WORLD TRADE  
ORGANIZATION  RESTRICTED 
G/SCM/M/80 
25 July 2012 
 (12-4070) 
Committee on Subsidies 
and Countervailing Measures  
 
 
 
MINUTES OF THE SPECIAL MEETING  
HELD ON 26 APRIL 2012 
 
Chair:  Mr Andreas Krallmann (Germany) 
  
1. The Committee on Subsidies and Countervailin g Measures ("Committee" ) held a special 
meeting on 26 April 2012, c onvened in WTO/AIR/3926/Rev.1. 
2. The Committee adopted the following agenda: 
A. 
DISCUSSION OF 2011  NEW AND FULL SUBSIDY NOTIFICATIONS NOT YET REVIEWED  ................. 2  
1.  Australia (G/SCM/N/220/AUS) ................................................................................................ 2  
2.  Burkina Faso (G/SCM/N/220/BFA) ........................................................................................ 2  
3.  Canada (G/SCM/N/220/CAN and Corr.1) .............................................................................. 2  
4.  Chile (G/SCM/N/220/CHL) ...................................................................................................... 2 
5.  EU (G/SCM/N/220/EEC and addenda 2, 3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16, 
18, 19, 20, 21, 22, 23, and 26) ............................................................................................... ..... 3 
6.  Honduras (G/SCM/N/220/HND) .............................................................................................. 3  
7.  Israel (G/SCM/N/220/ISR) ...................................................................................................... . 3 
8.  Japan (G/SCM/N/220/JPN) ...................................................................................................... 4 
9.  Korea (G/SCM/N/220/KOR) .................................................................................................... 4  
10.  Macao, China (G/SCM/N/220/MAC) ...................................................................................... 4  
11.  Malaysia (G/SCM/N/220/MYS) ............................................................................................... 4  
12.  New Zealand (G/SCM/N/220/NZL) ......................................................................................... 5  
13.  Norway (G/SCM/N/220/NOR) ................................................................................................. 5  
14.  Switzerland (G/SCM/N/220/CHE) .......................................................................................... 5  
15.  Separate Customs Territory of Taiwan, Penghu, Kinmen and Matsu 
(G/SCM/N/220/TPKM/Rev.1) .................................................................................................. 5  
16.  Tonga (G/SCM/N/220/TON) .................................................................................................... 5  
17.  Ukraine (G/SCM/N/220/UKR) ................................................................................................. 6  
B.  CONTINUATION OF REVIEW OF 2011  NEW AND FULL SUBSIDY NOTIFICATIONS  .......................... 6  
1.  Armenia (G/SCM/N/220/ARM) ............................................................................................... 6  
2.  Mexico (G/SCM/N/220/MEX) .................................................................................................. 6  G/SCM/M/80 
Page 2  
 
  C. 
CONTINUATION OF REVIEW OF 2009  NEW AND FULL SUBSIDY NOTIFICATIONS  .......................... 6  
1.  Brazil (G/SCM/N/186/BRA) ..................................................................................................... 6 
2.  EU (G/SCM/N/186/EEC and addenda 1-27) .......................................................................... 7  
3.  Gabon (G/SCM/N/186/GAB) ................................................................................................... 7  
4.  Japan (G/SCM/N/186/JPN) ...................................................................................................... 7 
5.  Namibia (G/SCM/N/186/NAM) ............................................................................................... 7  
6.  Turkey (G/SCM/N/186/TUR) .................................................................................................. 7  
7.  US (G/SCM/N/186/USA) ..........................................................................................................  7 
D.  DATE OF THE NEXT SPECIAL MEETING ......................................................................................... 8  
 
