The name is absent

20

farmers to the rationalization of failing industries to the development of technologically more advanced
enterprises. In the commercial sphere, the differences among countries in the use of subsidies are in large
part linked to the relation between the state and private enterprise that has evolved over time. The United
States, at least over the last 25 years, has emphasized reliance on market-determined decisions, and in the
Uruguay Round negotiations, it sought a broad definition of what constituted a subsidy and a narrow
definition of subsidies that were not “actionable” under the GATT/WTO. Most of the other developed
countries as well as developing countries wanted a more restricted definition of subsidies and a more
inclusive set of non-actionable subsidies. Reluctant compromises were made for the sake of reaching
some agreement, but it is doubtful if the participants are fully reconciled to all aspects of the agreement,
particularly with regard to the possible abuses in using countervailing duties.

The more it is the case that proposed trade rules impinge on different national preferences for
social and economic policy, the more difficult it is to agree on their fairness. The preferences may be
rooted in strongly held, but different, normative or causal beliefs that make it extremely difficult, or
impossible, for countries to agree on what constitutes equality of opportunity. But these preferences
cannot be disregarded in rule-making if the system is to be judged fair. They thus set limits on the extent
to which trade rules can intrude into national economies.

5.2 Developing Countries

As noted, developed countries have been able to arrive at supporting rules when their different
conceptions of fairness in the matters addressed have converged sufficiently to make the rules mutually
acceptable. The specific terms of their agreements on different issues have, in their eyes, satisfied the
condition of equality of opportunity. Until recently, developing countries have been weak and peripheral
actors in such rule making, and it cannot be said that their conceptions of fairness have played a
comparably influential role. The rules have emerged largely from negotiations among the developed
countries, and they have tended to suit their circumstances. Not surprisingly, many developing countries

Executive Branch of the U.S. Government.

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