Actionable Subsidies. Article 5
Actionable Subsidies. The WTO rules on actionable subsidies require that no Member should cause adverse effects to the interests of other Members, and mention three categories of adverse effect as follows:
Actionable Subsidies. All specific subsidies other than those that are prohibited fall in the category of actionable subsidies. The substantive obligation in respect of such subsidies are contained in Article 5 of the ASCM, which also stipulates that the provision does not apply to agricultural products that are governed by the provisions of the Agreement on Agriculture. Members are en¡oined not to cause ‘adverse effects' to the interests of other Members by the use of these subsidies. Such adverse effects may take the form of in¡ury to the domestic industry of another Member importing the subsidised product or nullification or impairment of a tariff or other commitments made by the subsidising Member or serious pre¡udice to the interests of another Member. The concept of serious pre¡udice, which was initially embodied in Article XVI of GATT 1947, has been considerably elaborated in the ASCM. According to Article 6.3 of the ASCM, serious pre¡udice may arise in one or several of the following situations:
Actionable Subsidies. AII specific subsidies other than those that are prohibited faII in the category of actionabIe subsidies. The substantive obIigation in respect of such subsidies are contained in ArticIe l of the ASCM, which aIso stipuIates that the provision does not appIy to agricuIturaI products that are governed by the provisions of the Agreement on AgricuIture. Members are en¡oined not to cause ‘adverse effects' to the interests of other Members by the use of these subsidies. Such adverse effects may tahe the form of in¡ury to the domestic industry of another Member importing the subsidised product or nuIIification or impairment of a tariff or other commitments made by the subsidising Member or serious pre¡udice to the interests of another Member. The concept of serious pre¡udice, which was initiaIIy embodied in ArticIe XVI of GATT 1947, has been considerabIy eIaborated in the ASCM. According to ArticIe 6.3 of the ASCM, serious pre¡udice may arise in one or severaI of the foIIowing situations:
Actionable Subsidies
