GATT's Subsidies Code prohibits the use of export subsidies on primary products (e.g., farm products) but not on nonprimary products (i.e., manufactures)

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The General Agreement on Tariffs and Trade (GATT) Subsidies Code, particularly in its 1994 update as part of the Uruguay Round Agreements resulting in the establishment of the World Trade Organization (WTO), does not categorically prohibit the use of export subsidies on primary products. Instead, it sets out disciplines on the use of all subsidies, including export subsidies, and it actually tends to be more permissive of certain subsidies for developing countries, including some forms of export subsidies under specific conditions. The agreement aims to reduce subsidies that distort trade but does not make a simple distinction between primary and non-primary products in the allowance of export subsidies.

GATT's Subsidies Code Prohibits the Use of Export Subsidies on Primary