Reviews the main commitments undertaken in the framework of the World Trade Organization (WTO) on the issue of subsidies and the policy implications of such agreement. Examines the freedom of action that is left to developing countries to promote exports. Concludes that while the use of old style subsidies is restricted, there is still manoeuvring room to apply them creatively as well as to think forward to devise alternative policy initiatives. Discusses these policy options and suggests some basic criteria for their formulation and implementation. Argues that there are more benefits than costs in the new commitments insofar as subsidies are less useful in today's trading environment.

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