 
A. DISCUSSION OF 2011  NEW AND FULL SUBSIDY NOTIFICATIONS NOT YET REVIEWED  
1. Australia (G/SCM/N/220/AUS)  
3. Questions and replies with respect to this notification were contained in: 
- EU questions in G/SCM/Q2/AUS/44 - Austra lia's replies in G/SCM/Q2/AUS/45/Rev.1; 
- Japan's questions in G/SCM/Q2/AUS/46 - Au stralia's replies in G/SCM/Q2/AUS/47. 
4. There were no further questions or comments on this notification. 
2. Burkina Faso (G/SCM/N/220/BFA) 
5. There were no questions or comments on this notification. 
3. Canada (G/SCM/N/220/CAN and Corr.1) 
6. Questions and replies with respect to this notification were contained in: 
- EU questions in G/SCM/Q2/CAN/47 - Canada's replies in G/SCM/Q2/CAN/50; 
- Australia's questions in G/SCM/Q2/CAN/48 - Canada's replies in G/SCM/Q2/CAN/51; 
- US questions in G/SCM/Q2/CAN/49 - Canada's replies in G/SCM/Q2/CAN/52; 
- Brazil's questions in G/SCM/Q2/CAN/53. 
7. Canada stated that it had received Brazil's ques tions only a couple of days before the meeting 
and that it would provide its replies in writing. 
4. Chile (G/SCM/N/220/CHL)  
8. Questions and replies with respect to this notification were contained in: 
- EU questions in G/SCM/Q2/CHL/23 - Chile's replies in G/SCM/Q2/CHL/24. 
9. There were no further questions or comments on this notification.  G/SCM/M/80 
 Page 3 
 
 
  5. EU (G/SCM/N/220/EEC and addenda 2,  3, 4, 5, 6, 7, 8, 9, 10, 12, 13, 14, 15, 16, 18, 19, 20, 
21, 22, 23, and 26) 
10. Questions and replies with respect to this notification were contained in: 
- Canada's questions in G/SCM/Q2/EU/2, 3, 4, 5, 6, 7 and 8 - EU replies in 
G/SCM/Q2/EU/11, 12, 13, 14 and 15; 
- US questions in G/SCM/Q2/EU/9 and 10 - EU replies in G/SCM/Q2/EU/17 and 16. 
11. The US posed a follow up question about two asp ects of some of the EU fishery programmes, 
namely de minimis  funding and block exemption funding.  The US pointed out that the EU replies 
implied that certain programmes would not be notifie d because in the judgement of the EU they were 
not sufficiently important.  The US sought further explanations on this. 
12. The EU stated that replies to questions posed  by Canada in document G/SCM/Q2/EU/4 were 
ready and would be submitted to the Secretariat shortly.1  Since these replies we re in Spanish the EU 
did not read them out at the meeting but it was agr eed that such replies were deemed to have been 
read into the minutes of the meeting.  Replies to  Canada's questions circulated in G/SCM/Q2/EU/6 
would be submitted as soon as possible. 
13. The EU had not been able to reply to all questi ons posed by the US.  However, further replies 
would soon be submitted. The EU read out its an swer to question 1 in document G/SCM/Q2/EU/10.2 
The EU also noted that document G/SCM/Q2/EU/16 (on page 27) had not reproduced US question 1 with regard to Lithuania and indicated that its re ply that appeared after question 2 also applied to 
question 1.  It also noted that its reply to questi on 3 to Lithuania was the same as the reply to the 
question 1 to Denmark found on page 9 of that documen t.  The answer to question 6 to Malta was the 
same as the answer to question 4 to Cyprus. 
14. The EU would reply later to the US questions on de minimis  and block exemption funding. 
6. Honduras (G/SCM/N/220/HND) 
15. The EU had presented questions with respect to th is notification which had been circulated in 
document G/SCM/Q2/HND/5.  No repl y was provided to these questions. 
16. There were no further questions or comments on this notification. 
7. Israel (G/SCM/N/220/ISR) 
17. Questions and replies with respect to this notification were contained in: 
- EU questions in G/SCM/Q2/ISR/15 - Israel's replies in G/SCM/Q2/ISR/16. 
18. The Chair noted that Israel had submitted the te xt of its 2011 notification also as its 2009 and 
2007 new and full subsidy notifications and that , therefore, the Committee would not conduct a 
separate review of Israel's 2009 and 2007 notifications. 
                                                      
1 These replies were subsequently circulated in document G/SCM/Q2/EU/18. 
2 The EU submitted through document G/SCM/Q2/EU/16/Add.1 additional replies to the US questions 
circulated in G/SCM/Q2/EU/10 including the written version of the reply to question 1 read out during the 
meeting. G/SCM/M/80 
Page 4  
 
