Members of industrialized countries which are otherwise not entitled to special and differential treatment shall have a period of three years from the date of entry into force of the Subsidies Agreement. Such subsidies must be notified to the notifying Member within 90 days of the entry into force of the WTO Agreement. The scope of these prohibitions is relatively narrow. Industrialized countries had already accepted the ban on export subsidies under the Tokyo Round subsidy agreement, and subsidies for local content, prohibited by the subsidy agreement, were already inconsistent with Article III of the GATT 1947. The essence of the new agreement in this area is the extension of obligations to developing countries subject to certain transitional rules (see section below on special and differential treatment) and the creation of a mechanism for the early resolution (of three months) of complaints concerning subsidies prohibited by Article 4 of the Subsidies Agreement. The establishment of a multilateral redress system allowing members to challenge subsidies that have adverse effects is a major step forward from the pre-WTO regime. However, the difficulty will persist in most cases for a complaining member to demonstrate the commercial effects of the subsidy, a factual analysis that panels may, in some cases, find difficult (2). The Agreement on Subsidies and Countervailing Measures (« ÄTMS » or « Agreement ») sets out and extends the subsidies and countervailing elements of Articles VI and XVI of the General Agreement on Tariffs and Trade 1994 (« GATT 1994 »). It provides for disciplines both on the use of trade-distorting subsidies and on the application by some WTO members of countervailing duties to offset the effects of subsidies. This chapter provides a detailed overview of the rights and obligations defined by the NSCM and its interaction with other parts of the WTO Agreement. It will briefly discuss the history of subsidies and countervailing measures since the introduction of GATT in 1947, and then discuss in detail each provision of the ETMS. .