A new study released by the OECD and the International Transport Forum (ITF) has claimed that the current system of direct and indirect maritime subsidies is failing taxpayers.
The report recommends redesigning subsidies schemes to harmonise policies, clarify objectives, make them more conditional on positive impacts, avoid market distortions and improve transparency.
The authors noted: “The nature of the maritime subsidies currently in place is defensive, rather than strategic. They have grown in reaction to two developments: open shipping registries in developing countries (“flags of convenience”) and subsidies in other developed countries.
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