This notification
was a double-symbolled new and full notification for 2013 and 2015.
59.
Written questions
concerning this notification can be found in:
·
G/SCM/Q2/QAT/5 –
questions from the United States
60.
Qatar stated that it was examining the questions posed by the United
States, and that it would provide written replies as well as supplementary
notifications if necessary after gathering the relevant information from the
respective authorities.
61.
The Chair
noted that as no written response had been submitted to the questions, the
Committee would return to this notification at its autumn 2016 special meeting.
62.
The Committee took
note of the notification, questions, and statements made.
63.
This
double-symbolled notification was a new and full 2015 notification as well as a
transparency notification in respect of extensions under Article 27.4 of the
SCM Agreement. No Member raised any questions or comments.
64.
The Committee took
note of the notification.
65. No Member raised any questions or comments about this notification.
66.
The Committee took
note of the notification.
67.
Written questions
concerning this notification can be found in:
·
G/SCM/Q2/THA/26 –
questions from the United States
68.
Thailand stated that it had conveyed the questions to the capital but had
not received a response yet. The written replies would be submitted as soon as
possible.
69.
The Chair
noted that as no written response had been submitted to the questions, the
Committee would return to this notification at its autumn 2016 special meeting.
70.
The Committee took
note of the notification, questions, and statements made.
71. No Member raised any questions or comments about this notification.
72.
The Committee took
note of the notification.
73. Written questions and answers concerning this notification can be
found in:
·
G/SCM/Q2/TUR/34 –
questions from the United States
·
G/SCM/Q2/TUR/35
and G/SCM/Q2/TUR/35/Suppl.1 – replies to the United States
74. The Chair noted that because answers had been submitted after
the deadline, the Committee would return to this notification at its October
2016 special meeting.
75.
The Committee took
note of the notification, questions and answers, and statements made.
76. No Member raised any questions or comments about this notification.
77.
The Committee took
note of the notification.
78.
The Chair
recalled that 2013 new and full subsidy notifications had been due on
30 June 2013 and this was the Committee's sixth special meeting at which
such notifications would be reviewed.
79.
Written questions
concerning this notification can be found in:
·
G/SCM/Q2/VNM/5 –
questions from the United States
80.
Viet Nam stated that it had scheduled a meeting with the United States to
discuss the issues bilaterally.[2]
81.
The United
States confirmed that a bilateral meeting had been scheduled, but also
expected to receive written answers to the questions.
82.
The Chair
noted that as no written response had been submitted to the questions, the
Committee would return to this notification at its autumn 2016 special meeting.
83.
The Committee took
note of the notification, questions, and statements made.
84. The Chair noted that both of the
notifications under this item – from Lesotho and China – had been taken up
under the first agenda item.
85. The Chair noted that this agenda item was
for the continuation of reviews of 2013 new and full notifications started at
prior meetings that had not yet been completed, due to late submission of
questions or non-submission or late submission of written replies. The
Committee also considered under this agenda item the follow-up questions that
had been submitted in respect of certain of those notifications.
86. The Chair recalled that the exchange of written
questions and answers was the essence of the review process for those subsidy
notifications, as per the Committee's agreed procedures. Failure to reply
promptly to such questions undermined transparency, and thus frustrated the
purpose of the review. All Members that had not yet responded to written
questions concerning their subsidy notifications thus should submit their
answers without further delay.
87. The Chair thanked those delegations with
notifications under the remaining agenda items that had submitted written
answers to questions that had remained pending at the end of the autumn 2015
special meeting.
88. Written questions and answers concerning this notification can be
found in:
·
G/SCM/Q2/BRA/47 –
follow-up questions from the United States
·
G/SCM/Q2/BRA/48 –
replies to follow-up questions from the United States
89. The Chair noted that because answers had been submitted after
the deadline, the Committee would return to this notification at its October
2016 special meeting.
90.
The Committee took
note of the notification, questions, answers, and statements made.
91.
Written questions
and answers concerning this notification can be found in:
·
G/SCM/Q2/EU/44 – questions from the Russian Federation
(Austria, Belgium, Finland, Italy, Luxembourg, Netherlands, Slovenia)
·
G/SCM/Q2/EU/47 – questions from the Russian Federation
(Austria, Belgium, Cyprus, Denmark, Luxembourg, Slovenia, United Kingdom)
·
G/SCM/Q2/EU/50 – replies to the Russian Federation (Austria,
Belgium, Finland, Italy, Luxembourg, Netherlands, Slovenia)
·
G/SCM/Q2/EU/51 - replies to the Russian Federation (Bulgaria,
United Kingdom)[3]
92.
The Chair
recalled that shortly before the meeting, the European Union had submitted
replies to certain questions from the Russian Federation.
93.
The European
Union recalled that it had provided oral answers to Russia’s questions
posed regarding Finland, Luxembourg, the Netherlands, and Slovenia at the last
Committee meeting. With respect to
questions regarding Austria, the European Union would submit the written
replies as soon as possible.
94. The Chair noted that because the answers to the Russian
Federation had been submitted very shortly before the meeting and some
questions remained pending, the Committee would return to this notification at
its autumn 2016 special meeting.
95.
The Committee took
note of the notification, questions and answers, and statements made.
96.
Written questions
and answers concerning this notification can be found in:
·
G/SCM/Q2/IND/41 –
follow-up questions from the United States
·
G/SCM/Q2/IND/43 –
replies to follow-up questions from the United States
97. The Chair stated that this notification was back on the
agenda because the United States had recalled in the Committee's autumn 2015
meeting that some of its questions, as to whether certain fisheries programmes
were export contingent, had remained pending. India had recently submitted a
further supplement to this notification covering two additional schemes. That
notification would be on the agenda of the Committee's fall special meeting.
