from Part IV - Law and Development in Regional Initiatives
Published online by Cambridge University Press: 05 August 2011
Introduction
In constructing subsidy and countervailing duty (CVD) laws, the most difficult task is to distinguish between “legitimate” government activities on one hand, and trade distorting subsidies on the other. The difficulty can be inherent in light of the divergent views on the role of government involvement with industry and on the industrial policies of developing countries. At present, the World Trade Organization (WTO) Agreement on Subsidies and Countervailing Measures (SCM) adopts the specificity requirement, which allows countervailing actions against government programs that aid local enterprises or industries in any manner that would harm foreign industries.
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