The many facets of export subsidies in WTO

Abstract: To be able to improve a law, one has to understand it. The World Trade Organization (WTO) Treaty and Agreement on Subsidies and Countervailing Measures (ASCM) specifically have become important in recent years mainly due to the massive subsidies and bailouts resulting from the on-going financial crisis that began in 2008. With the member states governments increased use of different relief and stimulus packages, as tools to help their domestic production through this crisis, many member states have started to ask for changes in the ASCM so as to establish clear, consistent and fair rules for all types of export financing. This paper investigates, discusses and analyses the problem that causes legal uncertainty. The focus of this paper is the indirect aspect of “export subsidies” due to their hidden and implicit nature. It examines measures that fall within the scope of article 3.1a) of the ASCM which covers prohibited export subsidies, as they are today within the WTO-context. Instruments used are the text of the ASCM and WTO Customary Law. After the identification of the issues causing the legal uncertainty and therefore unpredictability is accomplished, the different indirect export subsidizing methods found are summarized. By pinpointing these measures some possible solutions for a change in the ASCM might be found.