4.10 If the DSB`s recommendation does not follow within the time frame set by the body that begins on the date of adoption of the panel`s report or the appeals agency report, the DSB gives the requesting member permission to take appropriate counter-measures (9), unless the DSB agrees to reject the application. 8.2 Notwithstanding the provisions of Part III and V, the following subsidies are not feasible: a subsidy granted by a WTO member government is prohibited by the subsidy agreement if it is legally or effectively dependent on export performance or domestic use of 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.) Introducing subsidies and countervailing measures in the WTO Links to subsidies and countervailing measures Section of the WTO`s „Understanding the WTO” Guide. The WTO agreement has been reinstalled. It prohibits grey zone measures and sets deadlines (a forfeiture clause) for all protection measures. The agreement stipulates that members must not seek, take or maintain voluntary export restrictions, orderly marketing agreements or similar measures on the export or import side. Bilateral measures that were not adapted to the agreement ended at the end of 1998.
Countries were allowed to maintain one of these measures for an additional year (until the end of 1999), but only the European Union used this provision for restrictions on the import of motor vehicles from Japan. Subsidies can play an important role in developing countries and in transforming centralized economies into market economies. Least developed and developing countries with per capita GNP of less than US$1,000 are excluded from the disciplines of prohibited export subsidies. Other developing countries have until 2003 to cut their export subsidies. Least developed countries must eliminate import substitution subsidies (i.e. subsidies to support domestic production and avoid imports) for other developing countries by 2003, the 2000 deadline. Developing countries also receive preferential treatment when their exports are subject to customs assistance. For transformational savings, the prohibited subsidies were to expire by 2002. The calculation of dumping on a product is not sufficient.
Anti-dumping measures can only be applied if dumping is detrimental to the industry of the importing country. Therefore, a thorough investigation must first be carried out according to certain rules. The survey must assess all relevant economic factors affecting the state of the sector concerned. If the investigation shows dumping and the domestic industry has been adversely affected, the exporting company may commit to raising its price to an agreed level in order to avoid anti-dumping duties on imports. 9.4 When a case is referred to the Committee, the Committee immediately reviews the facts and evidence of the effects referred to in paragraph 1. If the Panel finds that such effects exist, it may recommend that the granting member modify the program to eliminate its effects. The Committee presents its findings within one hundred and twenty days from the date the question referred to paragraph 3. If the recommendation is not challenged within six months, the committee authorizes the requesting member to take appropriate action that is consistent with the nature and degree of the effects.