  8. Japan (G/SCM/N/220/JPN) 
19. Questions and replies with respect to this notification were contained in: 
- Australia's questions in G/SCM/Q2/JPN/53 - Japan's replies in G/SCM/Q2/JPN/55; 
- US questions in G/SCM/Q2/JPN/54 - Japan's replies in G/SCM/Q2/JPN/56.  Japan stated 
that it would reply as soon as possible to question 6 from the US; 
- Brazil's questions in G/SCM/Q2/JPN/57 - Japan  indicated that these questions had been 
submitted recently and that Jap an would soon submit replies. 
20. There were no further questions or comments on this notification. 
9. Korea (G/SCM/N/220/KOR) 
21. Questions and replies with respect to this notification were contained in: 
- EU questions in G/SCM/Q2/KOR/42 - Korea's replies in G/SCM/Q2/KOR/46; 
- Australia's questions in G/SCM/Q2/KOR/43 - Korea's replies in G/SCM/Q2/KOR/47; 
- US questions in G/SCM/Q2/KOR/44 - Korea's replies in G/SCM/Q2/KOR/48; 
- Japan's questions in G/SCM/Q2/KOR/45 - Korea's replies in G/SCM/Q2/KOR/49. 
22. There were no further questions or comments on this notification. 
10. Macao, China (G/SCM/N/220/MAC) 
23. Questions and replies with respect to this notification were contained in: 
- Australia's questions in G/SCM/Q2/M AC/6 - Macao, China's replies in 
G/SCM/Q2/MAC/7. 
24. There were no further questions or comments on this notification. 
11. Malaysia (G/SCM/N/220/MYS) 
25. Questions and replies with respect to this notification were contained in: 
- US questions in G/SCM/Q2/MYS/14 - Malaysia's replies in G/SCM/Q2/MYS/16; 
- EU questions in G/SCM/Q2/MYS/15 - Malaysia's replies in G/SCM/Q2/MYS/18; 
- Japan's questions in G/SCM/Q2/MYS/17 - Mala ysia stated that Japan's questions had 
been submitted recently and that Malaysia would submit its written replies to Japan's 
questions as soon as possible. 
26. The US recalled that with regard to a number  of programmes the US had submitted questions 
to Malaysia under Article 25.8 of the SCM Agreem ent and had repeated the same questions in 
connection with Malaysia's latest  subsidy notification.  Malaysia  had replied that some of the 
programmes had been terminated and that others , such as the national automotive policy framework 
incentives, were part of or under the pioneer stat us programme or the investment tax allowance  G/SCM/M/80 
 Page 5 
 
