Ignore Foreign Subsidies

by Don Boudreaux on March 9, 2007

in Politics, Subsidies, Trade

In my latest column in the Pittsburgh Tribune-Review I argue that subsidies allegedly paid — or even unquestionably paid — by foreign governments to exporters within their jurisdictions do not justify any “retaliatory” actions by Uncle Sam.

Here’s my concluding paragraph:

I know of no cases in which a country was impoverished, or even measurably damaged, by its refusal to “retaliate” against alleged instances of foreign subsidies. This fact, combined with the ease of abusing the ability to accuse foreign rivals of being subsidized, counsels strongly in favor of our own government turning a deaf ear to such accusations.

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