ECONOMIC ANALYSIS OF LAW APPLIED TO SUBSIDIES AND THE IMPOSITION OF TARIFFS IN INTERNATIONAL TRADE

Abstract

This study deals with two of the most complex and discussed trade policy instruments, the export subsidies and the imposition of import tariffs in international trade - both considered manifestations of law with full economic impact for determining nations. The doctrine states that the ultimate economic impact of subsidies is to distort international trade and ensures that in practice this is demonstrated and verified. Given this, stems from its practice of imposing the remedy tariff as an instrument to generate income for the government and protection of their markets in international trade. For both, the analysis is conceived on the foundations of interdisciplinarity of Economic Analysis of Law, which is explained by understanding that there is no way to give a dimension closer to the reality of international trade, without performing an analysis of the treatment of subsidies and tariffs in economic literature, without conceiving its legal dimensions before its economic effects. We seek to demonstrate how economic theory deals with subsidies and tariffs in international trade. As a primary objective, we sought to demonstrate how to apply the methodology of the Economic Analysis of Law in relation to the two leading institutes of international trade that most influence the rules of international law, in particular as regards the economic relations between nations. So was the search for effective demonstration of cause and effect emanating from the interface between law and economics that exposes the motives of a true economic analysis of law, as demonstrated in the presentation that remains of this interdisciplinary study.