 
  programme.  The US sought further explanation as to how the national automotive policy framework 
incentives came under the pioneer status programme  or the investment tax allowance programme. 
Secondly, the US also raised concern over two other programmes, namely single or double deduction 
for the promotion of exports and income tax exem ption based on the value of increased exports.  
These programmes had not been notified by Malaysia, and they were not under the pioneer status or 
investment tax allowance programmes.  The US st ated that these two programmes might be prohibited 
and requested further information on them.  Malaysia stated that it would revert to capital on this issue 
and invited the US to subm it its question in writing. 
12. New Zealand (G/SCM/N/220/NZL) 
27. Questions and replies with respect to this notification were contained in: 
- EU questions in G/SCM/Q2/NZL/26 - New Zealand's replies in G/SCM/Q2/NZL/28; 
- Australia's questions in G/SCM/Q2/NZL/27 - New Zealand's replies in 
G/SCM/Q2/NZL/29. 
28. There were no further questions or comments on this notification. 
13. Norway (G/SCM/N/220/NOR) 
29. Questions and replies with respect to this notification were contained in: 
- US questions in G/SCM/Q2/NOR/23 - Norway's replies in G/SCM/Q2/NOR/24. 
30. There were no further questions or comments on this notification. 
14. Switzerland (G/SCM/N/220/CHE) 
31. There were no questions or comments concerning this notification. 
15. Separate Customs Territory of Ta iwan, Penghu, Kinmen and Matsu 
(G/SCM/N/220/TPKM/Rev.1) 
32. Questions and replies with respect to this notification were contained in: 
- US questions in G/SCM/Q2/TPKM/12 - Replie s from the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu in G/SCM/Q2/TPKM/17; 
- EU questions in G/SCM/Q2/TPKM/13 - Repli es from the Separate Customs Territory of 
Taiwan, Penghu, Kinmen and Matsu in G/SCM/Q2/TPKM/15; 
- Australia's questions in G/SCM/Q2/TPK M/14/Rev.1 - Replies from the Separate 
Customs Territory of Taiwan, Penghu, Ki nmen and Matsu in G/SCM/Q2/TPKM/16. 
33. There were no further questions or comments on this notification. 
16. Tonga (G/SCM/N/220/TON) 
34. There were no comments or questions with regard to this notification. G/SCM/M/80 
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  17. Ukraine (G/SCM/N/220/UKR) 
35. Questions and replies with respect to this notification were contained in: 
- EU questions in G/SCM/Q2/UKR/7 - Uk raine's replies in G/SCM/Q2/UKR/8. 
36. There were no further questions or comments on this notification. 
B. 
CONTINUATION OF REVIEW OF 2011  NEW AND FULL SUBSIDY NOTIFICATIONS  
1. Armenia (G/SCM/N/220/ARM) 
37. The 2011 new and full subsidy notification of Ar menia had been reviewed at the Committee's 
special meeting on 26 October 2011. Questions po sed by the US with respect to this notification 
which had been circulated in document G/SCM/Q2/ARM/1 remained unanswered. 
38. No replies were provided to these questions. 
2. Mexico (G/SCM/N/220/MEX) 
39. The 2011 new and full subsidy notif ication of Mexico had been reviewed at the Committee's 
special meeting held on 26 October 2011.  At that  meeting, Mexico had provided oral replies to 
questions posed by Australia, the US and the EU.  Subsequently, these replies had been submitted in 
writing and circulated in documents G/SCM/Q2/MEX/ 21, 22 and 23, respectively. Subsequent to the 
October 2011 meeting, Japan had also submitted written questions with respect to Mexico's 
notification which had been circulated in docum ent G/SCM/Q2/MEX/24. Mexico had replied to 
Japan's questions through document G/SCM/Q2/MEX/25. 
40. The US noted that in Mexico's most recent trad e policy review it had been stated that there 
were approximately 531 programmes at sub-central le vel in Mexico and urged Mexico to take a close 
look at these programmes and see whether they had to be notified. 
41. Mexico stated that since the Committee's regul ar meeting held on 28 October 2010, it had 
lagged behind in complying with its subsidy notif ication obligations and committed itself since then 
to do the necessary work to fully comply with its obl igations and it was doing so.  In the same vein, 
Mexico continued efforts to make more comprehens ive and timely subsidy notifications.  As regards 
the programmes referred to in its trade policy revi ew, Mexico stated that consultations with the 
competent federal agencies had been conducted and it  had been determined that the programmes were 
not subject to notification under the SCM Agreement.   However, consultations would be maintained 
with the relevant competent bodies and if it turned  out that there were any programmes that required 
notification, Mexico would notify them as appropriate. 
C. CONTINUATION OF REVIEW OF 2009  NEW AND FULL SUBSIDY NOTIFICATIONS  
1. Brazil (G/SCM/N/186/BRA) 
42. Brazil's 2009 new and full subsid y notification had been reviewed at the Committee's special 
meeting held on 3 May 2011.  Prior to that m eeting, Japan had submitted written questions with 
respect to Brazil's notification which had been ci rculated in document G/SCM/Q2/BRA/27.  At the 
meeting of 3 May 2011, Brazil had provided oral re plies to Japan's questions.  Subsequently, these 
replies had been circulated in document G/SCM/Q2/BRA/32.  
43. There were no further questions or comments on this notification.  G/SCM/M/80 
 Page 7 
 
