What is a Subsidy?

According to Article (57) of the Regulation of Law No. 161/1998 subsidy is "any financial contribution provided directly or indirectly, by the government of the country of origin or any public body within its territory and a benefit is thereby conferred to the recipient of subsidy either producer(s) or exporter(s)."

Subsidy includes any financial or other commercial benefit that has occurred or will accrue, directly or indirectly, to persons engaged in the production, manufacture, or trade of goods as a result of any scheme, program, practice, thing done, provided, or implemented by a foreign government; but does not include the amount of any duty or internal tax imposed on goods by the government of the country of origin or country of export from which the goods have been exempted or will be relieved by means of refund or drawback.

Measures can be taken against subsidy only if it confers a benefit on the recipient, is directed or specific to certain enterprises or industries and causes material injury or threat thereof to the domestic industry or materially retards the establishment of a new industry.