Serious Prejudice

Serious prejudice in Global Commerce Policy

In this regard, a definition of this issue is as follows: this exists under the WTO Agreement on Subsidies and Countervailing Measures when subsidies have certain effects on the interests of other members. Broadly, this arises in cases (a) when the total subsidy on a product exceeds 5%, (b) when subsidies are awarded to cover the operating losses of an industry, (c) of subsidies covering operating losses to allow the development of long-term solutions and to avoid acute social problems, and (d) direct forgiveness of debt owed to government. The member country must take appropriate action in these cases. The Agreement also describes a range of situations in which serious prejudice may, rather than will, arise. Different rules apply to agricultural subsidies under the WTO Agreement on Agriculture. See also actionable subsidies, prohibited subsidies and subsidies.[1]

Serious prejudicein the wold Encyclopedia

For an introductory overview on international trade policy, see this entry.

Resources

Notes and References

1. Dictionary of Trade Policy, “Serious prejudice” entry (OAS)

See Also