Brou, Daniel; Ruta, Michele - 2012 - Manuscript date: September 2012
This paper examines the rationale for the rules on domestic subsidies in international trade agreements through a … curtailed by a trade agreement that binds tariffs only. We refer to this as the policy substitution problem. When factors of … credibly commit vis-à-vis the domestic lobby unless the trade agreement also regulates production subsidies, thus addressing …