19 U.S.C. § 4586: Subsidy negotiations

Summary

When the President makes a trade deal with a USMCA country, the United States must push to curb unfair subsidies. It must seek stronger limits on home-country supports like cheap or government-backed loans, discounted goods or services, payments or debt forgiveness to cover an industry's losses, or taking on production costs. It must also seek tighter rules on export subsidies, especially for farm goods, and keep strong tools to fight subsidized imports, including countervailing duties when appropriate.

Title 19, §4586

Customs Duties, Source: USLM XML via OLRC

In the case of any trade agreement which may be entered into by the President with a USMCA country, the negotiating objectives of the United States with respect to subsidies shall include—

(1)achievement of increased discipline on domestic subsidies provided by a foreign government, including—

(A)the provision of capital, loans, or loan guarantees on terms inconsistent with commercial considerations;

(B)the provision of goods or services at preferential rates;

(C)the granting of funds or forgiveness of debt to cover operating losses sustained by a specific industry; and

(D)the assumption of any costs or expenses of manufacture, production, or distribution;

(2)achievement of increased discipline on export subsidies provided by a foreign government, particularly with respect to agricultural products; and

(3)maintenance of effective remedies against subsidized imports, including, where appropriate, countervailing duties.

Notes & Related Subsidiaries

Editorial Notes

Codification Section was formerly classified to section 3436 of this title prior to renumbering by Pub. L. 116–113.

Amendments

2020—Pub. L. 116–113, § 504(g)(3), substituted “USMCA country” for “NAFTA country” in introductory provisions.

Statutory Notes and Related Subsidiaries

Effective Date

of 2020 AmendmentTransfer to and amendment of this section by Pub. L. 116–113 effective on the date on which the USMCA enters into force (July 1, 2020), but not applicable to certain determinations under section 1516a of this title or binational panel reviews under NAFTA, see section 504(k) of Pub. L. 116–113, set out as a note under section 4581 of this title.

§4586 Subsidy Negotiations