Industrial policy in Asia-Pacific integration: localization measures and subsidies in ASEAN countries

ABSTRACT

As part of Asia-Pacific regionalism, the Association of Southeast Asian Nations (ASEAN) is in the process of establishing a single market. ASEAN member states conduct their industrial policies on their own but are also guided by the ASEAN legal framework. Having once been in the mainstream of government economic interventions, localization measures still continue to be in use in this region and today affect not only manufacturing but also data-reliant industries, erecting barriers to the advancement of the Fourth Industrial Revolution. Southeast Asian countries, like many others, have widely utilized various forms of subsidies as a means of promoting domestic industries. Because of their trade-distortive effects, localization measures and subsidies are disciplined by the World Trade Organization. With the focus on ASEAN member states, this article discusses localization and subsidy issues as addressed under trade rules and outlines some tasks for the ASEANization of industrial policies to deepen regional integration and strengthen ASEAN’s unity.

KEYWORDS:

• Southeast Asia
• local content requirement
• WTO
• FTA‌
• Fourth Industrial Revolution

Acknowledgements

The author expresses deep gratitude to Professors Julien Chaisse and Pasha Hsieh, as well as all other attendees of the Asia Pacific Law Review (APLR) & Singapore Management University (SMU) workshop in October 2022, for their invaluable insights and input on earlier versions of this article. Furthermore, the author offers genuine appreciation to the two anonymous peer reviewers, whose astute and constructive critiques were instrumental in refining and elevating the manuscript. Finally, the author conveys warm thanks to the editorial staff at the Asia Pacific Law Review and Taylor & Francis for their outstanding editing contributions, which have significantly enhanced the quality of the final publication.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Appendices

Appendix 1. EU CVD cases on products from ASEAN countries (as of 1 March 2023)

Table

Appendix 2. US CVD cases on products from ASEAN countries (as of 1 March 2023)

Table

Notes

1 Pasha L Hsieh, New Asian Regionalism in International Economic Law (CUP, 2021) 6.

2 See ASEAN, ‘ASEAN Economic Community (AEC)’ (2017) <https://asean.org/wp-content/uploads/2012/05/7c.-May-2017-Factsheet-on-AEC.pdf>; ASEAN, ‘ASEAN Economic Community Blueprint’ (2008), paras 4, 6, and 9 <www.asean.org/wp-content/uploads/images/archive/5187-10.pdf>.

3 See ASEAN, ‘ASEAN Economic Community Blueprint 2025’ (2015) <https://aseandse.org/wp-content/uploads/2021/02/AEC-Blueprint-2025-FINAL.pdf>.

4 Koichi Ishikawa, ‘The ASEAN Economic Community and ASEAN Economic Integration’ (2021) 10 Journal of Contemporary East Asia Studies 24, at 34.

5 See, e.g. Rajah Rasiah, ‘Industrial Policy and Industrialization in South East Asia’ in Arkebe Oqubay et al (eds), The Oxford Handbook of Industrial Policy (OUP, 2020) 681–715; Hal Hill, ‘Rapid Industrialisation in ASEAN: Some Analytical and Policy Lessons’ (1997) 4 Agenda: A Journal of Policy Analysis and Reform 419.

6 Ken Warwick, ‘Beyond Industrial Policy: Emerging Issues and New Trends’, OECD Science, Technology and Industry Policy Paper No 2 (OECD, 2013) 16.

7 Ibid, 16–18.

8 See Julien Chaisse and Pasha L Hsieh, ‘Rethinking Asia-Pacific Regionalism and New Economic Agreements’ (2023) 31 Asia Pacific Law Review.

9 See, e.g. Section II.B of this article on digital trade provisions of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) (2018) and the Regional Comprehensive Economic Partnership (RCEP) (2020).

10 The ‘ASEAN Way’ includes, inter alia, ASEAN’s preference for informality and loose arrangements, stronger reliance on personal relations than on institutions, preservation of national sovereignty and sovereign equality of members, avoidance of overt leadership by any ASEAN member, and decision-making by consensus. See Rodolfo C Severino, Southeast Asia in Search of an ASEAN Community: Insights from the Former ASEAN Secretary-General (Institute of Southeast Asian Studies, 2006) 35.

