Agreement on Subsidies and Countervailing Measures Pdf

09 Abr Agreement on Subsidies and Countervailing Measures Pdf

Agreement on Subsidies and Countervailing Measures Pdf: An Overview

The Agreement on Subsidies and Countervailing Measures (ASCM) is a vital international treaty that was established in 1995 as part of the World Trade Organization (WTO). The agreement seeks to regulate and govern the use of subsidies that are given by governments to their industries and trade partners. This article will provide an overview of the ASCM, its key provisions, and its impact on international trade.

What is the ASCM?

The ASCM is a multilateral agreement that provides rules and regulations on the use of subsidies between WTO member countries. It was designed to ensure that WTO members adhere to fair trade practices and prevent the use of subsidies that distort international trade. The agreement defines subsidies as any financial contribution provided by a government that confers a benefit on a specific industry, enterprise, or group of enterprises.

The ASCM has three main objectives:

1. To discipline the use of subsidies and prevent their use in a way that distorts international trade.

2. To provide a framework for the application of countervailing measures (i.e., retaliatory measures) against subsidized imports.

3. To encourage the use of non-trade-distorting measures to promote economic development.

Key Provisions of the ASCM

The ASCM has several key provisions that govern the use of subsidies between WTO member countries. These include:

1. Prohibition of Specific Types of Subsidies: The ASCM prohibits specific types of subsidies that are deemed unfair to international trade. These include export subsidies, which provide direct or indirect support to exports, and subsidies that are contingent on the use of domestic over imported goods.

2. Disciplines on Other Types of Subsidies: The ASCM also contains disciplines on other types of subsidies that are deemed potentially trade-distorting. Governments are required to notify the WTO of any subsidies they provide, their nature, and their effect on trade.

3. Countervailing Measures: The ASCM provides a framework for the application of countervailing measures (i.e., retaliatory measures) against subsidized imports. However, WTO members are required to prove that the imported product is subsidized and that it has caused injury to domestic producers.

Impact of the ASCM on International Trade

The ASCM has had a significant impact on international trade since its establishment. It has provided a framework for the regulation of subsidies between WTO member countries, thereby promoting free and fair trade. The agreement has also led to a reduction in the use of subsidies that distort international trade, thereby reducing trade barriers and promoting global economic growth.

In conclusion, the ASCM is an important international agreement that has helped to regulate the use of subsidies in international trade. Its key provisions have helped to promote free and fair trade, thereby reducing trade barriers and promoting global economic growth. As a professional, I urge businesses and governments to adhere to the ASCM`s regulations to promote fair and equitable trade practices.