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Agreement Subsidies Countervailing Measures

September 10th, 2021

Members shall take all necessary measures to ensure that the introduction of a countervailing duty (35) on products imported into the territory of another Member complies with Article VI of GATT 1994 and the provisions of this Agreement. Countervailing duties may be imposed only on the basis of investigations (36) carried out in accordance with the provisions of this Agreement and the Agreement on Agriculture. As soon as the companies concerned have given their consent, the investigating authorities should communicate to the authorities of the exporting Member the names and addresses of the companies to be visited and the agreed dates. (a) subsidies which, in law or in fact (4), are contingent on export performance alone or as one of several other conditions, including the subsidies listed in point 5 of Annex I; The agreement subsidized the use of subsidies and regulates the measures that countries can take to counter the effects of subsidies. The Subsidies Agreement creates two basic categories of subsidies: those that are prohibited, those that are countervailable (i.e. subject to WTO recourse or countervailing measures). All specific grants fall into one of these categories. For more information on the Ministry of Commerce`s efforts to enforce subsidies, please visit the Energy Support Office website. However, in some cases, the question of utility will be more complex. For example, when does a loan, capital injection, or government purchase of property provide an advantage? Although the SCM Convention would not contain comprehensive guidelines on these issues, the Appellate Body (Canada Aircraft) decided that it was necessary to determine the existence of an advantage over the market (i.e.

on the basis of what the consignee could have obtained in the market). With regard to countervailing duties, Article 14 of the SCM Convention contains certain indications for determining whether certain types of measures have an advantage. However, in the context of multilateral disciplines, the question of the importance of utility is not fully resolved.

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