Compensatory investigations - "QazTrade" Trade Policy Development Center" JSC
Compensatory investigations

Compensatory investigations

Compensatory investigations

In accordance with the EAEU Treaty, it is prohibited to provide the following subsidies:

– an export subsidy aimed at the export of industrial product from the territory of the member State providing this subsidy to the territory of another member State;

– a replacement subsidy aimed at supporting the use of goods of the member State providing the subsidy.

The provision of prohibited subsidies entails an increase in imports into the territory of another member State, which inflicts damage to the domestic industry and producers of that state.

To resolve such situations, the EAEU Treaty provides for a mechanism in the form of a compensatory investigation.

In accordance with the EAEU Treaty, compensatory investigations are carried out by the competent authority on the basis of a written request from domestic manufacturers of similar goods registered in the territory of a given member State, or on the competent authority’s own initiative.

At the level of the national legislation of the Republic of Kazakhstan, the issues of compensatory investigations are regulated by:

The Law of the Republic of Kazakhstan dated April 12, 2004 No. 544 “On regulation of trading activities”

Order of the Government of the Republic of Kazakhstan dated September 9, 2019 No. 670 “On approval of Rules for conducting investigation for the purpose of preparing the conclusion on the feasibility of application of the compensatory measures in relation to the member States of the Eurasian Economic Union.”

Order of the Minister of Trade and Integration of the Republic of Kazakhstan “On approval of the Rules for considering proposals on the application, change or cancellation of customs tariff, non-tariff, trade and compensatory measures for regulating foreign trade activities.”