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JSPES, Vol. 29, No. 1 (Spring 2004 )
pp. 87-114

The Limited Effectiveness of the Agreementon Subsidies and Countervailing Measures (SCM) in WTO

Emmanuel Nyahoho

This paper, based on an analysis of the settlement of disputes by the DSB from 1993 to 2002, explains that the SCM Agreement, grounded on criteria of "specificity" and "serious prejudice" can only be interpretative. Also, the difficulty in settling commercial disputes related to this Agreement will drag on for the simple reason that the borders of an acceptable subsidy cannot be defined. Finally, the importance placed on "prejudice" to the domestic industry is overstated by not taking into account the interest of consumers. In short, it matters more to call for a repeal of national legislation on countervailing measures than to have an international agreement on subsidies.