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Rethinking International Subsidy Rules

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  • Bernard Hoekman
  • Douglas Nelson

Abstract

Geo-economic tensions and global collective action problems call for international cooperation to revise and develop rules to guide both the use of domestic subsidies and responses by governments to cross-border competition spillover effects. Current WTO rules that divide all subsidies into either prohibited or actionable categories are no longer fit for purpose. Piecemeal efforts in preferential trade agreements and bi- or trilateral configurations offer a basis on which to build, but are too narrow in scope and focus. Addressing the spillover effects of subsidies could start with launching a work program at the 12th Ministerial Conference of the WTO to mobilize an epistemic community concerned with subsidy policies, tasked with building a more solid evidence base on the magnitude, purpose and effects of subsidy policies.

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  • Bernard Hoekman & Douglas Nelson, 2020. "Rethinking International Subsidy Rules," RSCAS Working Papers 2020/20, European University Institute.
    • Handle: RePEc:rsc:rsceui:2020/20
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    Cited by:

    1. Bernard M. Hoekman & Petros C. Mavroidis & Douglas R. Nelson, 2023. "Geopolitical competition, globalisation and WTO reform," The World Economy, Wiley Blackwell, vol. 46(5), pages 1163-1188, May.
    2. Nelson, Douglas, 2021. "How Do You Solve a Problem Like Maria? US – Countervailing Measures (China) (21.5)," World Trade Review, Cambridge University Press, vol. 20(4), pages 556-565, October.
    3. Bernard Hoekman & Xinquan Tu & Robert Wolfe, 2022. "China and WTO Reform," RSCAS Working Papers 2022/59, European University Institute.
    4. Matteo Fiorini & Bernard Hoekman & Petros C. Mavroidis & Douglas Nelson & Robert Wolfe, 2021. "Stakeholder Preferences and Priorities for the Next WTO Director General," Global Policy, London School of Economics and Political Science, vol. 12(S3), pages 13-22, April.
    5. Bernard Hoekman & Charles Sabel, 2021. "Plurilateral Cooperation as an Alternative to Trade Agreements: Innovating One Domain at a Time," Global Policy, London School of Economics and Political Science, vol. 12(S3), pages 49-60, April.
    6. Malorie Schaus, 2021. "EU Trade Policy in Light of the New Industrial Strategy for Europe," Intereconomics: Review of European Economic Policy, Springer;ZBW - Leibniz Information Centre for Economics;Centre for European Policy Studies (CEPS), vol. 56(3), pages 144-149, May.
    7. Robert Wolfe, 2021. "Informal Learning and WTO Renewal: Using Thematic Sessions to Create More Opportunities for Dialogue," Global Policy, London School of Economics and Political Science, vol. 12(S3), pages 30-40, April.
    8. Bernard M Hoekman & Petros C Mavroidis & Sunayana Sasmal, 2023. "Managing Externalities in the WTO: The Agreement On Fisheries Subsidies," Journal of International Economic Law, Oxford University Press, vol. 26(2), pages 266-284.
    9. Bernard Hoekman & Robert Wolfe, 2021. "Reforming the World Trade Organization: Practitioner Perspectives from China, the EU, and the US," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(4), pages 1-34, July.
    10. Bernard Hoekman & Petros C. Mavroidis, 2021. "WTO Reform: Back to the Past to Build for the Future," Global Policy, London School of Economics and Political Science, vol. 12(S3), pages 5-12, April.
    11. Afiqah R. Radzi & Rahimi A. Rahman & Saud Almutairi, 2022. "Modeling COVID-19 Impacts and Response Strategies in the Construction Industry: PLS–SEM Approach," IJERPH, MDPI, vol. 19(9), pages 1-25, April.
    12. Nelson, Douglas & Puccio, Laura, 2021. "Nihil novi sub sole: The Need for Rethinking WTO and Green Subsidies in Light of United States – Renewable Energy," World Trade Review, Cambridge University Press, vol. 20(4), pages 491-508, October.
    13. Mukhtar A. Kassem & Afiqah R. Radzi & Asankha Pradeep & Mohammed Algahtany & Rahimi A. Rahman, 2023. "Impacts and Response Strategies of the COVID-19 Pandemic on the Construction Industry Using Structural Equation Modeling," Sustainability, MDPI, vol. 15(3), pages 1-24, February.
    14. Rikard FORSLID & OKUBO Toshihiro, 2024. "R&D Subsidies and Multi-product Firms," Discussion papers 24015, Research Institute of Economy, Trade and Industry (RIETI).
    15. Bernard Hoekman & Robert Wolfe, 2021. "WTO Reform As a Triangular Problem among China, the EU and the US," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 22(02), pages 12-16, March.

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    More about this item

    Keywords

    Subsidy policies; spillovers; international cooperation; trade agreements; WTO;
    All these keywords.

    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • F02 - International Economics - - General - - - International Economic Order and Integration
    • F15 - International Economics - - Trade - - - Economic Integration
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • F68 - International Economics - - Economic Impacts of Globalization - - - Policy

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