Developing countries want WTO study of protectionist impact of bailout & stimulus packages.

(Reuters, Geneva, 22 January 2010) Rich-country members of the World Trade Organisation have blocked calls by developing countries to examine the possible protectionist impact of bailouts and financial stimulus packages. As noted in What's New article #4 above, ECAs played a significant role in these packages. However, the WTO's Agreement on Subsidies and Countervailing Measures creates a loop-hole for ECA subsidies if they meet the OECD's poorly monitored Arrangement, a self-professed "Gentlemen's Agreement" designed to restrict a race to the bottom in export subsidies. Meanwhile, the EU and the US continue their dispute at the WTO over aircraft subsidies. (See article #9 below also.)