Part 2: Subsidy control requirements Chapter 2: Prohibitions and other requirements Section 17: Use of domestic goods or services
This section prohibits subsidies that are contingent on preferences for domestically produced goods or services, often known as ‘local-content’ subsidies.
	Local content subsidies for goods are a key prohibition of the WTO ASCM; as noted in the explanation for section 15, the ASCM is a core part of the UK’s obligations as a WTO member. Local content subsidies for many services sectors are prohibited under many FTAs, including the TCA with the EU.
	Subsection (2) provides that the prohibition does not apply to subsidies related to the audiovisual sector.
	Subsection (3) provides that this section is without prejudice to Article 132 and Article 133 of the TCA. These articles allow for the provision of local-content subsidies in the certain circumstances, e.g., to incentivise the location of production or service supply, or the hiring of workers in a territory without being non-compliant with the prohibition on local-content subsidies.