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  3. Commitments and Flexibilities in the WTO Agreement on Subsidies and Countervailing Measures
  • Cited by 1
Publisher:
Cambridge University Press
Online publication date:
October 2019
Print publication year:
2019
Online ISBN:
9781108565158
DOI:
https://doi.org/10.1017/9781108565158
Subjects:
Economics, International Economics, Law, International Trade Law
Series:
Cambridge International Trade and Economic Law
Information

Book description

The ability of countries to promote and protect their domestic industries in the face of stiff global competition is an important consideration in any trading agreement. Member states of the World Trade Organization are expected to adhere to the WTO Agreement on Subsidies and Countervailing Measures, but to what extent do the WTO Members have policy space to subsidize their industries? Using an economically informed framework, Caiado examines the flexibilities countries may find at the WTO to grant subsidies and impose tariffs to protect designated industries. By testing the Treaty system of entitlements and enforcement mechanisms against the theory of incomplete contract, this work offers a comprehensive analysis of the capacity of the SCM Agreement to achieve its goal: the concomitant regulation of opportunistic behavior and assurance of ex post flexibility.

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