Subsidies in the services sector: Case study of India
Description
Unlike trade in goods, the General Agreement on Trade in Services (GATS) does not yet include comprehensive disciplines on subsidies affecting services trade, although Article XV recognises that such subsidies may distort trade and mandates negotiations to establish multilateral rules. Despite over a decade of discussions, progress has been limited, focusing largely on defining subsidies and improving transparency through information exchange. This study examines subsidies in services across selected developed and developing countries, including the United States, Canada, the United Kingdom, China and India, using a sector-specific approach. It aims to identify the forms of subsidies, assess their potential to distort trade, and provide a comparative overview across countries. The study also evaluates the implications of these subsidies for India’s trade interests and examines their compatibility with GATS commitments. The findings highlight the complexity and diversity of subsidy practices in services and underscore the need for clearer multilateral disciplines to address their trade-distorting effects effectively.
Copyright Date
January 2014
Publication Date
1-1-2014
Publisher
ICRIER, Ministry of Commerce, Government of India
Keywords
Services sector, Subsidies, India
