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Cross subsidy |
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Cross subsidyThe 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 MatchesProhibited subsidyProhibited subsidyA 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. Non-specific subsidyNon-specific subsidyA subsidy that is available to more than a single specific industry and is therefore non-actionable under WTO rules. Actionable subsidyActionable subsidyA subsidy that is not prohibited by the WTO but that member countries are permitted to levy countervailing duties against. Non-actionable subsidyNon-actionable subsidyA subsidy that is permitted by the rules of the WTO, thus not subject to countervailing duties. These include non-specific subsidies, subsidies for industrial research, regional aids, and some environmental subsidies. Export subsidyExport subsidy1. A subsidy to exports; that is, a payment to exporters of a good per unit of the good exported. 2. Sometimes applied to any payments to producers that lead to an increase in exports. Further SuggestionsSubsidyEnvironmental subsidy Producer subsidy equivalent |
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