Vol. 29, No. 1 (Spring
The Limited Effectiveness of the Agreementon
Subsidies and Countervailing Measures (SCM) in WTO
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.