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NSIAD-83-10 1 (1983-08-15)

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BY THE US. GENERAL ACCOUNTING OFFICE



Report To The Secretary Of Commerce

And The United States Trade Representative







Benefits Of International Agreement On

Trade-Distorting Subsidies Not Yet Realized




GAO reviewed three strategies used by the
U.S. Government between January 1980-
83 to reduce the use of trade-related sub-
sidies under the 1979 international agree-
ment on subsidies.
  1, Persuading developing countries to
    assume increased discipline over the
    use of subsidies.
  2. Persuading Agreement signatories to
    report the subsidies they use.
  3. Using the Agreement's dispute settle-
    ment procedure to help eliminate the
    effects of subsidies.

 GAO concluded that to date these strategies
 have met with little success.

 Under U.S. law, the private sector initiates
 most disputes involving foreign subsidies,
 so GAO also reviewed how the Government
 shared information on foreign subsidy prac-
 tices with the private sector and recom-
 mended ways to improve this information
 sharing.









                                                           GAO/NSIAD-83-10
       0C OU,.                                                AUGUST 15, 1983

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