RESTRICTED  WORLD TRADE  
ORGANIZATION  G/SCM/M/53 
3 August 2005 
 (05-3499) 
Committee on Subsidies 
and Countervailing Measures  
 
MINUTES OF THE REGULAR MEETING 
HELD ON 14 APRIL 2005 
 
Chairman:  Mr. Naoshi Hirose (Japan) 
 
 
1. The Committee on Subsidies and Countervailing Measures (the "Committee") held a regular 
meeting on 14 April 2005. 
2. The proposed agenda for this meeting was circulated in document WTO/AIR/2547.  The 
Committee adopted  the following agenda:   
 Page  
A. CHINA  – REVIEW  OF NEW  LEGISLATIVE  NOTIFICATION   
(G/ADP/N/1/CHN/2/SUPPLS.3&4  AND  G/SCM/N/1/CHN/1/SUPPLS.3&4).........................2  
B. EUROPEAN  COMMUNITIES  - REVIEW  OF NEW  LEGISLATIVE  
NOTIFICATION  (G/ADP/N/1/EEC/2/S UPPL .6 – G/SCM/N/1/EEC/2/S UPPL .6).......................3  
C. CROATIA  - REVIEW  OF NEW  LEGISLATIVE  NOTIFICATION  
(G/ADP/N/1/HRV/2   - G/SCM/N/1/HRV/2) ..............................................................................3  
D. JORDAN  – REVIEW  OF NEW  LEGISLATIVE  NOTIFICATION  
(G/ADP/N/1/JOR/2/C ORR.2 - G/SCM/N/1/JOR/2/C ORR.2 AND G/ADP/N/1/JOR/3  – 
G/SCM/N/1/JOR/3) ............................................................................................................... .....3 
E. FORMER  YUGOSLAV  REPUBLIC  OF MACEDONIA  – REVIEW  OF NEW  
LEGISLATIVE  NOTIFICATION  (G/ADP/N/1/MKD/1  - G/SCM/N/1/MKD/1)......................3  
F. MONGOLIA  - REVIEW  OF NEW  LEGISLATIVE  NOTIFICATION  
(G/ADP/N/1/MNG/2-G/SCM/N/1/MNG/2)...............................................................................3  
G. CONTINUING  REVIEW  OF PREVIOUSLY  REVIEWED  NOTIFICATIONS.......................3  
H. SEMI-ANNUAL  REPORTS  OF COUNTERVAILING  ACTIONS  (ARTICLE 25.11)............4  
I. PRELIMINARY  AND  FINAL  COUNTERVAILING  ACTIONS:   NOTIFICATIONS  
(G/SCM/N/119  & CORR.1,  G/SCM/N/121,  G/SCM/N/124  & CORR.1,  
G/SCM/N/125  AND  G/SCM/N/126)..........................................................................................5  
J. SUBSIDY  NOTIFICATIONS ....................................................................................................5  
1. Review of 2003 New and Full and Updating Notifications received too late to be 
reviewed under previously  agreed procedures.......................................................................5  
2. Timing and Emphasis for Submission of Subsidies Notifications ........................................6  
3. Procedures for Review of 2005 Ne w and Full Subsidy Notifications ...................................7  
K. CONSTANT  DOLLAR  METHODOLOGY  FOR  GRADUATION  FROM  SCM  
ANNEX V II(B)................................................................................................................... ........7  
L. PERMANENT  GROUP  OF EXPERTS  – ELECTION  OF AN EXPERT ..................................8  G/SCM/M/53 
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 M.
 OTHER  BUSINESS ...................................................................................................................8  
1. VAT Reimbursement Scheme for the Import of Copper Raw Materials operated 
in the People's Republic of China – Statement by the EC.....................................................8  
2. Chairman's reminder of the deadlines referring to the Article 27.4 Process of Extensions of Transition Periods for the Elimination of Export Subsidies .........................9
 
3. Chairman's Report on Consulta tions on Rules of Origin .....................................................9  
N. DATE  OF NEXT  REGULAR  MEETING ................................................................................10  
O. ELECTION  OF OFFICERS......................................................................................................10  
 
