1.The agreement, when it originally came into force, contained a third category of unenforceable subsidies. This category (accompanied by a provision with a presumption of serious infringement of certain types of applicable subsidies) was provisionally applicable for a period of five years, until 31 December 1999, and could be extended by consensus of the SCM Committee, in accordance with Article 31 of the agreement. No such consensus had been reached as of December 31, 1999. Back to text 2. To alleviate this problem, the SCM agreement established, over a five-year interim period, which ended on December 31, 1999, a sub-category of applicable subsidies, for which there was a rebuttable presumption of serious bias. In accordance with section 31, this provision could be extended (along with the non-applicable subsidy provisions) as part of the SCM consensus. No such consensus had been reached as of December 31, 1999. The Subsidies and Countervailing Measures Agreement (MCS) addresses two separate but closely related issues: multilateral disciplines governing the granting of subsidies and the application of countervailing measures to compensate for the damage caused by subsidized imports. 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. (b) subsidies to cover the economic losses of a sector; This article does not apply to subsidies maintained for agricultural products in accordance with Article 13 of the Agriculture Agreement.
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. Members in transition to a market economy have seven years to end the prohibited subsidies. However, these subsidies must have been notified within two years of the WTO agreement (i.e. until 31 December 1996) to receive special treatment.