INDEX

actionable subsidies 143 displacement or impeding of

agricultural subsidies 329–32 exports to the market of
implementation standard 211 subsidizing member or third
injury to domestic industry 144–6 country 154–6
nullification or impairment of increase in world market share of
benefits 146–7 primary product or commodity
pass-through of benefits and 96–7 161–3
remedy in case of non- significant lost sales in same
implementation 203–11 market 161, 178–82
serious prejudice 147 African Trade Insurance Agency
special and differential treatment for (ATI) 343
developing countries 267–73 aggregate demand 602, 603
administrative review of countervailing aggregate investigation 93, 94, 247
duties 248 Aggregate Measurement of Support
adverse effects (AMS) 319–20
collective assessment of subsidies aggregation of subsidies 172, 479
and effects 172–4, 186–7 Agreement on Agriculture 2,
injury to domestic industry 144 33–5, 36
need to demonstrate present adverse burden of proof 310
effects 149–51 domestic support 312–322
nullification or impairment of export competition 279–312
benefits 146 export credit support and 356,
price effects 163–5 398–9, 424–5
caused by tied tax subsidies 184–5 scope 399–410
significant price suppression or relationship with SCM Agreement
depression 164–5, 176–8 323–4
significant price undercutting actionable agricultural subsidies
163–4, 174–6 329–32
product effects caused by R&D prohibition of agricultural export
subsidies 183–4 subsidies and local content
serious prejudice 147 studies 324–9
volume effects 154–63 Agreement on Subsidies and
circumstances in which no Countervailing Measures
displacement/impedance of (SCM Agreement) 1, 30–3, 34,
trade would arise 160–1 115–16, 608–13
contextual support to show actionable subsidies 143, 388
displacement/impedance to agricultural subsidies 329–32
third-country markets 156–60 implementation standard 211

634

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 index 635
injury to domestic industry provision of goods or services or
144–6 purchase of goods other than
nullification or impairment of general infrastructure 41, 42–5
benefits 146–7 non-actionable subsidies 187–9
remedy in case of non- implementation standard and
implementation 203–11 remedies in case of non-
‘conferring a benefit’ 59–63 implementation 219
alternative benchmarks 65–74 policy responses to economic crisis
benchmark when government and 601, 603, 605, 607
creates a market 75–88, 367, prohibited subsidies 116
454–68 agricultural export subsidies
determination of relevant 324–29
benchmark when private prices export subsidies 116–40, 611, 612
are distorted 63–75 implementation standard 200–3
private market test 60, 469, 609 local content subsidies 140–3,
specific subsidies 454–79 557–8
determination of recipient of remedy in case of non-
subsidies 75–90 implementation 203–11
pass-through of benefits 90–7 R&D subsidies 170, 183–87, 484,
privatization of subsidized 486, 489–92, 554, 561–62, 572,
enterprise 97–100 574, 593
exchange rate policies 578–87 regional subsidies 111–14, 187, 527,
benefit analysis 583 610
financial contribution analysis relationship with Agreement on
580–3 Agriculture 323–4
specificity analysis 584 actionable agricultural subsidies
export credit support and 354 329–32
agricultural products 413–16 prohibition of agricultural export
definition 337 subsidies and local content
exception on prohibition for studies 324–9
some developing countries remedies 197
391–2 multilateral 197
as prohibited export subsidy unilateral 220
367–86 scope 39
as specific subsidy 361–7 serious prejudice 147–74
financial contribution 39–57, 448–54 analysis of relevant case law 174–87
closed list of government causation 165–74, 180–2
interventions 448–51 need to demonstrate present
direct financial contribution adverse effects 149–51
by government/public body 50–3 origin and likeness of products
government foregoing revenue under serious prejudice claim
which is otherwise due 45–50, 151–4
451–4 types of market phenomena 154–65
indirect financial contribution; special and differential treatment 253
entrustment or direction of a developing countries 253–279
private body 53–7 specificity
potential direct transfer of funds application of specificity test
and liabilities 40–2 483–4

