RESTRICTED  
  
G/SCM/M/86  
 
9 January 2014  
(14-0078)  Page: 1/8  
Committee on Subsidies and Countervailing Measures    
 
MINUTES OF THE SPECIAL MEETING  
HELD ON 21 OCTOBER 2013 
CHAIR: MR MARCUS BARTLEY JOHNS (AUSTRALIA) 
1.  The Committee on Subsidies and Countervailing Measures ("the Committee") held a special 
meeting on 21 October 2013, convened in WTO/AIR/4211. 
2.  The Committee adopted the following agenda: 
1   REVIEW OF 2013 NEW AND FULL SUBSIDY NOTIFICATIONS 
(G/SCM/N/253/…) NOT PREV IOUSLY REVIEWED ........................................................... 2  
1.1   Armenia (G/S CM/N/253/AR M) ..................................................................................... 2  
1.2   Burkina Faso (G/SCM/N/2 53/BFA)................................................................................ 2  
1.3   Cuba (G/S CM/N/253/C UB) .......................................................................................... 2  
1.4   Gabon (G/S CM/N/253/G AB) ........................................................................................ 2  
1.5   Macao, China (G/SCM/N/253/ MAC) .............................................................................. 3  
1.6   Russia (G/S CM/N/253/R US) ........................................................................................ 3  
1.7   Singapore (G /SCM/N/253/ SGP) ................................................................................... 3  
2   REVIEW OF 2011 NEW AND FULL SUBSIDY NOTIFICATIONS NOT 
PREVIOUSLY REVIEWED  (G/SCM/N/220…) .................................................................... 3  
2.1   Mali (G/S CM/N/220/ML I) ............................................................................................ 3  
2.2   Peru (G/S CM/N/220/PE R) ........................................................................................... 3  
3   REVIEW OF 2009 NEW AND FULL NOTIFICATIONS (G/SCM/N/186/…) NOT 
PREVIOUSLY RE VIEWED .................................................................................................. 4  
3.1   Peru (G/SCM/N/155/ PER-G/SCM/N/ 186/PER ) ................................................................ 4  
4   REVIEW OF 2007 NEW AND FULL NOTIFICATIONS (G/SCM/N/155…) NOT 
PREVIOUSLY RE VIEWED .................................................................................................. 4  
4.1   Viet Nam (G/SCM/N/155/VNM) .................................................................................... 4  
5   REVIEW OF 2005 NEW AND FULL NOTIFICATIONS (G/SCM/N/123…) NOT 
PREVIOUSLY RE VIEWED .................................................................................................. 4  
5.1   Peru (G/SCM/N/95/ PER-G/SCM/N/ 123/PER)  .................................................................. 4  
6   REVIEW OF 2001 NEW AND FULL NOTIFICATIONS (G/SCM/N/71…) NOT 
PREVIOUSLY RE VIEWED .................................................................................................. 4  
6.1   Peru (G/SCM/N/60/PER-G/SCM/N/71/PER) .................................................................... 4  
7   REVIEW OF 1998 NEW AND FULL NOTIFICATIONS (G/SCM/N/38…) NOT 
PREVIOUSLY RE VIEWED .................................................................................................. 4  
7.1   Peru (G/SCM/N/16/PER-G/SCM/N/25/ PER-G/SCM/N/38/PER-G/ SCM/N/48/PER) ................. 4  
8   CONTINUATION OF REVIEW OF 2011 NEW AND FULL NOTIFICATIONS 
(G/SCM/N/ 220…) ........................................................................................................... 5  G/SCM/M/86 
 
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  8.1   Argentina (G /SCM/N/220/ ARG) ................................................................................... 5  
8.2   Armenia (G/S CM/N/220/AR M) ..................................................................................... 5  
8.3   Brazil (G/S CM/N/220/B RA) ......................................................................................... 5  
8.4   Honduras (G/SCM /N/220/HND/Re v.1) .......................................................................... 5  
8.5   India (G/S CM/N/220/IN D) .......................................................................................... 6  
8.6   Nicaragua (G/SCM/N/220/NIC) .................................................................................... 6  
8.7   United States (G/SCM/N/220/ USA) .............................................................................. 6  
9   CONTINUATION OF REVIEW OF 2009 (G/SCM/N/186/…) NEW AND FULL 
NOTIFICATIONS ............................................................................................................... 6  
9.1   China (G/S CM/N/186/C HN) ......................................................................................... 6  
9.2   Gabon (G/S CM/N/186/G AB) ........................................................................................ 7  
9.3   Namibia (G/S CM/N/186/NAM) ..................................................................................... 7  
9.4   Turkey (G/SCM/N/186/TUR) ........................................................................................ 8  
 