 
A. CHINA  – REVIEW  OF NEW  LEGISLATIVE  NOTIFICATION   
(G/ADP/N/1/CHN/2/SUPPLS.3&4  AND  G/SCM/N/1/CHN/1/SUPPLS.3&4) 
3. The Chairman  recalled that items A through F dealt w ith the review of new notifications of 
countervailing duty legislation and/or  regulations, in accordance with  the procedures adopted by the 
Committee at its special meeting in April 1996 (document G/SCM/W/293).  He informed Members 
that the Secretariat will shortly circulate a reminder document indicating the deadlines for the 
submission of documents for the meetings of the Co mmittee next Autumn.  He recalled that questions 
concerning new notifications of legislation were to  have been submitted to the Member concerned and 
the Secretariat no later than 17 March 2005.  As provided for in the agreed procedures, Members 
receiving written questions were to respond orally to timely-submitted questions during the meeting.  
They were also to subsequently submit written ve rsion of their answers to all written questions 
received.  Members were reminded that follow-up qu estions could be asked in this meeting.  If a 
Member posed a follow-up question and wished to  receive a written answer, the follow-up question 
had to be submitted in writing no later than 28 April  2005.  Written answers to all written questions 
were to be submitted to the relevant Member and the Secretariat no later than 23 June 2005.  The 
Chairman noted that certain legislative notificati ons referred to on the agenda, and questions posed 
with respect to their review, had also been on the agenda of meeting of the Committee on Anti-
Dumping Practices which had taken place the previous week, and that some aspects of those notifications had been considered at that meeting. 
4. The Chairman turned to the notification of China
, contained in documents 
G/ADP/N/1/CHN/2/Suppls.3&4 and G/SCM/N/1/CHN/1/ Suppls.3&4, which had also been reviewed 
in the Committee on Anti-Dumping Practices.1  China indicated that it had provided replies to the 
questions submitted by the United States and th e European Communities in respect of the 
countervailing regulations alone in  document G/SCM/Q1/CHN/56.  Re garding questions 5, 8 and 9 
posed by the United States, China indicated that it would provide a reply shortly. 
5. In light of the similarities found in Ch ina's regulations between anti-dumping and 
countervailing duties, th e delegate of Japan  asked what was the difference between the two, especially 
with respect to Articles 34 and 38, which focus on pub lic interest in relation with the imposition of 
countervailing duties and in respect of the general c oncept.  The delegate of China requested a written 
version of the question in order to provide an appropriate reply.   
                                                      
1 See questions from the EC, the United Stat es and Japan in documents G/ADP/Q1/CHN/49-
G/SCM/Q1/CHN/49 (Submitted by the EC); G/ADP/Q1/CHN/50-G/SCM/Q1/CHN/50 (Submitted by Japan), G/ADP/Q1/CHN/51-G/SCM/Q1/CHN/ 51 and G/ADP/Q1/CHN/52-G/SCM/Q1/CHN/52 (Submitted by the 
United States).  Replies to these questions can be found in the following documents: G/ADP/Q1/CHN/53- 
G/SCM/Q1/CHN/53 (Replies to Japan); G/ADP/Q1/C HN/55- G/SCM/Q1/CHN/55  (Replies to the EC); 
G/ADP/Q1/CHN/51 -G/SCM/Q1/CHN/51 and G/ADP/Q1 /CHN/54- G/SCM/Q1/CHN/54 (Replies to the 
United States).  G/SCM/M/53 
 Page 3 
 
