The next major boost to world trade is expected to come from greater trade in services. And this is possible only when greater liberalization in services is achieved which in turn depends on the progress that WTO members make in terms of higher commitments in different rounds of WTO negotiations. As this happens, subsidy practices of various member countries will increasingly come under sharp public scanner. Unlike agricultural and manufactured goods for which subsidy rules or disciplines are already well developed in the WTO, in services these rules/disciplines are yet to be developed. This paper brings out the complexity of issues that come up while developing subsidy disciplines for services under GATS. It discusses available evidence and draws some broad guidelines that can help in the development of subsidies framework.
