What is the WTO Agreement on Subsidies and Countervailing Measures?

The WTO Agreement on Subsidies and Countervailing Measures is an international trade agreement that sets out rules and regulations for the use of subsidies in global trade. Subsidies are payments, either direct or indirect, by governments to businesses in order to give them an economic advantage over their competitors. The agreement is part of the WTO (World Trade Organization) Agreement, which is the main set of rules governing international trade. The Agreement on Subsidies and Countervailing Measures seeks to create a level playing field in international trade. It states that countries shall not give any company subsidies that will create a competitive advantage against imported goods and services. Similarly, it outlaws the use of export subsidies that may lower the price of domestic goods and services compared to foreign goods. The agreement also includes “countervailing measures” which allow countries to take steps, such as imposing tariffs and taxes, if they believe another country is providing illegal subsidies. This helps prevent unfair competition, by making it more difficult for firms to gain an advantage from subsidies. For California, the Agreement on Subsidies and Countervailing Measures is a key factor in international trade negotiations. It helps ensure companies in California can compete fairly with companies from other countries, and that foreign countries are not gaining an unfair advantage when exporting their goods and services to the state.

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What is the WTO Agreement on Subsidies and Countervailing Measures?

What is the WTO Agreement on Subsidies and Countervailing Measures?

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