 
 6. The Committee took note  of the statements made. 
B. EUROPEAN  COMMUNITIES  - REVIEW  OF NEW  LEGISLATIVE  NOTIFICATION  
(G/ADP/N/1/EEC/2/S UPPL .6 – G/SCM/N/1/EEC/2/S UPPL .6) 
7. The Committee turned to the notifi cation of the European Communities , contained in 
document G/ADP/N/1/EEC/2/Suppl.6-G/SCM/N/1/EEC/2/S uppl. 6, which had also been reviewed by 
the Committee on Anti-Dumping Practices.  There were  no further questions or comments with regard 
to this notification.   
C. CROATIA  - REVIEW  OF NEW  LEGISLATIVE  NOTIFICATION  (G/ADP/N/1/HRV/2   - 
G/SCM/N/1/HRV/2)   
8. The Committee turned to the notification of Croatia , contained in document 
G/ADP/N/1/N/HRV/2-G/SCM/N/1/HRV/2, which had also been reviewed by the Committee on Anti-
Dumping Practices.2  There were no further questions or comment s with regard to this notification.   
D. JORDAN  – REVIEW  OF NEW  LEGISLATIVE  NOTIFICATION  
(G/ADP/N/1/JOR/2/C ORR.2 - G/SCM/N/1/JOR/2/C ORR.2 AND G/ADP/N/1/JOR/3  – 
G/SCM/N/1/JOR/3) 
9. The Committee turned to the notification of Jordan , contained in documents 
G/ADP/N/1/JOR/2/Corr.2-G/SCM/N/1/JOR/2/Co rr.2 and G/ADP/N/1/JOR/3–G/SCM/N/1/JOR/3, 
which had also been reviewed by the Committee on Anti-Dumping Practices.3  There were no further 
questions or comments with regard to this notification.   
E. FORMER  YUGOSLAV  REPUBLIC  OF MACEDONIA  – REVIEW  OF NEW  
LEGISLATIVE  NOTIFICATION  (G/ADP/N/1/MKD/1  - G/SCM/N/1/MKD/1) 
10. The Committee turned to the notification of  the Former Yugoslav Republic of Macedonia  in 
document G/ADP/N/1/MKD/1-G/SCM/N/1/MKD/1, whic h had also been reviewed by the Committee 
on Anti-Dumping Practices. There were no further questions or comments with regard to this 
notification.   
F. MONGOLIA  - REVIEW  OF NEW  LEGISLATIVE  NOTIFICATION  (G/ADP/N/1/MNG/2-
G/SCM/N/1/MNG/2) 
11. The Committee turned to the notification of Mongolia  in document G/ADP/N/1/MNG/2- 
G/SCM/N/1/MNG/2, which had also been review ed by the Committee on Anti-Dumping Practices. 
There were no further questions or comment s with regard to this notification.   
G. CONTINUING  REVIEW  OF PREVIOUSLY  REVIEWED  NOTIFICATIONS 
12. The Chairman  stated that, in accordan ce with the agreed proce dures of the Committee, any 
Member wishing to place on the agenda a notification of legislation previously reviewed had to 
submit a question in writing at least 6 weeks prior to  the date of the meeting, which was in this case 
24 February 2005.  Written answers had to be su bmitted to the Committee before 24 March 2005.  
                                                      
2 See questions from the European Communities in document G/ADP/Q1/HRV/4-G/SCM/Q1/HRV/4 
and responses thereto in G/ADP/Q1/HRV/6-G/SCM/Q1/HR V/6. See also questions from the United States in 
G/ADP/Q1/HRV/5-G/SCM/Q1/HRV/5 and responses thereto in G/AD P/Q1/HRV/7-G/SCM/Q1/HRV/7. 
3 See question from the United States in document G/ADP/Q1/JOR/4-G/SCM/Q1/JOR/4 and responses 
thereto in G/ADP/Q1/JOR/5-G/SCM/Q1/JOR/5. G/SCM/M/53 
Page 4  
 
