This book analyses subsidies from various perspectives and creates a model that determines
whether or not their use is justified. Further it analyses the various causes of trade
distortion trade-discriminatory practices and other issues associated with unregulated
subsidies. In addition the book considers how these issues fall within the scope of subsidies
described under the SCM Agreement. 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.
