IDEAS home Printed from https://ideas.repec.org/a/oup/jieclw/v6y2003i2p369-417.html
   My bibliography  Save this article

When the Peace Ends: The Vulnerability of EC and US Agricultural Subsidies to WTO Legal Challenge

Author

Listed:
  • Richard H. Steinberg
  • Timothy E. Josling

Abstract

Article 13 of the WTO Agreement on Agriculture, known as the 'Peace Clause', precludes most WTO dispute settlement challenges against a country that is complying with the Agreement's liberalization commitments -- until 1 January 2004, when the Peace Clause will expire. This article evaluates the strength of the main legal theories likely to be used in challenges to EC and US agricultural subsidies after expiry of the Peace Clause, and then employs economic techniques (regression analysis and equilibrium modeling) to meaningfully apply the soundest legal theories to economic data about agriculture trade. We conclude that when the Peace Clause expires, many commodity-specific EC and US agricultural subsidies will be vulnerable to legal challenge under Articles 6.3(a)--(c) and 6.4 of the WTO Agreement on Subsidies and Countervailing Measures. The remedy would require that such subsidies be withdrawn or that appropriate steps be taken to remove their adverse effects. Non-subsidizing developing countries can be expected to bargain in the shadow of this legal vulnerability, demanding that the Community and the United States commit to further subsidy reductions and a shift toward tariffs-and-decoupled-payments systems, in exchange for extension of the Peace Clause. Copyright Oxford University Press 2003, Oxford University Press.

Suggested Citation

  • Richard H. Steinberg & Timothy E. Josling, 2003. "When the Peace Ends: The Vulnerability of EC and US Agricultural Subsidies to WTO Legal Challenge," Journal of International Economic Law, Oxford University Press, vol. 6(2), pages 369-417, June.
    • Handle: RePEc:oup:jieclw:v:6:y:2003:i:2:p:369-417
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sumner, Daniel A. & Barichello, Richard R. & Paggi, Mechel S., 2004. "Economic Analysis In Disputes Over Trade Remedy And Related Measures In Agriculture, With Examples From Recent Cases," Working Papers 15845, University of British Columbia, Food and Resource Economics.
    2. Giovanni Anania, 2007. "Multilateral trade negotiations, preferential trade agreements and European Union’s agricultural policies," QA - Rivista dell'Associazione Rossi-Doria, Associazione Rossi Doria, issue 3, July.
    3. Anania, Giovanni, 2007. "Multilateral Negotiations, Preferential Trade Agreements and the CAP. What's Ahead?," Working Papers 7283, TRADEAG - Agricultural Trade Agreements.
    4. 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.
    5. 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.
    6. Mejía Cubillos, Javier, 2012. ""Agro, Ingreso Seguro" en perspectiva: Un análisis de políticas públicas ["Agro, Ingreso Seguro" in a public policy analysis perspective]," MPRA Paper 39998, University Library of Munich, Germany.
    7. Tim Josling & Dale E. Hathaway, 2004. "This Far and No Farther? Nudging Agricultural Reform Forward," Policy Briefs PB04-01, Peterson Institute for International Economics.
    8. Paggi, Mechel S., 2003. "Trade Policy Developments Affecting Cotton," Agricultural Outlook Forum 2003 33214, United States Department of Agriculture, Agricultural Outlook Forum.
    9. Embaye, Weldensie T. & Bergtold, Jason S., 2017. "Effect of Crop Insurance Subsidy on Total Farm Productivity of Kansas Farms, US," 2017 Annual Meeting, July 30-August 1, Chicago, Illinois 258107, Agricultural and Applied Economics Association.
    10. Robert Grosse & Jonas Gamso & Roy C. Nelson, 2021. "China’s Rise, World Order, and the Implications for International Business," Management International Review, Springer, vol. 61(1), pages 1-26, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jieclw:v:6:y:2003:i:2:p:369-417. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/jiel .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.