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Subsidy |
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SubsidyA 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.Similar MatchesCross subsidyCross 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. 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. Producer subsidy equivalentProducer subsidy equivalent1. 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. Further SuggestionsNon-specific subsidyProhibited subsidy Environmental subsidy |
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