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 636 index
Agreement on Subsidies and Bali package 35–38, 315, 320
Countervailing Measures beggar-thy-neighbour 539, 601
(SCM Agreement) (cont.) benchmarks
benefit element 454–79 alternative benchmarks 65–74
de facto specificity 101, 107–11 construction of alternative
de jure specificity 101–5 benchmarks 70–2
non-specificity resulting from transfer of direct funds 72–4
objective eligibility criteria 103, when alternative benchmarks
106–7 could be used 68–70, 87
rationale for specificity test 480–3 determination of relevant benchmark
subsidies deemed to be specific when private prices are distorted
100–1 63–75
Agreement on Trade-Related market benchmark for specific
Investment Measures (TRIMS) subsidies 469
see TRIMS Agreement relevant benchmark when government
agricultural products creates a market 75–88
burden of proof 310 benefit
disciplines on agricultural export ‘conferring a benefit’ 59–63
subsidies 280–310, 289–95, alternative benchmarks 65–74
298–303 determination of relevant
domestic support 312–322 benchmark when private prices
export competition 279–312 are distorted 63–75
export credit support 339 private market test 60, 469, 609
Agreement on Agriculture and relevant benchmark when
356, 398–9, 424–5 government creates a market
disciplines 356–7, 410–13, 427, 75–88
432–7, 441 pass-through of benefits 90–7
rationales for and provision of actionable subsidy cases 96–7
345–8 countervailing duty cases 90–6
SCM Agreement and 413–16 benefit-to-recipient 62, 118, 119, 369,
non-commercial transactions 304–11 374, 375, 377, 408–09, 424–25,
order of analysis 280–1 437, 442
Ahn, D. 585 bifurcated analysis of causation 166–9,
Ahuja, R. 262, 269, 270 178–82
aid programmes biofuel production 500–2
Aid-for-Trade 335, 342, 439 border tax adjustments 127–32, 451,
food aid see food aid programmes 494
anti-dumping duties 28, 32 carbon tax and 516–18
prohibition on double remedies 242–4 direct taxes 128, 129
Article XVI of the GATT 23–28, 57, 58, indirect taxes 128, 130–2
144, 190, 194 Brander, J. A. 10, 12
Brander-Spencer model 11, 12
Bagwell, K. W. 489, 529, 530, 533, 534, Brazil
535, 541, 542, 544, 545, 546, export credit support and 354, 363,
549, 550, 559 413–16, 441
Baldwin, R. E. 550 Brightbill, T. C. 580
Bali Ministerial Conference 35–38, Brosch, K. 299
297, 321, 323 Brunel, C. 585, 605

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 index 637
Cairns Group 33, 307 collective assessment of subsidies and
export credit support and 356, their effect 172–4, 186–7
428, 429 Collie, D. 11, 539–40, 545, 547
calibrated models 171, 218 Commercial Interest Reference
Canada Rate see CIRR
export credit support and 347, commodities
354, 363 increase in world market share of
Canada – Renewable Energy/Feed-in primary product or commodity
Tariff Program 65, 75–88, 143, 161–3
192, 195, 367, 447, 454–68, comparative advantage theory 17
495–15 congestion 13, 16, 486, 559, 589
carbon emission trading schemes consumer subsidies 5, 512
518–26 environmental subsidies 512–14
carbon leakage concern 493, 515 corrective subsidies 467
carbon tax 516–18 cost-to-government 62, 63, 118, 140,
carrot-and-stick 341, 564, 565, 570, 286, 365, 368, 369, 374–77, 405,
572, 575 409, 424–25, 437, 442, 577, 612
causation 165–74, 180–2, 237–42 counterfactual situations 164, 183
collective assessment of countervailing duties 28, 31, 32, 71,
subsidiesand their effect 172–4, 220, 485, 573, 612
186–7 agricultural subsidies and 332
methodology of study 166–9 de minimis standard 560
nature of causation analysis 169–72 disciplines on 588
standard 165 absence of any justification
unitary or bifurcated analysis of 599–600
causation 166–9 deterrence justification 593–5
China rationale for allowing CVD action
exchange rate policies 578, 582 under multilateral trading
export credit support and 348, 355 system 591–600
circumvention of commitments rationale for imposing and
299–302, 410–13, 442 restricting CVD action 588–90
CIRR (Commercial Interest Reference systemic justification 595–8
Rate) 354, 358–60, 366, 371–72, duration 221–2, 247–50
380–83, 439 administrative review 248
Clarke, P. A. 101, 269, 274 sunset review 249–50
clean hands 159, 164 GATT and 23
climate change imposition of 245–7
support for climate-friendly goods pass-through of benefits and 90–6
495–515 procedural requirements 220–7
government interventions consultation of alleged
internalizing cost of greenhouse subsidizing member 222–3
gas emissions 515–26 gathering of evidence 223–7
incentives for development initiation and duration 221–2
of renewable energy sector investigation 221
495–502 prohibition on double remedies 242–4
normative analysis of policy special and differential treatment
space for development of for developing countries and
climate-friendly goods 502–15 273–6

