§3572 — Title 19 Customs Duties | U.S. Code

Summary

Requires the United States to set up a way to keep checking how part IV of the Subsidies Agreement is working. The goal is to make sure parts II and III keep limiting bad subsidies and fixing harm they cause, and to make sure part IV does not cancel out those benefits. To do that, the government must create an ongoing review of part IV. If certain U.S. rules (subparagraphs (B), (C), (D), and (E) of section 1677(5B)) are to stay in effect, three things must happen before the deadline named in section 1677(5B)(G)(i): the Subsidies Committee must agree to extend Articles 6.1, 8, and 9 (as they are or in a changed form); the President must consult the House Ways and Means Committee and the Senate Finance Committee; and an implementing bill must be sent to Congress and become law. The President’s submission to those committees must include the extension terms, a draft bill, any planned administrative actions, and a short explanation of how the bill and actions change current law and why they help U.S. trade. The implementing bill may only include what is needed to carry out the extension. The U.S. Trade Representative must report to Congress by the same deadline on which laws would need repeal or change if the extension does not happen. The Secretary of Commerce, with other agencies, must keep reviewing how parts II, III, and IV are working, including whether countries are cooperating and whether Articles 8.4, 8.5, and 9 have fixed problems described in Article 8.2.

Title 19, §3572

Customs Duties — Source: USLM XML via OLRC

(a)The general objectives of the United States under this subchapter are—

(1)to ensure that parts II and III of the Agreement on Subsidies and Countervailing Measures referred to in section 3511(d)(12) of this title (hereafter in this section referred to as the “Subsidies Agreement”) are effective in disciplining the use of subsidies and in remedying the adverse effects of subsidies, and

(2)to ensure that part IV of the Subsidies Agreement does not undermine the benefits derived from any other part of that Agreement.

(b)The specific objective of the United States under this subchapter shall be to create a mechanism which will provide for an ongoing review of the operation of part IV of the Subsidies Agreement.

(c)(1)Subparagraphs (B), (C), (D), and (E) of section 1677(5B) of this title shall cease to apply as provided in subparagraph (G)(i) of such section, unless, before the date referred to in such subparagraph (G)(i)—

(A)the Subsidies Committee determines to extend Articles 6.1, 8, and 9 of the Subsidies Agreement as in effect on the date on which the Subsidies Agreement enters into force or in a modified form, in accordance with Article 31 of such Agreement,

(B)the President consults with the Congress in accordance with paragraph (2), and

(C)an implementing bill is submitted and enacted into law in accordance with paragraphs (3) and (4).11 See Codification note below.

(2)Before a determination is made by the Subsidies Committee to extend Articles 6.1, 8, and 9 of the Subsidies Agreement, the President shall consult with the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate regarding such extension.

(3)(A)Any extension of subparagraphs (B), (C), (D), and (E) of section 1677(5B) of this title shall take effect if (and only if)—

(i)after the Subsidies Committee determines to extend Articles 6.1, 8, and 9 of the Subsidies Agreement, the President submits to the committees referred to in paragraph (2) a copy of the document describing the terms of such extension, together with—

(I)a draft of an implementing bill,

(II)a statement of any administrative action proposed to implement the extension, and

(III)the supporting information described in subparagraph (C); and

(ii)the implementing bill is enacted into law.

(B)The implementing bill referred to in subparagraph (A) shall contain only those provisions that are necessary or appropriate to implement an extension of the provisions of section 1677(5B)(B), (C), (D), and (E) of this title as in effect on the day before the date of the enactment of the implementing bill or as modified to reflect the determination of the Subsidies Committee to extend Articles 6.1, 8, and 9 of the Subsidies Agreement.

(C)The supporting information required under subparagraph (A)(i)(III) consists of—

(i)an explanation as to how the implementing bill and proposed administrative action will change or affect existing law; and

(ii)a statement regarding—

(I)how the extension serves the interests of United States commerce, and

(II)why the implementing bill and proposed administrative action is required or appropriate to carry out the extension.

(4)

(5)Not later than the date referred to in section 1677(5B)(G)(i) of this title, the Trade Representative shall submit to the Congress a report setting forth the provisions of law which were enacted to implement Articles 6.1, 8, and 9 of the Subsidies Agreement and should be repealed or modified if such provisions are not extended.

(d)The Secretary of Commerce, in consultation with other appropriate departments and agencies of the Federal Government, shall undertake an ongoing review of the operation of the Subsidies Agreement. The review shall address—

(1)the effectiveness of part II of the Subsidies Agreement in disciplining the use of subsidies which are prohibited under Article 3 of the Agreement,

(2)the effectiveness of part III and, in particular, Article 6.1 of the Subsidies Agreement, in remedying the adverse effects of subsidies which are actionable under the Agreement, and

(3)the extent to which the provisions of part IV of the Subsidies Agreement may have undermined the benefits derived from other parts of the Agreement, and, in particular—

(A)the extent to which WTO member countries have cooperated in reviewing and improving the operation of part IV of the Subsidies Agreement,

(B)the extent to which the provisions of Articles 8.4 and 8.5 of the Subsidies Agreement have been effective in identifying and remedying violations of the conditions and criteria described in Article 8.2 of the Agreement, and

(C)the extent to which the provisions of Article 9 of the Subsidies Agreement have been effective in remedying the serious adverse effects of subsidy programs described in Article 8.2 of the Agreement.

Notes & Related Subsidiaries

Editorial Notes

Codification Section is comprised of section 282 of Pub. L. 103–465. Subsec. (c)(4) of section 282 of Pub. L. 103–465 amended section 2191 of this title.

Amendments

1996—Subsec. (d). Pub. L. 104–295 realigned margins.

Executive Documents

Uruguay Round Agreements: Entry Into ForceThe Uruguay Round Agreements, including the World Trade Organization Agreement and agreements annexed to that Agreement, as referred to in section 3511(d) of this title, entered into force with respect to the United States on Jan. 1, 1995. See note set out under section 3511 of this title.

§3572 Review of Subsidies Agreement