SCM Agreement Sample Clauses

SCM Agreement is to provide a definition of a subsidy for the purposes of the SCM Agreement” PR, US - Softwood Lumber III,1 [7.24] Elements of Subsidy Article 1.1 of the SCM Agreement provides that a subsidy exists when (a) there is a financial contribution or any form of income or price support; and (b) a benefit is thereby conferred. PR, China – GOES,2 [7.59] PR, Brazil – Aircraft, [5.18] Exhausted subsidy in the lists of Art. 1.1 ASCM The Appellate Body also highlighted that “Article 1 of the SCM Agreement sets out a definition of “subsidy” that applies to the whole of that Agreement. This definition includes all such subsidies, regardless of their amount. ABR, US — Carbon Steel,3 [80-81]

SCM Agreement. 5. See the Section on the SCM Agreement.

SCM Agreement. The SCM Agreement contains a number of disciplines that can relate to investment incentives. The agreement includes for the first time a comprehensive definition of the term “subsidy”, which is defined as “a financial contribution by a government or any public body within the territory of a Member”, that confers a 48 GATS, Part IV: Article XX. 49 TRIPs Agreement, Part I. 50 TRIPs Agreement, Part II. 51 TRIPs Agreement, Part III. 52 TRIPs Agreement, Part V. 53 TRIPs Agreement, Part VI.‌‌‌‌ benefit.54 Financial contribution can take several forms: direct transfers of funds (e.g., grants, loans, equity infusions), potential direct transfer or funds or liabilities (e.g., loan guarantees); foregone or uncollected government revenues (e.g., tax credits) other than agreed border tax adjustments; provision of goods and services other than general infrastructure on concessional terms; income or price support. The SCM Agreement distinguishes among three categories of subsidies: subsidies that are prohibited, subsidies that are actionable and subsidies that are non- actionable. Actionable subsidies could include, in principle, most of the FDI incentive types. However, actionable subsidies should be proved that they have “adverse effects” on international trade, either causing injury to the domestic industry of another member country; nullifying or impairing WTO benefits; or causing “serious prejudice” to the interests of another member country.55 Two subcategories of subsidies are deemed to be prohibited: non-agricultural subsidies that are contingent upon export performance; and subsidies that are contingent on the use of domestic goods in place of imported goods (local content requirement).56 The relevance of this category of subsidies to FDI is emphasized by the fact that the granting of FDI incentives has often been conditioned upon certain performance requirements being met, with export performance and local content requirements being the most prevalent among these.

SCM Agreement. 29. As the text of Article 16 of the SCM Agreement parallels the text of Article 4 of the Anti- Dumping Agreement, see also the Section on Article 16 of the SCM Agreement. Current as of: June 2020

SCM Agreement. 37. In Indonesia — Autos, claims regarding various Indonesian measures adopted pursuant to the Indonesian National Car programmes were raised under the GATT 1994, the SCM Agreement and the TRIMs Agreement. In considering an argument advanced by Indonesia that that the measures in dispute were covered only by the SCM Agreement, the Panel discussed inter alia whether a measure can be covered at the same time by the provisions of the TRIMs Agreement and those of the SCM Agreement. The Panel began by considering whether there was a conflict between the SCM Agreement and the TRIMs Agreement. The Panel first noted that the General Interpretative Note to Annex 1A did not apply to the relationship between these two agreements and that this relationship would have to be considered “in the light of the general international law presumption against conflicts”: “In considering this issue … we need to examine whether there is a general conflict between the SCM Agreement and the TRIMs Agreement. We note first that the interpretative note to Annex IA of the WTO Agreement is not applicable to the relationship between the SCM Agreement and the TRIMs Agreement. The issue of whether there might be a general conflict between the SCM Agreement and the TRIMs Agreement would therefore need to be examined in the light of the general international law presumption against conflicts and the fact that under public international law a conflict exists in the narrow situation of mutually exclusive obligations for provisions that cover the same type of subject matter.”(54)