Subsidies

Unlike other trade rounds that largely dwelt on the reduction of tariffs to promote freer trade and skirted around the controversial issue of subsidies, the Uruguay Round focused unprecedented attention on subsidies and their weak disciplining measures culminating in the Agreement on Subsidies and Countervailing Measures. This was important because subsidies are recognized as having harmful effects on trade and production despite the argument that they may promote important objectives of national policy. The agreement reflects the desire of WTO members to bring appropriate discipline to the use of subsidies and countervailing duties by ensuring that the use of subsidies does not adversely affect or prejudice the interests of signatories to the agreement or unjustifiably impede international trade. TKN work on subsidies seeks to identify and quantify the impact of subsidies on sustainable development.



Research