Energy Subsidies and WTO Dispute Settlement: Why Only Renewable Energy Subsidies are Challenged
29 Pages Posted: 25 Oct 2014 Last revised: 31 Mar 2015
Date Written: October 24, 2014
Over the past few years, renewable energy subsidies have become one of the main sources of trade disputes in the WTO. A total of six cases have been initiated against renewable energy subsidy programs since the first of such disputes was brought by Japan against Canada’s Feed in Tariff (FIT) program in 2010. Yet not even a single case has so far been initiated against the much larger and environmentally harmful fossil fuel subsidies. The main objective of this paper is to examine what makes renewable energy subsidies vulnerable to WTO dispute, as compared to fossil fuel subsidies.
Keywords: WTO, SCM Agreement, Subsidies, fossil fuel subsidies, renewable energy subsidies, dispute settlement system
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