Article 110: Consequences of Failure to Remove Subsidies Causing Injury, Nullification, Impairment or Serious Prejudice

  1.         If no mutually acceptable solution is reached within 30 days of the date of issue of the report by COTED, and COTED is satisfied:

(a)        of the existence of a subsidy within the meaning of Article 105; and

(b)        that the subsidy has caused injury to the enterprise in the aggrieve Member State; or

(c)        that the subsidy has impaired or nullified benefits expected of the aggrieved Member State with respect to its exports to the Community; or

(d)        that the effect of the subsidy was to seriously prejudice the interests of the Member State, then in such a case, COTED shall request the Member State which has granted or maintained the subsidy to take appropriate steps to remedy the effects of the subsidy within six months of the date of the issue of the report by COTED.

  1.         If, at the end of the period of six months allowed by COTED to the Member State granting or maintaining the subsidy to remedy the effects of the subsidy, the Member State fails to comply and in the absence of agreement on compensation COTED shall authorise the aggrieved Member State to impose countervailing duties at a rate equivalent to the amount of subsidisation for such time and under such conditions as COTED may prescribe.