PUBLIC VERSION
Economic Zone programs. 163 Countervailable programs implemented by Turkey included government support for industry participation in international trade fairs; tax benefits for domestic producers incentivizing regional diversification of investments; and tax incentives supporting domestic producers’ research and development. 164 U. S. negotiators could not have foreseen that the governments of China, India and Turkey would implement programs directly contradicting their WTO obligations. 165 As was established during the initial CVD investigations, these subsidy programs played a key role in establishing an environment that has fostered the rapid growth of a global industry able to under-sell the U. S. industry.
Third, foreign producers have developed uniquely creative and elaborate schemes to evade these legitimately imposed AD / CVD orders. Since the imposition of the AD / CVD orders on QSP from China, fully 45 EAPA investigations have been initiated, constituting more than 10 % of all EAPA investigations for all products that have made it to advanced stages of investigation. 166 The prevalence of EAPA investigations provides clear evidence of how the AD / CVD orders that have been implemented have had“ limited effectiveness and instead lead to rapid changes in the global supply chains and manufacturing processes” that have facilitated
163 Certain Quartz Surface Products From India: Final Affirmative Countervailing Duty Determination
and Final Affirmative Determination of Critical Circumstances, In Part, 85 Fed. Reg. 25,398( Dep’ t Commerce May 1, 2020) and accompanying Issues and Decision Memorandum.
164 Certain Quartz Surface Products From Turkey: Final Affirmative Countervailing Duty Determination
and Final Affirmative Determination of Critical Circumstances, In Part, 85 Fed. Reg. 25,400( Dep’ t Commerce May 1, 2020) and accompanying Issues and Decision Memorandum.
165 See, e. g., USITC, Supplemental Report of the U. S. International Trade Commission Regarding
Unforeseen Developments at 5( stating that“ a series of industrial policies, five-year plans, and other government support programs” implemented by the Chinese government was“ unforeseen by the U. S. negotiators at the time that the United States acceded to GATT 1947, at the time that the United States acceded to the WTO, or at the time that the United States agreed to China’ s accession to the WTO.”).
166 EAPA Statistics, attached as Exhibit 34.
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