Specificity Scm Agreement

Part I provides that the SCM agreement applies only to subsidies granted specifically to a company or industry or group of companies or industries and defines both the subsidy and the concept of specificity. In Parts II and III, all specific grants are categorized into two categories: prohibited and applicable (1), and they define specific rules and procedures for each category. Part V defines the physical and procedural requirements that must be met before a member can apply a countervailing measure against subsidized imports. Parts VI and VII define the institutional structure and the modalities for notification and monitoring of the implementation of the SCM Convention. Part VIII contains specific and differentiated treatment rules for different categories of members from developing countries. Part IX contains transitional rules for members of the developed country and the former central plan economy. Parts X and XI include dispute resolution and final rules. specificity. However, assuming that a measure constitutes a subsidy within the meaning of the SCM Agreement, it is not subject to the SCM Convention, unless it has been specifically made available to a company or group of companies or a group of companies or industries. The fundamental principle is that a subsidy that distorts the allocation of resources within an economy must be disciplined. In the event that a subsidy is widespread within an economy, it is considered that such a distortion will not occur in the allocation of funds. Therefore, only specific grants are subject to the disciplines of the SCM Convention.

There are four types of peculiarities within the meaning of the SCM Convention: (c) if, notwithstanding the appearance of non-specificity resulting from the application of the principles set out in paragraphs (a) and b), there are reasons to believe that the subsidy may indeed be specific, other factors may be taken into account. These factors include: the use of a subsidy program by a limited number of firms, the overriding use of certain firms, the granting of disproportionate amounts of subsidies to certain firms, and the manner in which the responsible authority has exerted great force in the decision to grant a subsidy (3). The application of this paragraph takes into account the extent of the diversification of economic activities under the jurisdiction of the granting authority and the duration of the grant program. 7.9 If, within six months of the date the DSB adopted the panel report or the appellate body`s report, the member has not taken appropriate steps to eliminate the adverse effects of the subsidy or withdraw the subsidy, the DSB authorizes the requesting member to take counter-measures corresponding to the degree and nature of the negative effects found , unless the DSB agrees to reject the application. b) Where the responsible authority or the legislation under which the responsible authority acts sets objective criteria or conditions (2) for the eligibility and amount of a subsidy, there is no specificity, provided that eligibility is automatic and that these criteria and conditions are strictly respected.