The effects of WTO agreements on public finance

Abstract

The global economic integration of national economies can be achieved through foreign trade policies, which are shaped by the market economy. While foreign trade policies integrate the national economy as a real economy in the global economy, it also influences the approach of other policy areas to market economy conditions. This interaction is also observed in the field of public finance. The (WTO) agreements and mechanisms, which are the main actors in the establishment of the free trade system, have an influence that limits the powers of taxation and expenditure of nation states. From this point of view, in this study, it is aimed to evaluate the reflection of the free trade system on public finance understanding. In today's world trade system, the state, especially for conservation purposes, taxation and expenditure initiatives are significantly limited. The WTO's limitation of the state's power of taxation and expenditure arises at the following points: the Member States in relation to the use of the power of taxation, reduce customs tax rates, fall under tariffcommitments and have to comply with the defined procedures for the determination of specific tax subjects and bases.