Members in transition to a market economy Members that are in transition to a market economy shall be granted a period of seven years to phase out prohibited subsidies. However, such subsidies must have been notified within two years of the entry into force of the WTO Agreement (i.e. before 31 December 1996) in order to qualify for special treatment. Members in process shall also enjoy preferential treatment with regard to countervailable subsidies. All members are required to notify the SCM Committee of their laws and regulations on countervailing taxes in accordance with Article 32.6 of the SCM Convention. Members are also required to notify all six-monthly countervailing measures and provisional and definitive countervailing measures at the time of their implementation. Members must also indicate which authorities are responsible for initiating and conducting compensatory investigations. 1.The Agreement as originally amended contained a third category of non-countervailable subsidies. This category (together with a provision establishing a presumption of serious disadvantage in relation to certain types of countervailable subsidies), which is provisionally applied for five years until 31 December 1999, and in accordance with Article 31 of the Agreement, could be extended by consensus of the Subsidies Committee. As at 31 December 1999, no such consensus had been reached.
back to text 2. In order to mitigate this problem, the SCR Agreement established a subcategory of countervailable subsidies for which there is a rebuttable presumption of significant disadvantage during a provisional five-year period ending on 31 December 1999. In accordance with Article 31, this provision (as well as the provisions on non-countervailable subsidies) could be extended by consensus of the Committee on Subsidies. As at 31 December 1999, no such consensus had been reached. back to specificity text. However, assuming that a measure is a subsidy within the meaning of the subsidy agreement, it is subject to the subsidy agreement only if it has been specifically granted to an enterprise or industry or to a group of enterprises or economic activities. .