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GOVERNMENT ACTIQNS AGAINST DOMESTIC SUBSIDIES, AN ANALYSIS O F THE INTERNATIONAL RULES AND AN INTRODUCTION TO UNITED STATES' PRACTICE 'The United States has become far and away the largest user of coulltervailing duty proceedings. All other nations combined have probably not used countervailing duties explicitly to offset subsidies more than about two dozen times. . . . (T)he United States is blazing a trail.'§ In the present world economic situation subsidies have become an important and actual issue. The industrialized countries, facing difficult structural changes in their economies, are subject to severe political pressure to use subsidies to aid the adjustment process (indeed, subsidies are sometimes used to slow down the adjustment process, although protectionist measures are used more frequently for that purpose). The heavily indebted developing countries, considering exports the only means of paying off their debts and so diminishing their burden, try to boost their export activities by granting subsidies to their producers. The effects of such government aids, however, go beyond the intentional goals of the subsidizing countries and can create serious distortions in other countries. For this reason, and because government intervention is growing almost worldwide, the need for abiding by international rules becomes
Legal Issues of Economic Integration – Kluwer Law International
Published: Jan 1, 1986
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