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Recommendations toward Improving Access to Countervailing Duties Compiled

- Recommendations from the Subcommittee on Trade Remedy Measures under the Industrial Structure Council -

August 30, 2021

The Subcommittee on Trade Remedy Measures under the Industrial Structure Council has organized recommendations toward Improving Access to CVDs in Japan, after discussing the challenges involved and directions for action. Based on the recommendations, the Ministry of Economy, Trade and Industry (METI) will collect information on subsidies by means such as sharing views with investigating authorities in major countries, and actively provide information to companies in Japan. At the same time, it will also prepare a consultation contact point for applications. In addition, it will hold the Webinar on Trade Remedy Investigation 2021 on September 2 to provide more information toward improving Access to CVDs.

1. Background and purpose

Under the WTO Agreement, a CVD measure allows the imposition of tariffs on imports benefited by foreign government’s subsidies to offset the amount of the subsidies if the imports cause the injury to the domestic industry. Since trade structures have become more complex with the development of global supply chains, the number of CVDs has been increasing worldwide recently to redress market-distorting measures like massive industrial subsidies.

In order to examine the potential for using CVDs in Japan, METI has been consulting experts since February to form a coherent picture of the challenges involved. The Subcommittee on Trade Remedy Measures under the Industrial Structure Council has now put together the recommendations toward improving access to CVDs in Japan, after discussing the challenges involved and directions for action based on the experts' opinions.

2. Outline of the recommendations

The recommendations identifies challenges, such as how difficult it is for Japan's domestic industries to obtain information on other countries' subsidies, which they have to do to apply for CVDs. It points out that to address these challenges, it will be important to establish a mechanism through which trade remedy investigation authorities in major countries are able to share information on subsidies, etc., and for METI to actively provide industry with the information collected and respond in detail to individual advance consultations from the initial stage. It also points out the need to promote outreach activities aimed at Japanese companies to make CVDs more widely understood, in order to alleviate the lack of awareness surrounding them.

3. Future plans

Based on the recommendations, METI will meet with the major countries' investigation authorities this fall to share information on investigation method and subsidies and so on. At the same time, it will also prepare a consultation contact point to respond in detail to inquiries from individual Japanese companies that are considering applying for CVDs.

In addition, it will hold the Webinar on Trade Remedy Investigation 2021 on September 2 to provide more information toward improving access to CVDs.

Division in Charge

Office for Trade Remedy Investigations, Trade Control Department, Trade and Economic Cooperation Bureau