What is the WTO Agreement on Subsidies and Countervailing Measures?

The WTO Agreement on Subsidies and Countervailing Measures is a binding international agreement that regulates the use of subsidies and other government measures to help domestic industries. It was first adopted in 1994 and remains in force today. The agreement was negotiated by the World Trade Organization in an effort to ensure fair and open trade between member countries. Under the WTO Agreement, countries are not allowed to use subsidies and countervailing measures to provide an unfair advantage in international trade. For example, a country can’t use government subsidies or protectionist measures to artificially lower the price of its exports. This ensures that all countries have a fair chance to compete in international markets. In addition, the agreement limits the use of subsidies and countervailing measures to ensure that governments do not excessively subsidize their industries. This in turn helps prevent market distortion and unfair trade practices. The WTO Agreement is also designed to protect domestic industries from being disadvantaged by subsidized imports. For example, if a foreign country is giving its industries substantial financial assistance, the agreement requires the home country to counter these subsidies with its own measures. In North Carolina, the WTO Agreement on Subsidies and Countervailing Measures must be followed by all businesses and industries wishing to participate in international trade. All businesses should familiarize themselves with the agreement and make sure they are in compliance.

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What is the WTO Agreement on Subsidies and Countervailing Measures?

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