 13. The Chairman stated that on the basis of  these procedures, the previously-reviewed 
notifications of Mexico
 (contained in document G/ADP/N/1/MEX/1/Suppl.2-
G/SCM/N/1/MEX/1/Suppl.1) and South Africa  (contained in document G/ADP/N/1/ZAF/2-
G/SCM/N/1/ZAF/2) were before the Committee.  These two notifications had been reviewed in the Committee on Anti-Dumping Practices.
4  There were no further questions or comments with regard to 
this notification. 
14. There were no further questions or comme nts with regard to these notifications. 
15. The Chairman stated that for an earlier examin ed notification to be on the agenda at next 
Autumn's regular meeting, it must be circulated in all three languages by 21 September 2005.  Shortly 
after this date, the Secretariat will circulate an airgram informing Members of all the legislative 
notifications to be reviewed at the Autumn meeti ng.  The Chairman informed Members that the new 
legislative notifications of Albania was exp ected to be on the agenda of that meeting 
16. The Chairman thanked Members that had fulf illed their transparency obligation but also 
expressed his continuing concern over the failure of  some Members to submit any notification at all 
concerning legislation or regulations relevant to c ountervailing measures.  He noted that for many, if 
not most, it was likely that a single nil notification,  indicating that there was no such legislation or 
regulation currently in effect, would be sufficien t.  For those Members who conducted countervailing 
duty investigations but had not yet notified th eir legislation, it was obviously important for 
transparency and the better understanding of all Member s that such legislation be notified.  He thus 
encouraged Members who had not yet done so to ma ke their notification of legislation promptly. 
17. The Committee took note  of the statements made. 
H. SEMI-ANNUAL  REPORTS  OF COUNTERVAILING  ACTIONS  (ARTICLE 25.11) 
18. The Chairman  recalled that a request for semi-annua l reports for the period 1 July to 
31 December 2004, to be submitted not later than 7 March  2005, had been circulated to Members in 
document G/SCM/N/122, dated 5 Janua ry 2005.  He noted that most Members taking countervailing 
duty actions during the period in question had subm itted a semi-annual report, although some of the 
reports had been received late.  He once again urged Members to take the necessary steps to submit 
these notifications on time.  He noted that particul arly for those Members who had taken no actions, 
all that was required was a one-sente nce letter stating that no actions had been taken.  Although there 
continued to be some problems in the formatting of  reports, Members clearly had made an effort to 
submit reports in the format established by the Committee, in the guidelines set out in document 
G/SCM/2.  The Secretariat was always available to assist Members with questions about the format of 
reports.   
19. The Chairman suggested that at the Autumn  meeting, the Committee discuss problems or 
questions relating to the submissions of semi-annual reports with a view of possible improvement of 
the format or the reporting guidelines.  He stated th at it was his understanding that a proposal to this 
effect had been made by the Chairman of th e Committee on Anti-Dumping Practices, and that it 
would therefore seem reasonable that this Committ ee proceeds in the same manner as the Committee 
on Anti-Dumping in light of the similarities in the fo rmat.  The Chairman stated that, given the fact 
that some Members had expressed an interest on this issue during the Committee of Anti-Dumping 
                                                      
4 In respect of the notification of Mexico, see questions from the United States in document 
G/ADP/Q1/MEX/14-G/SCM/Q1/MEX/14 and responses thereto in G/ADP/Q1/MEX/15-G/SCM/Q1/MEX/15. 
As to the notification of South Africa, see questions  from the United States in document G/ADP/Q1/ZAF/8-
G/SCM/Q1/ZAF/8 and responses thereto in G/ADP/Q1/ZAF/9-G/SCM/Q1/ZAF/9.  G/SCM/M/53 
 Page 5 
 
 
 Practices, he would consult with the Chairman of that Committee and noted that this question could 
potentially be discussed at the Autu mn meetings of both Committees.  
20. The delegate of Barbados  asked if the Secretariat could cons ider the possibility of developing 
an analytical page for the 10 year-period of c ountervailing measures notification examining the subset 
of countries that were not able to notify in a time ly manner, in order to give a perspective of the 
difficulties experienced and to enhance the discu ssions on this topic.  The Chairman asked the 
Secretariat to assist Members in this regard.      
21. The Committee took note  of the statements made. 
22. Members who had submitted semi-annual reports of  countervailing actions were identified in 
paragraph 1 of document G/SCM/ N/122/Add.1, dated 7 April 2005.  These Members comprised:  
Argentina;  Australia;  Brazil; Canada; European Communities;  Japan; Mexico;  United States;  and 
Venezuela.  In addition to the Members who ha d submitted semi-annual repor ts of countervailing 
actions, a number of Members, listed in paragra ph 2 of document G/SCM/N/122/Add.1, had notified 
the Committee that they had not taken any countervailing duty actions.  He stated that there remained a significant number of Members who had not respo nded to the request for semi-annual reports, and 
had therefore failed to comply with this importa nt requirement set forth in Article 25.11 of the SCM 
Agreement .  These Members were identified in docu ment G/SCM/N/123/Add.1, paragraph 3. 
23. There were no comments or questions regard ing the semi-annual reports of Argentina
;  
Australia;   Brazil;  Canada ; European Communities ;  Japan ; Mexico ;  United States ;  and Venezuela  
24. The Committee took note  of the statements made. 
I. PRELIMINARY  AND  FINAL  COUNTERVAILING  ACTIONS:   NOTIFICATIONS  
(G/SCM/N/119  & CORR.1,  G/SCM/N/121,  G/SCM/N/124  & CORR.1,  G/SCM/N/125  AND  
G/SCM/N/126) 
25. The Chairman  stated that the lists of the notificati ons of preliminary and final countervailing 
duty actions received had been circulated to the Committee in documents G/SCM/N/119 & Corr.1, 
G/SCM/N/121, G/SCM/N/124 & Corr.1, G/SCM/N/125 and G/SCM/N/126.  Since the last regular 
meeting of the Committee, preliminary and fina l countervailing actions had been notified by 
Argentina , Australia , Canada , the European Communities , Japan , the United States,  and Venezuela .  
There were no comments or questions with  respect to any of these notifications. 
26. The Committee took note  of the statements made. 
J. SUBSIDY  NOTIFICATIONS 
1. Review of 2003 New and Full and Updating Notifications received too late to be 
reviewed under previously agreed procedures  
27. The Chairman  recalled that, in accordance with the agr eed procedures for review of 2003 new 
and full subsidy notifications (document series G/SC M/N/95...), the third and final special session to 
review 2003 new and full subsidy no tifications was held in the Au tumn of 2004 Committee Meeting. 
As indicated in the draft annotated agenda for th e meeting, the following notifications were received 
too late to be reviewed under the previously ag reed procedures, or were update notifications:  
- Argentina (G/SCM/N/95/ARG) 
- Bulgaria (G/SCM/N/95/BGR/Suppl.1) - Honduras (G/SCM/N/95/HND/Suppl.1) G/SCM/M/53 
Page 6  
 
