Study On American Trade Adjustment Assistance Program On The Basis Of WTO Subsidy System

With the deepening of economic globalization, Western countries set up a system of Trade adjustment Assistance to support people who have adversely affected in the process of trade liberalization. The TAA is different from traditional trade remedy measures.It is an alternative to trade protection measures. Trade liberalization will reduce the degree of trade protection, so that the domestic industry has been substantial damage or threat of damage. The government would look for ways to make up for the damage. TAA what is set up and improved in the United States is inevitable.Since1962, This system has been set up50years since from the United States introduced its concept. In the past50years, the system has experienced different phases:a difficult start, expanding,stagnation, re-development. Although the evaluation of TAA in the United States is not the same, the historical development of TAA has demonstrate the reasonableness of its existence.It is still improved.With the deepening of China’s reform and opening up, China has become the largest trading nation.The more and more trade frictions are among China and other countries.we should pay attention to these issues. And we should find some ways to deal with it.Compared with traditional trade remedy measures, the American Trade Adjustment Assistance system has its own unique character. It had a difficult start, then the development, stopping, and further development phases, along with the development of the U.S. economy. And now the system has occupies a very important position among American trade remedy laws. This system has never been sued since the creation of WTO.so it does not violate the rules of WTO. On the one hand,The system promote the development of trade liberalization,on the other hand enhance companies international competitiveness and help the unemployed back to work and help farmers to change production way.It meet the international trend. In2006,the EU restart the system,and improve and implement it Japan, South Korea have also established a system of trade-related assistance to protect the domestic economy.the benefits of this system is known by more and more developed countries.Since the2008financial crisis, Chinese Trade Adjustment Assistance system is put on the agenda.But the pace of the establishment of this system is not enough. It is still in the discussion stage. Maybe we want to wait for the authorities of WTO establish the system. Doha Round in2009is the opportunity to propose. But due to various reasons, it has not been proposed at last, so there is no systems about that the TAA. However, with the liberalization of world trade,the deepening of Chinese reform and opening up, we face the opportunities and challenges. When the impact of foreign trade is intense, we can not well protect our enterprises and individuals,so we should learn from the U.S. Trade Adjustment Assistance system as soon as possible. So we can seek respite and development opportunities for related industries.And ultimately we can further promote national industrial structure adjustment and transformation We can improve the competitiveness of our indusuy, and promote the healthy development of the national economySo many countries in the world, we are the most times that is sued.Why?I think,one reason is that the law is not perfect.Therefore, we noticed that the U.S. TAA.It is very similar to the subsidy system.But it has never been sued before. And since the2008financial crisis, a lot of people have noted the importance of this system.but many people are still worried about its legality. Tin order to give some opinions, this article will be divided into the following parts:The first part mainly discusses legislative origin of TAA. It is different from the traditional remedies. The core functions and the development of the legislation process will be introduced. We can get a clear understanding of the TAA.The second part introduce the operation modes and content of the TAA. From that we can get a more complete and a wide understanding of TAA.And we will learn some experiences from it.The third part discusses the legality of the TAA. This is the most important of these parts. Because the subsidies of American Trade Adjustment Assistance is similar to the subsidies that WTO against. So we have to analyze them. Only by addressing its legality, we can introduce it.The fifth part is the conclusion of this article. This section briefly summarizes the function and role of TAA.We best wishes China could set up TAA.