G/SCM/N/1/USA/ 1/Suppl.30  
 
1 October  2020 
(20-6680) Page: 1/6 
Committee on Subsidies and Countervailing Measures  Original: English  
 
NOTIFICATION OF LAWS AND REGULATIONS UNDER  
ARTICLE 32.6 OF THE AGREEMENT  
UNITED STATES 
Supplement  
The following communication, dated 21 September 2020, is being circulated at the request of the 
Delegation of the United States.  
 
_______________  
 
 
Pursuant to Article 32.6 of the Agreement on Subsidies and Countervailing Measures, the 
United  States hereby notifies:  
Designations of Developing  and Least Developed  Countries Under the Countervailing Duty Law, 
85 Fed. Reg. 7613 (February 10, 2020).  
The United States is notifying an update by the U.S. Trade Representative to the list of Members 
that, for purposes of U.S. countervailing duty investi gations, are designated as developing or least 
developed  countries. Imports from these countries are subject to different thresholds in determining 
whether countervailable subsidies are de minimis  or the volume of subsidized imports is negligible. 
The effe ct of these designations is limited to Title VII of the U.S. Tariff Act of 1930. Accordingly, the 
designations have no effect on how a Member may be classified with respect to any other law.  
DATES: The notice is effective as of February 10, 2020, and the d esignations are applicable as of 
February  10, 2020.  
[Federal Register Volume 85, Number 27 (Monday, February 10, 2020)]  
[Notices]  
[Pages 7613 -7616]  
From the Federal Register Online via the Government Publishing Office [ http://www.gpo.gov/  
[Docket No.: 2020 -02524]  
______________________________________________________________________________  
OFFICE OF THE UNITED STATES TRADE REPRESENTATIVE  
Designations of Developing and Least  Developed Countries Under the Countervailing Duty 
Law 
19 CFR Part 351  
[Docket No. 200128 -0035]  
RIN 3290 -F0-P 
AGENCY:  Office of the United States Trade Representative.  
ACTION:  Notice.  
SUMMARY:  The U.S. Trade Representative is designating World Trade Organiz ation (WTO) Members 
that are eligible for special de minimis  countervailable subsidy and negligible import volume 
standards under the countervailing duty (CVD) law.  G/SCM/N/1/USA/ 1/Suppl. 30 
 
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  Elsewhere in this issue of the Federal Register , the U.S. Trade Representative is removing the 
Office of the United States Trade Representative 's rules that contain the designations superseded by 
this notice.  
DATES: The designations are applicable as of February 10, 2020.  
FOR FURTHER INFORMATION CONTACT:   
David P. Lyons, Assistant General Counse l, at 202 –395–9446, or Roy Malmrose, Director for 
Industrial Subsidies, at 202 –395–9542.  
SUPPLEMENTARY INFORMATION:  
A. GENERAL BACKGROUND  
In the Uruguay Round Agreements Act (URAA), Public Law 103 –465, Congress amended the CVD  law 
to conform to U.S. obliga tions under the WTO Agreement on Subsidies and Countervailing Measures 
(SCM Agreement). Under the SCM Agreement, WTO Members that have not yet reached the status 
of a developed country are entitled to special treatment for purposes of countervailing measur es. 
Specifically, imports from such Members are subject to different thresholds for purposes of 
determining whether countervailable subsidies are de minimis  and whether import volumes are 
negligible.  
Under section 771(36) of the Tariff Act of 1930, as amen ded (the Act), 19 U.S.C. 1677(36), Congress 
delegated to the U.S. Trade Representative the responsibility for designating those WTO Members 
whose imports are subject to these special thresholds. In addition, section 771(36)(D) requires the 
U.S. Trade Repre sentative to publish a list of designations, updated as necessary, in the 
Federal  Register . This notice implements the requirements of section 771(36)(D).  
On June  2, 1998, the U.S. Trade Representative published an interim final rule (1998 rule) 
designatin g Subsidy Agreement countries eligible for special de minimis  countervailable subsidy and 
negligible import volume standards under the CVD law. See 63 FR 29945. ''Subsidies Agreement 
country '' is defined in section 701(b) of the Act, 19 U.S.C. 1671(b), and  includes countries that are 
WTO Members. The U.S. Trade Representative is revising the lists in the 1998 rule, as described 
below, and removing the 1998 rule because it now is obsolete.  
B.  EXPLANATION OF THE LIST  
1.  Introduction  
For purposes of countervailing measures, the SCM Agreement extends special and differential 
treatment to developing and least developed  Members in the following manner:  
De Minimis Thresholds:  Under Article 11.9 of the SCM Agreement, authorities must termin ate a 
CVD investigation if the amount of the subsidy is de minimis , which normally is defined as less than 
1% ad valorem . Under Article 27.10(a), however, for a developing Member the de minimis  standard 
is 2% or less. Consistent with Article 27.11 and sect ion 703(b)(4) of the Act, the 2 % de minimis  
threshold also now applies to least developed  countries.  
Negligible Import Volumes : Under Article 11.9, authorities must terminate a CVD investigation if the 
volume of subsidized imports from a country is negligi ble. Under the CVD law, imports from an 
individual country normally are considered negligible if they are less than 3 % of total imports of a 
product into the United States. Imports are not considered negligible if the aggregate volume of 
imports from all c ountries whose individual volumes are less than 3 % exceeds 7 % of all such 
merchandise. However, under Article 27.10(b) and section 771(24)(B) of the Act, imports from a 
developing or least developed  Member are considered negligible if the import volume is less than 
4% of total imports, unless the aggregate volume of imports from countries whose individual 
volumes are less than 4 % exceeds 9 %. 
In the URAA, Congress incorporated into the CVD law the SCM Agreement standards for de minimis  
thresholds and negligible import volumes. Section 703(b)(4)(B) –(D) of the Act, G/SCM/N/1/USA/ 1/Suppl. 30 
 
