Subsidies the Context of WTO's Free Trade System: A Legal and Economic Analysis

The primary discussion from the perspective of WTO objective concerns the trade practice of awarding subsidies, for exports and also for protectionist purposes. Here, the terms justifiable and non-justifiable are used as hypothetical parameters to determine the extent of state support, considering the country classification based on economic and technological criteria, and their objectives for development. These parameters are distinct from Prohibited, Actionable, and Non-Actionable subsidies, as classified under the SCM Agreement. Subsidies awarded for the purposes of development and for welfare are considered as justifiable, whereas subsidies for the promotion of exports or state measures adopted for protectionist purposes are non-justifiable.  Lastly, the book addresses the implications of such subsidies on the core objectives of the WTO and in connection with fair trade values.