AN OVERVIEW OF THE REGULATORY FRAMEWORK FOR SUBSIDY USE UNDER WTO LAW: HISTORICAL EVOLUTION

The regulation of subsidies under the framework of the World Trade Organization (WTO) has undergone significant evolution since the establishment of the General Agreement on Tariffs and Trade (GATT). Initially focused on tariff reductions, early GATT provisions regarding subsidies were limited in scope and clarity, leaving critical gaps in addressing the trade-distorting effects of government interventions. As global trade dynamics became increasingly complex, the need for a robust regulatory framework became evident, leading to the adoption of the Agreement on Subsidies and Countervailing Measures (SCM Agreement) during the Uruguay Round.