Article 1
- Document type
- Other
- Dated
Definition of a subsidy
- 1.1
- For the purpose of this Agreement, a subsidy shall be deemed to exist if :
- (1) there is a financial contribution by a government or any public body within the territory of a Member (referred to in this Agreement as government) i.e. where:
- a government practice involves a direct transfer of funds (e.g. grants, loans, and equity infusion), potential direct transfers of funds or liabilities (e.g. loan guarantees);
- government revenue that is otherwise due is foregone or not collected (e.g. fiscal incentives such as tax credits);
- a government provides goods or services other than general infrastructure or purchases goods;
- a government makes payments to a funding mechanism, or entrusts or directs a private body to carry out one or more of the type of functions illustrated in (i) to (ii) above which would normally be vested in the government and the practice, in no real sense differs from practices normally followed by governments;
- a government practice involves a direct transfer of funds (e.g. grants, loans, and equity infusion), potential direct transfers of funds or liabilities (e.g. loan guarantees);
or
- (2) there is any form of income or price support in the sense of Article XVI of GATT 1994; and
- a benefit is thereby conferred.
- (1) there is a financial contribution by a government or any public body within the territory of a Member (referred to in this Agreement as government) i.e. where:
- 1.2
- A subsidy as defined in paragraph 1 shall be subject to the provisions of Part ii or shall be subject to the provisions of Part III or V only if such a subsidy is specific in accordance with the provisions of Article 2.