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 638 index
countervailing duties (cont.) direct taxes
substantive requirements 227–42 border tax adjustments and 128, 129
causation 237–42 direct transfer of funds and liabilities
definition of domestic industry 40–2
234–6 disciplines in light of policy responses
impact of volume and/or price to economic crisis 601–7
effect on the state of domestic disciplines on agricultural export
industry 233 subsidies 281–311
injury 228–9 listed types of export subsidies 282–97
positive evidence and objective direct subsidies to agricultural
examination 229–32 producers contingent on export
specific subsidy 227–8 performance 283–4
threat of injury 228–9, 236–7 payments on export of agricultural
volume and/or price effect 232–3 product financed by virtue of
credit government action 285–9
export credit support see export scope 282–3
credit support subsidies to reduce costs of
crisis see financial crises marketing exports of
cumulation of effects of subsidies 173 agricultural products 289
non-listed types of export subsidies
de facto export conditionality 119, 122, 297–304
572 circumvention of commitments
de facto specificity 101, 107–11 299–302
definition of subsidies 608 disciplines 299–304
de jure export conditionality 119, 123, scope 297–9
572 discrimination 190, 418, 508–09
de jure specificity 101–5 displacement of exports 154–6, 179–80
de minimis standard 560, 563, 613 circumstances in which no
Desta, M. G. 299, 300, 306 displacement of trade would
destination principle 128, 130–32, 516 arise 160–1
deterrence contextual support to show
disciplines on countervailing duties displacement to third-country
and 593–5 markets 156–60
developing countries dispute settlement system of the WTO
agricultural subsidies 293, 294 197, 347, 609
disciplines on subsidization by implementation standard and
rationale for 553–7 remedies in case of non-
export subsidies by 391–2, 566–71, implementation 200–20
571–7 actionable subsidies 211–19
special and differential treatment for non-actionable subsidies 219
253, 277–9 prohibited subsidies 200–11
actionable subsidies 267–73 information gathering 199–200
countervailing duties 273–6 time frame 198
prohibited subsidies 254–67 Doha Round negotiations 35–7, 74–5
development facilitation subsidies 572 agricultural subsidies 296–7, 321–3
Diamond, R. 470, 472, 591 export credit support and
differential treatment see special and agricultural products 427–37
differential treatment latest draft on disciplines 432–7

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 index 639
non-agricultural products 423–7 evidentiary standard 225–7
overview of negotiation process on positive evidence and objective
export credit support 427–32 examination of unilateral
redrafting safe haven 425–7 remedies 229–32
double remedies exchange rates 608
prohibition on 242–4 exchange dumping 449, 451
Draft Consolidated Chair Text 36, 75, policies under SCM Agreement
129, 134–35, 140, 203, 266, 578–87
423–26 benefit analysis 583
due process rights in gathering of financial contribution analysis
evidence 223–5 580–3
duty drawback systems 132–5 specificity analysis 584
export competition 260–6
econometric models 171, 177 disciplines on agricultural export
calibrated models 171, 218 subsidies 281–311
economic crisis see financial crises order of analysis 280–1
emergency food aid 308 export credit support 40–2, 135–6, 336
emission trading schemes 518–26 agricultural products 339
entitlement theory 592, 593 Agreement on Agriculture and
entry barriers 10 356, 398–410, 424–5
environmental regulation 608 disciplines 356–7, 410–13, 427,
environmental subsidies 188, 492–529 432–7, 441
assistance to disadvantaged regions negotiations in Doha Round 427–37
526–7 rationales for and provision of
multifunctionality in agriculture 345–8
527–9 SCM Agreement and 413–16
support for climate-friendly goods definition 337–9
495–515 disciplines 349
government interventions agricultural products 356–7,
internalizing cost of greenhouse 410–13, 427, 432–7, 441
gas emissions 515–26 non-agricultural products
incentives for development of 349–55, 438
renewable energy sector 495–502 General Agreement on Trade in
normative analysis of policy Services (GATS) and 417
space for development of as local content subsidy 392–7
climate-friendly goods 502–15 negotiations in Doha Round
technical requirements 493–5 agricultural goods 427–37
equity investments 61 latest draft on disciplines 432–7
ETI measure 49, 123–24, 130 non-agricultural goods 423–7
European Union (EU) overview of negotiation process
agricultural subsidies 34 427–32
biofuel production 500 redrafting export subsidy
export credit support 346, 356, 427, standard 423–4
429, 431, 433 redrafting safe haven 425–7
food aid programmes 307 non-agricultural products
evidence disciplines 349–56, 438
due process rights in gathering of negotiations in Doha Round
evidence 223–5 423–7

