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Specificity Scm Agreement

7.9 In the event that the member has not taken appropriate measures to eliminate the negative effects of the grant or to withdraw the subsidy within six months of the adoption of the panel`s report or the appellate body`s report, the DSB gives the complaining member permission to take action. , depending on the degree and nature of the adverse effects, unless the DSB agrees to reject the application. (c) if, despite the emergence of non-specificity resulting from the application of the principles set out in paragraphs (a) and b), there is reason 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. 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: b) Where the responsible authority or the legislation under which the responsible authority acts sets out objective criteria or conditions (2) for eligibility and the amount of the subsidy, there is no specificity, provided that eligibility is automatic and that these criteria and conditions are strictly respected. The criteria or conditions must be clearly defined in law, regulations or other official documents in order to be verified.