Bilateral Agreements That Restrict Exports

In view of these different issues relating to the conceptualisation of `subsidy` and `specificity`, it is at least questionable whether the SCMs Agreement is satisfactory in its efforts to distinguish between authorised and potentially `unfair` subsidies and whether the attempt to draw the line between subsidies which are the subject of legal action and those which are not, worth it. In particular, given that subsidies often give positive externalities and that the most obvious case of subsidies with negative externalities – those that affect negotiated commitments – is monitored by the long-standing doctrine of non-violence, now enshrined in the SCM Agreement, it can be argued that a laissez-faire approach for other forms of subsidies is a plausible legal approach. Such an approach prevails in the US federal system.ooo We will then examine the breakdown of the form of anti-dumping measures by export origin. Overall, the EU tends to favour ad valorem import tariffs in order to limit imports from income and emerging economies. In contrast, in about 35% of cases where it imposes an anti-dumping measure on a developing country, the EU negotiates a price undertaking. This result could be another means of discrimination between trading partners (towards new entrants). On the other hand, price obligations may indeed be favoured by exporters if the alternative is an EU anti-dumping duty, since in the case of a price undertaking, the exporter receives at least all the `quota rents` related to the restriction. One of the main causes of state discrimination against agriculture in developing countries is the desire to keep food prices low for urban consumers. Industrialized countries have also tried to control food prices in times of sharp rise, such as in the commodity boom of the 1970s, through price caps and export restrictions.

More important measures under way include regulating food quality and security, providing food assistance to the malnourished poor and combating famine. Chemical residues on food and the use of genetically modified organisms (GMOs) in agriculture were particularly controversial in the 1990s. If negotiations on a multilateral trade agreement remain unsuccessful, many nations will instead negotiate bilateral agreements. However, new agreements often result in competing agreements between other countries, eliminating the benefits of the free trade agreement (FTA) between the two home countries. The WTO`s treatment of export cartels is an area in which there is potentially more political relevance and, therefore, more discussion. Similar to the WTO`s ban on import quotas, Article XI prohibits the application of quantitative restrictions on the export side (i.e. export quotas). .

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