Greece — Certain Income Tax Measures Constituting Subsidies

Consultations

Complaint by the United States.

On 5 May 1998, the US requested consultations with Greece in respect of prohibited subsidies provided by Greece. The US alleged that, based on unofficial English translations of relevant legislation and descriptions in secondary sources, it is its understanding that under Greek income tax law, Greek exporters are entitled to a special annual tax deduction calculated as a percentage of export income. The US contended that this measure constitutes an export subsidy and as such violates Article 3 of the SCM Agreement.