Limitation of public subsidies in the international law

States and other public bodies grant public aid for various reasons using wide range of instruments. Their most important aim is to protect firms facing economic and social losses. Public aid infiuences both domestic and international economic enviro­nment. Its impact on international trade is significant. The competition on transnational markets can be severely affected. Firms of various countries have not equal conditions. This situation results in econo­mic losses and can even destroy international trade. States have created various rules, which should deal the problem. The rules contain limitations of pub­lic aids and provide reprisals against states, which do not comply with them. The only universal regu­lation is a part of World Trade Organisation legal order. The most important particular regulation was developed in European Union. Public aid arrangement in WTO legal order was created in 1994. Basic rule in Art.XVI of General Agreement on Tariffs and Trade was developed in Agreement on Subsidies and Countervailing Measu­res. The agreement deals industrial aid. It prohibits export and preferential aids and limits other kinds of them. States can introduce countervailing duties ar reprisals both in international intercourse and in domestic process. WTO offers means of the peace­ful solution of disputes and manages data exchange. Special rules regulate agricultural subsidies. Five ye­ars of the application show contribution to the cre­ation of new universal economic order.