Law of Subsidies under the GATT/WTO System

This work on the law of subsidies has long been awaited by many actors in international trade. With its introduction of the concept of ''attenuation'' of entitlement, Marc Benitah''s completely new analysis alters our understanding of the international economic law of subsidies - and its future invocation and jurisprudence - forever.

The issue of subsidies is arguably the predominant theme, at this moment, in international economic law, and a consistent approach to the legal treatment of subsidies is urgently needed. In Professor Benitah''s view, the answer lies in the recognition that entitlements granted to a party seeking to defend itself against the ''adverse effects'' of subsidies must be ''attenuated'' in order to avoid undesirable economic and social consequences. In the various techniques of attenuation - thoroughly described and analyzed in this book - may be found the unifying thread on which a logical, coherent law of subsidies may be strung:

• • Why techniques of attenuation are intimately linked to the birth of past and future legal disputes relating to subsidies;
• • Why significant techniques of attenuation (e.g. taking into account the positive impact of a subsidy on consumers) have not arisen in the GATT/WTO context;
• • Why much recent theoretical debate on the concept of ''distortion'' has not led to a breakthrough in the law of subsidies;
• • Why attenuations favouring developing countries are surprisingly legally vulnerable in practice;
• • Why deliberate recourse to techniques of attenuation necessitates their continuing clarification through a case law process.

By referring to the legal materials of both the GATT 1947 and the WTO systems at each point in his demonstration, Professor Benitah lays a substantial groundwork for determining innovative WTO norms. This fresh and challenging book examines even the most complex aspects of the law of subsidies. Rooted in case law, it takes a highly pragmatic approach which will amply satisfy the needs of legal practitioners, government officials, and academics concerned with international economic law.

Marc Benitah is Professor of International Law at the University of Quebec. Last year he was Visiting Professor at McGill University in Montreal. Professor Benitah is Docteur en Droit from the Université Panthéon-Sorbonne in Paris.

''Professor Benitah''s book deeply renews the analysis of the law of subsidies in the multilateral commercial system.''

Professor T. Flory, European Chair Jean Monnet, University of Paris XII

''This book invites us to a renewed analysis of the role of the "judge" in this painful period of globalization.''

Revue Internationale de Droit Economique (1999/I)

''One cannot deny the importance ... of this book.''

Canadian Yearbook of International Law (1998)

''The innovative approach of this book offers to the reader a thorough analysis of the legal treatment of subsidies under the GATT/WTO system.''

Revue Générale de Droit International Public (1999/I)

''A stimulating analysis, very surprising sometimes, which should prove to be fruitful.''

J.-F. Abgrall, Ministry of International Affairs, Quebec; Director-General of Commercial Policy during the Uruguay Round