 - Latvia (G/SCM/N/95/LVA) 
- Madagascar (G/SCM/N/95/MDG/Suppl.1) - New Zealand (G/SCM/N/95/NZL/Suppl.1)  28. The Chairman further recalled that each of these notifications was translated in all three WTO 
languages by the time of circulation of the draft ag enda.  The Chairman stated that in a fax dated 
2 February 2005 and in the draft annotated age nda, he proposed that the Committee review such 
notification at this meeting, with any written questi ons to be submitted to the notifying member and to 
the WTO Secretariat no later than 1 March 2005 a nd written answers no later than 1 April 2005.  
29. The Committee took note
 of the statement made and agreed to proceed accordingly. 
30. There were no further comments or questions on the notifications of Argentina ,5  Bulgaria ,  
Honduras , Latvia  (presented by the EC of its behalf), Madagascar  and New Zealand .6  The Committee 
took note  of the statements made. 
2. Timing and Emphasis for Submission of Subsidies Notifications 
31. The Chairman  stated that in the Spring of 2001,  the Committee reached an understanding7 to 
the effect that new and full subsidies notifica tions would be submitted every two years, de-
emphasizing the review of the annual updating notifica tions.  A first trial period of two years was then 
agreed to.  In the Spring of 2003, the Committee d ecided to undertake a second trial period of such 
timing and emphasis.8  He noted that on that same occasion,  the Committee agreed to review the 
situation in 2005, in order to consider whether to  continue the understanding.  A primary motivation 
for the trial arrangements from 2001-2002 and 2003- 2004 was to encourage all Members to comply 
with their transparency obligation to submit new a nd full subsidy notifications.  He therefore stated 
that at this meeting, the Committee needed to  decide whether or not it would continue the 
arrangement on timing and emphasis for submission of  subsidy notifications, and for how long such 
arrangement would prevail. 
32. The Chairman referred to its fax of 18 February 2005 convening open-ended informal 
consultations on this issue and the Annotated Draf t Agenda.  As a result the open-ended informal 
consultations, the Chairman indicated that Members believed that their resources would be best utilized by continuing the current arrangement on timing and emphasis for submission of subsidy 
notifications for another two years, that is until after the Committee meeting in the Autumn of 2006, 
and then extending it automatically, for further succe ssive two-year periods (2007-2008 and so forth), 
unless:   
(a)  any Member expressed a desire to revi sit the arrangement at the regular Committee 
meeting in the Spring preceding the 30 J une deadline for new and full subsidy 
notifications in odd years; or 
                                                     
 
5 See question from the European Communities in document G/SCM/Q2/ARG/23 and responses 
thereto in G/SCM/Q2/ARG24.  
6 See question from the European Communities in  document G/SCM/Q2/NZL/14 and responses thereto 
in G/SCM/Q2/NZ/15. 
7 See document G/SCM/M/30, para 6. 
8 See document G/SCM/M/46, para. 43.  G/SCM/M/53 
 Page 7 
 
