Start of countervailing duties rises 78.1% in the world

The beginning of the imposition of countervailing duties in the world grew 78.1% year-on-year during the period from mid-October 2019 to mid-October 2020.

Countervailing duties are applied to goods imported under conditions of subsidy discrimination (subsidies) in their country of origin.

The World Trade Organization (WTO) reported that during that period 57 cases of countervailing duties for subsidies were initiated, against 32 cases from the same previous period.

In a broader picture, during that period ending in 2020, 522 trade remedy measures (including countervailing duties) were recorded for WTO Members and observers, representing 75% of all non-Covid-related trade measures. 19 in the same 12 months.

The average number of trade remedy initiations per month was the highest recorded since 2012. The monthly average number of trade remedy cancellations recorded was the lowest recorded since 2012.

In general, multilateral disciplines are the rules by which it is determined whether or not a Member can grant a subsidy.

Countervailing duties

Compliance with these disciplines can be enforced through recourse to the WTO dispute settlement mechanism.

Countervailing duties are a unilateral instrument that Members can apply after having investigated and determined that the criteria established in the Agreement on Subsidies and Countervailing Measures (SCM Agreement) are met.

Pursuant to Article 32.6 of the SCM Agreement, all Members are required to notify the SCM Committee of their countervailing duty laws and regulations.

Members must also notify, every six months, all compensatory measures adopted, and preliminary or final measures at the time of their adoption.

Trade remedy actions

Information on trade remedies from 2012 to 2019 is based on semi-annual notifications.

For the period ending mid-October 2020, the information is based on responses and verifications received directly from Members.