|• Efforts to neutralise existing differences impinging on international competition. Instruments to this purpose are the available mechanisms of ‘contingent’ protection authorising the use of trade restrictions if certain conditions are met. This includes safeguard measures (contingent on import surges), anti-dumping measures (contingent on dumping practices) and countervailing measures (contingent on subsidies). Since in all these cases the interference with trade takes place at the border, the very structures, strategies and policies underlying the respective differences are not directly affected, nor is national sovereignty.|
|• Efforts to reduce the differences themselves. In this case an attempt is made to influence directly the national policy of trading partners in order to ‘level the playing field’. In consequence, national policies with a major impact on international trade and competition would tend to converge and the scope for sovereign action narrow. The problem of competition would be tackled ‘at the source’.|
The question of ‘social distortions’ in international trade can be approached from the angle of both neutralising as well as reducing inter-country differences
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Publication information: Book title: World Trade after the Uruguay Round:Prospects and Policy Options for the Twenty-First Century. Contributors: Harald Sander - Author, András Inotai - Author. Publisher: Routledge. Place of publication: New York. Publication year: 1996. Page number: 115.
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