KNOWLEDGE
HUB

Resource

World Trade Organization (WTO) Subsidy Notifications

4pm, October 05th, 2015

The World Trade Organization (WTO) Subsidy Notifications are available online under its search documents section, and are available predominantly by country.

Notifications are indexed by country, date of publication, symbol, period in which the subsidies are reported, and – though it should not be considered exhaustive – the sectors to which subsidies have been granted.

THe WTO defines two categories of subsidies: prohibited and actionable.

Prohibited subsidies: subsidies that require recipients to meet certain export targets, or to use domestic goods instead of imported goods. They are prohibited because they are specifically designed to distort international trade, and are therefore likely to hurt other countries’ trade. They can be challenged in the WTO dispute settlement procedure where they are handled under an accelerated timetable. If the dispute settlement procedure confirms that the subsidy is prohibited, it must be withdrawn immediately. Otherwise, the complaining country can take counter measures. If domestic producers are hurt by imports of subsidized products, countervailing duty can be imposed.

Actionable subsidies: in this category the complaining country has to show that the subsidy has an adverse effect on its interests. Otherwise the subsidy is permitted. The agreement defines three types of damage they can cause. One country’s subsidies can hurt a domestic industry in an importing country. They can hurt rival exporters from another country when the two compete in third markets. And domestic subsidies in one country can hurt exporters trying to compete in the subsidizing country’s domestic market. If the Dispute Settlement Body rules that the subsidy does have an adverse effect, the subsidy must be withdrawn or its adverse effect must be removed. Again, if domestic producers are hurt by imports of subsidized products, countervailing duty can be imposed.

Access the WTO subsidy notifications.

Institutions Involved

  • World Trade Organization (WTO)
Links for Resource