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  19 U.S.C.  1671b(b)(4)(B) –(D), incorporates the de minimis  standards, while section 771(24)(B), 
19 U.S.C.  1677(24)(B), incorporates the negligible import standards. However, in the statute itself, 
Congress did not identify by name those WTO Members eligible for special treatment. Instead, 
section 267 of the URAA added section 771(36) to the Act, which delegates to the 
U.S. Trade  Representative the responsibility to designate thos e WTO Members subject to special 
standards for de minimis  and negligible import volume. In addition, section 771(36) requires the 
U.S. Trade Representative to publish in the Federal Register, and update as necessary, a list of the 
Members designated as eli gible for special treatment under the CVD law.  
The effect of these designations is limited to Title VII of the Act. Specifically, section 771(36)(E) of 
the Act provides that the fact that a WTO Member is designated in the list as developing or least 
develo ped has no effect on how that Member may be classified with respect to any other law.  
2.  Data Sources  
In making the designations, the U.S. Trade Representative relied on per capita gross national income 
(GNI) data from the World Bank and trade data from t he Trade Data Monitor, which contains official 
data from national statistical bureaus, customs authorities, central banks, and other government 
agencies.  
3.  Designation of WTO Members as Least  Developed Countries  
As explained above, the distinction betwee n developing and least developed  countries no longer 
matters for purposes of the de minimis  threshold: both are eligible for the same 2 % rate. 
Nonetheless, for clarity and consistent with section 771(36) of the Act, this notice separately 
identifies develo ping and least developed  countries. The list of WTO Members that are least 
developed  countries is derived from Annex VII to the SCM Agreement, which describes least 
developed  countries as those designated by the United Nations (Annex VII(a)) and named in Annex 
VII(b)), provided the per capita GNP has not reached $1,000 per annum. A number of WTO  Members 
are included on the United Nations list of least developed  countries1, and several more are included 
under Annex VII(b) based upon their GNI per capita at constant 1990 dollars: Côte  d'Ivoire, Ghana, 
Honduras, Kenya, Nicaragua, Nigeria, Pakistan, Senegal, and Zimbabwe.2 
C.  DESIGNATION OF WTO MEMBERS ELIGIBLE FOR 2 % DE MINIMIS  STANDARD  
1.  Introduction  
Based on section 771(36)(D) of the Act, in determining which WTO Members should be considered 
as developing and, thus, eligible for the 2 % de minimis  standard, the U.S. Trade Representative has 
considered appropriate economic, tr ade, and other factors, including the level of economic 
development of a country (based on a review of the country 's per capita GNI) and a country 's share 
of world trade. The U.S. Trade Representative developed the list of Members eligible for the 2 % 
de minimis  standard based on the following criteria: (1) Per capita GNI, (2) share of world trade, 
and (3) other factors such as Organization for Economic Co -operation and Development (OECD) 
membership or application for membership, European Union (EU) membersh ip, and Group of Twenty 
(G20) membership.  
2.  Per Capita GNI  
Similar to the 1998 rule, the U.S. Trade Representative relied on the World Bank threshold 
separating ''high income '' countries from those with lower per capita GNIs.3 This means that WTO 
 
