Subsidies, Trade, and International Cooperation

Dealing constructively with subsidies in global commerce is central to G20 leaders' goal of reforming and strengthening the multilateral trading system. The growing use of distortive subsidies alters trade and investment flows, detracts from the value of tariff bindings and other market access commitments, and undercuts public support for open trade. This publication finds that governments need to cooperate more on subsidies. It seeks to highlight the potential benefits of closer cooperation and considers some areas where this might be pursued constructively.