11 See Articles 2, 20, and 21 of the ASEAN Charter (2007).

12 See Hidetaka Yoshimatsu, ‘Preferences, Interests, and Regional Integration: The Development of the ASEAN Industrial Cooperation Arrangement’ (2002) 9 Review of International Political Economy 123, at 130–37; Severino (n 10) 227–30.

13 WTO, Trade Policy Review Body – Trade Policy Review – Report by the Secretariat – Indonesia – Revision, WT/TPR/S/401/Rev.1 (5 February 2021) 40, para 2.12.

14 See Prime Minister’s Department (Malaysia), ‘Twelfth Malaysia Plan 2021–2025: A Prosperous, Inclusive, Sustainable Malaysia’ chapter 3 <https://pulse.icdm.com.my/wp-content/uploads/2021/09/Twelfth-Plan-Document_compressed-1.pdf>.

15 Arnault Morisson, ‘Economic Zones in the ASEAN: Industrial Parks, Special Economic Zones, Eco-Industrial Parks, Innovation Districts as Strategies for Industrial Competitiveness’ (2015) UNIDO Country Office in Vietnam 79, 102.

16 Klaus Schwab, The Fourth Industrial Revolution (World Economic Forum, 2016) 7–8.

17 Articles 6 and 87.2 of the ASEAN Trade in Goods Agreement (2009).

18 See, e.g. Article 7 of the Agreement on Trade in Goods of the Framework Agreement on Comprehensive Economic Co-Operation between the People’s Republic of China and the Association of Southeast Asian Nations (2004); Article 10 of the Agreement on Comprehensive Economic Partnership among Japan and Member States of the Association of Southeast Asian Nations (2008); Article 7 of the Agreement on Trade in Goods under the Framework Agreement on Comprehensive Economic Cooperation among the Governments of the Republic of Korea and the Member Countries of the Association of Southeast Asian Nations (2006).

19 Chaisse and Hsieh (n 8).

20 Budi A Djafar and William Milberg, ‘Global Value Chains and Regionally Coordinated Industrial Policy: The Case of ASEAN’ in Arkebe Oqubay et al (eds), The Oxford Handbook of Industrial Policy (OUP, 2020) 213.

21 See Sherzod Shadikhodjaev, Industrial Policy and the World Trade Organization: Between Legal Constraints and Flexibilities (CUP, 2018) 147–51, 171–73.

22 For the relevant information on each ASEAN country, see United States Trade Representative (USTR), ‘2022 National Trade Estimate Report on Foreign Trade Barriers’ (2022).

23 Ibid.

24 Ibid, 70, 337, 452, 482, 532.

25 See Panel Report, Indonesia – Certain Measures Affecting the Automobile Industry, adopted 23 July 1998, WT/DS54/R, WT/DS55/R, WT/DS59/R, WT/DS64/R, paras 14.58–14.59, 14.89–14.91, 14.114.

26 See Philippines – Measures Affecting Trade and Investment in the Motor Vehicle Sector (DS195) <www.wto.org/english/tratop_e/dispu_e/cases_e/ds195_e.htm>.

27 WTO, Committee on Trade-Related Investment Measures (TRIMs) – Minutes of the Meeting held on 20 June 2014, G/TRIMS/M/36 (5 September 2014) para 39.

28 Articles 32–33 and Part Four of the Law of the Republic of Indonesia No 3 (2014) On Industrial Affairs, English translation at <https://world.moleg.go.kr/>.

29 Articles 22 and 54 of the Law of the Republic of Indonesia No 7 (2014) About Trade, English translation at <www.indolaw.org/>.

