Measuring distortions in international markets: The rolling-stock value chain
Government support to producers of rolling stock is raising concerns about possible
market distortions and unfair competition. This report aims to quantify both the scale
of government support and to identify the various ways in which governments have been
supporting local rolling-stock producers at the expense of foreign competitors. Over
the period 2016-20, governments provided about USD 5 billion to the sector, much of
it in the form of government grants and income tax concessions. While not quantified,
discriminatory practices in government procurement and competition enforcement, forced
technology transfers, as well as non-market export credits may have also distorted
global competition in the rail-supply industry. Similar to earlier OECD studies of
government support in the aluminium and semiconductor value chains, this report helps
shed light on the magnitude and ways in which governments subsidise the producers
of materials and equipment they view as strategic, with a view to informing efforts
to revisit global trade rules.