U.S. Charges China & India with Failing to Report Subsidies to WTO
U.S. Trade Representative Kirk states the U.S. has submitted information to the World Trade Organization identifying nearly 200 subsidy programs that it says China has failed to notify as required under WTO rules. Information was also submitted on 50 subsidy programs in India not previously notified.
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(The U.S. action is referred to as a “counter notification” and can be taken when one WTO member has not notified its subsidy programs in a timely fashion as required, and another member wishes to bring it to the attention of that member and the WTO Subsidies Committee.)
Says China Submitted Just 1 Notification Since Joining WTO, India Is Similar
USTR Kirk states that the situation is “simply intolerable” as every WTO member is required to notify its subsidy programs on a regular basis. However, China has only submitted one subsidy notification since becoming a WTO Member in 2001, a 2006 notification that covered the years 2001- 2004 that USTR says was “noticeably incomplete.” It has not notified any subsidy programs since that time. Similarly, India submitted its first notification in nearly ten years earlier in 2011, but it covered only three subsidy programs.
U.S. Seeks Information & Data on These Subsidy Programs
Through these actions at the WTO, the U.S. is seeking the prompt provision of detailed information and data from China and India regarding the operation of these subsidy programs. The USTR states that this information is required so that Members may assess the nature and extent of the subsidy programs, which is particularly significant for China, where inadequate transparency in so many areas places a tremendous burden on WTO Members seeking to better understand its trade policy measures.
Includes China Green Tech and CV Subsidies & Measures
USTR says it worked closely with the Department of Commerce in investigating China’s and India’s subsidies practices and in compiling the “counter notifications.” The U.S. submission on China’s subsidy programs includes measures submitted in the context of a Section 301 investigation initiated in October 2010, regarding Chinese policies and practices affecting trade and investment in green technologies. (See ITT’s Online Archives 11010519 for summary of trade comments on the China green technologies Section 301 investigation, with links to other summaries.)
It also includes measures uncovered in the course of three prior WTO dispute settlement proceedings and measures uncovered in the course of countervailing duty investigations conducted by the International Trade Administration. The U.S. submission on India’s subsidy programs includes measures uncovered in the course of U.S. countervailing duty investigations.