Compensatory Laws and Measures All members are required to disclose their countervailing rights laws and regulations to the SCM Committee in accordance with Section 32.6 of the SCM Convention. Members are also required to notify all semi-annual compensatory measures as well as interim and final compensatory measures at the time of completion. Members are also required to disclose to their authorities responsibility for opening and conducting compensatory investigations. The Agreement on Subsidies and Countervailing Measures (“ASCM” or “Agreement”) sets out and extends subsidies and countervailing duties to Articles VI and XVI of the 1994 General Agreement on Tariffs and Trade (“GATT 1994”). It contains disciplines both on the use of trade-distorting subsidies and on the application of countervailing duties by the various WTO members, which aim to offset the effects of subsidies. This chapter provides a detailed overview of the rights and obligations identified by ASCM and their interaction with other parts of the WTO agreement. He will briefly discuss the history of grants and compensatory measures since the introduction of the GATT in 1947 and then discuss in detail any provisions of the ASCM. A separate chapter of this book (Chapter 17) deals with findings of prejudice in the context of anti-dumping and countervailing investigations under the ASCM and the agreement on the implementation of Article VI of the 1994 General Agreement on Tariffs and Trade, also known as the Anti-Dumping Agreement or ADA. (b) subsidies which, alone or in the form of one of several other conditions, depend on the use of imported goods in the domestic market. (a) subsidies that, both legally or as another, depend on export performance, including those described in paragraph 5 of Schedule I; Article 13 of the Agricultural Subsidies Agreement sets out specific rules on agricultural subsidy 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 multilaterally applicable, but may also be subject to countervailing duties. Finally, domestic aid under the agricultural agreement cannot be implemented multilaterally and is not subject to countervailing measures.
At the end of the implementation period, the SCM agreement applies to subsidies for agricultural products under the provisions of the Article 21 Agreement on Agriculture. This book contains an essential article-by-article commentary on the agreement and sets out the law, as it stands out from this ruling body, and provides the legal basis for a more in-depth analysis of the economic and political subsidy disciplines.