Under the Sale of Goods Act 1979, this type of agreement on the sale of “future” products can be sold either by description or sampling. The sale of new vessels, which is a large manufacturing project, is clearly carried out by the description. The prerequisite is compliance with the description agreed upon when the contract is executed. 9. The third and fourth exceptions were support for research and development and job loss for shipbuilding workers. Research and development and new technologies are playing an increasingly important role in the shipbuilding industry, both in the development of high-performance vessels and in shipbuilding itself. Public assistance for research and development activities D would therefore be generously authorized, but the activity added to the market with a decreasing intensity. In addition, the activities of R D small and medium-sized construction sites and research and development in terms of safety and the environment could benefit from higher rates than “normals”. The social dimension of the agreement was reflected in provisions to help workers who lose their jobs or retirement. Finally, the restructuring of the shipyard underway in some countries (Korea, Belgium, Portugal and Spain) was able to end and continue as planned at the time of the conclusion of the agreement, but no new restructuring programme could be authorized.
5. The agreement establishes strict discipline for state aid to the shipbuilding industry, whether granted directly to the shipbuilder or indirectly through shipowners or other parties. The agreement details the type of aid that will be banned in the future. These include financial support and administrative arrangements for the national shipbuilding industry. In practice, direct subsidies, loans and guarantees are the main means of assistance. However, the agreement also prohibits other types, such as debt cancellation, capital provision incompatible with normal investment practices, support for suppliers of goods and services and others [see below: “The Agreement at a Glance”). Conclusion As long as the construction of a ship remains a complex technical process and as long as there is a significant gap between payment and delivery in order to adequately protect the interests of the various parties involved in a shipbuilding project and its financing, the logical consequence is: that the terms of shipbuilding contracts should be sufficiently detailed so that the many important practical questions that will arise during construction do not remain unanswered, while the terms of the loan and security documents should address and meet the relevant issues of the shipbuilding contract, as well as the many practical and legal questions that may arise when the lender imposes its guarantees on the buyer, the shipyard , the buyer`s supervisory authority and/or the guarantor of the refund. (1) In December 1994, the European Communities Commission and the governments of Finland, Japan, the Republic of Korea, Norway, Sweden and the United States signed the final deed of the “Agreement on Compliance with Normal Conditions of Competition in the Construction and Repair Sector”.
The agreement was due to enter into force on 15 July 1996, after all the contracting parties had completed their national ratification procedures.