 
1  REVIEW OF 2013 NEW AND FULL SUBSIDY NOTIFICATIONS (G/SCM/N/253/…) NOT PREVIOUSLY REVIEWED 
3.  The Chair recalled that this was the first special meeting at which 2013 new and full 
notifications would be reviewed, and that the Committee had decided at its April 2013 regular 
meeting to continue to apply the same procedures for review of these notifications as were first 
applied in the review of 2005 notifications (G/SCM/117). In accordance with those procedures, 
only the new and full notifications circulated in  all three working languages by 24 June 2013, as 
listed in WTO/AIR/4161, were on the agenda. Written questions pertaining to those notifications had been due by 22 July, and writte n answers by 23 September 2013.   
1.1  Armenia (G/SCM/N/253/ARM) 
4.  No written questions had been posed before  the meeting, and there were no questions or 
comments from the floor, in respect of this notification. 
5.  The Committee took note of the notification. 
1.2  Burkina Faso (G/SCM/N/253/BFA) 
6.  No written questions had been posed before  the meeting, and there were no questions or 
comments from the floor, in respect of this notification. 
7.  The Committee took note of the notification. 
1.3  Cuba (G/SCM/N/253/CUB) 
8.  No written questions had been posed before  the meeting, and there were no questions or 
comments from the floor, in respect of this notification. 
9.  The Committee took note of the notification. 
1.4  Gabon (G/SCM/N/253/GAB) 
10.  No written questions had been posed before  the meeting, and there were no questions or 
comments from the floor, in respect of this notification. 
11.  The Committee took note of the notification. G/SCM/M/86 
 
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  1.5  Macao, China (G/SCM/N/253/MAC) 
12.  Written questions and answers concerning this notification can be found in: 
 Questions from Australia: G/SCM/Q2/MAC/8 
 Replies to Australia: G/SCM/Q2/MAC/9 
 
13.  There were no questions or comments from  the floor in respect of this notification. 
14.  The Committee took note of the notification, questions and answers. 
1.6  Russia (G/SCM/N/253/RUS) 15.  Written questions and answers concerning this notification can be found in: 
 Questions from Canada: G/SCM/Q2/RUS/1 
 Questions from the US: G/SCM/Q2/RUS/2 
 Questions from Australia: G/SCM/Q2/RUS/3 
 Replies to Canada: G/SCM/Q2/RUS/4 
 
16.  Russia stated that it would provide the written replies to the US and Australia in the near 
future. In addition, in the next five to six weeks Russia would provid e additional 2012 budget 
information that had just become available, to finalize its notification, and in early 2014 would 
submit information on regional programmes. Russia wished to continue to work constructively with 
the Committee.  
17.  There were no questions or comments from  the floor in respect of this notification. 
18.  The Committee took note of the questions and answers. 
1.7  Singapore (G/SCM/N/253/SGP) 19.  No written questions had been posed before  the meeting, and there were no questions or 
comments from the floor, in respect of this notification. 
20.  The Committee took note of the notification. 
2  REVIEW OF 2011 NEW AND FULL SUBSIDY NOTIFICATIONS NOT PREVIOUSLY 
REVIEWED (G/SCM/N/220…) 
2.1  Mali (G/SCM/N/220/MLI) 
21.  No written questions had been posed before  the meeting, and there were no questions or 
comments from the floor, in respect of this notification. 
22.  The Committee took note of the notification. 
2.2  Peru (G/SCM/N/220/PER) 23.  Written questions and answers concerning this notification can be found in: 
 Questions from Australia: G/SCM/Q2/PER/8 
 Replies to Australia: G/SCM/Q2/PER/9 
 24.  There were no questions or comments from  the floor in respect of this notification. 
25.  The Committee took note of the notification, questions and answers. G/SCM/M/86 
 
