Prohibited Subsidies. 1) (2)
(a) subsidies granted under any legal arrangement whereby a government or any public body is responsible for covering debts or liabilities of certain enterprises within the meaning of Article 2.1 of the SCM Agreement without any limitation, in law or in fact, as to the amount of those debts and liabilities or the duration of such responsibility, and
(b) subsidies (such as loans and guarantees, cash grants, capital injections, provision of assets below market prices or tax exemptions) to insolvent or ailing enterprises, without a credible restructuring plan based on realistic assumptions with a view to ensuring the return of the insolvent or ailing enterprise within a reasonable period of time to long-term viability and without the enterprise significantly contributing itself to the costs of restruc- turing. This does not prevent the Parties from providing subsidies by way of temporary liquidity support in the form of loan guar- antees or loans limited to the amount needed to merely keep an ailing enterprise in business for the time necessary to work out a restructuring or liquidation plan. This subparagraph does not apply to subsidies granted as compensation for carrying out public service obligations and to the coal industry.
Prohibited Subsidies. 1. The following subsidies shall be prohibited for the purposes of this Agreement:
(a) subsidies whereby a government guarantees debts or liabilities of certain enterprises without any limitation as to the amount of those debts and liabilities or the duration of such guarantee; and
(b) subsidies to insolvent or ailing enterprises
(i) if there is no credible restructuring plan based on realistic assumptions with the view to ensure the return to long-term viability of the insolvent or ailing enterprise within a reasonable time period; or
(ii) if the enterprise does not contribute to the costs of restructuring. Small and medium sized enterprises are not obliged to contribute to the restructuring.
2. Point (b) of paragraph 1 does not apply to subsidies provided to enterprises as temporary liquidity support in the form of loan guarantees or loans during the period which is necessary to prepare a restructuring plan. Such temporary liquidity support shall be limited to the amount needed to merely keep the enterprise in business.
3. Subsidies to ensure the orderly market exit of a company are not prohibited.
Prohibited Subsidies. 1. The following subsidies that have or could have a significant negative effect on trade between the Parties shall be prohibited:
(a) subsidies whereby a government guarantees debts or liabilities of certain enterprises without any limitation as to the amount of those debts and liabilities or the duration of such guarantee; and
(b) subsidies to an insolvent enterprise, or enterprise in respect of which insolvency is imminent in the short to medium term without the subsidy, if:
(i) there is no credible restructuring plan, based on realistic assumptions, aimed at ensuring the return to long-term viability of the enterprise within a reasonable time period; or
(ii) the enterprise, other than an SME, does not contribute to the costs of restructuring.
2. Point (b) of paragraph 1 does not apply to subsidies provided to enterprises as temporary liquidity support in the form of loan guarantees or loans during the period which is necessary to prepare a restructuring plan. Such temporary liquidity support shall be limited to the amount needed to merely keep the enterprise in business. For the purposes of this paragraph, the formulation "temporary liquidity support in the form of loan guarantees or loans" includes solvency support.
3. Subsidies granted to ensure the orderly market exit of an enterprise are not prohibited.
4. This Article does not apply to subsidies the cumulative amounts or budgets of which are less than SDR 160 000 per enterprise over a period of three consecutive years.
Prohibited Subsidies. 1. With respect to subsidies related to trade in goods, the Parties affirm their rights and obligations under Article 3 of the SCM Agreement, which is hereby incorporated into and made part of this Agreement, mutatis mutandis.
2. The following subsidies related to trade in goods and services shall be prohibited:
(a) any legal arrangement whereby a government or any public body is responsible to cover debts or liabilities of certain undertakings without any limitation, in law or in fact, as to the amount of those debts and liabilities or the duration of such responsibility; and
(b) support to insolvent or ailing undertakings in whatever form (such as loans and guarantees, cash grants, capital injections, provision of assets below market prices, tax exemptions) without a credible restructuring plan based on realistic assumptions with the view to ensuring the return of the ailing undertaking within a reasonable time to long-term viability and without the undertaking significantly contributing itself to the costs of restructuring,0 unless the subsidising Party upon request of the other Party has demonstrated that the subsidy in question does not affect trade of the other Party nor will be likely to do so.
