Anti-dumping, subsidies, safeguards
Case-Study I
This case-study, as is the case with the second case-study as well, seeks to illustrate the concepts discussed in a concrete fashion in the context of a hypothetical investigation. The methodologies described herein do not necessarily represent the practices of any particular WTO Member, and their disucssion in this case-study is not intended as an endorsement of those methodologies or as an indication that such methodologies are consistent with the AD Agreement. Nor are any of the possible conclusions or outcomes discussed in this case-study necessarily valid or sustainable in the context of WTO dispute settlement. The case-study merely seeks to illustrate possible approaches that might be taken to resolving issues that commonly arise in calculating margins of dumping. The methods presented herein are by no means always the only available methodologies, but they are based on methods that have been applied by Members which have not been disapproved by any dispute settlement panel. In many instances, there may be more than one approach that would be consistent with Member obligations under the AD Agreement.
The trade situation in 2008-09
Signs of a sharp deterioration in the global economy were evident in the second half of 2008 and the first few months of 2009 as world trade flows sagged and production slumped, first in developed economies and then in developing countries. Although world trade grew by 2 per cent in volume terms over the course of 2008, it tapered off in the last six months of the year and was well down on the 6 per cent volume increase posted in 2007. World output measured by real gross domestic product (GDP) also slowed appreciably, falling to 1.7 per cent in 2008 from 3.5 per cent a year earlier.
Foreword
The World Trade Report 2006 is the fourth in a series launched in 2002. As in previous years, the present Report has taken up a current issue in trade policy. This year we have looked at subsidies. The contribution we hope to make with these Reports is to aid understanding of complex trade policy issues facing governments. This is not intended primarily as a prescriptive Report, but rather as an invitation to deeper reflection, and it is aimed not just at policy-makers but also the public they represent and the individuals and organizations that actively seek to influence government policies. In addition to the core topic, the Report also takes a brief look at recent developments in trade and discusses some salient features of recent trade developments or a particular aspect of trade. This year, the Report looks briefly at trade in textiles and clothing, flows of international receipts and payments of royalties and license fees, trends in the trade of least-developed countries, and the impact of natural disasters and terrorist acts on international trade flows.
Subsidies and the WTO
We have discussed the economic arguments for and against different kinds of subsidization earlier in the Report. Economic analysis tells us that market failures of various kinds can sometimes be addressed efficiently with subsidies. It also tells us that subsidies can distort trade flows if they give an artificial competitive advantage to exporters or import-competing industries. Whether a subsidy is viewed as a desirable intervention for correcting a market failure or as an undesirable trade distortion depends sometimes upon who is making the judgement. But economic analysis ought to be able to help, both in determining the desirability of an intervention from a welfare perspective, and in assessing the merits of alternative forms of intervention. Governments may, however, decide to grant certain kinds of subsidies that have little to do with efficiency considerations, and in such cases economic analysis based on a simple welfare analysis may be of limited use. Also in these cases, the analysis is probably most helpful in ensuring that policy-makers are aware of the costs of pursuing particular objectives and of alternative, lesser-cost ways of doing so. We also know that judgements about what to subsidize, by how much and for how long are complex technical questions on which governments frequently lack adequate information.
Tendencias recientes en el comercio internacional
En 2005 la economía mundial creció el 3,3 por ciento, menos que en 2004, pero ligeramente por encima del promedio del último decenio. El crecimiento económico siguió siendo fuerte en la mayoría de las regiones, aunque no tan intenso como el año anterior. Sólo la economía europea siguió registrando un bajo crecimiento del PIB, menos de la mitad del registrado en América del Norte. A diferencia de Europa en el Japón se experimentó un fortalecimiento de la actividad económica. Debido a la disminución del crecimiento económico a escala mundial y a la evolución del mercado del petróleo, el crecimiento del comercio de mercancías -al igual que el del PIB- se desaceleró en términos reales, aunque siguió siendo superior al promedio del último decenio.
Résumé analytique
Le Rapport sur le commerce mondial 2006 débute par un résumé succinct des principales tendances du commerce international établi sur la base du rapport publié par le Secrétariat en avril. Viennent ensuite de brèves observations analytiques sur certaines questions commerciales d’actualité, qui concernent, cette année, l’évolution récente du commerce des textiles et des vêtements, l’évolution des paiements internationaux au titre des redevances et des droits de licence, l’évolution du commerce des pays les moins avancés et les effets des catastrophes naturelles et des actes de terrorisme sur les courants d’échanges internationaux. Le Rapport 2006 a pour thème central les subventions, et en particulier la façon dont elles sont définies, ce que la théorie économique peut nous apprendre à leur sujet, les raisons pour lesquelles les pouvoirs publics y ont recours, les principaux secteurs dans lesquels elles sont accordées, et le rôle de l’Accord sur l’OMC dans leur réglementation dans le cadre du commerce international.