30 See, e.g. WTO, Committee on TRIMs – Minutes of the Meeting held on 12 October 2021, G/TRIMS/M/50 (2 December 2021) paras 10–26; WTO, Committee on TRIMs – Minutes of the Meeting held on 23 March 2021, G/TRIMS/M/49 (25 May 2021) paras 3–26; WTO, Committee on TRIMs – Minutes of the Meeting held on 6 June 2019, G/TRIMS/M/46 (20 September 2019) paras 8–28, 31–34.

31 See WT/TPR/S/401/Rev.1 (n 13) 89–90, para 3.73.

32 G/TRIMS/M/36 (n 27) para 58.

33 See WTO, Committee on TRIMs – Indonesia – Newly Adopted Industry Law and Trade Law – Replies to Questions from Canada, G/TRIMS/W/157 (24 April 2015); WTO, Committee on TRIMs – Indonesia – Newly Adopted Industry Law and Trade Law – Replies to Questions from the European Union, G/TRIMS/W/158 (27 April 2015); G/TRIMS/M/50 (n 30) para 27; WTO, Trade Policy Review Body – 9 and 11 December 2020 – Trade Policy Review – Indonesia – Minutes of the Meeting – Addendum, WT/TPR/M/401/Add.1 (17 February 2021) 18.

34 WT/TPR/M/401/Add.1 (n 33) 77.

35 See Article 28 of the ASEAN Trade in Goods Agreement.

36 See Erol Yayboke, Carolina G Ramos and Lindsey R Sheppard, ‘The Real National Security Concerns over Data Localization’ Center for Strategic & International Studies (23 July 2021) <www.csis.org/analysis/real-national-security-concerns-over-data-localization>.

37 For the critique on the rationales of data localization, see Anupam Chander and Uyên P Lê, ‘Data Nationalism’ (2015) 64 Emory Law Journal 677, at 713–39.

38 See, e.g. Han-Wei Liu, ‘Data Localization and Digital Trade Barriers: ASEAN in Megaregionalism’ in Pasha L Hsieh and Bryan Mercurio (eds), ASEAN Law in the New Regional Economic Order: Global Trends and Shifting Paradigms (CUP, 2019) 378–79.

39 Matthias Bauer et al, ‘The Costs of Data Localisation: Friendly Fire on Economic Recovery’, ECIPE Occasional Paper No 3/2014 (2014) 2.

40 Chander and Lê (n 37) 729–30.

41 Benjamin Wong, ‘Data Localization and ASEAN Economic Community’ (2020) 10 Asian Journal of International Law 158, at 166–67.

42 Article 26.3 of the Law on Cybersecurity No 24/2018/QH14 (12 June 2018), English translation at <www.economica.vn>.

43 See Daniel Pardede, ‘Indonesia: New Regulation on Electronic Systems and Transactions’ (7 November 2019) <www.globalcompliancenews.com/2019/11/07/indonesia-new-regulation-electronic-systems-transactions-20191028/>; Fabiola Hutagalung et al, ‘Highlights of The New Government Regulation on Electronic Systems and Transactions’ (19 November 2019) <https://dentons.hprplawyers.com>; Sakurayuki and Cellia Cognard, ‘Indonesia’s Electronic Systems and Transactions Regulation Replaced and Data Regulation Amended’ (25 October 2019) <www.hbtlaw.com/latest-thinking/indonesias-electronic-systems-and-transactions-regulation-replaced-and-data>.

44 See Section 129 of the Personal Data Protection Act 2010 (Laws of Malaysia, Act 709, 2 June 2010) <www.kkmm.gov.my/pdf/Personal%20Data%20Protection%20Act%202010.pdf>; Section 26 of the Personal Data Protection Act 2012 (Singapore, Act 26 of 2012, 20 November 2012) <https://sso.agc.gov.sg/Act/PDPA2012>; Regulation 10 of the Personal Data Protection Regulations 2021 (Singapore, No S 63/2021, 28 January 2021) <https://sso.agc.gov.sg/SL/PDPA2012-S63-2021?DocDate=20210930&ProvIds=P13-#P13->; Section 28 of the Personal Data Protection Act (Thailand, B.E. 2562, 27 May 2019), English translation at <https://thainetizen.org/wp-content/uploads/2019/11/thailand-personal-data-protection-act-2019-en.pdf>; Section 21 of the Data Privacy Act of 2012 (the Philippines, Republic Act 10173, 15 August 2012) <www.privacy.gov.ph/data-privacy-act/#21>.

