The traditional theory of international trade typically views trade agreements as complete, or as contracts that specify all the relevant policy instruments and cover all possible contingencies. In reality, however, most contracts are surprisingly simple and tend to be incomplete .Contracts are considered incomplete when they do not specify all parties’ rights and duties in all possible future states of the world. Transaction costs, bounded rationality and strategic ambiguity are reasons that lead to contractual incompleteness. The WTO Agreements are frequently depicted as contracts between members for the reciprocal exchange of benefits. Those contracts are incomplete in many important aspects have recently gained acceptance among WTO scholars. WTO framers were aware of the acute presence of contractual gaps and the inevitable uncertainty in the economic environment. In order to leave members with some necessary “breathing space”, the WTO Agreements provide for certain trade policy flexibility instruments that would justify temporary or permanent, partial or total ex post non-performance.