Cross subsidy


 

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Cross subsidy

The use of profits from one activity to cover losses from another. Thus the use of high prices for some of a firm's products, for example, to permit it to price below cost for others. In international trade, this could be one explanation for dumping.



Similar Matches

Environmental subsidy

Environmental subsidy

A subsidy intended for environmental purposes. A subsidy for adapting existing facilities to new environmental laws or regulations is non-actionable under WTO rules.


Prohibited subsidy

Prohibited subsidy

A subsidy that is prohibited under the rules of the WTO. These include subsidies that are specifically designed to distort international trade, such as export subsidies or subsidies that require use of domestic rather than imported inputs.


Producer subsidy equivalent

Producer subsidy equivalent

1. Producer support estimate. 2. This ought logically to measure the extent to which existing policies serve to subsidize producers, defined as the ad valorem subsidy that, if paid directly to producers per unit of production, would lead to the same level of output as existing policies.


Subsidy

Subsidy

A payment by government, perhaps implicit, to the private sector in return for some activity that it wants to reward, encourage, or assist. Under WTO rules, subsidies may be prohibited, actionable, or non-actionable.


Non-specific subsidy

Non-specific subsidy

A subsidy that is available to more than a single specific industry and is therefore non-actionable under WTO rules.


Further Suggestions

Non-actionable subsidy
Actionable subsidy
Export subsidy


 
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