Trade and Investment Subsidies

Reporting German Subsidies Under a WTO Notification Template

The GSI has developed a template to help countries comprehensively notify their subsidies to the World Trade Organization. This study applies the template to Germany as a test case - and reveals that it can vastly improve subsidy reporting.

Instead of the 11 subsidies notified by Germany for 2006 (with a total value of € 1.25 billion), the study’s conservative approach identifies 180 specific subsidy programmes that should have been notified. This would increase Germany's subsidy notification from a value of € 1.25 billion to almost € 11 billion.

Only around half of WTO members notify their subsidies, as required under the Agreement on Subsidies and Countervailing Measures (ASCM). This undermines the effectiveness of the ASCM, and disadvantages WTO members that do not have the resources to investigate other countries’ potentially trade-distorting subsidies. The study recommends that the WTO Secretariat be empowered to increase the pressure on Members to comply with their notification duties.

A full copy of the GSI's subsidy template can be accessed here.

 

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