98. India stated that its new notification
on two fisheries subsidy schemes[4]
responded to the remaining part of the questions from the United States.
99.
The Committee took
note of the notification, questions and answers, and statements made.
100.
Written questions
and answers concerning this notification can be found in:
·
G/SCM/Q2/MYS/20
and G/SCM/Q2/MYS/20/Corr.1 – questions from the United States
·
G/SCM/Q2/MYS/21 –
replies to the United States
101.
The Committee took
note of the notification, questions and answers, and statements made.
102.
Written questions
and answers concerning this notification can be found in:
·
G/SCM/Q2/RUS/14 –
follow-up questions from the United States
·
G/SCM/Q2/RUS/15 –
replies to follow-up questions from the United States
103. The Chair noted that because the answers of the Russian
Federation had been submitted very shortly before the meeting, the Committee would
return to this notification at its autumn 2016 special meeting.
104.
The Committee took
note of the notification, questions and answers, and statements made.
105.
Written questions
and answers concerning this notification can be found in:
·
G/SCM/Q2/TUR/29 –
questions from Canada
·
G/SCM/Q2/TUR/33 –
additional questions from the United States
·
G/SCM/Q2/TUR/37 –
replies to Canada
·
G/SCM/Q2/TUR/38 –
replies to additional questions from the United States
106.
The United
States noted that one of the points Turkey had made in its written replies
was that its inward processing system had been examined in the context of US
countervailing duty investigations, and had been found either not to have been
used or not to have provided a countervailable subsidy. The US questions,
however, were from another angle that might not have been looked at in the CVD
investigations. Accordingly, the United States might have additional follow-up
questions in this regard.
107. The Chair noted that
because the answers of Turkey had been submitted after the applicable deadline,
the Committee would return to this notification at its autumn 2016 special
meeting.
108.
The Committee took
note of the notification, questions and answers, and statements made.
109. Written questions and answers concerning this notification can be
found in:
·
G/SCM/Q2/USA/62 –
questions from Australia
·
G/SCM/Q2/USA/63 –
questions from Canada
·
G/SCM/Q2/USA/64 –
questions from the Russian Federation
·
G/SCM/Q2/USA/65 –
replies to Australia
·
G/SCM/Q2/USA/66 –
replies to Canada
110. The Chair noted that because the answers to Australia and
Canada had been submitted recently and the questions from the Russian
Federation remained pending, the Committee would return to this notification at
its autumn 2016 special meeting.
111.
The Committee took
note of the notification, questions and answers, and statements made.
112. Pending written questions concerning this notification can be found
in:
·
G/SCM/Q2/GAB/1 –
questions from the United States
·
G/SCM/Q2/GAB/2 –
questions from Turkey
113. The Chair noted that as no written replies had been
submitted, the Committee would return to this notification at its autumn 2016
special meeting for continuing review.
114. The Committee took note of the questions and statement.
115.Written
questions and answers concerning this notification can be found in:
·
G/SCM/Q2/TUR/23 –
questions from Australia
·
G/SCM/Q2/TUR/36
and G/SCM/Q2/TUR/36/Corr.1 – replies to Australia
116. Australia noted that Turkey was not
replying to its questions but rather was saying that it would reply through its
notification to the Committee on Agriculture. Australia wanted to keep this on
the agenda and asked for Turkey's views.
117. Turkey stated that it would provide
written answers by the next Committee meeting in October 2016.
118. The Chair noted that because the answers had been submitted
after the deadline this notification would be on the agenda of the Committee's
October 2016 meeting.
119.
The Committee took
note of the notification, questions and answers, and statements made.
120. The Chair reminded those delegations that had not yet replied
to questions that they had received in connection with this or previous
meetings to provide their written responses as soon as possible, so that the
Committee could conclude the review of the notifications. He also reminded
Members that had not yet done so to submit their 2015 new and full
notifications as soon as possible. He thanked the Members that already had made
those notifications, and asked all other Members to redouble their efforts to
notify as soon as possible, which would greatly enhance the transparency
function of subsidy notification and review.
121. For new and full notifications to be placed on the agenda of the
fall special meeting, they would need to be circulated in all three working
languages not later than 27 June 2016. Given the time needed for translation,
this left a narrow window to notify in time for review in the autumn. The
Secretariat stood ready to offer any assistance in that regard.
122. Finally, delegations wishing to receive written answers to any
questions regarding notifications reviewed at the present meeting should submit
those questions in writing to both the Member concerned and the Secretariat.
The Chair recalled that it was the responsibility of the Members submitting questions and answers
to provide those directly to the other Member concerned, at the time it
submitted them to the Secretariat for circulation to all Members. Circulation
to all Members was to ensure multilateral transparency; it was not intended to
replace the necessary bilateral communication between the directly involved
Members.
123. He noted that shortly after the meeting, the Secretariat would
circulate the usual triple-symbolled document containing all of the deadlines
for documents to be submitted.[5]
124. The meeting was closed.
__________
[1] Circulated on 25 April 2016.
[2] Viet Nam's replies were circulated on 27 May 2016 in document
G/SCM/Q2/VNM/6.
[3] Circulated on 25 April 2016.
[4] G/SCM/N/253/IND/Suppl.2.
[5] G/ADP/W/494-G/SCM/W/566-G/SG/W/235, dated 10 May 2016 and
G/ADP/W/494/Corr.1-G/SCM/W/566/Corr.1-G/SG/W/235/Corr.1, dated 13 May 2016.