Detailed rules are established to determine whether the subsidy violates a domestic industry in the complaining country. Harm is defined as physical harm itself, the risk of physical harm, or a significant delay in the creation of a national industry. The injury assessment must include an analysis of the volume of subsidized imports, the impact of these imports on the prices of the products on the domestic market of the complainant country, and the impact of these imports on domestic producers of those products. A causal link must be established between subsidized imports and potential damage. 7.1 Barring a provision under Article 13 of the Convention on Agriculture, where a Member has reason to believe that any subsidy granted or maintained in Article 1 results in harm to the national sector, a cancellation or serious injury or serious infringement, may ask that member to consult with that other member. But there are also fundamental differences that are reflected in the agreements. 4.5 When it is set up, the body may ask the standing group of experts (7) (called PGE in this agreement) to seek assistance in determining whether the measure in question constitutes a prohibited subsidy. Upon request, the EMP promptly verifies the evidence of the existence and nature of the measure at issue and gives the member who applies or maintains the measure the opportunity to prove that the measure in question is not a prohibited subsidy. The EMP reports its findings to the proceeding within a time frame set by the panel. The PGE`s findings on whether the measure in question constitutes a prohibited subsidy are still accepted by the panel. A subsidy is of particular importance under the subsidies agreement and U.S. law (Title VII of the Customs Act of 1930). A grant is defined as a “financial contribution” from a government that provides an advantage.
Among the forms that a subsidy can take is: the reaction to dumping and subsidies is often a specific compensatory tax (compensatory tax in the event of a subsidy). This rule is applied to products from certain countries and is therefore contrary to the GATT principles of tariffs and equal treatment between trading partners. The agreements contain a opt-out clause, but both state that the importing country must conduct a thorough investigation before collecting a tariff, properly demonstrating that domestic industry is being harmed. (a) Where the granting authority or the legislation under which the responsible authority acts expressly limits access to a subsidy to specific companies, this subsidy is specific. No member should have a negative impact on the interests of other members by using a subsidy under Article 1, paragraphs 1 and 2, i.e. after graduation, countries are no longer allowed to grant export subsidies for non-agricultural products. Starting in mid-2020, a proposal from the LDC group will be considered, which would allow progressive LDCs to continue to provide non-agricultural export subsidies, while their GNI per capita is less than $1,000. According to the latest information available in mid-2020, Bangladesh, PDR, Nepal and the Solomon Islands remained below this threshold.