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 640 index
export credit support (cont.) disciplines on
rationales for and provision of agricultural products see
339–45 disciplines on agricultural
Organization for Economic export subsidies
Cooperation and Development by developed countries 537–52
(OECD) Arrangement 346, policy space given to some
350–5, 356, 358–60, 366, 396, developing countries
417, 421 to offer export subsidies
safe haven 378–90 566–71
as prohibited export subsidy under prohibition on export subsidies
SCM Agreement 367–86 imposed on other developing
Art. 3.1(a) of SCM Agreement 367 countries 571–7
export credit practices which are rationale for policy space to
not prohibited 378–86 subsidize exports 563–6
Illustrative List and 368–72 duty drawback systems 132–5
relationship between Art. 3.1(a) of export subsidies not prohibited on
SCM Agreement and Illustrative List 136–40
Illustrative List 372–8 GATT and 21, 22, 24, 25, 28, 29
rationales for and provision of Illustrative List 117, 118, 124–36
agricultural products 345–8 provision of goods or services
non-agricultural products 339–45 favourable to exporters 125–7
safe haven 378–86, 438–9, 442 special and differential treatment
conformity with safe haven for developing countries
381–6 254–66, 272
Doha Round negotiations 425–7 export competitiveness 260–6
potential and actual scope of safe least-developed countries and
haven 379–81 low-income countries 254–6
safety of 386–90 small trading developing
as specific subsidy under SCM countries 256–60
Agreement 361–7 specificity 100–1, 484
benefit element 363–7 Export-Import Bank 339, 340, 344,
financial contribution by the 392, 394, 396, 397, 421
government 361–2 externalities see spillovers
export processing zones (EPZs) 558,
567 Feaver, D. 520
export promotion (EP) strategy 555 financial contribution 39–57, 448–54
export restraints 58, 448, 451 closed list of government
export subsidies 6, 10, 34, 70, 116–40, interventions 448–51
243, 611, 612 direct financial contribution
agricultural export subsidies 324–9, by government/public body 50–3
331–2, 399–410, 541 government foregoing revenue
border tax adjustments 127–32 which is otherwise due 45–50,
contingent subsidies 119–24 451–4
direct subsidies to agricultural indirect financial contribution;
producers contingent on export entrustment or direction of a
performance 119–24 private body 53–7
developing countries 391–2, 566–71, potential direct transfer of funds and
571–7 liabilities 40–2

