Part 2: Subsidy control requirements Chapter 2: Prohibitions and other requirements Section 16: Export performance
This section establishes rules around subsidies for goods and services designed to be contingent, whether in law or in fact, on export performance. These may include, for instance, subsidies to cover the price difference between domestic market prices and international market prices. Subsidies of this kind are prohibited unless specific conditions or terms are met, in line with the UK’s international obligations under the WTO’s ASCM and the TCA.
	The section establishes that short-term export credit support, where this support is not in the form of support for marketable risk for buyers in marketable risk countries, or in export support that is permissible under the terms of the ASCM, is not prohibited. Marketable risk countries (such as, for instance, the United States, or Member States of the EU) have higher levels of private insurance market capacity such that Government short-term export credit support is not appropriate.
	Subsection (3) provides relevant definitions of terms used in this section.
	Subsections (4) to (6) establishes that the Secretary of State can make regulations, subject to the negative resolution procedure, to the effect that a marketable risk country is no longer to be treated as such, provided the Secretary of State considers that specific conditions regarding the capacity of the private market in the relevant country are met. Any regulations must be revoked via instrument, subject to the negative resolution procedure.