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result in greater constraints and financial burden on enterprises provided that the subsidies -

(e)

(i)

are a one-time non-recurring measure; and

(ii)

are limited to 20 per cent of the cost of adaptation; and

(iii)

do not cover the cost of replacing and operating the assisted investment, which must be fully borne by firms; and

(iv)

are directly linked to and proportionate to a firm's planned reduction of nuisances and pollution, and do not cover any manufacturing cost savings which may be achieved; and

(v)

are available to all firms which can adopt the new equipment and/or production processes.

subsidies granted to assist enterprises to undertake training or retraining of employees, whether or not the enterprise is new, and the upgrading of existing facilities to facilitate transition to competitive status within the Community, provided that such subsidies are not specific.

2. The Member States shall notify COTED of any subsidy mentioned in paragraph 1. Any Member State may request further information regarding a notified subsidy programme and COTED shall review annually all notified subsidies referred to in paragraph 1. ARTICLE 112 Preliminary Investigation of Subsidies Causing Serious Adverse Effects 1. A domestic industry may submit to the competent authority an application for an investigation to verify that serious adverse effects have been caused by imports which benefit from subsidies referred to in Article 111. 2. Upon receipt of an application for an investigation to verify adverse effects, the authority shall examine the application, and, on the basis of the available facts, determine whether to initiate an investigation. 3. The investigation referred to in paragraph 2 shall be deemed a preliminary investigation. The authority shall give public notice of its decision to initiate a preliminary investigation and the concerned Member State, other interested Member States, and the interested persons shall all be invited to provide relevant information and make comments. 4. The results of the preliminary investigation shall be made available to the concerned Member State, other interested Member States and the interested persons to enable them to defend their interests. ARTICLE 113 Request for Consultations Relating to Subsidies Causing Serious Adverse Effects 1. Whenever a Member State has reason to believe that imports from another Member State benefited from subsidies within the meaning of Article 111 and such imports have resulted in serious adverse effects to a domestic industry so as to cause damage which would be difficult to repair, the Member State aggrieved may request consultations with the Member State granting or maintaining the subsidy.

68.


Revised Treaty of Chaguaramas