Is there a benefit within the meaning of Article 1.1(b)? Howse and Eliason have argued in the case of emissions-reduction schemes, that measures simply reimburse or compensate the enterprise for taking some action that it ‘that would otherwise not that has not acquired any competitive advantage take’ mean ‘the enterprise over other enterprises, which neither take the subsidy nor have to perform these There actions.’ are two aspects to this argument: There is no benefit because the recipient company is being reimbursed for a government cost that exists only within the jurisdiction of the national government; and There is no benefit because the company gains no competitive advantage over those enterprises outside the national jurisdiction of the government who do not incur the additional cost. As a general proposition this would appear to follow. However, as we will see the proposition does not follow the logic of the enquiry required to establish the existence of benefit under Article 1.1(b) of the SCM Agreement. under Article 1.1(b) of the SCM Agreement is determined by reference to the ‘Benefit’ terms on which a within the meaning of Article 1.1(a)(1) is deemed to ‘financial contribution’ have can be no benefit to the recipient unless the taken place. ‘There ‘financial contribution’
Is there a benefit within the meaning of Article 1.1(b)? Howse and Eliason have argued in the case of emissions-reduction schemes, that measures ‘that simply reimburse or compensate the enterprise for taking some action that it would otherwise not take’ mean that ‘the enterprise has not acquired any competitive advantage over other enterprises, which neither take the subsidy nor have to perform these actions.’ There are two aspects to this argument: There is no benefit because the recipient company is being reimbursed for a government cost that exists only within the jurisdiction of the national government; and There is no benefit because the company gains no competitive advantage over those enterprises outside the national jurisdiction of the government who do not incur the additional cost. As a general proposition this would appear to follow. However, as we will see the proposition does not follow the logic of the enquiry required to establish the existence of benefit under Article 1.1(b) of the SCM Agreement. ‘Benefit’ under Article 1.1(b) of the SCM Agreement is determined by reference to the terms on which a ‘financial contribution’ within the meaning of Article 1.1(a)(1) is deemed to have taken place. ‘There can be no benefit to the recipient unless the ‘financial contribution’
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