The Centre for Trade and Investment Law (CTIL), Indian Institute of Foreign Trade, in collaboration with the South Asian International Economic Law Network (SAIELN) and the Indian Society of International Law (ISIL).

organised a panel discussion on the WTO Panel Ruling on transnational subsidies in the dispute European Union Countervailing and Anti-Dumping Duties on Stainless Steel Cold-Rolled Flat Products from Indonesia (DS 616) at the Indian Society of International Law, New Delhi.

The discussion focused on the legal and policy implications arising from the WTO Panel Report, particularly in the context of the Agreement on Subsidies and Countervailing Measures (SCM Agreement) and its application to transnational subsidies.

The deliberations examined the European Union’s approach in attributing financial contributions provided by foreign entities, including state-linked actors, to the Government of Indonesia and treating such contributions as countervailable subsidies.

The panel analysed the WTO Panel’s findings, which clarified that the definition of “financial contribution” by a government under Article 1.1(a)(1) of the SCM Agreement constitutes a closed list, thereby excluding government-to-government inducement from its scope.

The discussion also addressed issues related to the determination of “public body” status, highlighting the need for a substantive assessment of an entity’s characteristics and its relationship with the government.

The broader implications of the ruling for regulating transnational subsidies were also examined, including its potential impact on the interface between international trade law and evolving industrial policies.

The session highlighted the growing complexity of cross-border state support mechanisms and the challenges they pose to the existing WTO framework.