7.9 In the event that the member has not taken appropriate action within six months of the adoption of the panel report or the appellate body`s report to eliminate the negative effects of the subsidy or to withdraw the subsidy, the DSB authorizes the requesting member to take counter-measures corresponding to the degree and nature of the negative effects observed, unless the DSB decides to reject the application. 5.67 Canada argues that, because of their activity, these firms tend to obtain their inputs domesticly and are therefore “oriented” towards the use of domestic products relative to imported goods. For Canada, under Brazil`s “quota on” interpretation, subsidies would be prohibited to such companies. (a) harm to the domestic industry of another Member State (11); (b) subsidies which, alone or in the form of one of several other conditions, depend on the use of imported goods in the domestic market. (c) the subsidy has a significant impact on the undercutting of the subsidized product relative to the price of a similar product from another member in the same market, or on a significant drop in prices, lower prices or lower turnover in the same market; 124 See: U.S. Press Release, June 15, 1988, MTN. GNG/NG10/W/20 to 5 (Exh. CDN-15); Elements of the Framework for Negotiations – Submission by the United States, November 22, 1989, MTN. GNG/NG10/W/29 (Exh. CDN-16); Elements of the Negotiating Framework – Submission by the United States, 27 September 1990, MTN. GNG/NG10/W/39 to 3 (Exh. CDN-17). C.
“Contingent, in law or indeed, … export performance” . (c) subsidies to cover a company`s operating losses, with the exception of one-off measures that are not recurrent and cannot be repeated for that company and are granted only to create time for the development of long-term solutions and to avoid acute social problems; 5.68 A third element of context referred to by Canada is the list of export subsidies in Schedule I of the SCM Convention. Canada states that all of the examples cited describe situations in which the subsidy is subject to the export of a product or related to it. At the same time, Canada argues that the point (a) “direct subsidies… indirect subsidies are excluded from the scope of Article 3. 5.75 Similarly, according to Canada, the evolution of the footnote of section 3.1 (a) shows that negotiators refused to conduct an object or intent review for a conditional test. According to Canada, the footnote was presented as a review of intent in the earliest draft: 4.10 In the event that the DSB recommendation is not followed within the time frame set by the panel beginning on the date of adoption of the panel`s report or the appeals agency report, the DSB authorizes the requesting member to take appropriate counter-measures (9), unless the DSB decides to reject the application by mutual agreement.