 
 (b)  the references to timing and surveillance of subsidy notifications  in Articles 25 and/or 
26 of the SCM Agreement were modified as a result of negotiations. 
33. The Chairman stated that this arrangement was not intended to add or detract from Members' 
rights and obligations.  
34. The Committee took note  of the statements made and agreed  to proceed accordingly. 
3. Procedures for Review of 2005 New and Full Subsidy Notifications 
35. The Chairman  stated that in accordance with Article 25.1 of the Agreement on Subsidies and 
Countervailing Measures, 2005 new and full subsidie s notifications by all Members were due by 
30 June 2005.  An invitation for Members to subm it their 2005 new and full subsidy notification was 
circulated in document G/SCM/N/123.  He noted that at this meeting, the Co mmittee needed to adopt 
Procedures for Review of such no tifications.  A note with Draft Procedures was circulated in document 
G/SCM/W/532, dated 2 March 2005.  Those procedures were the same as those adopted previously by 
the Committee, referring to the 2003 new and full no tification.  As stated in the introduction of 
document G/SCM/W/532, Members were  invited to consider the pos sibility of abbreviating the 
timeframes contained in those procedures. 
36. The Chairman proposed that the ti meframes referred to paragraph 2 of those draft procedures be 
reduced to seventeen (instead of nineteen) weeks, and to consider consequent ial modifications to the 
timeframes referred to in paragra ph 3 so that written questions would be submitted to the notifying 
Member and to the Secretariat not less than thirteen (instead of fifteen) weeks before the date of the meeting at which a notification is to be reviewed, and written respons es would be submitted not less 
than four (instead of six) weeks before the date of that meeting.  Inform al open-ended consultations 
were also held on this issue.  The Chairman reminded Members that, irrespective of any changes in the 
proposed timeframes, the Committee needed to adopt procedur es for the review of new and full 
notifications. 
37. The Committee adopted 
the procedures contained in docum ent G/SCM/W/532 with the changes 
to abbreviate the timeframes as proposed in the intr oduction of the document.  The Chairman indicated 
that the Secretariat would circulate a docu ment reflecting the newly adopted procedure.9 
K. CONSTANT  DOLLAR  METHODOLOGY  FOR  GRADUATION  FROM  SCM  
ANNEX VII(B) 
38. The Chairman  reminded Members that, pursuant to the Doha Ministerial Decision on 
Implementation-Related Issues and Concerns (document WT/MIN(01) /17, para. 10.1) -- in which 
Ministers agreed that Annex VII(b) to the Agreement on Subsidies and Countervailing Measures 
includes the Members that are listed  therein until their GNP per capita reaches  US$1,000 in constant 
1990 dollars for three consecutive years -- as of 1 January 2003, the methodology set forth in 
G/SCM/38, Appendix 2 applies.  In 2003 and 2004, the Secretariat circulated Notes updating GNP per 
capita for Members listed in Annex VII(b).  Tho se notes are contained in documents G/SCM/110 & 
/Add.1.  The Chairman informed Members that the Secretariat would circulate new updated calculations when the necessary World Bank data become available.
10 
39. The Committee took note  of the statements made. 
                                                      
