International Economic Law and Policy Blog

Sign in Subscribe

Topic

Subsidies

83 posts

Why the US Should Respond Honestly to China's WTO Complaint

Because China is acting responsibly to uphold the multilateral trading system and to challenge US illegality in a peaceful way, the US should cooperate by facilitating the rapid response mechanism envisioned in the DSU for the adjudication of trade complaints. Let the panel do its job to call out t

Cross-Border Subsidies and Non-Violation Complaints

Weihuan Zhou and Victor Crochet have a new working paper called "Attribution to the State: A Critique of Cross-Border Subsidies," which combines two of my favorite issues: Cross-border subsidies and non-violation complaints. Here's the abstract: While industrial policy and subsidies proliferate worldwide, the emergence of cross-border

U.S. Subsidies vs. Chinese Subsidies / Good vs. Bad Subsidies

At a press briefing with Ambassador Tai on the announcement that the Biden administration would maintain the Section 301 tariffs on China and add tariffs on a few additional products, a reporter asked the following question regarding U.S. vs. Chinese electric vehicle subsidies: The U.S. government is subsidizing

What Would Joe Stiglitz Do about WTO Subsidies Rules?

In a recent Foreign Policy piece, economist Joe Stiglitz makes several references to WTO rules "forbidding" industrial subsidies: The current moment is a good illustration. It is the product of longstanding beliefs and power relations. Under this system, industrial subsidies were a no-no, forbidden (so it was thought)

Overcapacity and future discussions in the SCM Committee.

Finbarr Bermingham reported on Wednesday, April 23, 2024, that in the recent SCM Committee meeting, there were ‘sharp’ exchanges between the US and China related to Chinese ‘overcapacity’ in key sectors owing to subsidies. China objects to the term ‘overcapacity,’ arguing that there is no clear definition within the WTO

Subsidies, Overcapacity, and Domestic Demand/Savings

There has been a lot of discussion recently about how Chinese subsidies and other government support has led to industrial overcapacity, which can have a negative impact on the manufacturing sector of other economies. If domestic supply exceeds domestic demand, the Chinese-made products that won't be sold in

Is Section 301 the Right Remedy for Chinese Shipbuilding Subsidies?

In the Section 301 petition recently filed by a group of unions, the petitioners argued that "Section 301 provides an appropriate mechanism for addressing China’s policies in the maritime, logistics, and shipbuilding sector." They offer three reasons for this: First, traditional trade remedies are not available to

Conversations at WTO Ministerial Side Events: Subsidy Races and Trade Remedies

As part of the WTO Ministerial Conference last week, there were some side events going on. I was watching one called "Business Forum at MC13" and came across some interesting discussion of subsidy races and trade remedies. The question that kicked off the subsidy race discussion was about

WTO Adverse Effects Complaints vs. Domestic CVD Cases

Subsidies have been in the news a lot recently, as China's subsidies continue to cause concerns, and the Biden administration and others are now increasing their own use of subsidies. In trade policy, the reaction to foreign subsidies tends to be an anti-subsidy (aka, countervailing duty) case carried

Chip Subsidies, Exports, and CVDs

Subsidies are a big part of the Biden administration's economic policy, with a variety of types available. Some go directly to producers, while others are in the form of tax credits for consumers on their purchases of goods. How much is being spent? For semiconductor subsidies, which as