NON-ACTIONABLE SUBSIDIES Sample Clauses

NON-ACTIONABLE SUBSIDIES. ARTICLE 8
Sample 1
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NON-ACTIONABLE SUBSIDIES. All subsidies that are not specific are not actionable. In addition, initially Article 8 of the ASCM had provided that certain categories of specific subsidies would also be non- actionable. Non-actionability implied that they could not be proceeded against either under Part III of the ASCM (remedies under Article 7) or under Part V (imposition of countervailing duties). However, as in the case of Article 6.1, this provision had a limited life of five years and its validity has not been extended beyond 31 December 1999. Non- specific subsidies remain non-actionable by virtue of Article 2 of the ASCM. Although Article 8, which provided for certain specific subsidies to be non- actionable, has lapsed, it is useful to recall the essential features of the provision. Three categories of specific subsidies were covered, viz., assistance for research activities by or on behalf of the firms, assistance to disadvantaged regions, and assistance to promote environmental adaptation. Strict conditions applied in order for these specific subsidies to be treated as non-actionable. Assistance for industrial research could not exceed 75 per cent of the costs of industrial research or 50 per cent of the costs of pro-competitive development activity. In addition, the assistance had to be limited to certain categories of expenses. Assistance to disadvantaged regions had to be within a general framework of regional development and non-specific within the region. Each disadvantaged region had to be a clearly designated contiguous geographical area with a definable economic and administrative identity. The region was regarded as disadvantaged on the basis of neutral and objective criteria, which included a measurement of economic development. Assistance for environmental purposes had to have the objective of promoting adaptation of existing facilities to new environmental requirements by law and/or regulations. Among the limitations imposed were the requirements that the assistance was a one-time non-recurring measure and that it was limited to 20 per cent of the cost of adaptation. For invoking Article 8 in respect of specific subsidy practices, Members had the obligation to notify the measure to the WTO in advance of its implementation. However, it was provided (in footnote 35) that even where such a notification was not made, such subsidy must be treated as non-actionable if it was found to be fulfilling the conditions of non-actionability laid down in the relevant provisions...
Sample 1
NON-ACTIONABLE SUBSIDIES 
Sample 1

Related to NON-ACTIONABLE SUBSIDIES

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