Scm Agreement Article 1

7.9 If, within six months of the date the DSB adopts the panel`s report or the appellate body`s report, the member has not taken appropriate steps to eliminate the adverse effects of the subsidy or withdraw the subsidy, the DSB authorizes the requesting member to take counter-measures corresponding to the degree and nature of the negative effects found, unless the DSB agrees to reject the request. 5.26 According to Canada, the usual rules of interpretation of international law require that interpretation reflect the usual meaning of the words used in the context and with respect to the purpose and purpose of the agreement in question (points 5.1 to 5.4). With respect to the interpretation and analysis of the relevant provisions of an international agreement, Canada believes that the interpreter must ensure that the solution of any ambiguity does not disturb the “carefully derived balance of members` rights and obligations” 5.34 Canada argues that this element of context must be considered in light of the consideration that the SCM convention must be interpreted in a manner that it works logically and harmoniously. According to Canada, a test – as Brazil appears to have done – without thinking about how it would work under the SCM agreement as a whole would have the potential to render the SCM agreement absurd, i.e. if “benefit” relies exclusively on a “benefit to the beneficiary” based on the market, a “subsidy” under Article 1 could be found worthless. For this reason, in Canada`s view, the “benefit” must be interpreted to ensure that a section 1 subsidy is also included – even if the values are different – in the SCM convention. 114 United States – Import restrictions on cotton and cotton underwear (United States – cotton underwear) WT/DS24/AB/R, appellate body report, February 25, 1997, at 3 p.m. (e) a voluntary reduction in the availability of the product concerned from the complaining member for export (including a situation in which the complainant`s companies independently redistribute exports of that product to new markets); 5.36 Canada argues, therefore, that Brazil implicitly asserts that there would be more distortions in the international economy if a government demanded reimbursement of research and development contributions than if those contributions were made without waiting for reimbursement or reimbursement. To the extent that the objective of the SCM Convention is to limit the use of trade-distorting subsidies, Brazil`s approach is not consistent with this objective and objective. (iii) does not cover the costs of exchanging and operating subsidized investments that must be fully borne by businesses; and 8.5 At the request of a member, the finding of the committee referred to in paragraph 4 or the inability of the committee to make such a finding, as well as the violation of the conditions set out in a notified program, are subject, on a case-by-case basis, to a binding arbitration procedure. The arbitration body submits its findings to the members within one hundred and twenty days from the date the matter was referred to the arbitration proceeding. Unless otherwise provided, the DSU applies to arbitration proceedings conducted in accordance with this paragraph.