Common use of Subsidy to disadvantaged regions Clause in Contracts

Subsidy to disadvantaged regions. (i) In general (I) Each region identified as disadvan- taged within the territory of a country is a clearly designated, contiguous geo- graphical area with a definable economic and administrative identity. (II) Each region is considered a dis- advantaged region on the basis of neu- tral and objective criteria indicating that the region is disadvantaged because of more than temporary circumstances, and such criteria are clearly stated in the relevant statute, regulation, or other official document so as to be capable of verification. (III) The criteria described in sub- clause (II) include a measurement of eco- nomic development. (IV) Programs provided within a gen- eral framework of regional development include ceilings on the amount of assist- ance that can be granted to a subsidized project. Such ceilings are differentiated according to the different levels of devel- opment of assisted regions, and are ex- pressed in terms of investment costs or costs of job creation. Within such ceil- ings, the distribution of assistance is suf- ficiently broad and even to avoid the predominant use of a subsidy by, or the provision of disproportionately large amounts of a subsidy to, an enterprise or industry as described in paragraph (5A)(D).