Common use of Export Subsidies Clause in Contracts

Export Subsidies. 1. The Parties share the objective of achieving the multilateral elimination of export subsidies on agricultural goods and will cooperate in the effort to reach agreements within the framework of the GATT. 2. The Parties shall gradually eliminate export subsidies for agricultural sector goods incorporated into the Duty-Free Program in the following manner: a) upon the incorporation of an agricultural good into the Tax Relief Program, the Parties may maintain the export subsidy prevailing in the year prior to its incorporation for up to three years; b) as from the fourth year after the agricultural sector good has been incorporated into the relief program, the corresponding export subsidies will be eliminated in equal stages until reaching zero at the end of the relief of that good. 3. Once the relief has been completed, neither Party may maintain or introduce export subsidies on agricultural goods in its reciprocal trade. Likewise, the Parties waive their rights under the GATT to use export subsidies on agricultural goods in their reciprocal trade, as well as any rights with respect to the use of such subsidies that may result from multilateral negotiations on agricultural matters within the framework of the GATT. 4. Notwithstanding the provisions of paragraphs 2 and 3, a Party may, if so requested by another Party and there is agreement between them, adopt or maintain an export subsidy on an agricultural good exported to that other Party.