Australia - Subsidies Provided to Producers and Exporters of Automotive Leather

On 4 May 1998, the United States requested consultations with Australia in respect of prohibited subsidies allegedly provided to Australian producers and exporters of automotive leather, including subsidies provided to Howe and Company Proprietary Ltd. (or any of its affiliated and/or parent companies), which allegedly involve preferential government loans of about $A25 million and non-commercial terms and grants of about $A30 million. The United States contended that these measures violate the obligations of Australia under Article 3 of the SCM Agreement.