Research Under The Framework Of Wto Subsidies And Countervailing Measures Agreement

Chapter 1, survey of subsidy and countervailing systemThis chapter firstly introduced defined the concept of subsidy, and pointed out the subsidy in this research was the one that laid an impact on international trade, or that might cause international dispute and distortion of international trade; to classify the subsidies and take different measures to deal with these subsidies accordingly. From the angle of whether subsidies are allowed, the Agreement on Subsidies and Countervailing Measure sub-divided the subsidies into prohibited subsidy (red light subsidy), actionable subsidy (yellow light subsidy) and non-actionable subsidy (green light subsidy). This kind of classification is a major innovation and contribution of SCM Agreement.Next, this article expounded the fact that it was the dual nature of subsidy led to the situation that every state drew up the countervailing law one after another to counterbalance the subsidy, so as to trigger the realization of the duality of countervailing laws: on one hand it is a tool to maintain the normal order of international trade, on the other hand, it might becomes a weapon for the trade protectionism.Thirdly, it reviewed the development and the evolution of history and rules of countervailing law. From the item 16 of GATT to Subsidy and Countervailing Measure Code of Tokyo Round and the process of reaching the Agreement on Subsidy and Countervailing Measure under the framework of WTO, these all spoke volumes that it is the SCM Agreement that expanded powerful international law into domestic legislation and realized the international standard of the subsidy and countervailing system within this world.Chapter 2 the economic analysis on the subsidy and countervailing systemThe economic effect of the subsidy and countervailing system can be answered only from the angle of economic analysis, thereby to approach the value orientation of the countervailing and international legislation in every state from the legal aspect so as to truly embody the value of law. This chapter explained why the measures of new trade protectionism such as subsidy and countervailing could coexist and flourish in the light of traditional trade protectionism coupling with new trade protectionism? From the evaluation of these theories on trade, it can be seen that all these trade protection measures are imperfect or may cause nullification of interests or cannot reach the expected goal. Though these theories more or less explained the reason why states took unilateral measures, they had one thing in common that was regardless of the global welfare and long-term balance and contrary to the principle of international cooperation. Under the current circumstance, the economic optimum can only beachieved by cooperation between the developed and developing countries and though the way of unified legislation and standard.In addition, within this chapter, it can be seen through the economic analysis on export subsidy and the advantages and disadvantages of export subsidy economy in both developed and developing counties, only by means of unified standardization of subsidy and countervailing systems on the international law level, the subsidy and countervailing system which is complicated with different state interests and full of conflicts and oppositions has rules and regulations to go by in order to seek advantages and avoid disadvantages and dedicate to the permanent balanced development of the global economy for the interests of most states.Chapter 3 The definition, classification and recognition of subsidy in the Agreement on SCMIn fact, this chapter involves the interpretation and study of important prescriptions and overall connotations in the entity part of SCM Agreement.Firstly, in light of the interpretation and deduction of the definition of subsidy while the DSB expert panel dealing with dozens of countervailing dispute cases, it explored the entire meaning of element of the definition of subsidy, including the understanding of "financial contribution", the understanding of "bene...