45 Framework on Digital Data Governance, ‘ASEAN Telecommunications and Information Technology Ministers Meeting’ (Bali, Indonesia, 6 December 2018) para 19 and accompanying footnote 5.

46 Framework on Personal Data Protection, ‘ASEAN Telecommunications and Information Technology Ministers Meeting’ (Bandar Seri Begawan, Brunei Darussalam, 25 November 2016) paras 2, 6(f).

47 Framework on Digital Data Governance (n 45) paras 8–9, 20.

48 Article 7.4 of the ASEAN Agreement on Electronic Commerce (2019).

49 Article 7.6 of the ASEAN Agreement on Electronic Commerce.

50 See Article 9 (‘Local Presence’) and accompanying footnote 6 of the ASEAN Trade in Services Agreement (2020).

51 See, e.g. WTO, Council for Trade in Services – Report of the Meeting held on 1 July 2021 – Note by the Secretariat, S/C/M/146 (22 July 2021) paras 5.12–5.16, 5.24–5.25, 5.29; WTO, Council for Trade in Services – Report of the Meeting held on 12 October 2018 – Note by the Secretariat, S/C/M/136 (26 November 2018) paras 7.2–7.28.

52 S/C/M/136 (n 51) paras 7.8–7.11. Because of technological neutrality in general, WTO services rules apply to the online supply of services across borders, unless provided otherwise. See Sherzod Shadikhodjaev, ‘Technological Neutrality and Regulation of Digital Trade: How Far Can We Go?’ (2021) 32 European Journal of International Law 1221, at 1230–35.

53 See Shadikhodjaev (n 21) 174–76.

54 Hsieh (n 1) 13; Chaisse and Hsieh (n 8).

55 Articles 14.11.2 and 14.13.2 of the CPTPP; Articles 12.14.2 and 12.15.2 of the RCEP.

56 Articles 14.11.3 and 14.13.3 of the CPTPP; Articles 12.14.3(a) and 12.15.3(a) of the RCEP.

57 Articles 12.14.3(b), 12.15.3(b), footnote 11 to Article 12.14.2, footnote 13 to Article 12.15.2 of the RCEP.

58 Article 14.18 of the CPTPP.

59 The WTO dispute in Thailand – Subsidies Concerning Sugar (DS507), <www.wto.org/english/tratop_e/dispu_e/cases_e/ds507_e.htm>, remained in the consultation stage only.

60 See Appellate Body Report, United States – Definitive Anti-Dumping and Countervailing Duties on Certain Products from China, adopted 25 March 2011, WT/DS379/AB/R, paras 480–90.

61 WTO, Working Party on the Accession of Vietnam – Accession of Vietnam – Report of the Working Party on the Accession of Vietnam, WT/ACC/VNM/48 (27 October 2006) para 255(b).

62 See US Department of Commerce (USDOC), Decision Memorandum for the Preliminary Affirmative Determination: Countervailing Duty Investigation of Laminated Woven Sacks from the Socialist Republic of Vietnam [C-552-824] (6 August 2018) 9–14; USDOC, Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Laminated Woven Sacks from the Socialist Republic of Vietnam [C-552-824] (4 April 2019) 17–21, 50; USDOC, Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Certain Frozen Warmwater Shrimp from Vietnam [C-552-815] (12 August 2013) 7–16; European Commission, Commission Implementing Decision of 16 December 2014 terminating the anti-subsidy proceeding concerning the imports of polyester staple fibres originating in the People’s Republic of China, India and Vietnam, Official Journal of the EU, L 360/65 (17.12.2014) recitals 238–49 (finding, inter alia, that subsidy rates for Vietnamese products were de minimis).

