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Benefit Pass-Through - Communication from Canada
World Trade Organization TN/RL/GEN/7 14 July 2004 (04-3030) Negotiating Group on Rules Original: English benefit pass-through Communication from Canada The following communication, dated 21 May 2004, is being circulated at the request of the Delegation of Canada. The submitting delegation has requested that this paper, which was submitted to the Rules Negotiating Group as an informal document (JOB(04)/55), also be circulated as a formal document. _______________ Issue 1. It is well-established in GATT/WTO jurisprudence that, where the recipient of a financial contribution and the alleged recipient of the resulting benefit are different entities, the investigating authority cannot presume a benefit pass-through, but rather, must examine whether, and to what extent, the benefit of the financial contribution has actually been passed through to the other entity. The current SCM Agreement does not, however, afford any direct guidance on the con