U.S.: Subsidies linked to overcapacity are worse than export subsidies

The United States, along with Canada and the European Union, have renewed their call for World Trade Organization members to assist other international bodies in tackling overcapacity while making the case that subsidies that create and maintain excess capacity can be more harmful than prohibited export subsidies. “Given the highly distortive nature of these subsidies and the often-resulting spill-over of excess production onto export markets, the effects on trade of these subsidies often can be the same as -- if...