SUBSIDY

subsidy (s[schwa]b-s[schwa]-dee), n.

1. A grant, usu. made by the government, to any enterprise whose promotion is considered to be in the public interest. • Although governments sometimes make direct payments (such as cash grants), subsidies are usu. indirect. They may take the form of research-and-development support, tax breaks, provision of raw materials at below-market prices, or low-interest loans or low-interest export credits guaranteed by a government agency.

— Also termed grant. [Cases: United States 82(1). C.J.S. United States §§ 155, 158.]

2. A specific financial contribution by a foreign government or public entity conferring a benefit on exporters to the United States. • Such a subsidy is countervailable under 19 USCA §§ 1671, 1677. [Cases: Customs Duties 21.5(2).]

countervailable subsidy (kown-t[schwa]r-vayl-[schwa]-b[schwa]l). A foreign government’s subsidy on the manufacture of goods exported to another country, giving rise to the importing country’s entitlement to impose a countervailing duty on the goods if their import caused or threatens to cause material injury to domestic industry. See countervailing duty under DUTY(4). [Cases: Customs Duties 21.5(2).]

3. Int’l law. Financial assistance given by one nation to another to preserve the receiving nation’s neutrality or to support it in a war, even if the donor nation does not directly participate. — subsidize, vb.