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Scm Agreement Wikipedia

The WTO does not allow countervailing duties until the importing country has conducted a thorough investigation into subsidized exports. The agreement contains detailed rules for determining whether a product is subsidized and calculating the level of these subsidies, criteria for determining whether these subsidized imports relate to domestic industry, and rules for the application and duration of countervailing duties, which are generally five years. The wiki needs to be reorganized and these efforts are coordinated on WikiProject Cleanup. To do this, major transformations or deletions may be necessary. Feel free to engage, but for any changes that might be considered destructive, you should leave a trail of comments on the associated discussion pages to explain what you are doing and why. For really important changes that could make someone angry, the best thing is to have a discussion about it first. Propose change, discuss it and reach agreement on the best organization. Different people have different ideas about how to organize wiki pages. If your business is commercially harmed by subsidized competition, two remedies can be applied under the subsidy agreement: a controversial WTO regulation or a counterparty investigation by the U.S. Department of Commerce. The subsidy agreement can also be very useful if your company`s exports become the target of a subsidy survey initiated by another country. The World Trade Organization (WTO) agreement on subsidies and countervailing measures (subsidy agreement) contains provisions relating to the use of government subsidies and the application of remedial measures to combat subsidized trade, which have negative effects on trade.

Consider the following example of countervailing duties. Suppose country A offers an export subsidy for widget creators in the nation who export widgets en masse to Land B, at $8 per widget. Country B has its own widget industry and home widgets are available for $10 per widget. If country B finds that its domestic widget industry is damaged by frantic imports of subsidized widgets, it can impose a 25% countervailing duty on widgets imported from Country A, so the cost resulting from imported widgets is also $10. This eliminates the unfair pricing advantage that widget manufacturers have in country A because of their government`s export subsidies. Article 13 of the Agricultural Subsidy Agreement sets out specific rules for agricultural subsidies during the implementation period provided for by this agreement (until 1 January 2003). Export subsidies, which are fully compliant with the agricultural agreement, are not prohibited by the SCM Convention, although they remain subject to countervailing measures. Domestic aid, which is fully compliant with the agricultural agreement, is not of multilateral application, but may also be subject to countervailing duties. Finally, under the agricultural agreement, domestic aid cannot be implemented multilaterally and is not subject to compensatory measures. At the end of the implementation period, the SCM agreement applies to agricultural subsidies, in accordance with Article 21 of the Agriculture Agreement.

 
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