 
  2. EU (G/SCM/N/186/EEC and addenda 1-27) 
44. The EU 2009 new and full subsid y notification had been reviewed at the Committee's special 
meeting held on 27 April 2010. Questions by India with respect to this notification had been 
circulated in document G/SCM/Q2/EEC/67.  At th e special meeting held on 26 October 2011, the 
delegate of the EU had provided oral replies to these questions.  Subsequently, these oral replies had 
been provided in writing and circulated in document G/SCM/Q2/EU/1. 
45. There were no further questions or comments on this notification. 
3. Gabon (G/SCM/N/186/GAB) 
46. Gabon's 2009 new and full subsidy no tification had been reviewed at the Committee's special 
meeting held on 3 May 2011.  Prior to that meeting,  questions had been posed by the US and Turkey 
with respect to this notification which had been  circulated in docume nts G/SCM/Q2/GAB/1 and 
G/SCM/Q2/GAB/2, respectively. These questions remained unanswered. 
47. No replies were provided to these questions. 
4. Japan (G/SCM/N/186/JPN) 
48. Japan's 2009 new and full subsidy notification ha d been reviewed at the Committee's special 
meeting of 27 April 2010.  India had posed questi ons concerning this notification, which had been 
circulated in document G/SCM/Q2/JPN/51.  Japan had provided replies to these questions which had 
been circulated in document G/SCM/Q2/JPN/52.  Ja pan had provided supplementary replies to India's 
questions which had been circulated in  document G/SCM/Q2/JPN/52/Suppl.1. 
49. There were no further questions or comments on this notification. 
5. Namibia (G/SCM/N/186/NAM) 
50. Namibia's 2009 new and full subsidy notificati on had been reviewed at the Committee's 
special meeting of 28 October 2010. Questions posed  by Thailand with respect to this notification 
which had been circulated in G/SC M/Q2/NAM/3 remained unanswered. 
51. No replies were provided to these questions. 
6. Turkey (G/SCM/N/186/TUR) 
52. The 2009 new and full subsidy notification of Tu rkey had been reviewed at the Committee's 
special meeting held on 28 October 2010.  The questi ons posed by Australia w ith respect to Turkey's 
notification which had been circulated in document G/SCM/Q2/TUR/23 remained answered. 
53. Turkey stated that it needed additional time to provide replies to Australia's questions and that 
it would submit its replies as soon as possible. 
7. US (G/SCM/N/186/USA) 
54. The 2009 new and full subsidy notification of the US had been reviewed at the Committee's 
special meeting of 3 May 2011. Prior to that meet ing, India and Japan had posed questions with 
respect to the US notification which had been ci rculated in documents G/SCM/Q2/USA/43 and 44, 
respectively.  Subsequent to that meeting, Braz il had also submitted written questions on the US G/SCM/M/80 
Page 8  
 
  notification which had been circulated in document G/SCM/Q2/USA/48. These three sets of questions 
remained unanswered. 
55. The US stated that replies to these questions would be submitted shortly.
3 
56. The Chair noted that subsequent to the sp ecial meeting held on 26 October 2011 where 
Mexico's 2011 new and full subsidy notification had been reviewed, Mexico had submitted the same 
text as its 2009, 2007, 2005 and 2003 new and full s ubsidy notifications. Since they had the same 
content, these notifications would not be  reviewed separately by the Committee. 
57. Similarly, Uruguay had recently submitted: 
(a)  Its 2007 annual updating notification made in the context of the procedures contained 
in the General Council Decision circulat ed in document WT/L/691 regarding the 
extension of the periods for the elimina tion of certain export subsidy programmes 
(G/SCM/N/160/URY) also as its 2007 new and full subsidy notification (G/SCM/N/155/URY); 
(b)  Its 2009 annual updating notifica tion under the General Council decision 
(G/SCM/N/192/URY) also as its 2009 new and full subsidy notification 
(G/SCM/N/186/URY);  and 
(c)  Its 2011 annual updating notifica tion under the General Council decision 
(G/SCM/N/226/URY) as its 2011 ne w and full subsidy notification 
(G/SCM/N/220/URY). 
58. Since these documents had already been reviewed by the Committee, they would not be 
reviewed again.  However, the Chair pointed out that such wholesale retrospective notifications did 
not seem to be consistent with the spirit of th e notification obligations contained in the SCM 
Agreement and could not undo the damage caused by de lays in the notification process.  He therefore 
urged Members to refrain from this in the future a nd to submit their subsidy notifications in a timely 
fashion so that the transparency objectiv e of the SCM Agreement would be respected. 
D. 
DATE OF THE NEXT SPECIAL MEETING  
59. The Committee's autumn 2012 special m eeting was scheduled for the week of 
22 October 2012, with the exact date to be  communicated to Members in due course. 
60. The Chair adjourned the meeting. 
__________ 
 
 
                                                      
3 Subsequent to the meeting, the US submitted replies to questions posed by India, Japan and Brazil 
through documents G/SCM/Q2/USA/50, 51 and 49, respectively.