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  3  REVIEW OF 2009 NEW AND FULL NOTIFICATIONS (G/SCM/N/186/…) NOT 
PREVIOUSLY REVIEWED 
3.1  Peru (G/SCM/N/155/PER-G/SCM/N/186/PER) 26.  The Chair noted that this multi-symbolled notification would be reviewed only once, under this 
agenda item, and that Australia's written questions and Peru's written answers that had been 
considered under agenda item 2.2 also pertained to this notification. There were no other written questions and no questions or comments from the floor in respect of this notification. 
27.  The Committee took note of the notification, questions and answers. 
4  REVIEW OF 2007 NEW AND FULL NOTIFICATIONS (G/SCM/N/155…) NOT 
PREVIOUSLY REVIEWED 
4.1  Viet Nam (G/SCM/N/155/VNM) 
28.  Written questions concerning this notification can be found in: 
 Questions from the US: G/SCM/Q2/VNM/1 
 
29.  Viet Nam indicated that it was working on th e written replies, which would be submitted in the 
near future. The US stated that Viet Nam was behind schedule in its subsidy notifications, having 
only submitted in 2013 its notification covering 2005-2007.   
30.  The Committee took note of the questions and statements. 
5  REVIEW OF 2005 NEW AND FULL NOTIFICATIONS (G/SCM/N/123…) NOT 
PREVIOUSLY REVIEWED 
5.1  Peru (G/SCM/N/95/PER-G/SCM/N/123/PER) 
31.  The Chair stated that this multi-symbolled notification would be reviewed only once, under 
this agenda item, and that Australia's written questions and Peru's written answers that had been 
considered under agenda item 2.2 also pertained to this notification. There were no other written 
questions and no questions or comments from the floor in respect of this notification. 
32.  The Committee took note of the notification, questions and answers. 
6  REVIEW OF 2001 NEW AND FULL NOTIFICATIONS (G/SCM/N/71…) NOT PREVIOUSLY 
REVIEWED 
6.1  Peru (G/SCM/N/60/PER-G/SCM/N/71/PER) 33.  The Chair noted that this multi-symbolled notification would be reviewed only once, under this 
agenda item, and that Australia's written questions and Peru's written answers that had been 
considered under agenda item 2.2 also pertained to this notification. There were no other written 
questions and no questions or comments from the floor in respect of this notification. 
34.  The Committee took note of the notification, questions and answers. 
7  REVIEW OF 1998 NEW AND FULL NOTIFICATIONS (G/SCM/N/38…) NOT PREVIOUSLY 
REVIEWED 
7.1  Peru (G/SCM/N/16/PER-G/SCM/N/25/PER-G/SCM/N/38/PER-G/SCM/N/48/PER) 
35.  The Chair noted that this multi-symbolled notification would be reviewed only once, under this 
agenda item, and that Australia's written questions and Peru's written answers that had been considered under agenda item 2.2 also pertained to this notification. There were no other written questions and no questions or comments from the floor in respect of this notification. G/SCM/M/86 
 
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  36.  The Committee took note of the notification, questions and answers. 
8  CONTINUATION OF REVIEW OF 2011 NEW AND FULL NOTIFICATIONS 
(G/SCM/N/220…)  
37.  The Chair recalled that agenda items 8 and 9 were for continuing the review of new and full 
notifications that had been started at prior meetings, but not yet completed, due to non-
submission or late submission of written replie s. The Chair reminded Members, especially those 
that had not answered questions that had been put to them, that the exchange of written 
questions and answers is the essence of the review process for these notifications, as per the 
Committee's agreed procedures. Failure to promptly reply to such questions undermined transparency and frustrated the purpose of revi ew. He urged all Members that had received but 
not yet replied to written questions concerning th eir subsidy notifications to submit their answers 
without further delay.   
38.  The Chair thanked those delegations with notifications on the agenda under the remaining 
agenda items that had submitted their written answers prior to the meeting. This enhanced 
transparency and allowed the Committee to complete its review of those notifications.   
8.1  Argentina (G/SCM/N/220/ARG) 39.  Written questions concerning this notification can be found in:   
 Questions from the EU: G/SCM/Q2/ARG/34 
 Questions from the US: G/SCM/Q2/ARG/35 
 40.  Argentina stated that it was still awaiting replies from the agencies concerned and that it 
hoped to submit the answers soon.   
41.  The Committee took note of the questions and statement. 
8.2  Armenia (G/SCM/N/220/ARM) 
42.  Written questions concerning this notification can be found in: 
 Questions from the US: G/SCM/Q2/ARM/1 
 