63 See Commission Implementing Regulation (EU) 2019/1344 of 12 August 2019 imposing a provisional countervailing duty on imports of biodiesel originating in Indonesia, Official Journal of the EU, L 212/1 (13.8.2019) recitals 39–80; Commission Implementing Regulation (EU) 2019/2092 of 28 November 2019 imposing a definitive countervailing duty on imports of biodiesel originating in Indonesia, Official Journal of the EU, L 317/42 (9.12.2019) recitals 28–86; USDOC, Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Biodiesel from the Republic of Indonesia [C-560-831] (6 November 2017) 5–9.

64 See USDOC, Issues and Decision Memorandum for the Final Affirmative Countervailing Duty Determination: Coated Free Sheet Paper from Indonesia [C-560-821] (17 October 2007) 35–46; USDOC, Issues and Decision Memorandum for Certain Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses from Indonesia: Final Affirmative Countervailing Duty Determination [C-560-824] (20 September 2010) 14–20.

65 See USDOC, Decision Memorandum for the Preliminary Affirmative Determination: Countervailing Duty Investigation of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam [C-552-829] (30 October 2020) 13; USDOC, Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam [C-552-829] (21 May 2021) 3.

66 See European Commission, Commission Implementing Regulation (EU) 2022/433 of 15 March 2022 imposing definitive countervailing duties on imports of stainless steel cold-rolled flat products originating in India and Indonesia and amending Implementing Regulation (EU) 2021/2012 imposing a definitive anti-dumping duty and definitively collecting the provisional duty imposed on imports of stainless steel cold-rolled flat products originating in India and Indonesia, Official Journal of the EU, L 88/24 (16.3.2022) recitals 868–76.

67 See Commission Regulation (EC) No 618/2000 of 22 March 2000 imposing a provisional countervailing duty on imports of stainless steel fasteners originating in Malaysia and the Philippines, Official Journal of the European Communities (EC), L 75/18 (24.3.2000) recitals 34–41; Council Regulation (EC) No 1523/2000 of 10 July 2000 imposing a definitive countervailing duty and definitively collecting the provisional countervailing duty imposed on imports of stainless steel fasteners originating in Malaysia and the Philippines and terminating the proceeding concerning imports of stainless steel fasteners originating in Singapore and Thailand, Official Journal of the EC, L 175/29 (14.7.2000) recitals 14–16.

68 Commission Regulation (EC) No 618/2000 (n 67) recitals 18–25; Council Regulation (EC) No 1523/2000 (n 67) recital 12.

69 Commission Regulation (EC) No 618/2000 (n 67) recitals 99–106; Council Regulation (EC) No 1523/2000 (n 67) recitals 30–32.

70 See footnote 1 to Article 1.1(a)(1)(ii) of the SCM Agreement. See also Panel Report, India – Export Related Measures, circulated 31 October 2019 (under appeal), WT/DS541/R, paras 7.165–7.188; Sherzod Shadikhodjaev, ‘The WTO Agreement on Subsidies and Countervailing Measures and Unilateralism of Special Economic Zones’ (2021) 24 Journal of International Economic Law 381, at 395–96.

71 See USDOC, Decision Memorandum for the Preliminary Determination in the Countervailing Duty Investigation of Utility Scale Wind Towers from Malaysia [C-557-822] (19 March 2021) 10–15; USDOC, Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Utility Scale Wind Towers from Malaysia [C-557-822] (2 June 2021) 21–28.

72 See USDOC, Issues and Decision Memorandum in the Final Affirmative Countervailing Duty Determination: Certain Hot-Rolled Carbon Steel Flat Products from Thailand [C-549-818] (21 September 2001) section ‘3. Duty Exemptions on Imports of Raw and Essential Materials Under IPA Section 36(1)’.

73 USDOC, Final Determination in the Countervailing Duty Investigation of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam (n 65) 34–35.

