Dispute Settlement DS130

21/05/2013 12:00 - 889 total view

Ireland — Certain Income Tax Measures Constituting Subsidies (Complainant: United States)

Short title:
Complainant: United States
Respondent: Ireland
Third Parties:
Agreements cited:
(as cited in request for consultations)
Subsidies and Countervailing Measures: Art. 3
Request for Consultations received: 5 May 1998



Complaint by the United States.

On 5 May 1998, the US requested consultations with Ireland in respect of prohibited subsidies provided by Ireland. The US alleged that, based on unofficial copies of the relevant legislation and descriptions in secondary sources, it is its understanding that under Irish income tax law, “special trading houses” qualify for a special tax rate in respect of trading income from the export sale of goods manufactured in Ireland. The US contended that this measure constitutes an export subsidy and as such violates Article 3 of the SCM Agreement.