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Subsidies and countervail have been the subject of much attention in recent decades. In this volume, the editors have selected seminal contributions to the literature on the economics of subsidies and countervailing duties in international trade, their role in trade agreements and their treatment in the GATT/WTO system. A close look at the welfare effects of these measures from an economic perspective sheds essential light on the use of such policy tools by governments and the economic rationale for international rules in this area. Careful economic analysis points at the strengths and weaknesses of the current arrangement and provides food for thought for further discussions on the efficient design of trade agreements. This authoritative collection, along with an original introduction by the editors, will serve as an excellent reference source for students, scholars and practitioners in the field of international trade.