Reflets et perspectives de la vie économique
De Boeck Université

I.S.B.N.2804144380
120 pages

p. 25 à 38
doi: en cours

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Tome XLIII 2004/1

Subsidies in the context of the World Trade Organization

Jan Jakub MICHALEK
During the Uruguay Round (UR), regulations concerning subsidies were substantially modified. In the WTO three types of subsidies are distinguished: prohibited, actionable and non-actionable. The export subsidies are prohibited, while production subsidies are actionable, if they cause an injury to the domestic industry. The remaining subsidies are considered to be non-actionable. This categorization reflects standard theory: distortion in international trade caused by an export subsidy is stronger than that caused by a production one. The number of notifications of countervailing (CVD) duties is quite small, in comparison with A-D actions, and is decreasing after 1999. The countries most frequently targeted by CVD actions were: India, Republic of Korea, Italy, EC (as a whole) and Canada. The export subsidies in agricultural sector are permitted within the commitments undertaken during the UR. The total financial support provided to agriculture by OECD countries remains high. The liberalization proposals presented during preparations to a new WTO round differ significantly. Under so called « compromise » scenario, the liberalization of agricultural trade and reduction of subsidies may increase world welfare by US$ 13 billion. In the EU an increase in the consumer surplus might be accompanied with a significant reduction in producer surplus. Keywords : Commercial policy, trade negotiations, WTO, subsidies, countervailing duties.
• 1. THE WORLD TRADE ORGANIZATION (WTO)
• 2. THE WTO RULES ON SUBSIDIES : THE SCM AGREEMENT
• 3. SPECIFIC WTO RULES REGARDING SUBSIDIES IN AGRICULTURE
• 4. ECONOMIC RATIONALE BEHIND WTO RULES ON SUBSIDIES
• 5. COUNTERVAILING INVESTIGATIONS IN THE WTO
• 6. AGRICULTURAL SUBSIDIES IN THE CONTEXT OF NEW ROUND OF WTO NEGOTIATIONS
• 7. POSSIBLE EFFECTS OF FUTURE LIBERALIZATION OF AGRICULTURAL TRADE


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