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To correct these distortions, the WTO is trying to impose a certain discipline by way of an Agreement on Subsidies and Countervailing Measures (ASCM). The perception of developing countries towards the ASCM is that it has serious imbalances. They argue that the subsidies they get for industrialisation and social development have been included in the actionable or prohibited category, implying that they are liable to countervailing duties, while that used by developed countries belong to the non-actionable category and hence exemption from countervailing duties.
"A Development Round of Trade Negotiations?" (Stiglitz and Charlton, 2004), a report prepared for Commonwealth Secretariat, states that the new trade rules and domestic disciplines introduced in the WTO reflect the needs and priorities of developed countries, and not that of developing countries
developed countries, including the US and the UK, have largely used industrial policies and the so-called 'bad' trade policies, such as, infant industry protection and export subsidies, during the initial stages of their development, and now the WTO rules are preventing developing countries from using such practices in their catch-up period...
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