This is the fourth in a series of annual reports from the World Trade Organization which explore current trends, key developments and policy challenges in the world trading system. The 2006 report focuses on the topic of subsidies, and considers a range of issues including how subsidies are defined, economic theories, government subsidy practices, key sectors in which subsidies are applied, the lack of reliable and systematic information on subsidies, and the regulatory role of the WTO Agreement. The report also examines developments in four topical trade issues: trade in textiles and clothing; flows of international receipts and payments of royalties and license fees 1995-2004; trends in the trade of least developed countries (LDCs); and the impact of natural disasters and terrorist acts on international trade flows.
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