Previous transition periods for local content grants have expired. Least developed countries (and other members of developing countries receiving CMS) must phase out export subsidies for products that have achieved export competitiveness (provided a country`s global market share on this product exceeds 3.25%) 2000. (WTO/FEI, 2020). Article 3 of the agreement prohibits the use of local content and export subsidies for non-agricultural products. LDCs (and other countries with GNI per capita of less than USD 1,000 in 1990) are exempt from the ban on export subsidies (Article 27.2 and Appendix VII of the agreement and paragraph 10.1 of the Doha Ministerial Decision on Implementation Issues and Concerns). (WT/M IN (01)/17). that the member has not taken appropriate steps to eliminate the adverse effects of the subsidy or to withdraw the subsidy within six months of the date of adoption of the panel`s report or the appeal body`s report, and in the absence of agreement on compensation, the DSB authorizes the complaining member to take impact measures corresponding to the degree and nature of the negative effects observed. unless the DSB agrees to reject the application. After graduation, countries are no longer allowed to grant export subsidies for non-agricultural products. Starting in mid-2020, a proposal from the LDC group will be considered, which would allow progressive LDCs to continue to provide non-agricultural export subsidies, while their GNI per capita is less than $1,000.
According to the latest information available in mid-2020, Bangladesh, PDR, Nepal and the Solomon Islands remained below this threshold. In the absence of a decision or clarification on this issue, LDCs would no longer benefit from the exemption. Few LDCs provide this type of subsidy. According to the latest WTO analyses, Bangladesh and Nepal would be affected by the loss of this flexibility among countries approaching graduation in 2020 (WTO/FEI, 2020). Developing countries The SCM agreement recognises three categories of members from developing countries: the least developed countries (LDCs), members with a per capita GNP of less than US$1000 per year, listed in Schedule VII of the SCM Convention, and other developing countries. The lower a member`s level of development, the more favourable the treatment he or she receives for grant disciplines. For example, LDCs and members with a per capita GNP of less than US$1000 per year, listed in Schedule VII, are exempt from the ban on export subsidies. Other developing countries have eight years to end their export subsidies (they cannot increase their export subsidies during this period). With regard to import substitution subsidies, LDCs have eight years and other developing countries have five years to end these subsidies. Achievable subsidies are also treated more favourably.
For example, some subsidies related to privatization programmes for members of developing countries cannot be applied multilaterally. With regard to countervailing measures, exporters from developing countries are entitled to more favourable treatment in the event of a closed investigation when the level of subsidies or import volume is low. 7.4 If the consultation does not result in an amicable solution (20) within 60 days, any member of the group involved in such consultations may refer the matter to the DSB for the creation of a panel, unless the DSH agrees not to create a body. The composition of the panel and its mandate are determined within 15 days of its composition. . 7.1 Barring a provision under Article 13 of the Convention on Agriculture, where a Member has reason to believe that any subsidy granted or maintained in Article 1 results in harm to the national sector, a cancellation or serious injury or serious infringement, may ask that member to consult with that other member.