Perhaps the most divisive issue in international trade relations is the question of subsidies. Each year, G7 countries quarrel over member states's subsidies. Whether it's rice to Japan or rape seeds in France, the effect of subsidies on trade relations has become a matter of vital economic performance for industrialized nations, and perhaps the new diplomatic drama of the post-Cold War era.
"Industrial Subsidies and Friction in World Trade" examines a number of recently launched efforts to regulate these subsidies and obviate the need for hefty, counter-veiling import duties. Reviewing both the effectiveness and the origin of the newly created European Economic Area, Behboodi provides a timely analysis of this controversial, often irresovable, thorn in the side of international trade relations. Illuminating the role played by recent legislation such as Chapter 19 of the Canada-United States Free Trade Agreement, "Industrial Subsidies and Friction in World Trade" confronts this issue of international concern, negotiating such things as the political and economic effects of the European Union and the Uruguay Round Subsidies Code. This book provides a clear and fresh perspective on this often impenetrably complicated international issue.
"A well-researched volume such as this one ... contributes to our understanding of the international economic system ... Given its focused presentation and wealth of facts, this volume could be useful in graduate courses dealing with international trade issues, and it surely will be of value to those who have an interest in subsidies, in protectionism in general, and in trade policy and the inevitably linked trade politics."
-"The International Trade Journal