ARTICLE 11 Subsidies 1. Nothing in this Protocol shall be construed to prevent State Parties from using subsidies in relation to their development programmes. 2. The CMT shall decide on mechanisms for information exchange and review of all subsidies related to trade in services that State Parties provide to their domestic service suppliers and shall negotiate disciplines to avoid any trade-distortive effects of subsidies. ARTICLE 12 Monopolies and Exclusive Service Suppliers 1. Each State Party shall ensure that any monopoly supplier of a service in its territory does not, in the supply of the monopoly service in the relevant market, act in a manner inconsistent with that State Party's MFN Qbligations and liberalisation commitments. 2. State Parties recognize the importance of cooperative mechanisms for enhancing State Parties institutional and regulatory capacities on competition related issues and State Parties shall enhance such cooperation, inter alia in accordance with mechanisms and initiatives carried out under other SADC Protocols. 3. Where a State Party's monopoly supplier competes, either directly or through an affiliated company, in the supply of a service outside the scope of its monopoly rights and which is subject to that State Party's liberalisation commitments, the State Party shall ensure that such a supplier does not abuse its monopoly position to act in its territory in a manner inconsistent with such commitments. 4. The CMT, at the request of a State Party which has a reason to believe that a monopoly supplier of a service of any other State Party is acting in a manner inconsistent with paragraph 1 or 2, shall request the State Party establishing, maintaining or authorizing such supplier to provide specific information concerning the relevant operations. If required, dispute settlement mechanisms provided for in Annex 1 shall apply. 5. The provisions of this Article shall also apply to cases of exclusive service suppliers, where a State Party, formally or in effect, (a) authorizes or establishes a small number of service suppliers and (b) substantially prevents competition among those suppliers in its territory. 11

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