What prohibited subsidies?

What prohibited subsidies?

What are prohibited subsidies?

They may be granted under certain conditions, under the Guidelines and Exemption Regulations, and in compliance with the procedures foreseen for prior notification or ex post notification to the European Commission.

De minimis aid is not State Aid in the strict sense of the word, since, given its small amount, it is presumed that it does not have the capacity to alter free competition or affect trade between States.

Guidelines on Regional State Aid, and other guidelines applicable to various areas and sectors: Environment and Energy, Research, Broadband, Airports, SGEI and State Aid, etc.

Communication on the extension – until 31/12/2021 – and modification of several State Aid Guidelines, among others those on Regional Aid, Environment and Energy, or Research, Development and Innovation. (2020/C 224/02, DOUE 8/7/2020) -(PDF, 416 KB)

Commission Regulation 360/2012 of 25 April 2012 on the application of Articles 107 and 108 of the Treaty on the Functioning of the European Union to de minimis aid granted to undertakings providing services of general economic interest, see above: SGEI – SERVICES OF GENERAL ECONOMIC INTEREST.

What are actionable grants?

What are the compensatory measures?

They are those taken by an importing country, generally in the form of an increase in duties, in order to counteract subsidies granted in the exporting country to producers or exporters.

What is dumping and subsidies?

Dumping is committed by a company. In the case of subsidies, it is the government or a government agency that acts, either by paying subsidies directly or by requiring companies to provide subsidies to certain customers. But the WTO is an organization of countries and their governments.

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Export subsidies

Today, Mexico formally requested consultations with China before the World Trade Organization (WTO) regarding the subsidies that China maintains for the benefit of its export companies and that may affect the competitiveness of Mexican companies.

In particular, Mexico has argued that the contributions granted by Chinese central or provincial authorities (i) to companies with awards such as “Famous Export Brands” or “China World Top Brand”, and (ii) to companies that comply with minimum export levels, are in violation of the WTO Agreement on Subsidies and Countervailing Measures.

The decision to initiate a WTO case is part of Mexico’s policy to combat unfair trade that may affect the country’s competitiveness and responds to the concerns expressed by various Mexican productive sectors in this regard.

In the consultations, Mexico will seek to address the concerns expressed by its domestic productive sector. Likewise, Mexico will seek to generate a dialogue that will allow it to know in detail and in the first instance the support that the Chinese government grants to its exporting companies and thus guarantee bilateral trade subject to WTO rules.

What are safeguards examples?

Safeguard measures are defined as “emergency” measures with respect to increased imports of certain products when such imports have caused or threaten to cause serious injury to the domestic industry of the importing Member (Article 2).

What are example grants?

A grant is a financial contribution received by a person or group of persons from a public body, which does not have to be repaid. By its nature, a subsidy may be repayable (which can be repaid) or non-repayable …. Also, by its nature, it may be monetary or non-monetary.

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What are environmental compensatory measures?

Compensatory measures are actions applicable in the event of an unavoidable or difficult to correct impact, which seek to offset the negative effect caused on the environment by carrying out positive actions to compensate for the damage caused.

Examples of subsidies in mexico

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What are WTO countervailing measures?

Countervailing measures are measures that can be taken to counteract the effects of subsidies granted by another country to its exporters. Like dumping, subsidies are considered unfair practices. One difference with dumping is that subsidies are a government practice.

What are the countervailing duties?

Mechanism that in the form of a customs duty on imports restores the conditions of competition distorted by the subsidy. Thus, if the product has a normal tariff of 10%, once the countervailing duty is applied, it would have a tariff of 19.31%. …

What is dumping and an example?

Simply put, international dumping refers to cases where a product is sold in another country at a lower price than it was produced. For example, let’s assume the case of shoes. … So, finally, you export shoes to Thailand and sell them for $8.

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Non-Appealable Grants

What measures can be adopted by the Trade Defense Commission to address the effects of massive import surges, dumping and subsidies?

The WTO is the legal and institutional basis of the multilateral trading system, which provides the main contractual obligations that determine how governments shape and enforce trade laws and regulations, as well as a negotiating forum where governments can go to resolve trade problems.

For the purposes of antidumping investigations and the determination of the existence of subsidies, the domestic industry shall be understood to be the domestic producers as a whole of the like products, or a proportion thereof whose collective production represents at least fifty percent (50%) of the total domestic production of such products.

In the application of safeguard measures, the domestic industry shall be understood to mean all the producers of like or directly competitive goods operating within the national territory, or a proportion thereof whose collective production of the like or directly competitive products constitutes at least 50% of the total domestic production of processed goods.

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