Article XXIV:6 of the agreement authorizes the contracting parties to amend the mutually agreed scope of Schedules I to IV, subject to the rectification and amendment procedures provided for by this provision. Since its signing in April 1994, the scope of the agreements has been broadened by the inclusion of the results of a series of bilateral agreements between the parties. A batch sheet system reflecting the current status of the contracting parties` schedules (Annex I) will be updated on the WTO website. The agreement contains a definition of the subsidy. In addition, the concept of a specific subsidy is introduced, i.e. a subsidy that is only available to a company, industry, group of companies or a group of industries in the country (or state, etc.) that grants the subsidy. The disciplines defined in the agreement apply only to specific grants. These may be domestic or export subsidies. The response to dumping and subsidies is often a specific compensatory tax (compensatory tax in the event of a subsidy). This rule is applied to products from certain countries and is therefore contrary to the GATT principles of tariffs and equal treatment between trading partners.
The agreements contain a opt-out clause, but both state that the importing country must conduct a thorough investigation before collecting a tariff, properly demonstrating that domestic industry is being harmed. The ability of countries to trade in the world will also be compromised if they do not join the World Trade Organization (WTO), an international institution that controls global trade rules between nations. The WTO encourages and manages free trade for its members. As a result, members often act only among themselves. But there are also fundamental differences that are reflected in the agreements. Achievable subsidies: in this category, the complaining country must demonstrate that the subsidy is detrimental to its interests. Otherwise, the subsidy is allowed. The agreement defines three types of damage they can cause. A country`s subsidies can harm a domestic industry in an importing country. They can harm rival exporters in another country if the two compete in third-party markets. And domestic subsidies in one country can harm exporters trying to compete in the domestic market of subsidized countries. If the dispute resolution authority decides that the subsidy has negative effects, the subsidy must be withdrawn or its negative effects eliminated.
In the event of harm to domestic producers caused by imports of subsidized products, countervailing duties may be applied. But the WTO is an organization of countries and their governments. The WTO does not deal with business and cannot regulate businesses through measures such as dumping. Therefore, the anti-dumping agreement only concerns the measures that governments can take to combat dumping. With subsidies, governments act on both sides: they subsidize and act against each other. As a result, the grant agreement disciplines both grants and reactions. The rules adopted under the Export and Import Permit Act provide Canada with an additional trade control mechanism. In particular, the export or transfer of goods or technology to countries on the surface control list is controlled and must be authorized by an export authorization issued by the Minister of Foreign Affairs under the control of the Export and Import Authorizations Act.