7.9 In the event that the member has not taken appropriate measures to eliminate the negative effects of the grant or to withdraw the subsidy within six months of the adoption of the panel`s report or the appellate body`s report, the DSB gives the complaining member permission to take action. , depending on the degree and nature of the adverse effects, unless the DSB agrees to reject the application. A subsidy granted by a WTO member government is prohibited by the subsidy agreement if it depends, legally or effectively, on export performance or the use of domestic imported goods. These prohibited subsidies are commonly referred to as export subsidies or import substitution subsidies. They are considered specific and are considered particularly harmful under the subsidy agreement and U.S. law. (Specific provisions apply to agricultural subsidies under the WTO Agreement on Agriculture.) Given that the governments of WTO member states have the right to impose countervailing duties and that many countries have countervailing duties similar to those of the United States, it is important to keep in mind that your company, as a U.S. exporter, could face an investigation against the tax in another country. Doha Negotiation Section on Subsidies and Countervailing Measures in the Doha Ministerial Declaration A grant from a WTO member government is "capable of acting" under the agreement (in turn, certain exceptions are granted for agricultural subsidies), if it "violates" another country`s domestic industry or causes "serious prejudice" to the interests of another country.
In cases where a grant is granted: 8.4 At the request of a member, the secretariat reviews a notification made in accordance with paragraph 3 and may, if necessary, require additional information from the member subsidizing the notified program. The secretariat reports its findings to the Committee. On request, the Committee immediately reviews the secretariat`s findings (or, if a review has not been requested by the secretariat, the notification itself) to verify that the conditions and criteria set out in paragraph 2 are not being met. The procedure in this paragraph is completed no later than the first regular meeting of the committee after notification of a grant program, provided that at least two months have elapsed between that notification and the regular meeting of the committee. The review procedure described in this paragraph also applies, upon request, to substantial changes to a program notified in the annual updates covered in paragraph 3.