WTO, Subsidies and Countervailing Measures

Edited by Marc Bacchetta, Counsellor, Economic Research and Statistics Division, World Trade Organization, Geneva, Switzerland and Michele Ruta, Lead Economist, Trade & Competitiveness Global Practice, World Bank, US

• Contents:AcknowledgementsIntroductionMarc Bacchetta and Michele RutaPART ITHE ECONOMICS OF SUBSIDIES AND COUNTERVAILING DUTIES A The Economics of Subsidies in Open Economy: Production Subsidies1. Jagdish Bhagwati and V.K. Ramaswami (1963) ‘Domestic Distortions, Tariffs and the Theory of Optimum Subsidy’2. Harry G. Johnson (1965), ‘Optimal Trade Intervention in the Presence of Domestic Distortions’B The Economics of Subsidies in Open Economy: Export Subsidies3. James A. Brander and Barbara J. Spencer (1985), ‘Export Subsidies and International Market Share Rivalry’4. Avinash Dixit (1984), ‘International Trade Policy for Oligopolistic Industries’5. Jonathan Eaton and Gene M. Grossman (1986), ‘Optimal Trade and Industrial Policy Under Oligopoly’6. Giovanni Maggi (1996), ‘Strategic Trade Policies with Endogenous Mode of Competition’7. Gene M. Grossman and Henrik Horn (1988), ‘Infant-Industry Protection Reconsidered: The Case of Informational Barriers to Entry’8. Kyle Bagwell and Robert W. Staiger (1989), ‘The Role of Export Subsidies When Product Quality is Unknown’9. Horst Raff and Young-Han Kim (1999), ‘Optimal Export Policy in the Presence of Informational Barriers to Entry and Imperfect Competition’C The Economics of Subsidies in Open Economy: Subsidies to R&D10. Barbara J. Spencer and James A. Brander (1983), ‘International R&D Rivalry and Industrial Strategy’11. Kyle Bagwell and Robert W. Staiger (1994), ‘The Sensitivity of Strategic and Corrective R&D Policy in Oligopolistic Industries’12. Dermot Leahy and J. Peter Neary (1999), ‘R&D Spillovers and the Case for Industry Policy in an Open Economy’D The Economics of Countervailing Duties: Countervailing Duties When Markets Are Perfect13. Alan O. Sykes (1989), ‘Countervailing Duty Law: An Economic Perspective’14. Robert C. Feenstra (1986), ‘Trade Policy with Several Goods and “Market Linkages”’E The Economics of Countervailing Duties: Countervailing Duties with Market Imperfections15. Barbara J. Spencer (1988), ‘Capital Subsidies and Countervailing Duties in Oligopolistic Industries’16. Barbara J. Spencer (1988), ‘Countervailing Duty Laws and Subsidies to Imperfectly Competitive Industries’17. David R. Collie (1991), ‘Export Subsidies and Countervailing Tariffs’18. David R. Collie (1994), ‘Endogenous Timing in Trade Policy Games: Should Governments Use Countervailing Duties?’19. Larry D. Qiu (1995), ‘Why Can’t Countervailing Duties Deter Export Subsidization?’F Empirical Analysis: The Effects of Subsidies20. Dani Rodrik (1995), ‘Taking Trade Policy Seriously: Export Subsidization as a Case Study in Policy Effectiveness’21. Douglas A. Irwin and Nina Pavcnik (2004), ‘Airbus versus Boeing Revisited: International Competition in the Aircraft Market’G Empirical Analysis: The Effects of Countervailing Measures22. J.M. Finger, H. Keith Hall and Douglas R. Nelson (1982), ‘The Political Economy of Administered Protection’23. Wendy L. Hansen (1990), ‘The International Trade Commission and the Politics of Protectionism’24. Michael P. Leidy (1997), ‘Macroeconomic Conditions and Pressures for Protection Under Antidumping and Countervailing Duty Laws: Empirical Evidence from the United States’25. Michael P. Gallaway, Bruce A. Blonigen and Joseph E. Flynn (1999), ‘Welfare Costs of the U.S. Antidumping and Countervailing Duty Laws’PART IILAW AND ECONOMICS OF WTO SUBSIDY AND COUNTERVAILING DISCIPLINES A Institutions and History26. John H. Jackson (1997), ‘The Perplexities of Subsidies in International Trade’27. Alan O. Sykes (2005), ‘Subsidies and Countervailing Measures’28. Gilles Gauthier, Erin O’Brien and Susan Spencer (2000), ‘Déjà Vu, or New Beginning for Safeguards and Subsidies Rules in Services Trade?’B The Economics of Subsidy Agreements: Subsidy Agreements29. Kyle Bagwell and Robert W. Staiger (2002), ‘Agricultural Export Subsidies’30. Dermot Leahy and J. Peter Neary (2009), ‘Multilateral Subsidy Games’C The Economics of Subsidy Agreements: Subsidy Rules in Trade Agreements31. Kyle Bagwell and Robert W. Staiger (2006), ‘Will International Rules on Subsidies Disrupt the World Trading System?’32. Henrik Horn, Giovanni Maggi and Robert W. Staiger (2010), ‘Trade Agreements as Endogenously Incomplete Contracts’D The Economics of Subsidy Agreements: Countervailing Disciplines in Trade Agreements33. Gene M. Grossman and Petros C. Mavroidis (2003), ‘US – Lead and Bismuth II United States – Imposition of Countervailing Duties on Certain Hot-Rolled Lead and Bismuth Carbon Steel Products Originating in the United Kingdom: Here Today, Gone Tomorrow? Privatization and the Injury Caused by Non-Recurring Subsidies (WT/DS138; DSR 2000:V, 2595; DSR 2000:VI, 2623)’34. Henrik Horn and Petros C. Mavroidis (2003), ‘United States – Preliminary Determinations with Respect to Certain Softwood Lumber from Canada (WT/DS236; DSR 2002:IX, 3597): What Is a Subsidy?’PART IIIAN ECONOMIC PERSPECTIVE ON WTO CASE LAW 35. Merit E. Janow and Robert W. Staiger (2003), ‘Canada – Dairy Canada – Measures Affecting the Importation of Dairy Products and the Exportation of Milk (WT/DS113; WT/DS103; DSR 1999:V, 2057, DSR 1999:VI, 2097; DSR 2001:XIII, 6829; DSR 2001:XIII, 6865; DSR 2003:I, 213; DSR 2003:I, 255)’ 36. Andre Sapir and Joel P. Trachtman (2008), ‘Subsidization, Price Suppression, and Expertise: Causation and Precision in Upland Cotton’37. Gene M. Grossman and Petros C. Mavroidis (2003), ‘United States – Countervailing Measures Concerning Certain Products from the European Communities (WTO Doc. WT/DS212/AB/R; DSR 2003:I, 5; DSR 2003:I, 73): Recurring Misunderstanding of Non-Recurring Subsidies’