Study On WTO Subsidies Settlement Dispute System

A subsidy is one of important instruments that WTO members implement industrialpolicies. If the subsidized product should cause adverse effects to the interests of otherMembers, subsidies dispute will inevitably happen. Since joining the WTO, there are9subsidies disputes involving China. It can be predicted subsidies disputes involving Chinawill increase continuously with the constant adjustment of the policy of Chinese industry.Subsidies disputes have specificity compared with other disputes. WTO rules stipulatesolving subsidies disputes shall be not only applied to the general rules and proceduresgoverning the settlement of disputes, but also special or additional rules and procedures forsubsidies disputes only. This article focuses on the special or additional rules for subsidiesdisputes, also explores the general rules and procedures for subsidies disputes. This paperconsists of introduction, text and conclusion and the text consists of five chapters.The first chapter is to analysis the reason of arising subsidies disputes in economicsmethod. This chapter points out the arising of subsidies disputes has profound economicand political background. A member implements subsidies measures in consideration ofnational economy strategy, forced to Democratic votes by pressure or act tough and talksoft from interest groups. The other members whose interests are jeopardized because ofsubsidies measures will fight back to safeguard national benefits and own political interests.Or it may cause the dissatisfaction from domestic voters and interest groups and jeopardizeits political future.The second chapter is consultation procedures in WTO subsidies dispute settlementmechanism. This chapter introduces the negotiation procedures similar to consultationprocedures from the international law angle, then elaborates the consultation procedureswhich are applied to general cases in the WTO dispute settlement mechanism, finally indetail analyzes the special provisions concerning consultation procedures for the subsidy dispute case as well as the relevant interpretation made by the panel and appellate body inpractice.The third chapter is trial procedures in the mechanism of subsidies dispute settlement.This chapter is the focus of the article, divided into five sections. This chapter describes theaccelerated procedure for the subsidies dispute, the rule of procedure for the permanentgroup of experts, the procedures for developing information concerning serious prejudicefor subsidies dispute. This chapter also describes the conditions setting up the panel, termsof reference of the panel and the burden of proof in the subsidies dispute.The fourth chapter is implementation measures in the mechanism of subsidies disputesettlement. This chapter analyzes the revocation or modification of inappropriate measures,compensation and retaliatory measures concerning the general cases. On this basis, thischapter focuses on withdrawing the subsidy and countermeasures in the mechanism ofsubsidies dispute settlement.The fifth chapter is Chinese practice concerning the mechanism of subsidies disputesettlement. This chapter mainly analyzes China–Measures Affecting Imports ofAutomobile Parts and China–Measures Concerning Wind Power Equipment. Through theanalysis of cases, we can review the legitimacy of Chinese industrial policy; also we cansum up experience and lessons which China obtains in the mechanism of subsidies disputesettlement.