Equitable Share Of The Market
Equitable share of the market in Global Commerce Policy
In this regard, equitable share of the market is: an elusive concept enshrined in GATT Article XVI:3 (Subsidies) concerning allowable subsidies for primary products. The entries on trade policy are here. Its meaning is not precise. The entries on trade policy in the Encyclopedia are here. One of the reasons for this was an understanding among GATT members at least since 1955 that it was desirable to satisfy world requirements of primary commodities in the most effective and economic manner, and that account should be taken of any special factors regarding the exporting country’s share of world trade in the product concerned during a representative period. The panel in the French wheat and wheat flour case in 1958 made useful observations on the concept of “equitable share”, but these have not been developed and refined by later panels. The entries on trade policy are here. Article 9 of the Tokyo Round Agreement on Interpretation and Application of Articles VI, XVI and XXIII of the General Agreement on Tariffs and Trade (the Subsidies Code) notes that with regard to new markets, traditional patterns of supply of the product to the region in which the new market is located must be taken into account in determining “equitable share of world export trade”. GATT Article XIII (Non-discriminatory Administration of Quantitative Restrictions) also seeks to ensure the principle of fair market share. The entries on trade policy are here. It requires the distribution of trade in a product subject to quantitative restrictions to approach as closely as possible the shares exporting countries might obtain in the absence of restrictions, and it sets out ways of how this might be done.[1]
Equitable share of the marketin the wold Encyclopedia
For an introductory overview on international trade policy, see this entry.
Resources
Notes and References
- Dictionary of Trade Policy, “Equitable share of the market” entry (OAS)
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