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Agreement on Subsidies and Countervailing Measures

from Volume 2

Published online by Cambridge University Press:  04 August 2017

Legal Affairs Division, World Trade Organization
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Summary

GENERAL

OBJECT AND PURPOSE OF THE SCM AGREEMENT

In Brazil – Aircraft, the Panel considered that the object and purpose of the SCM Agreement is to impose multilateral disciplines on subsidies that distort international trade:

“In our view, the object and purpose of the SCM Agreement is to impose multilateral disciplines on subsidies which distort international trade. It is for this reason that the SCM Agreement prohibits two categories of subsidies – subsidies contingent upon exportation and upon the use of domestic over imported goods – that are specifically designed to affect trade.”

In Canada – Aircraft, the Panel noted that the SCM Agreement “does not contain any express statement of its object and purpose”, and stated that “[w]e therefore consider it unwise to attach undue importance to arguments concerning the object and purpose of the SCM Agreement”. However, the Panel considered that the object and purpose of the SCM Agreement could appropriately be summarized “as the establishment of multilateral disciplines ‘on the premise that some forms of government intervention distort international trade, [or] have the potential to distort [international trade]’”.

Type
Chapter
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WTO Analytical Index
Guide to WTO Law and Practice
 , pp. 1015 - 1220
Publisher: Cambridge University Press
Print publication year: 2012

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