ASCM: Transitional period after reaching “export competitiveness” (Art. 27.5)

LDCs cannot provide export subsidies for products in which they achieve “Export competitiveness:” a share of at least 3.25 % in world trade of a product for two consecutive calendar years.

Export competitiveness” only exists if the LDC notifies the WTO or if the WTO Secretariat performs the calculation on request of another Member (Article 27.6). LDCs can benefit from a phase out period of eight years after reaching “Export competitiveness” (Article 27.5), rather than the standard two year period.

In the 2001 Doha Ministerial Decision on Implementation-related Issues and Concerns it was decided that the eight-year period in Article 27.5 within which an LDC Member must phases out its export subsidies in respect of a product in which it is export-competitive, beginning from the date export competitiveness exists within the meaning of Article 27.6.” (para.10.5).


Available Smooth Transition Procedures:

Utilization by LDCs:

Results from a recent DESA survey showed that no LDC has yet achieved “export competitiveness” in any product receiving export subsidies with respect to Article 27.6 of the Agreement.

Resources:

  1. Agreement on Subsidies and Countervailing Measures
  2. 2001 Doha Ministerial Decision on Implementation-related Issues and Concerns
  3. Subsidies and countervailing measures gateway