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Subsidies, Spillovers and Multilateral Cooperation

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  • Bernard Hoekman
  • Douglas Nelson

Abstract

Negative international spillovers created by nontariff policies are a rising source of trade tensions and conflicts. The WTO does not include rules for subsidies for services industries, state-owned enterprises or investment incentives. Existing disciplines on industrial policies are increasingly seen to be inadequate by many WTO members. Efforts to revisit and expand rules for contested policies must recognize the changing nature of international production. A first step in addressing trade conflicts associated with industrial policies is to determine where negative international competition spillovers are both large and systemic in nature. Doing so requires going beyond trade ministries and bringing in finance and line ministries, as well as competition agencies and international organizations with expertise in collecting information on subsidies and analyzing their effects.

Suggested Citation

  • Bernard Hoekman & Douglas Nelson, 2020. "Subsidies, Spillovers and Multilateral Cooperation," RSCAS Working Papers 2020/12, European University Institute.
    • Handle: RePEc:rsc:rsceui:2020/12
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    References listed on IDEAS

    as
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    Cited by:

    1. Bernard Hoekman & Douglas Nelson, 2020. "Rethinking international subsidy rules," The World Economy, Wiley Blackwell, vol. 43(12), pages 3104-3132, December.
    2. Robert Wolfe, 2020. "Informal Learning and WTO Renewal. Using Thematic Sessions to Create More Opportunities for Dialogue," RSCAS Working Papers 2020/51, European University Institute.

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    Keywords

    Trade agreements; subsidies; spillovers; international cooperation; WTO;
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