Alerts & Updates 8th Oct 2025
The WTO Panel’s ruling in EU – Stainless Steel from Indonesia (DS616) arises in the broader context of the debate on transnational subsidies, even though the Panel did not rule on whether such subsidies are countervailable under the SCM Agreement.
The Panel instead addressed a narrower question – whether a financial contribution made by one government to an enterprise in another country could be attributed to the government of that other country on the basis that it had induced or adopted such contributions.
It found that the EU’s approach of attributing Chinese financial contributions to Indonesia – on grounds that Indonesia had “induced” them – was not consistent with the SCM Agreement. The ruling clarifies that “government-to-government inducement” does not constitute a financial contribution under Article 1.1(a)(1), while leaving open the broader question of how WTO law should address transnational subsidies.
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