Industrial subsidies in three economies – their global economic effects and legal framework

About trade

Published: 20 Jul 2020

A great number of industrial subsidies are currently used by the EU, China and the US. This despite the fact that many types of subsidies are economically harmful and could disrupt global trade. In a new report, the National Board of Trade Sweden studies the current use of industrial subsidies by major economies and how it is regulated in the WTO.

– Industrial subsidies are used by governments in all three economies covered in the report: the EU, China and the US. A significant share of global trade could potentially be affected by these subsidies, Hannes Jägerstedt, trade policy adviser, says.

– The discussion on subsidies has been going on for a long time and some WTO members have expressed concerns that the WTO rules are not sufficient to prevent market distortions. This has led to calls for a modernisation of the framework.

The report concludes that the legal framework needs to be modernised and that transparency needs to increase. Today, there are requirements that WTO members report industrial subsidies to the WTO. However, these requirements need to be tightened since many countries do not report their subsidies in a reliable manner.

Download the report

"The Use of Industrial Subsidies by Major Economies – economic and legal perspectives"


The WTO legal framework

Emilie Eriksson
+46-8-690 49 34

Industrial subsidies´ economic effects

Hannes Jägerstedt
+46-8-690 48 69