This paper explores the subsidy question in the context of the US and Canadian minerals industries. Initially the term subsidy is defined and its merits as a policy instrument assessed. The author then shifts from theory to practice and explores the US countervailable subsidy determination process, with particular emphasis on selected cases involving Canadian natural resource products. The paper then addresses the importance of subsidy practices in Canadian public policy and suggests that the impact of a no subsidy policy could have negative ramifications for some parts of the Canadian mineral industry and for some regions of the nation. © 1989.
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