1 United Nations World Economic Situation and Prospects (2019), p. 173, available at 
https://www.un.org/development/desa/dpad/wp -content/ uploads/ sites/45/WESP2019_BOOK -ANNEX -en.pdf . 
2 See Doha Ministerial Decision on Implementation -Related Issues and Concerns, WT/ MIN(01)17 
(20 November  2001) specifying that Annex VII(b) is to list Members until their GNP per capita reaches $1,000 
in constant 1990 U.S. dollars for three consecutive years; see also Updating GNP Per Capita for Members Listed 
in Annex VII(b) as Foreseen in Paragraph 10.1 of the Doha Ministerial Decision and in Accordance with the 
Methodology in G/SCM/38, G/SCM/110/Add.16 (May 14, 2019) (circulating updated calculations by the 
Secretariat).  
3 The 1998 rule used per capita gross national product rather than GNI. The most recent World Bank 
data set this dividing line at $12,375. See New country classifications by income level : 2019–2020, World Bank  G/SCM/N/1/USA/ 1/Suppl. 30 
 
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  Member s with a per capita GNI below $12,375 were treated as eligible for the 2 % de minimis  
standard, subject to the other factors described below. Advantages of relying upon the World Bank 
high income designation include that it is straightforward to apply, base d on a recognized GNI 
dividing line between developed and developing countries for purposes of the world 's primary 
multilateral lending institution, and consistent with the test for beneficiary developing country status 
set out in the U.S. Generalized Syst em of Preferences statute, section 502(e) of the Trade Act of 
1974.  
3.  Share of World Trade  
The U.S. Trade Representative also considered whether countries account for a significant share of 
world trade and, thus, should be treated as ineligible for the 2 % de minimis  standard. In the 1998 
rule, the U.S. Trade Representative considered a share of world trade of 2 % or more to be 
''significant '' because of the commitment in the Statement of Administration Action (SAA), approved 
by the Congress along with the URAA, that Hong Kong, Korea, and Singapore would be ineligible for 
developing country treatment, and each of these countries accounted for a  share of world trade in 
excess of 2 %. The U.S. Trade Representative now considers 0.5 % to be a more appropriate indicator 
of a ''significant '' share of world trade. According to the most recent available data from 2018, 
relatively few countries account fo r such a large share (i.e., more than 0.5 %) of world trade, and 
those that do include many of the wealthiest economies.  
For purposes of U.S. CVD law, the U.S. Trade Representative therefore considers countries with a 
share of 0.5 % or more of world trade to  be developed countries. Thus, Brazil, India, Indonesia, 
Malaysia, Thailand, and Viet Nam are ineligible for the 2 % de minimis  standard, notwithstanding 
that, based on the most recent World Bank data, each country has a per capita GNI below $12,375.  
4.  Other Factors  
Section 771(36)(D) of the Act contemplates that the U.S. Trade Representative may consider 
additional factors. To that end, consistent with the 1998 rule, the U.S. Trade Representative took 
into account EU membership, which indicates a relative ly high level of economic development. In 
addition, under section 771(3) of the Act, the EU may be treated as a single country for purposes of 
the CVD law and, while uncommon, there have been CVD investigations against merchandise from 
the European Communi ties, rather than EU Member States. Because the EU is ineligible for the 
2% de minimis  standard, it would be anomalous to treat an individual EU Member as eligible for that 
standard. Accordingly, for purposes of U.S. CVD law, the U.S. Trade Representative considers all 
EU Members as developed countries. Thus, Bulgaria and Romania are ineligible for the 
2% de minimis  standard, notwithstanding that, based on the most recent World Bank data, each 
country has a per capita GNI below $12,375.  
The U.S. Trade Repre sentative also took into account OECD membership and applications for 
OECD  membership. The characterization of the OECD as a grouping of developed countries has been 
confirmed throughout its existence in a number of published OECD documents, and the OECD 
consistently has been viewed as, and acts itself in the capacity of, the principal organization of 
developed economies worldwide. Thus, by joining or applying to join the OECD, a country effectively 
has declared itself to be developed. Although the 1998 rul e considered OECD membership only, 
given the significance of this self -designation, the act of applying to the OECD, in addition to joining, 
indicates that a country is developed. Accordingly, the U.S. Trade Representative has determined 
that an OECD membe r or applicant should not be eligible for the 2 % de minimis  standard. Thus, 
Colombia and Costa Rica are ineligible for the 2 % de minimis  standard, notwithstanding that, based 
on the most recent World Bank data, each country has a per capita GNI below $12,3 75. 
The U.S. Trade Representative also took into account G20 membership. The G20 was established in 
September 1999, and so was not considered in the 1998 rule. The G20 is a preeminent forum for 
international economic cooperation, which brings together majo r economies and representatives of 
large international institutions such as the World Bank and International Monetary Fund. Given the 
global economic significance of the G20, and the collective economic weight of its membership 
(which accounts for large sh ares of global economic output and trade), G20 membership indicates 
that a country is developed. Thus, Argentina, Brazil, India, Indonesia, and South Africa are ineligible 
 
