The Office of the U.S. Trade Representative issued a notice on February 10 to reduce the list of previously identified developing economies, making it easier for the U.S. government to initiate countervailing investigations against some economies in the future. and the imposition of punitive tariffs.
The latest list of developing economies announced by the United States excludes more than 20 economies including India, Brazil, Argentina, South Africa, Malaysia, Indonesia, Thailand, and Vietnam. China is also not on the list of developing economies announced by the United States.
The Office of the U.S. Trade Representative published a notice in the U.S. Federal Register that day, saying that according to relevant WTO rules and U.S. countervailing laws, in countervailing investigations, subsidies are usually If the amount is less than 1% of the product value, it is considered a de minimis subsidy, and the countervailing investigation should be terminated; however, for developing economies and least developed economies, this threshold can be relaxed to 2%, and the U.S. Congress authorizes the U.S. Trade Representative to enjoy this qualified WTO members.
The notice stated that the U.S. Trade Representative had published a list of developing economies and least developed economies in the U.S. countervailing investigation in 1998, but This list is now outdated. The United States has decided to determine whether some economies will continue to apply the 2% de minimis subsidy standard based on the level of economic development (based on per capita gross national income), the proportion of global trade, and other factors.
The Office of the United States Trade Representative stated that if an economy meets one of the following conditions: the per capita gross national income is higher than 12,375 US dollars (i.e., a high-income economy recognized by the World Bank (standard), accounts for more than 0.5% of global trade, and is a member of the OECD, the European Union, or the G20, the United States will recognize the economy as a developed economy and no longer apply the 2% de minimis subsidy standard.
