What is the WTO Agreement on Subsidies and Countervailing Measures?

The WTO Agreement on Subsidies and Countervailing Measures is an international trade law that regulates the use of subsidies by governments and prevents trade distortions caused by such subsidies. It sets out the conditions under which WTO members can provide financial assistance, and the countervailing measures that can be taken by countries that are adversely affected by the subsidies. The Agreement was negotiated as part of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) and entered into force in 1995. Under the Agreement, WTO members must notify the WTO of all government subsidies that are provided to domestic industries. The Agreement also sets out the different types of subsidies, including export subsidies, import-substituting subsidies, and market-distorting domestic subsidies. The Agreement also prohibits the use of certain subsidies, such as subsidies that are contingent on export performance or that are used to protect domestic producers from international competition. In addition, the Agreement sets out the procedures and rules that member countries must comply with if they believe that their industries have been harmed by another country’s subsidies. The Agreement requires the countries to negotiate a mutually-agreed resolution, and if this is not successful, either party may request the creation of a dispute panel to resolve the case. The WTO Agreement on Subsidies and Countervailing Measures is an important part of international trade law in Washington, as it helps ensure fair competition and prevents governments from creating trade distortions. The Agreement ensures that WTO members are abiding by internationally accepted principles of trade and providing a level playing field for all participants.

Related FAQs

What is the World Bank?
What is the Fair Labor Association (FLA)?
What is the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)?
What is the World Trade Organization Agreement on Technical Barriers to Trade?
What is the difference between a boycott and a trade embargo?
What are the most effective ways to use international trade finance?
What is the WTO Agreement on Subsidies and Countervailing Measures?
What is the role of the World Bank in international trade?
What is the Doha Development Round?
What is the difference between an import quota and a tariff?

What is the WTO Agreement on Subsidies and Countervailing Measures?

Related FAQs

Related Blog Posts