§3571 Subsidies Enforcement

Summary

The law requires the administering authority to give the public information and, when possible, help about WTO subsidy rules and how to use them. If the administering authority finds that imports are getting a forbidden subsidy (Article 3) or a subsidy that can be challenged (Article 6.1), it must tell the United States Trade Representative and share the evidence. Anyone with an interest can ask the administering authority to check claims about forbidden subsidies, subsidies causing harm, or violations of the rules for nonactionable subsidies. If the administering authority finds reason to believe a problem exists, it must notify the Trade Representative and include supporting information. The Commission may help with the analysis. For serious adverse effects, the administering authority must decide within 90 days whether there is reason to believe they exist; the Trade Representative then has 30 days to decide and may request consultations under WTO rules that normally last 60 days. If the WTO Subsidies Committee fails to act or reach conclusions in set times (120 days) or a country does not follow a recommendation within 6 months, the Trade Representative must decide what U.S. action to take under the Trade Act. The Trade Representative must give the administering authority any reports a country files under Article 8 so the administering authority can monitor nonactionable subsidies and ask for more information if needed. The Trade Representative must also tell and consult Congress committees and may consult private-sector groups. The administering authority must publish summary notices in the Federal Register. By February 1 each year, starting in 1996, the Trade Representative and the administering authority must send Congress a joint report on major trading partners’ subsidy practices and enforcement actions. All federal agencies must help and share records when asked. Definitions (one line each): Adverse effects — meaning in Articles 5(a) and 5(c); Administering authority — the agency defined in section 771(1); Commission — the U.S. International Trade Commission; Interested party — parties listed in section 771(9) of the Tariff Act; Nonactionable subsidy — as in Article 8.1(b); Notified subsidy program — a program notified under Article 8.3; Serious adverse effects — meaning in Article 9.1; Subsidies Agreement — the WTO agreement on subsidies and countervailing measures; Subsidies Committee — the committee from Article 24; Subsidy — meaning in Article 1; Trade Representative — the U.S. Trade Representative; Violation of Article 8 — failure to meet Article 8.2 criteria. The administering authority may share confidential business information with the Trade Representative, who must keep it secret.