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.