Annex I Scm Agreement

6. The time limits referred to in this Article may be extended by mutual agreement. If, within six months of the adoption of the Appellate Body or Appellate Body report, the Member has not taken appropriate measures to eliminate the adverse effects of the subsidy or withdraw the subsidy, and if there is no agreement on compensation, the DSB shall authorize the complaining Member to take countermeasures; are proportionate to the degree and nature of the adverse effects found, unless the DSB mutually agrees to reject the application. It should be customary to obtain the explicit agreement of the companies concerned in the member State of export before the visit is definitively scheduled. 81 There is no disagreement between the parties in the Indonesia-Autos region that Indonesia is a developing country which, according to Article 27(9) of the SCM Agreement, is entitled to S&D treatment. Similarly, all parties to Brazil-Aircraft agreed that Brazil is a developing country within the meaning of the SCM Agreement. See Panel Report, Indonesia-Autos, paragraph 14.157; Panel Report in Brazil-Aircraft, paragraph 7.38. 5.31 Canada argues that the term “advantage” should not be interpreted simply as meaning “the advantage beyond commercial or merchantable activity”, an interpretation that Brazil considers to be a conception (paragraphs 6.60, 6.148, 6.179). According to Canada, “profit”, and thus “subsidy”, in the context of the subsidy agreement, including its annexes, requires a more nuanced and elaborate approach. 5.26 In Canada`s view, the usual rules of interpretation of international law require that the interpretation reflect the usual meaning of the words used in the context and in the light of the object and purpose of the agreement concerned (paragraphs 5.1 to 5.4).

In Canada`s view, the interpreter must also ensure, in interpreting and analyzing the relevant provisions of an international agreement, that the resolution of ambiguities does not upset “the carefully drawn balance of the rights and duties of members.” As soon as the undertakings concerned have given their consent, the investigating authorities should provide the authorities of the exporting Member with the names and addresses of the undertakings to be visited and the agreed dates. (38) Members are aware that, in the territory of certain Members, workers of domestic producers of the like product or representatives of such workers may submit or assist a request for verification in accordance with paragraph 1. When an undertaking is accepted, the subsidy and injury investigation shall be terminated if the exporting Member so wishes or if the importing Member so decides. If, in this case, a negative finding of subsidy or injury is made, the undertaking shall automatically lapse, except in cases where such a finding is largely due to the existence of an undertaking. In such cases, the competent authorities may require that an undertaking be maintained for a reasonable period of time in accordance with the provisions of this Agreement. In the event of a positive finding of subsidy and injury, the company shall remain in conformity with its conditions and with the provisions of this Agreement. . . .

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