Addressing international spillover effects of subsidy programs

Abstract

Since the Global Financial Crisis in 2008, G20 countries have relied extensively on a variety of tax-subsidy instruments to support domestic firms and sectors. COVID-19 has led to a further increase in subsidisation. Spillovers associated with subsidy programmes and the behaviour of state-owned or state-controlled enterprises have become a major source of trade tension. This panel will discuss options for managing the competitive effects of subsidies in and outside the World Trade Organization.