Nonactionable Subsidy

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Nonactionable Subsidy

A subsidy on which the World Trade Organization does not permit a member state to impose countervailing duties. Most of the time, a country may impose a countervailing duty (which is a type of tariff) on an import if the exporting country has subsidized it so as to make it significantly less expensive than domestically produced products. Nonactionable subsidies, however, are not subject to these tariffs. For example, environmental and scientific subsidies are nonactionable.
References in periodicals archive ?
Non-actionable subsidies are those which are applied to research and pre-competitive development activities, and others which assist disadvantaged regions.
The third category involves non-actionable subsidies, which could either be non-specific subsidies, or specific subsidies involving assistance to industrial research and pre-competitive development activity, assistance to disadvantaged regions, or certain types of assistance for adapting existing facilities to new environmental requirements imposed by law and/or regulations.
In the text submitted to the Brussels meeting by the chairperson of the subsidies group, non-actionable subsidies cover assistance for research and development, structural adjustment assistance, assistance for adapting existing facilities to new environmental requirements, and assistance to disadvantaged regions.
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