International Trade Subsidy Rules and Tax and Financial Export
Incentives is an inquiry into the interrelations between
international trade subsidy rules and the use of tax and financial
export incentives by developing countries. Its central claim is
that developing countries should be allowed to adopt - based on
their right to development - certain such incentives without
violating the World Trade Organization (WTO) rules concerning
subsidies. It advances the idea that the right to development of
developing and least-developed countries (LDCs) entitles them to
use tax and financial export incentives vis- -vis comparatively
more developed nations. However, in order to actualize this right,
the existing WTO regulations must go through a process of revision.
This process should craft an exception, available exclusively to
developing countries and LDCs, allowing them to apply fiscal and
financial export incentives against countries with a higher level
of development, without being accused of granting prohibited
subsidies. As a result of this policy reform, the WTO itself would
incorporate development and fair/just trade concerns into its
regulatory framework, providing an exceptional treatment for a
patently exceptional situation. In doing so, the WTO would be
contributing to a more equal international trade scene and a more
developed and freer world.
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