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 index 641
provision of goods or services or guarantees
purchase of goods other than export credit guarantees 40–2, 135,
general infrastructure 41, 350, 365, 368
42–5
financial crises 335, 343, 344 Haberler Report (1958) 27
disciplines on subsidies in light of Harmonized System (HS)
policy responses to economic Nomenclature 261, 262
crisis 601–7 Hausmann, R. 554, 561, 574
Finger, M. J. 549, 569 Havana Charter 22, 601–02
Food Aid Convention 305 Helpman, E. 14, 15
food aid programmes 304–11 Hoda, A. 262, 269, 270
disciplines on international food aid Hoekman, B. 561
304–9 Horlick, G. N. 101, 269, 274
need to preserve genuine Howse, R. 192, 480
international food aid 309–11 Hudec, R. E. 30, 453, 468, 597
Food Assistance Convention 306–10 Hufbauer, G.C. 520, 582, 585, 605
force majeure events 160
foreign direct investment (FDI) 558 Illustrative List 228, 353
free riding 602 export credit support and 368–78,
395, 405, 439
GATS see General Agreement on Trade export subsidies not prohibited on
in Services Illustrative List 136–40
GATT see General Agreement on prohibited export subsidies 117, 118,
Tariffs and Trade 124–36
General Agreement on Tariffs and border tax adjustments 127–32
Trade (GATT) 21–4, 189, duty drawback systems 132–5
466–68, 485, 495–515, 553 export credit support 135–6
GATT Declaration (1960) 26, 352 provision of goods or services
GATT Review Session (1954–5) 24–7 favourable to exporters 125–7
General Agreement on Trade in impairment of benefits 146–7
Services (GATS) 35 impedance of exports 154–6
export credit support and 417 circumstances in which no
general exceptions stipulated in Art. impedance of trade would arise
XX GATT 192–5, 460, 504–15 160–1
genuine and substantial relationship of contextual support to show
cause and effect 165–66, 169, impedance to third-country
172–74, 183, 185, 238–39 markets 156–60
Gervais, J.-P. 346 implementation standards
Goetz, C. J. 591 actionable subsidies 211
goods remedy in case of non-
provision of 42 implementation 211–19
purchase of 44 non-actionable subsidies 219
government failure 556, 562 prohibited subsidies 200–3
Granet, L. 591 remedy in case of non-
Great Depression 21, 22, 601 implementation 203–11
green protectionism 2 import duties (see also tariffs) 49
Grossman, G. M. 14, 15, 469, 470, 472, import substitution 555
473, 474, 475, 478, 545, 590 subsidies see local content subsidies

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 642 index
import substitution (IS) strategy 555 Leutwiler Report 31
incentive schemes 451 level playing field argument 469
income or price support 57–9, 448–51, liberalization 335
580, 582 like product 148–58, 221, 223, 229,
India 24, 26, 27, 30, 38, 133–35, 188, 234–35, 508, 610
228, 256–66, 275–76, 291, serious prejudice claims and
318–19, 348, 355, 427, 491, 516, 151–4
561–66, 568, 574–77 loan guarantees 61
indirect taxes local content subsidies 6
border tax adjustments and 128, 130–2 environmental subsidies 504
infant industry protection 29, 554 export credit support as 392–7
information gathering prohibition on 140–3, 557–8
multilateral remedies and 199–200 special and differential treatment for
infrastructure 43, 448 developing countries 266–7
injury to domestic industry 144–6 specificity 100–1, 484
insurance Luengo, G. 57, 58, 124, 269
export credit insurance 40–2, 135
interest rates Magnus, J. 580
export credit support and 351, 358, market failure 8–9, 553, 556, 559,
360, 365, 366, 380, 381 560, 563
International Finance Corporation matching 352, 355, 366, 382–86, 439,
(IFC) 343, 344 539, 541
International Monetary Fund (IMF) Mavroidis, P. C. 469, 470, 472, 473,
21, 344, 417, 586 474, 475, 478, 545, 546, 590
International Trade Organization mercantilism 17, 578
(ITO) 21, 22, 417 Messerlin, P. A. 548
investigations, countervailing duties methodology of causation analysis
and 221 166–9
consultation of alleged subsidizing minimum premium rates (MPRs) 354,
member 222–3 359–60, 381, 407
gathering of evidence 223–7 most-favoured-nation (MFN)
provisions 418
Jackson, J. H. 481, 589, 592, 594 multifunctionality 527–9
Janow, M. E. 543 multilateral remedies 197
implementation standard
Kenen, P. B. 550, 595 and remedies in case of non-
Keynesian interventions 602, 603, 606 implementation 200–20
Knaepen Package (1999) 354, actionable subsidies 211–19
359, 381 non-actionable subsidies 219
Krugman, P. 12, 548, 554 prohibited subsidies 200–11
information gathering 199–200
Lamy, Pascal 1, 335, 344 time frame 198
land-use rights 71
learning-by-exporting 563–65, 569 national treatment obligation 189–92,
Lee, Y.-S. 572, 576 395, 419, 420
legitimate policy objective(s) 82, Newfarmer, R. 556, 565
454–63, 510, 609 1960 Declaration 24–27, 29, 124, 133,
lesser duty rule 246, 594, 598, 600 350–52, 370, 424, 485, 586

