Subsidies Agreement provides rules for the use of government subsidies

Agreement on Subsidies and Countervailing Measures (Subsidies Agreement) of the World Trade Organization provides rules for the use of government subsidies and for the application of remedies to address subsidized trade that has harmful commercial effects.

Under the Agreement, actions can only be taken against subsidies that are “specific” A specific subsidy is one that is only given to one company or to a special group of companies.

A company being injured by unfairly subsidized imports into the United States can file a complaint or petition’ with the U.S. Department of Commerce asking that a countervailing duty investigation be initiated.

Under the Subsidies Agreement , countries can impose a special import duty to offset the benefit of prohibited or actionable subsidies on imported products.

As a U.S. exporter, your company may face a countervailing duty investigation in another country.

The Subsidies Agreement obligates WTO member governments to conduct.

investigations fairly.

Governments have the right to complain to the WTO through the dispute settlement process.