Legal Study On Subsidies And Countervailing Measures Of Biofuel Trade Under The WTO Framework

Ensuring energy security, fulfilling energy-saving and emission reductionobligations under the Kyoto Protocol, stimulating the development of rural areascombined with other factors promoted the development of the worldwide biofuelindustry. All the major countries have adopted domestic support measures such assubsidies to support the development of the domestic biofuel industry. Although thevolume of biofuel trade remains small, but rapid growth of biofuels trade will be thegeneral trend, because developed countries have huge demand for clean energy, yet lackof arable land and suitable climate, while developing countries have comparativeadvantages for biofuel production. The large number of domestic support measuresconstitutes non-tariff trade barriers, distorts trade to a certain extent and affects theresource allocation of the global biofuel industry. Biofuel-related trade disputes began toemerge. However, there are no special set of rules regulating biofuel trade under thecurrent WTO multilateral trading system. A consensus regarding the classification ofbiofuel hasn’t been reached in the trade practice. Which WTO rules will apply tobiofuels? What issues might arise in the application of these rules? What impacts willthe Doha Round negotiations have on biofuel subsidies? All of these issues urge us tocarefully examine the subsidies and countervailing measures of biofuel trade under theWTO frameworkThis thesis can be divided into five major parts. The first part makes a generalanalysis of biofuel trade, elaborates on the connotation of biofuels, and introduces theworld’s biofuel industry and trade development status.The second part discusses the WTO regulation of biofuel subsidies. Firstly, itmakes a general analysis of the biofuel subsidies and emphasizes the necessity toexamine the biofuel subsidies under the WTO framework. Secondly, it introduces theevolution of the existing WTO subsidy rules. Thirdly, it makes a analysis of the existingWTO subsidy rules which can be used to regulate biofuel subsidies, such as GeneralAgreement on Tariffs and Trade1994(the GATT1994), Subsidies and CountervailingMeasures Agreement (SCM) and the Agreement on Agriculture (AOA), and makes asummary and outlook of the relevant biofuel issues involved in the Doha Roundnegotiations.The third part analyzes the WTO application rules related to biofuel subsidies and countervailing measures. Firstly, based on the different categories of biofuels, itexplores the rules-choosing issues. Secondly, it discusses the specific application issuesof biofuel subsidies and countervailing measures under GATT1994, Subsidies andCountervailing Measures Agreement (SCM) and Agreement on Agriculture (AOA).The fourth part makes a case analysis on biofuel subsidies and countervailingmeasures under the WTO framework. Firstly, it analyzes the typical biofuel subsidypolicies in the major producing countries with the structure of policies and legal forms.Secondly, it discusses current trade dispute cases regarding biofuel subsidies andcountervailing measures.The fifth part provides China’s countermeasures of biofuel trade under the WTOframework. Firstly it introduces the current biofuel subsidies status in China, and thenpresents China’s countermeasures of biofuel trade.