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Other subsidies on products (D.319)


Other subsidies on products include:

(1) subsidies on products used domestically: these consist of subsidies payable to resident producers for their production used or consumed within the economic territory;

(2) losses of government trading organisations specialized in buying products of resident producers and in selling them at lower prices to residents or non-residents, when they are incurred as a matter of deliberate government economic or social policy;

(3) subsidies to public corporations and quasi-public corporations to compensate for persistent losses which they incur on their productive activities as a result of charging prices which are lower than their average costs of production as a matter of deliberate government or european economic and social policy;

(4) direct subsidies on exports payable directly to resident producers when the goods leave the economic territory or the services are provided to non-residents – except repayments at the customs frontier of taxes on products previously paid and waiving of the taxes that would be due if the goods were to be sold or used inside the economic territory.