chapter  10
7 Pages

Subsidies

The Agreement on Subsidies and Countervailing Measures (ASCM) governs the

use of subsidies and regulates the actions that countries can take to counter their

trade impact. The ASCM builds on the Tokyo Round subsidy code (issued in 1979)

but takes the important step of defining what a subsidy is, making it the first inter-

national agreement on acceptable levels of government support for production and

trade.