3. Subparagraphs 2(a) and 2(b) do not prevent a Party from providing subsidies that are granted to remedy a serious disturbance in its economy. A serious disturbance in the economy of a Party means an exceptional, temporary and significant crisis which affects the whole economy of the Party rather than a specific region or economic sector of a Party.
4. Subparagraph 2(b) does not apply to subsidies granted as compensation for carrying out public service obligations and subsidies to the coal industry.
Prohibited Subsidies. 1. With respect to subsidies related to trade in goods, the Parties affirm their rights and obligations under Article 3 of the SCM Agreement, which is hereby incorporated into and made part of this Agreement, mutatis mutandis.
2. The following subsidies related to trade in goods and services shall be prohibited unless the subsidising Party upon the request of the other Party has demonstrated that the subsidy in question does not affect trade of the other Party nor will be likely to do so:
(a) any legal arrangements whereby a government or any public body is responsible for covering debts or liabilities of certain undertakings without any limitation in law or in fact as to the amount of those debts and liabilities or the duration of such responsibility; and
(b) any support to insolvent or ailing undertakings in whatever form (such as loans and guarantees, cash grants, capital injections, provision of assets below market prices, tax exemptions) without a credible restructuring plan, based on realistic assumptions, with a view to ensuring the return of the ailing undertaking to long-term viability within a reasonable time, and without the undertaking itself significantly contributing to the costs of restructuring (75).
Prohibited Subsidies. 2.1 Members shall not grant or maintain any of the following subsidies
(a) Subsidies to fishing vessels3 or fishing of fish stocks that are in an overfished condition4;
(b) Subsidies provided to any vessel or xxxxxxxx0 engaged in illegal, unreported and unregulated (IUU) fishing.6 Such vessels or operators shall be defined as those: 1 For the purpose of this Agreement, the term "inland fisheries" refers to fisheries carried out in freshwater or estuaries of a Member and whose target species are those that spend all of their life-cycle therein. 2 For the purpose of this Agreement, the term "aquaculture" refers to the farming of aquatic organisms, including fish, mollusks and crustaceans, provided that no capture fisheries are used to feed raised fish. 3 For the purpose of this Agreement, the term "fishing vessel" refers to any vessel, ship or other type of boat used for, equipped to be used for, or intended to be used for commercial fishing or fishing related activities.
Prohibited Subsidies. ArticIe 3 of the ASCM puts in the prohibited category two subsidies that cause the maximum distortion to trade, nameIy export subsidies and subsidies on the use of domestic over imported goods. As noted earIier, a presumption is created that these subsidies are specific subsidies within the meaning of the Agreement. Members are mandated not to grant or maintain these subsidies. An IIIustrative List of export subsidies is contained in an annex to the Agreement. The prohibition does not appIy to the agricuIturaI products to the extent that they are covered by the Agreement on AgricuIture.
Prohibited Subsidies. Article 3
Prohibited Subsidies. Members shall not grant or maintain any of the following subsidies Subsidies to fishing vessels3 or fishing of fish stocks that are in an overfished condition4; Subsidies provided to any vessel or xxxxxxxx0 engaged in illegal, unreported and unregulated (IUU) fishing.6 Such vessels or operators shall be defined as those: Included in an IUU list of a Regional Fisheries Management Organisation or Arrangement or a relevant international organisation in accordance with the rules and procedures of that organisation and in conformity with principles of due process Identified by the flag State, the subsidising Member, or the coastal State in accordance with national regulations, laws and practices; Subsidies to vessels or operators engaged in illegal fish transhipment at sea; Capacity enhancing subsidies supporting large scale industrial fishing activities outside of the subsidizing Member's maritime jurisdiction; Subsidies for acquisition, construction, repair, renewal, renovation, modernization of fishing vessels, or any equipment that increases the ability of a fishing vessel to fish and to find fish7; Subsidies for operating costs including licence fees or similar charges, fuel, ice, bait, personnel, social charges, insurance, and at-sea support; or operating losses of such vessels or activities.
Prohibited Subsidies. One of the main features of the FSA is that it prohibits certain harmful subsidies.
