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Negotiation of Rules on Subsidies in a World of Economic Interventionism

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International Trade and Industrial Policies

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Abstract

There appears to be consensus that state aids to industry are growing in scope and in effect, worldwide. These aids are sometimes general, such as in the case of investment incentives available to all industries, and at other times they are specific to a particular firm, industry, region, or area of research and development. Their effects are to distort market conditions and to reorient the pace and direction of adjustment of the industrial structure of each nation. Consequently, aids distort the conditions of international trade, affecting imports as well as exports. They can create adverse effects, giving rise to disruption or injury to particular economic interests. This brings about the potential for conflict among nations.

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Notes and References

  1. See John B. Sheahan, ‘Experience with Public Enterprise in France and Italy’, Chap. 7 in W. G. Shepherd, ed., Public Enterprise: Economic Analysis of Theory and Practice, (Lexington, 1976 ) pp. 142–4.

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  2. See Chap. 2, ‘Industrial Policy in the United Kingdom’, in G. Denton, S. O’Cleireacain, & S. Ash, Trade Effects of Public Subsidies to Private Enterprise, ( Macmillan, London, 1975 ) pp. 32–4.

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  3. See Jacob Viner’s history in his Dumping: A Problem in International Trade (reprinted, Augustus M. Kelley, N.Y., 1966) Chap. 10.

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  4. For a survey of the state of thinking, see my monograph International Order for Public Subsidies, ( Thames Essay, London, 1977 ).

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  5. See R. Middleton, Negotiating on Non-Tariff Distortions of Trade: The EFTA Precedents (Macmillan, London, 1975) esp. pp. 42–54.

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Authors
  1. Harald B. Malmgren
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Editors and Affiliations

  1. City University of New York, USA

    Steven J. Warnecke (Associate Professor of Political Science) (Associate Professor of Political Science)

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© 1978 Steven J. Warnecke

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Malmgren, H.B. (1978). Negotiation of Rules on Subsidies in a World of Economic Interventionism. In: Warnecke, S.J. (eds) International Trade and Industrial Policies. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-03412-3_11

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