74 See USDOC, Decision Memorandum for the Preliminary Affirmative Determination: Countervailing Duty Investigation of Utility Scale Wind Towers from the Socialist Republic of Vietnam [C-552-826] (6 December 2019) 9–12; USDOC, Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Utility Scale Wind Towers from the Socialist Republic of Vietnam [C-552-826] (29 June 2020) 17–19; USDOC, Final Determination in the Countervailing Duty Investigation of Laminated Woven Sacks from the Socialist Republic of Vietnam (n 62) 34–36; USDOC, Final Determination in the Countervailing Duty Investigation of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam (n 65) 33–36.

75 See Council Regulation (EC) No 1523/2000 (n 67) recitals 17–25.

76 Appellate Body Report, European Union – Countervailing Measures on Certain Polyethylene Terephthalate from Pakistan, adopted 28 May 2018, WT/DS486/AB/R, paras 5.103, 5.120, 5.124.

77 Ibid, para 5.134.

78 Ibid, paras 5.129, 5.131.

79 See, e.g. Council Regulation (EC) No 977/2002 of 4 June 2002 imposing a definitive countervailing duty on imports of certain ring-binder mechanisms (RBMs) originating in Indonesia and terminating the anti-subsidy proceeding in respect of imports of certain RBMs originating in India, Official Journal of the EC, L 150/17 (8.6.2002) recitals 56–58; Council Regulation (EC) No 1523/2000 (n 67) recital 18.

80 See Panel Report, India – Export Related Measures (n 70) paras 7.196–7.216, 7.243, 7.247.

81 See Commission Implementing Regulation (EU) 2019/1344 (n 63) recitals 209–36; Commission Implementing Regulation (EU) 2019/2092 (n 63) recitals 188–93.

82 See Appellate Body Report, United States – Final Countervailing Duty Determination with Respect to Certain Softwood Lumber from Canada, adopted 17 February 2004, WT/DS257/AB/R, paras 90, 100–103, 108–109; Appellate Body Report, United States – Definitive Anti-Dumping and Countervailing Duties on Certain Products from China, adopted 25 March 2011, WT/DS379/AB/R, paras 444–47; Appellate Body Report, United States – Countervailing Measures on Certain Hot-Rolled Carbon Steel Flat Products from India, adopted 19 December 2014, WT/DS436/AB/R, paras 4.184–4.191.

83 See USDOC, Preliminary Affirmative Determination: Countervailing Duty Investigation of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam (n 65) 17–20.

84 European Commission, Commission Implementing Regulation (EU) 2022/433 (n 66) recital 445.

85 See USDOC, Preliminary Determination in the Countervailing Duty Investigation of Utility Scale Wind Towers from Malaysia (n 71) 9–10; USDOC, Final Determination in the Countervailing Duty Investigation of Utility Scale Wind Towers from Malaysia (n 71) 38–41.

86 See, e.g. USDOC, Preliminary Affirmative Determination: Countervailing Duty Investigation of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam (n 65) 11–12, 25–27; USDOC, Final Determination in the Countervailing Duty Investigation of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam (n 65) 42–48.

87 See USDOC, Decision Memorandum for the Preliminary Determination of the Countervailing Duty Investigation of Utility Scale Wind Towers from Indonesia [C-560-834] (6 December 2019) 17–18; USDOC, Issues and Decision Memorandum for the Final Determination in the Countervailing Duty Investigation of Utility Scale Wind Towers from Indonesia [C-560-834] (29 June 2020) 45–46.

88 See USDOC, Preliminary Determination in the Countervailing Duty Investigation of Utility Scale Wind Towers from Malaysia (n 71) 15–18; USDOC, Final Determination in the Countervailing Duty Investigation of Utility Scale Wind Towers from Malaysia (n 71) 28–38.

89 Panel Report, United States – Anti-Dumping and Countervailing Measures on Certain Coated Paper from Indonesia, adopted 22 January 2018, WT/DS491/R, paras 7.27, 7.85–7.86.

