Tuesday, February 17, 2009

European Exceptionalism and Trade Policy

Well, it seems that Europe has decided to return to the time honored policy mechanisms of intervention buying (stock accumulation) and export subsidies on dairy products in the face of the on-going economic downturn. Didn't the U.S. recently lose a case in the World Trade Organization involving export subsidies in cotton...hmmm...I wonder if the European Union will be brought to task for the same behavior???