9 See document G/SCM/117. 
10 See document G/SCM/110/Add. 2 G/SCM/M/53 
Page 8  
 
 L. PERMANENT
 GROUP  OF EXPERTS  – ELECTION  OF AN EXPERT 
40. The Chairman  noted that Mr. Hyung-Jin Kim's term as a member of the Permanent Group of 
Experts ("PGE") expired this Spring, and there was therefore a need for the Committee to elect a new 
expert.  Pursuant to a Committee decision (G/SCM /4), the Chairman and Vice-Chairman are to 
propose to the Committee candidates for election to  the PGE.  The proposal shall be based on 
suggestions submitted by Members and shall be ma de after informal consultations.  Candidates 
proposed shall meet the requirement that the PG E be composed of independent persons, highly 
qualified in the fields of subsidies and trade relations.    
41. The Chairman stated that in document G/SCM/116, he invited suggestions of names to 
replace Mr. Kim by 4 March 2005.  Two suggesti ons of names were received by that date: 
Mr Chang Fa Lo, suggested by Chinese Taipei, and Mr. Sebastián Sáez, suggested by Chile.  
Members were informed of this situation by a fax dated 8 March 2005, and the Chairman then 
indicated that the curriculum vitae of each of th ese two suggested individuals were available for 
inspection in Secretariat.  Subsequently, by a fax of 23 March 2005, Members were invited to express 
views on this issue and the Chairman indicated hi s readiness to conduct informal consultations with 
interested Members with a view to identifying  a basis for consensus.  To the Chairman's 
disappointment, only a minimal number of delegations  took advantage of this opportunity to express 
any view on this matter.  Given this extremely low level of participation by delegations, the Chairman 
stated that he was unable to identify any possible ba sis for consensus on the election of an expert in 
advance of the meeting today, and therefore the Comm ittee was not yet in a position to take a decision 
on the election of an expert at this time.  The Ch airman reiterated his request to Members to re-double 
their efforts on this matter with a view to reaching an agreement as soon as possible.  To this end, he 
suggested that the incoming Chair continue to c onduct informal consultations with Members with a 
view to identifying a basis for consensus.  Once such a basis fo r consensus was found, the Committee 
should follow a written procedure in order to formaliz e the election of the new expert.  The Chairman 
stressed that once the incoming Ch air were in a position to do so, the Chair would communicate to 
Members the candidate which has been identified as the basis for an emerging consensus, and subject 
to no comments being received by a set date, that candi date would then be deemed  to be elected to the 
PGE.    
42. The delegate of Chile  asked whether this meant that the group of experts would comprise four 
or five members, or if there would be a vacancy.  The Chairman stated th at since the Committee was 
unable to replace Mr. Kim, whose term expired in this Spring, the PGE would be composed 
temporarily of four members.  He further stated th at as soon than the Committee were in a position to 
elect a new expert, the PGE would then be composed of five Members. 
43. The delegate of Canada  raised the question as to whether there were implications in term of 
legal requirements such as quorum and as to the PGE' s ability to fulfil its legal functions on the basis 
of a reduced number of members.  The Secretariat  noted that the PGE did not have any adopted rules 
of procedure at the present time. 
44. The Committee took note  of the statements made and agreed to proceed accordingly. 
M. OTHER  BUSINESS 
1. VAT Reimbursement Scheme for the Import of Copper Raw Materials operated in the 
People's Republic of China – Statement by the EC 
45. The delegate of the European Communities  recalled that the issue of the VAT reimbursement 
scheme for the import of copper raw materials in Chin a had been raised at sev eral occasions.  The EC 
indicated that it involves 30 per cent refund of VAT applicable to imports of copper raw materials.   G/SCM/M/53 
 Page 9 
 
