Abstract
The Appellate Body Report in US - AD/VCD set a new standard for defining a 'public body' whose financial contribution may constitute a subsidy under Article 1.1 of the SCM Agreement. It reversed the Panel's interpretation that a public body is 'any entity controlled by the government' and found instead that a 'public body' is an 'entity that possesses, exercises or is vested with governmental authority'. While the new standard introduces some uncertainty into the revelant test, it is not clear that it has substantively narrowed the conduct subject to the disciplines of the SCM Agreement over all. Investigating authorities may need to expand the scope of their inquiries. The entrustment and direction of private bodies under Article 1.1(a)(1)(iv) also remains an avenue through which the financial contributions of governments can be assessed.
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