Countervailing Measures 

Countervailing measures are the second most commonly employed trade remedy in the EU after anti-dumping measures. The Basic Anti-subsidy Regulation (Commission Regulation (EC) No. 597/2009) is intended to implement the procedural and substantive requirements set forth in the WTO Subsidies and Countervailing Measures Agreement and Article IV of the GATT 1994. Consequently, EU countervailing measures must meet all the applicable procedural and substantive requirements set forth by the applicable WTO provisions.

The purpose of a countervailing measure is to offset the injurious effects caused by the subsidised imports. Therefore, the amount of the countervailing duty may not exceed the amount required to offset the countervailable subsidy granted or margin of injury, whichever is the lesser.

Upon request from the Union Industry a countervailing duty may be imposed for the purpose of offsetting any subsidy granted, directly or indirectly, for products imported into the EU, where these subsidised imports cause or threaten to cause injury, provided the imposition of the countervailing duty is in the Community interest. A product is considered to be subsidised if it benefits from a countervailable subsidy granted by a public authority and is specific, i.e. provides a benefit to a specific company, industry or group thereof.

Countervailing measures are generally valid for a period of five years. The Basic Anti-subsidy Regulation provides for several types of reviews, such as interim reviews and sunset reviews. The scope of these reviews may either include or be limited to the level of the countervailing duties imposed and of the period of validity of the countervailing measures. Article 20 of the Basic Anti-subsidy Regulation provides for reviews of new exporters, under which the new exporter may have its individual countervailing duty rate determined and thus avoid having the residual duties applied. The new exporter review set forth in the Basic Anti-subsidy Regulation is considerably less detailed than in the Basic Anti-Dumping Regulation, but this does not necessarily imply that the considerations under the latter do not play an equal role in new exporter reviews under the Basic Anti-subsidy Regulation.  

 

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