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What is a subsidy contract?
Definition of Subsidy contract. Share. View. Subsidy contract means a contract by the State, approved by the issuing officers, providing a subsidy to a health facilities corporation.
What is a subsidy agreement?
-the purchase of goods, or the provision of goods or services (other than general infrastructure). Under the Agreement, actions can only be taken against subsidies that are “specific.” A specific subsidy is one that is only given to one company, or to a special group of companies.
What is an actionable subsidy?
actionable subsidy. Bounty, grant, or subvention enjoyed by the exporters of a country that may be challenged by an importing country if it injures its domestic industry.
What is an illegal subsidy?
Prohibited subsidies: subsidies that require recipients to meet certain export targets, or to use domestic goods instead of imported goods. They are prohibited because they are specifically designed to distort international trade, and are therefore likely to hurt other countries' trade.
What is anti subsidy duty?
Countervailing duties (CDs), also known as anti-subsidy duties, are trade import duties imposed under World Trade Organization (WTO) rules to neutralize the negative effects of subsidies.
Are export subsidies illegal?
An export subsidy reduces the price paid by foreign importers, which means domestic consumers pay more than foreign consumers. The World Trade Organization (WTO) prohibits most subsidies directly linked to the volume of exports, except for LDCs.
How does a subsidy work?
A subsidy is an amount of money given directly to firms by the government to encourage production and consumption. A unit subsidy is a specific sum per unit produced which is given to the producer. The effect of a specific per unit subsidy is to shift the supply curve vertically downwards by the amount of the subsidy.
What does a subsidy do?
A subsidy is a direct or indirect payment to individuals or firms, usually in the form of a cash payment from the government or a targeted tax cut. In economic theory, subsidies can be used to offset market failures and externalities in order to achieve greater economic efficiency.
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