What is the WTO Agreement on Subsidies and Countervailing Measures?

The WTO Agreement on Subsidies and Countervailing Measures (ASCM) is an international trade law that helps ensure fair international trade practices by regulating the use of government subsidies and countervailing measures by countries around the world. Subsidies are government financial assistance or other benefits given to a company or industry to help them become more competitive. Countervailing measures are measures taken by a government to offset the impact of another country’s subsidies or to protect domestic industry. The ASCM applies to both subsidies and countervailing measures that have or could have an effect on international trade. The agreement requires countries to eliminate all subsidies and countervailing measures that are inconsistent with the WTO rules. This includes programs that are not motivated by public policy goals, such as those that interfere with free trade or give an unfair competitive advantage. The agreement also prohibits countries from retaliating against other countries in retaliation for their subsidies or countervailing measures. In Florida, the ASCM has been important in preventing the state from creating policies that disrupt international trade. Generally, the state is not allowed to use subsidies or countervailing measures to promote its own industries or to help its own businesses at the expense of other countries’ businesses. This helps ensure that Florida businesses remain competitive in the international market and that they do not have an unfair advantage over their global competitors.

What is the WTO Agreement on Subsidies and Countervailing Measures?

Related FAQs

Related Blog Posts