43.  The representative of Armenia was not present at the meeting. 
8.3  Brazil (G/SCM/N/220/BRA) 44.  The pending written questions concerning this  notification, and the written answers thereto, 
can be found in: 
 Questions from Japan: G/SCM/Q2/BRA/37 
 Replies to Japan: G/SCM/Q2/BRA/38 
 
45.  The Committee took note of the notification, questions and answers. 
8.4  Honduras (G/SCM/N/220/HND/Rev.1) 
46.  Written questions concerning this notification can be found in: 
 Questions from the EU: G/SCM/Q2/HND/9 
 47.  There were no questions or comments from  the floor in respect of this notification. G/SCM/M/86 
 
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  8.5  India (G/SCM/N/220/IND) 
48.  The pending written questions concerning this  notification, and the written answers thereto, 
can be found in: 
 Questions from the US: G/SCM/Q2/IND/23 
 Questions from the Canada: G/SCM/Q2/IND/24 
 Questions from the EU: G/SCM/Q2/IND/26 
 Replies to the EU: G/SCM/Q2/IND/28 
 Replies to Canada: G/SCM/Q2/IND/29 
 Replies to the US: G/SCM/Q2/IND/30 
 49.  There were no questions or comments from  the floor in respect of this notification. 
50.  The Committee took note of the notification, questions and answers. 
8.6  Nicaragua (G/SCM/N/220/NIC) 
51.  Written questions and answers concerning this notification can be found in: 
 Questions from the US: G/SCM/Q2/NIC/3 and Corr.1 
 Replies to the US: G/SCM/Q2/NIC/4 
 
52.  There were no questions or comments from  the floor in respect of this notification. 
53.  The Committee took note of the notification, questions and answers. 
8.7  United States (G/SCM/N/220/USA) 54.  The Chair recalled that at the Committee's spring meeting, the US had presented an oral 
response to Canada's follow-up question pertaining to the reply to its question number 8, in 
G/SCM/Q2/USA/54. Prior to the meeting, Canada had informed the Chair that the US response provided at the meeting was satisfactory to it.   
55.  There were no questions or comments from  the floor in respect of this notification. 
56.  The Committee took note of the notification and statement.  
9  CONTINUATION OF REVIEW OF 2009 (G/SCM/N/186/…) NEW AND FULL 
NOTIFICATIONS 
9.1  China (G/SCM/N/186/CHN) 57.  Written questions and answers concerning this notification can be found in: 
 Questions from the US: G/SCM/Q2/CHN/43 and Corr.1 
 Questions from Canada: G/SCM/Q2/CHN/44 
 Questions from Japan: G/SCM/Q2/CHN/45 
 Replies to the US: G/SCM/Q2/CHN/47 
 Replies to Canada: G/SCM/Q2/CHN/48 
 Replies to Japan: G/SCM/Q2/CHN/49 
 
58.  The Chair recalled that China's replies to the US and Canada had been submitted a few days 
prior to the Committee's April special meeting, and that the replies to Japan had been submitted 
just prior to the present meeting.   
59.  The US expressed concern over the inco mplete and grossly deficient nature of the 
notification. China still was not up to date with its subsidy notifications, as this notification covered 
only 2005-2008. The notification also included no programmes administered by provincial or local governments, although the information in the US counter-notification identified a vast number of 
sub-central government programs, none of which had ever been notified. G/SCM/M/86 
 