90 Ibid, para 7.61.

91 Ibid, paras 7.65–7.70, 7.78.

92 See Commission Implementing Regulation (EU) 2019/1344 (n 63) recitals 83–172; Commission Implementing Regulation (EU) 2019/2092 (n 63) recitals 102–61; USDOC, Final Determination in the Countervailing Duty Investigation of Biodiesel from the Republic of Indonesia (n 63) 13–19.

93 See USDOC, Final Affirmative Countervailing Duty Determination: Coated Free Sheet Paper from Indonesia (n 64) 25, 29–32; USDOC, Certain Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses from Indonesia: Final Affirmative Countervailing Duty Determination (n 64) 12–14.

94 Panel Report, United States – Anti-Dumping and Countervailing Measures on Certain Coated Paper from Indonesia (n 89) paras 7.73, 7.77.

95 See Panel Report, United States – Measures Treating Exports Restraints as Subsidies, adopted 23 August 2001, WT/DS194/R, paras 8.17, 8.22, 8.28–8.44. While the Appellate Body in another dispute said that the interpretation of government entrustment and direction as meaning ‘delegation’ and ‘command’, respectively, was ‘too narrow’, it stressed that entrustment and direction ‘cannot be inadvertent or a mere by-product of government regulation’. See Appellate Body Report, United States – Countervailing Duty Investigation on Dynamic Random Access Memory Semiconductors (DRAMS) from Korea, adopted 20 July 2005, WT/DS296/AB/R, paras 110–11, 114.

96 See Panel Report, United States – Countervailing Duty Measures on Certain Products from China, adopted 16 January 2015, WT/DS437/R, paras 7.362, 7.392, 7.399–7.406.

97 Panel Report, United States – Anti-Dumping and Countervailing Duties on Certain Products and the Use of Facts Available, issued 21 January 2021 (under appeal), WT/DS539/R, para 7.38; Panel Report, United States – Countervailing Measures on Certain Pipe and Tube Products (Turkey), issued 18 December 2018 (under appeal), WT/DS523/R, para 7.190.

98 See, e.g. USDOC, Certain Coated Paper Suitable for High-Quality Print Graphics Using Sheet-Fed Presses from Indonesia: Final Affirmative Countervailing Duty Determination (n 64) 16; USDOC, Final Determination in the Countervailing Duty Investigation of Laminated Woven Sacks from the Socialist Republic of Vietnam (n 62) 16; European Commission, Commission Implementing Regulation (EU) 2022/433 (n 66) recitals 350, 353–357; Commission Implementing Regulation (EU) 2019/2092 (n 63) recital 151.

99 Panel Report, United States – Anti-Dumping and Countervailing Measures on Certain Coated Paper from Indonesia (n 89) paras 7.87–7.88, 7.121.

100 Ibid, paras 7.119–7.121, 7.125, 7.134.

101 Cambodia, Lao PDR, and Myanmar are not mentioned by name in Annex VII of the SCM Agreement. But they are classified as least-developed countries (LDCs), and Annex VII includes LDCs. Lao PDR is scheduled to graduate from the LDC status on 24 November 2026. See United Nations, ‘List of Least Developed Countries (as of 24 November 2021)’ <www.un.org/development/desa/dpad/wp-content/uploads/sites/45/publication/ldc_list.pdf>.

102 See, e.g. Commission Implementing Decision of 16 December 2014 (n 62) recitals 231, 269, footnotes 3 and 4; Council Regulation (EC) No 2094/2002 of 26 November 2002 imposing a definitive countervailing duty on imports of polyester textured filament yarn (PTY) originating in India and terminating the proceeding concerning imports of PTY originating in Indonesia, Official Journal of the EC, L 323/21 (28.11.2002) recital 36; Commission Decision of 19 January 2011 terminating the anti-subsidy proceeding concerning imports of purified terephthalic acid and its salts originating in Thailand, Official Journal of the EU, L 15/17 (20.1.2011) recital 19.

103 See USTR, ‘Designations of Developing and Least-Developed Countries Under the Countervailing Duty Law’, 85 Federal Register 7613, 10 February 2020.

