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The EU’s Export Refunds on Processed Foods: Legitimate in the WTO?

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  • Swinbank, Alan

Abstract

Export subsidies on processed foods are an important trade policy instrument for the European Union. GATT Article XVI legitimised the use of export subsidies on primary agricultural products, under certain circumstances, but forbade the use of export subsidies on non-primary products. However it was never satisfactorily resolved whether export subsidies could be paid on the primary agricultural products incorporated into processed products, such as pasta. The Uruguay Round Agreements, and particularly the Agreement on Agriculture (the URAA), apparently legitimised the EU’s practice of paying export subsidies on incorporated agricultural products, at least while the Peace Clause was in force. With the demise of the Peace Clause the question arises whether GATT Article XVI has any residual force, given that the range of primary agricultural products exempted by Article XVI from the ban on export subsidies is narrower than the list of agricultural products covered by the URAA.

Suggested Citation

  • Swinbank, Alan, 2006. "The EU’s Export Refunds on Processed Foods: Legitimate in the WTO?," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 7(2), pages 1-16.
    • Handle: RePEc:ags:ecjilt:7392
    DOI: 10.22004/ag.econ.7392
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    References listed on IDEAS

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    1. Benitah, Marc, 2005. "U.S. Agricultural Export Credits after the WTO Cotton Ruling: The Law of Unintended Consequences," Estey Centre Journal of International Law and Trade Policy, Estey Centre for Law and Economics in International Trade, vol. 6(2), pages 1-8.
    2. Hudec, Robert E., 1998. "Does The Agreement On Agriculture Work? Agricultural Disputes After The Uruguay Round," Working Papers 14612, International Agricultural Trade Research Consortium.
    3. John H. Jackson, 1997. "The World Trading System, 2nd Edition: Law and Policy of International Economic Relations," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262600277, December.
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    Cited by:

    1. Alan Swinbank, 2008. "Potential WTO Challenges to the CAP†," Canadian Journal of Agricultural Economics/Revue canadienne d'agroeconomie, Canadian Agricultural Economics Society/Societe canadienne d'agroeconomie, vol. 56(4), pages 445-456, December.
    2. Joseph A. McMahon, 2007. "Trade Policy Reform Through Litigation La voie judiciaire pour réformer les politiques commerciales Reform der Handelspolitik durch Rechtsstreitigkeiten," EuroChoices, The Agricultural Economics Society, vol. 6(2), pages 42-47, August.

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