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 index 643
non-actionable subsidies 187–9 primary products
non-attribution requirement 160, increase in world market share of
237–42, 511 primary product or commodity
non-commercial transactions see food 161–3
aid programmes prior-stage cumulative indirect taxes
non-market economy (NME) (PSCI taxes) 131, 516–17
methodology 243 Prisoner’s Dilemma 349, 539–40, 602
non-violation complaints (NVCs) 24, private market test 60, 469, 609
25, 531–37 private subsidies 56
Norman, V. D. 489 privatization 150, 471–8
nullification of benefits 146–7 special and differential treatment
for developing countries and 270
Olsen, S. F. 14 specific subsidies and 471–8
Organization for Economic of subsidized enterprises 97–100
Cooperation and Development producer subsidies 6
(OECD) 26, 345 environmental subsidies 505–12
export credit support and 346, product effects caused by R&D
350–5, 356, 358–60, 366, 396, subsidies 183–4
417, 421 production subsidies 6
safe haven 378–90 product subsidies 190
origin of products, serious prejudice product theory of causation 181
claims and 151–4 profit-shifting 10–12
origin principle 128–29, 516 prohibited subsidies 116
output subsidies 6 export subsidies see export subsidies
implementation standard 200–3
Pareto optimum 6 local content subsidies 140–3, 557–8
pass-through of benefits remedy in case of non-
actionable subsidy cases 96–7 implementation 203–11
countervailing duty cases 90–6 special and differential treatment
peace clause 280, 323–34, 400, 415, 529, for developing countries 254–67
536, 611 export subsidies 254–66, 272
peace clause (for public stockholding) local content subsidies 266–7
38, 315, 320–21 public bodies 50–3
Permanent Group of Experts (PGE) 198 public stockholding 315, 320–23
political-economy rationale for
offering subsidies 13–16 Qiu, L. D. 594
polluter pays principle 493, 515
prejudice, serious see serious prejudice rationale for export credit support
prices non-agricultural products 339–45
distortion 63–75 rationale for offering subsidies 5–6,
price effects of subsidies 163–5, 232–3 16–17
caused by tied tax subsidies 184–5 absence of rationale 6–8
impact on the state of domestic market failure rationale 8–9
industry 233 political-economy rationale 13–16
significant price suppression or profit-shifting rationale 10–12
depression 164–5, 176–8 redistribution rationale 12–13
significant price undercutting reallocation of resources 187
163–4, 174–6 redistribution rationale for offering
price support 57–9 subsidies 12–13

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 644 index
regional subsidies 111–14, 187, 527, potential and actual scope of safe
610 haven 379–81
regulatory subsidies 449, 608 safety of safe haven 386–90
relevant market 64, 79–87, 153–54, Schwartz, W. F. 591
463, 508–10, 610 SCM Agreement see Agreement on
remedies 196–7 Subsidies and Countervailing
multilateral 197 Measures (SCM Agreement)
implementation standard and serious prejudice 147–74, 558, 605
remedies in case of non- analysis of relevant case law 174–87
implementation 200–20 EC – Large Civil Aircraft 178–82
information gathering 199–200 Indonesia – Autos 174–6
time frame 198 US – Large Civil Aircraft 182–7
unilateral 220 US – Upland Cotton 176–8
duration of countervailing duties causation 165–74, 180–2
221–2, 247–50 collective assessment of subsidies
imposition of countervailing and their effect 172–4, 186–7
duties 245–7 methodology of study 166–9
procedural requirements 220–7 nature of causation analysis
prohibition on double remedies 169–72
242–4 standard 165
standard of review 250–2 unitary or bifurcated analysis of
substantive requirements 227–42 causation 166–9
renewable energy sector 495–502 need to demonstrate present adverse
incentives for biofuel production 500–2 effects 149–51
incentives for renewable energy origin and likeness of products under
production 496–500 serious prejudice claim 151–4
research and development (R&D) 44 product effects caused by R&D
R&D subsidies 6, 187, 484, 554 subsidies 183–4
disciplines on subsidization special and differential treatment
by developed countries 488–92 for developing countries and
product effects 183–4 268–70, 272
restructuring of companies 150 types of market phenomena 154–65
Revised Draft Modalities for price effects 163–5
Agriculture 37, 297, 308, 310, volume effects 154–63
322–23, 356, 432 services
Rodriguez-Clare, A. 492, 574, 575 export credit support in light of
Rodrik, D. 554, 561, 574, 577 General Agreement on Trade in
Rubini, L. 504 Services (GATS) and 417
Rude, J. 346 provision of 42
purchase of 44
safeguards 238, 242, 589, 596, 598 Shah, V. R. 519, 523
Safeguards Agreement 165, 169, 238, Smith, Adam 538
302 social dumping 449, 451
safe haven 611 special and differential treatment 253
export credit support and 378–86, developing countries 253, 277–9
438–9, 442 actionable subsidies 267–73
conformity with safe haven 381–6 countervailing duties 273–6
Doha Round negotiations 425–7 prohibited subsidies 254–67