104 See USDOC, Final Determination in the Countervailing Duty Investigation of Certain Frozen Warmwater Shrimp from Vietnam (n 62) 44; USDOC, Final Determination in the Countervailing Duty Investigation of Laminated Woven Sacks from the Socialist Republic of Vietnam (n 62) 40–42.

105 For the list of the removed countries, see Christopher A. Casey and Liana Wong, ‘Trade Remedies: Countervailing Duties’ Congressional Research Service (23 August 2021) 21.

106 See Panel Reports, United States – Definitive Safeguard Measures on Imports of Certain Steel Products, adopted 10 December 2003, WT/DS248/R / WT/DS249/R / WT/DS251/R / WT/DS252/R / WT/DS253/R / WT/DS254/R / WT/DS258/R / WT/DS259/R, paras 7.1863–7.1884.

107 Ibid, para 10.714; Appellate Body Report, United States – Definitive Safeguard Measures on Imports of Certain Steel Products, adopted 10 December 2003, WT/DS248/AB/R, WT/DS249/AB/R, WT/DS251/AB/R, WT/DS252/AB/R, WT/DS253/AB/R, WT/DS254/AB/R, WT/DS258/AB/R, WT/DS259/AB/R, paras 508, 511.

108 See, e.g. Sherzod Shadikhodjaev, ‘United States – Safeguard Measure on Imports of Crystalline Silicon Photovoltaic Products’ (2022) 116 American Journal of International Law 842, at 847.

109 Due to the strategic importance, steel products of many countries have been frequent targets of CVDs and the other trade remedies worldwide. See Sherzod Shadikhodjaev, ‘Steel Overcapacity and the Global Trading System’ (2021) 16 Asian Journal of WTO & International Health Law and Policy 179, at 193–94.

110 European Commission, Commission Implementing Regulation (EU) 2022/433 (n 66) recitals 544, 562.

111 Ibid, recitals 544–47, 560, 595–98.

112 Ibid, recital 699.

113 Ibid, recitals 647–49, 654–58, 676.

114 See, e.g. Hokuto Asano, ‘Choosing the Japanese Way: Thilawa Special Economic Zone in Myanmar’, Stanford University’s Freeman Spogli Institute for International Studies, Case Studies <https://fsi.stanford.edu/publication/choosing-japanese-way-thilawa-special-economic-zone-myanmar>.

115 Victor Crochet and Vineet Hegde, ‘China’s “Going Global” Policy: Transnational Production Subsidies under the WTO SCM Agreement’ (2020) 23 Journal of International Economic Law 841, at 855.

116 See USDOC, ‘Modification of Regulations Regarding Benefit and Specificity in Countervailing Duty Proceedings’, Final Rule, 85 US Federal Register 6031 (4 February 2020).

117 See USDOC, Preliminary Affirmative Determination: Countervailing Duty Investigation of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam (n 65) 20–25; USDOC, Final Determination in the Countervailing Duty Investigation of Passenger Vehicle and Light Truck Tires from the Socialist Republic of Vietnam (n 65) 4–29.

118 See, e.g. Chien-Huei Wu and Mao-Wei Lo, ‘Is Currency Undervaluation a Subsidy: US Law and Practice and the WTO Compatibility’ (2021) 55 Journal of World Trade 1017; Jaemin Lee, ‘A Story Half Told – Selective Benefit Assessment in the New US CVD Rule for Exchange Rates’ (2020) 23 Journal of International Economic Law 907.

119 In 2019, Singapore formally announced that despite being a developing country member of the WTO, it ‘commits to not seek special and differential treatment in ongoing and future negotiations at the WTO’. See Singapore’s Ministry of Trade and Industry, ‘Singapore Reaffirms Commitment to Work with Like-Minded Partners to Strengthen the World Trade Organization’, 18 September 2019, <www.mti.gov.sg/Newsroom/Press-Releases/2019/09/Singapore-affirms-commitment-to-work-with-like-minded-partners-to-strengthen-the-WTO>.

120 See Chaisse and Hsieh (n 8).

121 Article 41.4 of the ASEAN Charter.