Specificity Scm Agreement

However, assuming that a measure constitutes a subsidy within the meaning of the Subsidies Agreement, it is not subject to the Subsidies Agreement unless it has been granted specifically to an undertaking, industry or group of undertakings or undertakings. The fundamental principle is that a subsidy that distorts the allocation of resources within an economy should be disciplined. When a subsidy is widespread within an economy, it is considered that such a distortion does not appear in the allocation of funds. Therefore, only specific grants are subject to the disciplines of the grant agreement. There are four types of specificities within the meaning of the subsidy agreement: 7.9 If, within six months of the adoption of the panel report or the Appellate Body report, the Member has not taken appropriate measures to eliminate the adverse effects of the subsidy or withdraw the subsidy, and in the absence of an agreement on compensation, the DSB shall authorize the complaining member to take countermeasures commensurate with the magnitude and nature of the adverse effects found, unless the DSB mutually agrees to reject the request. Part V sets out the physical and procedural requirements that must be met before a Member can apply a countervailing measure against subsided imports. Parts VI and VII define the institutional structure and the modalities for reporting/monitoring the implementation of the SCM Convention. . .

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