Economic research and trade policy analysis
Global Landscape of Subsidy Measures
Our understanding of subsidies remains uneven and incomplete. There are important gaps in our knowledge of subsidy practices; while information for some sectors is relatively developed, in others it remains at an earlier stage. At the global level, we have a better picture of the number of subsidy measures than of their relative size or importance, but numerical counts can be misleading—for example, when one country reports many small subsidy measures, while another reports only one (very large) aggregate program. The picture is also affected by the uneven transparency of subsidy measures across sectors and countries. Drawing on the available information, this section sets out what we know—and don’t know—about the use of subsidies.
The Scope of the SCM Agreement: Definition of Subsidy and Specificity
WTO rules on subsidies are set out in the GATT (1994) and more specifically in the WTO Agreements on Subsidies and Countervailing Measures (SCM Agreement) and Agriculture (AoA), which are relevant for trade in goods. When the GATT entered into force in 1947, its references to subsidies and their potential trade impacts were limited and lacked operational detail. Even at that time, however, the importance of disciplining subsidies to secure the value of agreed tariff concessions was understood by the contracting parties, hence the inclusion of Articles VI and XVI in the GATT. In particular, a member can undermine its market access commitments by providing subsidies to import-competing industries. In addition, subsidies given by one government to firms exporting to third economies can divert trade toward those exporters and away from those from economies that had relied on negotiated market access to the third economy market. As such consequences increased over time, GATT Contracting Parties increasingly strengthened the disciplines on subsidies, first through the addition of an export subsidy provision in GATT Article XVI, then through the plurilateral Tokyo Round Subsidies Code, and finally in the Uruguay Round. In this respect, the negotiation of the SCM Agreement and the AoA, both of which are part of the WTO “Single Undertaking” and therefore binding for all WTO members, was a major step.
Final Remarks
Broad-based cooperation on subsidies is needed to bring greater transparency, openness, and predictability to global trade. Subsidies appear to be widespread, growing, and often poorly targeted at their intended policy objectives. Beyond raising economic efficiency concerns, this situation is spurring the use of unilateral trade defense measures, eroding public support for open trade, and contributing to severe trade tensions that impede progress on other global trade priorities. Governments should work expeditiously to clarify and strengthen international disciplines around subsidies while recognizing the important roles that well-designed subsidies can play in some circumstances. To complement and support this work, more effort is needed to draw up an agenda to improve our understanding of current subsidy programs and their implications for trading partners and the global commons. This paper aims to begin a discussion within the international community on how to develop and implement such an agenda.
El debate internacional en materia de políticas
Dialogar sobre normas nuevas y mejoradas que regulen las subvenciones es importante para aliviar tensiones comerciales y forjar un sistema multilateral de comercio más sólido. Las conversaciones están avanzando a un ritmo desigual entre distintos interlocutores, con diferentes grados de urgencia y aspiraciones. Estas conversaciones abarcan las subvenciones a la pesca, la agricultura y la industria, y se centran sobre todo en determinadas esferas, como las prescripciones de notificación de subvenciones en la OMC, las empresas de propiedad estatal o las prácticas en materia de crédito a la exportación y los instrumentos de política de competencia desarrollados por la OCDE. También se celebran debates de carácter sectorial, por ejemplo sobre las subvenciones a los combustibles fósiles o el acero, en otros foros intergubernamentales, en particular el G7 y el G20.
Executive summary
This co-publication by the World Bank and the WTO is motivated by a shared view that the structural changes associated with a more service-centric world economy and the central contribution that expanded trade and investment in services can make to economic growth and development warrant greater policy attention and revived international cooperation. An important aim of the publication, and a key reason for its joint nature, is to recall the benefits of advancing the negotiating agenda on trade in services, and the opportunity costs of not doing so. Accordingly, the publication aims to foster reflection on how best to mobilize additional support – and better assistance – for developing and least-developed economies in implementing services sector reforms and reaping the development gains from expanded trade and investment in services.
Introduction
La pandémie de COVID-19 est annonciatrice d’autres pandémies, potentiellement plus graves. À maintes reprises, les scientifiques ont averti que, si nous ne renforçons pas considérablement les stratégies de prévention, les menaces sanitaires mondiales émergeront plus fréquemment, se propageront plus rapidement et feront plus de victimes. Avec la diminution de la biodiversité à l’échelle mondiale et la crise climatique, auxquelles elles sont inextricablement liées, les menaces de maladies infectieuses constituent le plus grand défi international de notre époque. Ce n’est pas être alarmiste que de reconnaître cette nouvelle réalité qu’est « l’ère des pandémies », mais plutôt une marque de prudence dans l’action publique et de responsabilité politique. Nous devons nous organiser au niveau national, en impliquant l’ensemble de la société, et repenser nos modes de collaboration internationale pour atténuer les conséquences profondes de cette réalité sur les moyens d’existence, la cohésion sociale et l’ordre mondial.
Introduction
The World Tariff Profiles is a joint publication of the WTO, ITC and UNCTAD devoted to market access for goods. This statistical yearbook contains a comprehensive compilation of the main tariff parameters for each of the 164 WTO members plus other countries and customs territories where data is available. Each tariff profile presents information on tariffs imposed by each economy on its imports complemented with an analysis of the market access conditions it faces in its major export markets.
Corrientes comerciales de bienes y servicios médicos
Este capítulo tiene dos objetivos: a) examinar las principales características de la oferta y la demanda en los mercados de bienes y servicios médicos y la forma en que determinan los beneficios y los riesgos derivados del comercio de dichos productos; y b) proporcionar hechos estilizados sobre las tendencias del comercio internacional de bienes y servicios médicos, incluido el funcionamiento de las cadenas de suministro médico, antes y durante la pandemia de COVID-19.
Vue d’ensemble
La pandémie de COVID-19 a mis en lumière les avantages et les inconvénients du commerce international des produits et services médicaux. Un commerce ouvert peut favoriser l’accès mondial aux produits et services médicaux (ainsi qu’aux intrants essentiels nécessaires à leur production), améliorer la qualité et réduire les coûts. Un accès mondial amélioré aux services et produits médicaux peut ensuite contribuer à la sécurité sanitaire mondiale, que l’Organisation mondiale de la santé (OMS) définit comme suit : « activités préventives et réactives requises pour réduire au minimum les dangers et conséquences des événements de santé publique majeurs qui menacent la santé des populations, dans toutes les régions et par-delà les frontières au niveau international ». Toutefois, une concentration excessive de la production, des politiques commerciales restrictives, des perturbations des chaînes d’approvisionnement et des divergences réglementaires peuvent compromettre la capacité des systèmes de santé publique à se préparer et à répondre aux pandémies et autres crises sanitaires, par exemple en limitant l’accès universel aux biens et services essentiels.
Acknowledgements
Acknowledgements are due to all the data providers, mostly national administrations or WTO delegations who have made this information available including through notifications presented as a special topic. In a number of cases, data has been made available on national websites or through regional organizations. Given the vast amount of statistical data and metadata that needed to be processed, and because this information is not available in one single organization, this publication was only possible as a joint effort of the WTO, ITC, and UNCTAD. Each of the three organizations has a proven track record and comparative strengths in the field of tariff analysis.