Data Blog, July 1, 2019, available at https://blogs.worldbank.org/opendata/new -country - classifications -
income -level-2019-2020. G/SCM/N/1/USA/ 1/Suppl. 30 
 
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  for the 2 % de minimis  standard, notwithstanding that, based on the most recent World  Bank data, 
each country has a per capita GNI below $12,375.  
The U.S. Trade Representative did not consider social development indicators such as infant 
mortality rates, adult illiteracy rates, and life expectancy at birth, as a basis for changing a 
design ation. The U.S. Trade Representative did consider that if a country considers itself a developed 
country, or has not declared itself a developing country in its accession to the WTO, it should not be 
considered a developing country for purposes of the SCM Agreement. Therefore, Albania, Armenia, 
Georgia, Kazakhstan, the Kyrgyz Republic, Moldova, Montenegro, North Macedonia, and Ukraine are 
ineligible for the 2 % de minimis standard, notwithstanding that, based on the most recent World 
Bank data, each country has a per capita GNI below $12,375.  
Furthermore, the 1998 rule omitted WTO Members that in the past had been, or could have been, 
considered as nonmarket economy countries not subject to the CVD law. Because nonmarket 
economies may now be subject to CVD la w, the lists set forth in this notice do not omit nonmarket 
economies.  
D.  DESIGNATION OF DEVELOPED COUNTRIES  
The 1998 rule included a list of ''developed countries '' that did not qualify as developing or least 
developed. Because section 771(36) of the Act  does not require the U.S. Trade Representative to 
maintain a list of developed countries, this notice does not include such a list.  
E.  LIST OF LEAST  DEVELOPED AND DEVELOPING COUNTRIES  
In accordance with section 771(36) of the Act, imports from least deve loped  and developing 
WTO Members set forth in the following lists are subject to a de minimis standard of 2 % and a 
negligible import standard of 4 %: 
Least  Developed Countries Under Section 771(36)(B) of the Act  
Afghanistan  
Angola  
Bangladesh  
Benin  
Burkina Faso  
Burundi  
Cambodia  
Central African Republic  
Chad 
Cote d 'Ivoire  
Democratic Republic of the Congo Djibouti  
Gambia  
Ghana  
Guinea  
Guinea -Bissau  
Haiti 
Honduras  
Kenya  
Lao People 's Democratic Republic Lesotho  
Liberia  
Madagascar  
Malawi  
Mali 
Mauritania  
Mozambique  
Myanmar  
Nepal  
Nicaragua  
Niger  
Nigeria  G/SCM/N/1/USA/ 1/Suppl. 30 
 
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  Pakistan  
Rwanda  
Senegal  
Sierra Leone  
Solomon Islands  
Tanzania  
Togo 
Uganda  
Vanuatu  
Yemen  
Zambia  
Zimbabwe  
Developing Countries Under Section 771(36)(A) of the Act  
Bolivia  
Botswana  
Cabo Verde  
Cameroon  
Cuba 
Dominica  
Dominican Republic  
Ecuador  
Egypt  
El Salvado r 
Eswatini  
Fiji 
Gabón  
Grenada  
Guatemala  
Guyana  
Jamaica  
Jordan  
Maldives  
Mauritius  
Mongolia  
Morocco  
Namibia  
Papua New Guinea  
Paraguay  
Peru 
Philippines  
St. Lucia  
St. Vincent & Grenadines  
Samoa  
Sri Lanka  
Suriname  
Tajikistan  
Tonga  
Tunisia  
Venezuela  
Joseph Barloon,  
General Counsel, Office of the U.S. Trade Representative.  
[FR Doc. 2020 –02524 Filed 2 –7–20; 8:45 am] . 
 
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