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  60.  It appeared from US experience and analysis in disputes with China (DS387, DS450) that 
often only broad support policies were issued at the central government level, with more particular and concrete implementation at the sub-central level. Because the notification omitted sub-central programmes, it was seriously incomplete. 
61.  China's notification also omitted many subsidies that had been identified in CVD investigations 
of the US and other WTO Members, such as grants , policy lending by state-owned banks, and the 
provision of various goods at less than adequate remuneration. 
62.  The notification also suffered from over-reporting, including many social-welfare programmes 
for poverty alleviation or employment promotion for the handicapped, which did not appear to be specific as per SCM Article 2, and which were not the type of programmes the notification provisions of the Agreement were intended to capture. The US questioned whether these 
programmes had been included to make the notification appear more substantial than it really 
was. 
63.  China also had not yet responded to the US questions (G/SCM/Q2/CHN/46) under 
Article 25.8, submitted nearly a year before, despite the very clear language of Article 25.9 that 
answers shall be provided “as quickly as possible and in a comprehensive manner”. The sectors covered by the questions included iron and steel, fi sheries, high-tech, textiles, non-ferrous metals, 
light industry, shipbuilding, semiconductors and civil aircraft. The types of support included grants, 
loans, interest rebates, tax breaks, preferential land use and exemptions from land development fees. The US respectfully requested China to inform the Committee as to when answers would be provided. The US continued to be seriously concerned over China’s record of subsidy notification, 
which had prevented a full and timely understandi ng by Members of China’s industrial subsidy 
regime and raised significant systemic issues. 
64.  Japan appreciated China's efforts to provide more transparency through its replies, which had 
just been received. Japan might have follow-u p questions after it had studied them. While 
notifying subsidies, especially at the local level, entailed a huge amount of time and work, it was an important obligation of the SCM Agreement. Considering that China's large-scale subsidies, 
including those provided at the local level, had a large impact on the global economy, trade and 
investment, Japan hoped that China would take appropriate action to ensure transparency by notifying its subsidies in a timely and comprehensive manner.   
65.  China hoped that Japan found the replies to be useful, and was ready for any follow-up 
questions. Regarding the US statement, Chin a was in the process of preparing the 2011 and 
2013 new and full notifications, and was studying the possibility to include local programmes. In the meantime, China also was overwhelmed by the huge amount of work to look into and verify 
details of the Article 25.8 information request and the Article 25.10 counter-notification from 
the US. It was a tremendous challenge but Ch ina would continue the work and keep the 
Committee informed of its progress as was done in the spring meeting.   
66.  The Committee took note of the notifica tion, questions, answers and statements.   
9.2  Gabon (G/SCM/N/186/GAB) 
67.  Written questions concerning this notification can be found in: 
 Questions from the US: G/SCM/Q2/GAB/1 
 Questions from Turkey: G/SCM/Q2/GAB/2 
 68.  The Chair noted that Gabon, which was not able to be represented at the meeting, had 
informed him that it would submit the replies as soon as possible.   
69.  There were no questions or comments from  the floor in respect of this notification. 
9.3  Namibia (G/SCM/N/186/NAM) 
70.  Written questions concerning this notification can be found in: G/SCM/M/86 
 
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   Questions from Thailand: G/SCM/Q2/NAM/3 
 Replies to Thailand: G/SCM/Q2/NAM/4 
 71.  The Chair noted that the written replies to Thailand had been submitted just prior to the 
meeting.   
72.  The Committee took note of the notification and statements made. 
9.4  Turkey (G/SCM/N/186/TUR) 
73.  Written questions concerning this notification can be found in: 
 Questions from Australia: G/SCM/Q2/TUR/23 
 74.  The Chair recalled that at the Committee's April 2013 spring special meeting, Turkey had 
provided an oral reply and indicated that it  was working on a detailed written reply.   
75.  Turkey indicated that it needed more time  to prepare the written reply, which would be 
submitted as soon as it was ready. 
76.  The Chair reminded those delegations that had not yet replied to questions that they had 
received in connection with previous meetings to please provide written responses without further 
delay, so that the Committee could conclude the re view of those notifications. He also reminded 
Members that had not yet done so to submit their 2013 new and full notifications as soon as 
possible, as the deadline already was four months in the past. These notifications would need to be circulated in all three working languages not late r than 2 January 2014 to be placed on the agenda 
of the Committee's April 2014 special meeting, an d the time needed for translation made for a 
very narrow window to submit notifications in time for inclusion in that agenda. The Chair and the 
Secretariat stood ready to offer any assistance in complying with this important obligation. 
77.  The meeting was closed.   
 
 
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