G/SCM/W/557/Rev.1  
 
22 September 2014  
(14-5274)  Page: 1/3  
Committee on Subsidies and Countervailing Measures 
 Original: English  
 
PROPOSED PROCEDURE FOR SUBMISSION OF 
QUESTIONS AND ANSWERS UNDER ARTICLES 25.8 AND 25.9 
PROPOSAL FROM THE UNITED STATES 
Revision 
The following communication, dated 19 September 2014, is being circulated at the request of the 
Delegation of the United States.   
 
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The United States hereby submits for consideration by the Committee its proposal regarding the treatment of questions and answers under Articl e 25.8 and 25.9 of the Agreement on Subsidies 
and Countervailing Measures (Subsidies Agreement). This proposal is identical to the informal 
version circulated by the United States during the regular meeting of the Committee held on 
29 April 2014. In submitting this proposal, the Unit ed States seeks to advance the years of work 
by the Subsidies Committee to improve the timeliness and completeness of notifications.   
 
As is well known, the Committee has agreed-upon and well-functioning procedures for responding to questions on Members’ subsidy notifications submitted under Article 25.1 of the Subsidies 
Agreement.
1 The United States believes that the rationale for having procedures for written 
answers to questions on subsidy notifications is equally applicable to questions submitted under Article 25.8. Such a process will help facilitate and enhance the notification and transparency provisions of the Subsidies Agreement, a core tenet of the Agreement.   
 
The Subsidies Agreement already provides a procedure under Article 25.8 by which Members may submit written questions regarding the nature an d extent of a subsidy program maintained by 
another Member, or request an explanation of why a specific measure is not subject to the 
requirement of notification. Arti cle 25.9 of the Agreement further establishes a specific obligation 
for Members who receive such questions, stating that "Members so requested shall provide such 
information as quickly as possible and in a comprehensive manner, and shall be ready, upon 
request, to provide additional information to the requesting Member". Having procedures for 
written answers to Article 25.8 questions, would facilitate Members meeting their obligations under Article 25.9. 
 
It is clear that the record of Members is less than  satisfactory in responding as quickly as possible 
and in a comprehensive manner to questions received  under Article 25.8. In light of this record, 
and in the context of improving the timeliness and completeness of subsidy notifications, 
the United States is of the view that the Committee should adopt clear procedures according to which future Article 25.8 questions should be an swered and reviewed by the Committee similar to 
the manner in which Members’ subsidy notifications are reviewed. Specifically, procedures should 
be established for written answers to be provided to written questions within 60 days and written replies to follow up questions to be provided within 30 days. Moreover, written questions under Article 25.8 should be included on the Committee's agenda until written answers are submitted 
                                               
1 The process includes, inter alia , a detailed schedule according to which written questions are 
submitted and written answers are provided in reply. See G/SCM/117.   G/SCM/W/557/Rev.1 
 
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  and an opportunity is provided for further discussion and follow-up questions at a Committee 
meeting.    The requirement for written answers to questions submitted under Article 25.8 is consistent with 
the Subsidies Agreement and reflects the current practice for responses to questions on Members’ 
subsidy notifications. Further, the 60 day period proposed by the United States for responding to questions under Article 25.8 of the Agreement is more than the 30 days normally provided to 
respond to Members’ regular subsidy notifications.  
 The United States recognizes that a number of Members have previously expressed concern that 
this proposal might upset the balance of rights and obligations under the Subsidies Agreement, 
suggesting there was no legal basis for requiring written responses to Article 25.8 questions. Some 
Members also cited capacity constraints in meeting the challenge of enhanced notification obligations. Those same Members, however, univers ally noted the importance of the transparency 
obligations enshrined in the Subsidies Agreement, and that overseeing those obligations 
constitutes a key function of the work in this Committee.  
The United States believes that adoption of this proposal is not only fully consistent with the 
balance of rights and obligations, but advances that balance by promoting the information exchange called for in the relevant provisions of the Subsidies Agreement. Yet we also recognize the burden complying with notification requirements imposes on certain Members, in particular 
least developed countries, and are willing to further discuss ways to assist those Members. 
 The United States welcomes further discussion on this proposal and looks forward to constructive 
feedback regarding all aspects of this submission.   G/SCM/W/557/Rev.1 
 
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  PROPOSED PROCEDURE FOR SUBMISSION OF 
QUESTIONS AND ANSWERS UNDER ARTICLES 25.8 AND 25.9  
As noted in the previous paper of the United States, several Members have requested information 
under Article 25.8 of the Agreement on Subsidies and Countervailing Measures 
(Subsidies Agreement) regarding possible subsidy programs of other Members that have not been 
notified under Article 25.1. Many of these requests were answered only after lengthy delays, if at all. The purpose of the proposed text below is to clarify a Member's obligations to reply to 
information requests under Article 25.9 of the Subs idies Agreement. It is proposed that the text 
below be adopted by the Committee to establish appropriate procedures under Articles 25.8 and 25.9.   
Proposed Text 
 
1. Pursuant to Article 25.8 of the Subsidies Agreement: "Any Member may, at any time, make 
a written request for information on the nature and extent of any subsidy granted or maintained 
by another Member (including any subsidy referred to in Part IV), or for an explanation of the reasons for which a specific measure has been considered as not subject to the requirement of 
notification".  
 2. Under Article 25.9 of the Subsidies Agreement, Members who have received a request under article 25.8 "shall provide such information as quickly as possible and in a comprehensive manner, 
and shall be ready, upon request, to provide addi tional information to the requesting Member. In 
particular, they shall provide sufficient details to enable the other Member to assess their compliance with the terms of this Agreement" (emphasis added).  
 
3. The submission of requests for information under Article 25.8 and the submission of answers 
under Article 25.9 shall be on the basis of a wr itten procedure, i.e. on the basis of written 
questions and written answers. Members who receive a written request under Article 25.8 shall 
provide written answers as quickly as possible, bu t no later than 60 days after the receipt of the 
request. All requests shall be answered in a comprehensive manner. After a Member submits written answers, the Member shall be ready, upon  written request, to provide additional written 
information to the requesting Member. In answering a written request of a Member under 
Article 25.8, the requested Member shall provide sufficient details in writing to enable the other Member to assess their compliance with the terms of the Subsidies Agreement. Written replies to 
follow up questions shall be answered within 30 days. 
 4. All requests under Article 25.8 to which written responses have not been provided in writing 
shall remain on the agenda of the Committee on Subsidies and Countervailing Measures until such 
time that the Members so requested have approp riately answered in writing as described under 
Article 25.9 and these procedures.   
 
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