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 index 645
special interest groups 14 price effects caused by tied tax
specificity subsidies 184–5
application of specificity test terms of trade 7, 8, 10, 15, 16, 488, 489,
(normative analysis) 483–484 491, 530–33, 538–43, 549–50, 588
de facto specificity 101, 107–11 third countries
de jure specificity 101–5 contextual support to show
export credit support as specific displacement/impedance to
subsidy under SCM Agreement third-country markets 156–60
361–7 displacement or impedance of
non-specificity resulting from exports to the market of
objective eligibility criteria 103, subsidizing member or third
106–7 country 154–6
rationale for specificity test 480–3 export subsidies and 538
subsidies deemed to be specific information gathering and 199–200
100–1 tied subsidies
Spencer, B. J. 10 price effects caused by tied tax
spillovers 8, 459, 488 subsidies 184–5
R&D subsidies 488, 489 Tokyo Round negotiations (1973–9)
Staiger, R. W. 489, 529, 530, 533, 534, 27–30
535, 541, 542, 544, 545, 546, Torres, R. A. 567
549, 559 traffic-light approach 115
Stiglitz, J. E. 459 transfers 6
stop-the-clock mechanism 265, 569 Trebilcock, M. J. 480, 592
strategic trade 10, 12 TRIMS Agreement 76, 142–43, 194,
Subsidies Code of GATT 27– 30, 31, 266–67, 395–96, 466, 499
33, 116, 124, 131, 133, 233, 273,
352–54, 370–71, 378, 388, undercutting prices 163–4, 174–6
485–86, 516, 601 polluter pays principle 493, 515
successor undertakings 378 undervalued currency 578–87
sunset review, countervailing duties unilateral remedies 220
and 249–50 duration of countervailing duties
suppression of prices 164–5, 176–8 221–2, 247–50
Sykes, A. O. 451, 468, 482, 493, 546, administrative review 248
592, 594, 595, 596 sunset review 249–50
imposition of countervailing duties
targeting 32 245–7
targeting principle 8, 481, 487, 503, procedural requirements 220–7
529, 551 consultation of alleged
taxation 5 subsidizing member 222–3
border tax adjustments 127–32, gathering of evidence 223–7
451, 494 initiation and duration 221–2
carbon tax and 516–18 investigation 221
direct taxes 128, 129 prohibition on double remedies 242–4
indirect taxes 128, 130–2 standard of review 250–2
duty drawback systems 132–5 substantive requirements 227–42
government foregoing revenue causation 237–42
which is otherwise due 45–50, definition of domestic industry
451–4, 512 234–6

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 646 index
unilateral remedies (cont.) Venables, A. J. 489
impact of volume and/or volume effects 154–63, 232–3
price effect on the state circumstances in which no
of domestic industry 233 displacement/impedance of
injury 228–9 trade would arise 160–1
positive evidence and objective contextual support to show
examination 229–32 displacement/impedance to
specific subsidy 227–8 third-country markets
threat of injury 228–9, 236–7 156–60
volume and/or price effect displacement or impedance of
232–3 exports to the market of
unitary analysis of causation 166–9, subsidizing member or third
176–80, 182, 232 country 154–6
United Kingdom impact on the state of domestic
GATT 1947 and 21 industry 233
United Nations 309 increase in world market share of
Conference on Trade and primary product or commodity
Development (UNCTAD) 161–3
Trade and Development Report significant lost sales in same market
(2006) 1 161, 178–82
United States
countervailing duties 596 Washington consensus 555
export credit support 340, 347, 350, welfare maximization 6–8
356, 408, 428 Winters, L. A. 549, 569
food aid programmes 308, 309, 310 Working Party Report on Border Tax
GATT and 21, 22, 24, 29, 30, 32 Adjustments 129, 516
Uruguay Round negotiations Working Party on BTAs 130
(1986–1994) 1, 30–3, World Bank 21, 417, 555, 556, 565, 569,
353, 356 572, 590, 594, 596

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