A Note on Investment Incentives in the WTO and the Transition Economies

Most of the transition economies are already members of or in the process of accession to the WTO. Therefore their investment incentive regimes need to be compatible with the Agreement on Subsidies and Countervailing Measures in the WTO. This study compares the fiscal investment incentives in the transition economies provided to foreign investors and shows which are expected to be phased out soon owing to their inconsistency with the current WTO regulations. It would be to their own benefit for these economies to make their investment policies consistent with the relevant WTO provisions, to take steps to eliminate subsidies prohibited in the WTO system and to try not to waste their resources, considering that the incentives may be subjected to countervailing measures by WTO members.