The Economics of WTO Rules on Subsidies and Countervailing Measures
Alan O. Sykes
New York University School of Law
June 2003
U Chicago Law & Economics, Olin Working Paper No. 186
Abstract:
This paper evaluates the WTO rules relating to subsidies and countervailing measures from a welfare economics perspective. It concludes that the rules relating to "nonviolation" subsidies, export subsidies and certain agricultural subsidies have sound economic justification. The rules governing domestic subsidies generally, by contrast, do little to identify or police undesirable subsidies. Further, as has been argued elsewhere, countervailing measures are economically undesirable.
Number of Pages in PDF File: 37
Keywords: international trade, GATT, SCM, GATS, world trade organization
working papers series
Suggested Citation
Sykes, Alan O., The Economics of WTO Rules on Subsidies and Countervailing Measures (June 2003). U Chicago Law & Economics, Olin Working Paper No. 186. Available at SSRN: http://ssrn.com/abstract=415780 or http://dx.doi.org/10.2139/ssrn.415780
