Covid-Era Subsidies Are Only Going to Worsen Global Trade Frictions

Businesses saddled with Covid-19 risks this year will soon have to tackle a host of other headaches when the pandemic eventually fades, including a highly fraught debate over what’s fair — or not — in government subsidies.

That’s one of the global trade lessons from a panel of government and business experts hosted last week by Bloomberg and the Asia Society’s Australia chapter. Tariff wars were already roiling the world economy. Now everything from fiscal bailouts to food protectionism may draw scrutiny from institutions like the Geneva-based World Trade Organization that try to enforce rules against unfair public assistance in otherwise free global markets.