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United States – Countervailing Measures Concerning Certain Products from the European Communities (WTO Doc. WT/DS212/AB/R): Recurring Misunderstanding of Non-Recurring Subsidies*

  • Gene M. Grossman (a1) and Petros C. Mavroidis (a2)

In United States – Countervailing Measures Concerning Certain Products from the European Communities (WTO Doc. WT/DS212/QB/R, henceforth Certain Products), the Appellate Body (AB) of the World Trade Organization was called upon to revisit the issue of whether the United States can legally impose countervailing duties following the privatization of state-owned enterprises that had received non-recurring subsidies. In twelve cases, the United States Department of Commerce (USDOC) had applied either the “gamma method” or the “same-person method” in assessing the impact of a change of ownership on the continued existence of a benefit from a countervailable subsidy. The European Communities challenged the legality of these methods.

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We are grateful to Henrik Horn, Doug Irwin, Arun Venkataraman and Jasper-Martijn Wauters for helpful discussions on the issue treated in this report.

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Grossman Gene M. and Mavroidis Petros C.. 2003. Here Today, Gone Tomorrow? Privatization and the Injury Caused by Non-Recurring Subsidies. A Discussion of the Appellate Body Report on United States – Imposition of Countervailing Duties on Certain Hot-Rolled Lead and Bismuth Carbon Steel Products Originating in the United Kingdom in Horn H. and Mavroidis P. C., eds., The WTO Case Law of 2001. Cambridge: Cambridge University Press.
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World Trade Review
  • ISSN: 1474-7456
  • EISSN: 1475-3138
  • URL: /core/journals/world-trade-review
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