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The WTO, Subsidies and Countervailing Measures
Subsidies and countervail have been the subject of much attention in recent decades. In this volume, the editors have selected seminal contributions to the literature on the economics of subsidies and countervailing duties in international trade, their role in trade agreements and their treatment in the GATT/WTO system.
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Contributors
Contents
More Information
Subsidies and countervail have been the subject of much attention in recent decades. In this volume, the editors have selected seminal contributions to the literature on the economics of subsidies and countervailing duties in international trade, their role in trade agreements and their treatment in the GATT/WTO system. A close look at the welfare effects of these measures from an economic perspective sheds essential light on the use of such policy tools by governments and the economic rationale for international rules in this area. Careful economic analysis points at the strengths and weaknesses of the current arrangement and provides food for thought for further discussions on the efficient design of trade agreements. This authoritative collection, along with an original introduction by the editors, will serve as an excellent reference source for students, scholars and practitioners in the field of international trade.
Contributors
37 articles, dating from 1963 to 2009
Contributors include: K. Bagwell, J. Bhagwati, A. Dixit, G. Grossman, H. Horn, J.H. Jackson, P. Mavroidis, B. Spencer, R. Staiger, A. Sykes
Contributors include: K. Bagwell, J. Bhagwati, A. Dixit, G. Grossman, H. Horn, J.H. Jackson, P. Mavroidis, B. Spencer, R. Staiger, A. Sykes
Contents
Contents:
Acknowledgements
Introduction Marc Bacchetta and Michele Ruta
PART I THE ECONOMICS OF SUBSIDIES AND COUNTERVAILING DUTIES
A The Economics of Subsidies in Open Economy: Production Subsidies
1. 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 Subsidies
3. 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&D
10. 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 Perfect
13. 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 Imperfections
15. 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 Subsidies
20. 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 Measures
22. 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 II LAW AND ECONOMICS OF WTO SUBSIDY AND COUNTERVAILING DISCIPLINES
A Institutions and History
26. 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 Agreements
29. 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 Agreements
31. 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 Agreements
33. 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 III AN 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’
Acknowledgements
Introduction Marc Bacchetta and Michele Ruta
PART I THE ECONOMICS OF SUBSIDIES AND COUNTERVAILING DUTIES
A The Economics of Subsidies in Open Economy: Production Subsidies
1. 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 Subsidies
3. 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&D
10. 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 Perfect
13. 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 Imperfections
15. 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 Subsidies
20. 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 Measures
22. 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 II LAW AND ECONOMICS OF WTO SUBSIDY AND COUNTERVAILING DISCIPLINES
A Institutions and History
26. 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 Agreements
29. 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 Agreements
31. 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 Agreements
33. 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 III AN 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’
