Subsidies are on the rise. Are they a necessary evil?

The number of subsidies is increasing worldwide, even more since the onset of the pandemic. From a domestic point of view, many subsidies provide much needed economic support during hard times, but some are harming the global trading system. Which ones are harmful—and how many are there in fact? Does the recent proliferation of subsidies mean we need a new global definition of what a subsidy is? Can we count on the World Trade Organization to update its rules on subsidies and countervailing measures?

Joining this episode of Trade Winds were:

HOST

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

GUESTS

Chad P. Bown
Reginald Jones Senior Fellow, PIIE
Working Paper 22-1: Trump ended WTO dispute settlement. Trade remedies are needed to fix it.

Simon Evenett
Professor of Economics, University of St. Gallen, Switzerland

Ignacio Garcia Bercero
Director for Multilateral Affairs and Strategy, Directorate-General for Trade in the European Commission; Visiting Professor, University College London (UCL)

Julia Ya Qin
Professor of Law, Wayne State University