The General Agreement on Trade in Services (GATS) was created to
extend the multilateral trading system to the service sector, in
the same way the General Agreement on Tariffs and Trade provides
for merchandise trade. Little is said in the GATS about subsidies
beyond stipulating that a subsidy to a service provider or industry
must be in accordance with the most-favored nation and
national-treatment principles. This timely book provides a
comprehensive analysis of services subsidies under the GATS. It
begins with a description of services and trade in services and of
the salient characteristics that make regulation of services
subsidies more complex than those associated with agricultural and
industrial goods. It then analyzes the economic arguments
underpinning the need for regulation, as well as the need for
governments to retain sufficient latitude to implement non-trade
related policy measures. A description of the data on services
subsidies is followed by a classification of services subsidies
according to their distortive effects and by a detailed analysis of
those elements that may form a definition of services subsidies for
the purpose of a future regulatory framework. A key section is
devoted to the analysis of those existing provisions of the GATS
that may exert a certain measure of discipline on services
subsidies and to the question of the desirability and technical
feasibility of countervailing measures. Rules on services subsidies
contained in regional trade agreements are also discussed. Finally,
and prior to the conclusion, two sectoral studies deal with the
question of subsidies aimed at attracting foreign direct investment
and subsidies to the audiovisual sector. This work represents the
first extensive and comprehensive analysis of the issue of services
subsidies in the context of the GATS and includes numerous
references to relevant European Union State Aid legislation and
jurisprudence.
General
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