 
 The EC expressed concerns about this issue given the f act that it affects users of cooper raw materials.  
The EC recalled that it had previously requested  information from China on the legal references and 
on the operations of the scheme, and in particular on the intention of China to renew the scheme.  The 
EC further indicated that it had not received a satisfa ctory reply and noted that it had learned that the 
scheme had apparently been renewed for another year.  The EC requested information about the 
current status of this progra mme.  The delegate of Japan  expressed the same concerns  and requested 
the same information from China.  The delegate of China  stated that he had not received information 
about the renewal of the programme and indicated that he would seek clarifications and that contact the relevant Members once such clarifications were received.  
46. The Committee took note
 of the statements made. 
2. Chairman's reminder of the deadlines referring  to the Article 27.4 Process of Extensions 
of Transition Periods for the Elimination of Export Subsidies  
47. The Chairman  stated that at its November 2004 meeting,  the Committee agreed  on the dates for 
the Committee's mandated review of the standstill and transparency commitments relating to the extension of the transition period for ce rtain Members' export subsidy programmes 
(documents G/SCM/50-92 and Adde nda;  G/SCM/93-94 and Adds 1;  G/SCM/95-102).  Members 
concerned must submit the required notification by 30 June 2005.  This would allow for an exchange of 
questions and answers, to  the extent necessary, in advanc e of the Autumn 2005 meeting of the 
Committee.  At this juncture, the Chairman remind ed Members of the deadli ne of 30 June for the 
submission of the required notification and that any written questions would be due by 
1 September 2005 and any written answer s would be due by 6 October 2005. 
48. The Committee took note
 of the statements made. 
3. Chairman's Report on Consultations on Rules of Origin 
49. The Chairman  informed the Committee about the cons ultations on rules of origin issues 
which he, jointly with the Chairpersons of the Committees on Anti-Dumping an d on Safeguards, held 
on the 1 and 6 April, in response to a request of 15 February by the Chair of the General Council.  
50. He stated that the three Committees were asked to consider two questions on which, to date, 
Members had been unable to come to a consensus in  the negotiations on harmonized rules of origin in 
the Committee on Rules of Origin.  The first questi on was whether harmonized rules of origin should 
be applied to the Anti-Dumping, Subsidies and Countervailing Measures and Safeguards Agreements, 
and the second question was whether harmonized rules of origin should be applied to the problem of circumvention of trade remedy measures. 
51. When this request was received, the Chairs of Committees on Anti-Dumping and on 
Safeguards and the Chairman first sought clarifi cation from the Chair of the Committee on Rules of 
Origin as to the agreed views of Members on the interpretation of Articles 1.2 and 3(a) of the Agreement on Rules of Origin, given these provi sion's cross-references to the three referred 
Agreements.  They were informed by the Chair of  the Committee on Rules of Origin that there was no 
agreed view among Members on the meaning of these two provisions.  Given th is response, and given 
that it was not within the mandate of the three Committees to interpret the provisions of another 
agreement, they first sought the views of Members on the implications of the issue of origin of a good 
in the application of, respectively anti-dumping, c ountervailing and safeguard measures.  Second, they 
sought the views of Members on the re levance, if any, of the referen ces on the three agreements to the 
word "origin", and of other provisions identified by Members, to the issues referred to the three 
Committees.  Third, they sought the views of Member s on the relevance of the origin of a good in the G/SCM/M/53 
Page 10  
 
 context of "circumvention" of trade remedy measures,  and the implications of the issue of harmonized 
rules of origin in this context.  
52. Members of the three Committees had a positive a nd useful debate on the issues of origin. 
One delegation presented a document with questi ons about the practices of Members in the 
application of rules of origin in the context of tr ade remedies.  In the discussions, Members referred to 
some issues of their practices.  Members also discu ssed the meaning of the word and the concept of 
"origin" in the provisions of the Agreements.  Finall y, Members referred to the issue of "origin" in the 
context of circumvention of trade remedies.  Some  Members indicated that it would be useful to 
further explore the questions referred to them by the Chair of the General Council.   In light of this, the 
Chairpersons of the three Committees intended to convene, in the near future, another meeting of 
informal consultations on this issue.  In the meantime, Members were invited to reflect on the 
questions discussed during the debate.  
53. The Committee took note
 of the statements made. 
N. DATE  OF NEXT  REGULAR  MEETING 
54. The Chairman  informed Members that the next regu lar meeting of the Committee would be 
held on 24 and 25 October 2005.  Having adopted the Procedures for Review of the 2005 New and 
Full notifications, the Committee will also hold a Sp ecial Meeting in conjunction with the Autumn 
meeting, to review new and full notifications.  Members will be receiving reminders of the dates, and official notice in the airgrams convening the meetings. 
55. The Committee took note of the date of the next meeting. 
O. ELECTION
 OF OFFICERS 
56. The Chairman  informed Members that the Chairperson of the Council for Trade in Goods had 
completed his informal consultations on the nomin ation of Chairpersons for the different bodies 
operating under the auspices of the Council for Trad e in Goods, and in that connection had proposed 
the nomination of Ms. Victoria Campeanu of Ro mania as the 2005 Chairperson of the Committee on 
Subsidies and Countervailing Measures. 
57. The Committee elected  Ms. Campeanu as Chairperson by acclamation. 
58. Regarding the election of a Vice Chairperson, the Chairman  informed that he had conducted 
informal consultations with Members on the b asis of which he proposed the election of 
Mr. Matthew Wilson of Barbados. 
59. The Committee elected  Mr. Matthew Wilson as Vice Chairperson by acclamation. 
60. The Chairman  expressed his sincere appreciation for the cooperation of Members to the 
activities of the this Committee and thanked the Secretariat for its work and support. 
61. Ms. Campeanu thanked the Members for elec ting her and invited Members to applaud 
Mr. Hirose for his work in this Committee. 
62. The meeting was adjourned . 
 
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