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Brave New World: International Regulation of Subsidies and the Future of State and Local Economic Development Programs

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  • Charles S. Colgan

    (University of Southern Maine)

Abstract

Recent international trade agreements are likely to have profound effects on state and local development programs in coming years. The most important changes will come as a result of the new Agreement on Subsidies and Countervailing Measures concluded as part of the General Agreement on Tariffs and Trade. Provisions of the North American Free Trade Agreement and the United States-Canada Free Trade Agreement may also affect development efforts. This article examines the new rules on subsidies and their implications for state and local economic development programs. It concludes that these programs are likely to come under increasing attack from trading partners of the United States. While there are limited exceptions to the new disciplines, many programs may have to be changed to comply with the new rules. Some programs may face countermeasures in other countries or may even be required to be removed by international dispute settlement procedures.

Suggested Citation

  • Charles S. Colgan, 1995. "Brave New World: International Regulation of Subsidies and the Future of State and Local Economic Development Programs," Economic Development Quarterly, , vol. 9(2), pages 107-118, May.
  • Handle: RePEc:sae:ecdequ:v:9:y:1995:i:2:p:107-118
    DOI: 10.1177/089124249500900201
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    Cited by:

    1. Raimundo Soto, "undated". "Política Fomento Empresarial y Reconversión Laboral: Experiencias Internacionales y el Caso Chileno," ILADES-UAH Working Papers inv109, Universidad Alberto Hurtado/School of Economics and Business.
    2. Tyler Cowen, 2007. "When should regions bid for artistic resources?," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 20(1), pages 1-10, March.
    3. Timothy J. Bartik, 2004. "Incentive Solutions," Upjohn Working Papers 04-99, W.E. Upjohn Institute for Employment Research.

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