Can we stop a global subsidy race?

Date

June 21, 2023, 9:00 AM to 10:00 AM EDT
Virtual Event

Cecilia Malmström (PIIE), Anabel González (World Trade Organization) and Inu Manak (Council on Foreign Relations)

Event Summary

Advanced economies have long avoided industrial policy and subsidies because of their inefficiency. But the United States has set a new tone with the Inflation Reduction Act (IRA), which includes extensive tax credits for electric vehicles, green manufacturing, and renewable energy production. China has long subsidized its state-owned enterprises and the European Union is relaxing its state aid rules. The global economy is entering a global subsidy race, and while some subsidies are necessary for the green transition, others risk distorting global markets and hampering innovation. The World Trade Organization (WTO), World Bank, and the International Monetary Fund (IMF) have launched a joint project to promote access to subsidy information, but is there a way to find common definitions of good and bad subsidies and avoid raising trade tensions?

Joining this episode of Trade Winds are:

HOST 

Cecilia Malmström
Nonresident Senior Fellow, Peterson Institute for International Economics (PIIE)

GUESTS
Anabel González
Deputy Director-General, World Trade Organization

Inu Manak 
Fellow for Trade Policy, Council on Foreign Relations

Video

Series

About This Series

Trade Winds is a monthly virtual event series hosted by Cecilia Malmström that explores the future of global commerce, including ways that international cooperation on trade can accelerate the recovery from the COVID-19 pandemic.