Track: Undergraduate Student Paper Competition

Abstract

This paper analyses the legality of subsidies for Micro, Small, and Medium Enterprises, the mechanisms for how such measures and frameworks are applicable, and the urgencies on why this framework shall be applied. This paper consists of three main objectives. The first objective is to discuss the legality of subsidies for MSMEs according to the Subsidies and Countervailing Measures Agreement in Annex 1A WTO Agreement. The second objective discusses Indonesia’s Municipal Law which provides subsidies for MSMEs and how can the WTO Member States can learn to apply this measure. And the third objective seeks to explain the urgencies of this framework which are economic recovery from the Covid-19 Pandemic, and achieving the Sustainable Development Goals. By applying the Utilitarianism Theory, and the Absolute Advantage Theory, the writers may understand that WTO Member States shall apply non-actionable subsidies to act according to the SCM Agreement, Furthermore, the writers may also understand that Indonesia’s Law herein may acquire its status as customary international law if it is persistently applied. Lastly, subsidies for MSMEs shall be applied by each WTO Member State to recover from the pandemic’s effect and in achieving SDGs.