Research On The Regulations Of Actionable Subsidies Under The WTO System

With the growth and development the international economy, subsidies and countervailing measures becomes one of important legal issues under the World Trading System. This paper focuses on the theory and practice of actionable subsidies under the WTO System. There are gaps between the current situation of China's actionable subsidies and WTO rules. The author puts forward the corresponding perfect suggestions.This paper composed of preface, text and conclusion.The preface briefly introduces the objective and scope of discussion of this article.Chapter One first discusses the classification of subsidies, the definition of subsidies, the Specificity standard, Then this chapter introduced subsidy system of WTO. Follow the regulation of Agreement on Subsidies and Countervailing Measures (SCM), this paper would mainly study on legal issues of actionable subsidies.Chapter Two expounds on the key issues of the countervailing duty laws—the standards of SCM, and judged actionable subsidies from three factors: cumulation, adverse effects, and causal relationship.Chapter Three studied on current situation of China's actionable subsidies, This chapter pointed out disadvantages that China would face when cope with countervailing measures.In this Chapter,the author indicates that it is important and urgent to pay much attention to countervailing measures.For a long time,most of us considered that there is no need to worry about America countervailing against China,because America has not acknowledged China as Market Economy Country.This opinion is wrong and even harmful.In American history,there are cases that countervailing investigation can be proceeded against Non-Market Economy Country.That is to say effort has been put into acknowledgement of China's Market Economy status in more and more countries .We shall study countervailing law immediately;otherwise we will be hurt badly.Subsidies also closely related with the taxation policies and all the taxation preferential policies are the important forms of the government subsidies. Based on measuring China's taxation preferential policies by the requirements of the above agreement, has analyzed the problems prevailing in the current policies. Based on the above discussion, with the development of the new round taxation system reformr in China, this paper has put foward proposals on adjusting China's taxation preferential policies under the SCM.In particular,State-owned subsidies present special challenges to the world trading system, because they occur in a giant transition economy.Throughout the era of economic reforms of State-owned Enterprises,central and local governments have provided direct or indirect financial assistance to the State-owned Enterprises sector. Therefore,in this Chapter provides a special analysis on the legal issues related to th actionability of State-owned Enterprises subsidies.Chapter Four, it briefly introduced the Procedure of countervailing measures and the solution of disputes. On the issue of how to applying countervailing measures. SCM adopted two mechanisms: one is dealing according to Procedures of domestic countervailing law which is in accordance with SCM, the other is dealing through WTO Dispute Settlement Body(DSB). Seeondly, This chapter tested and analyzed cases of countervailing initiations carried out by Canada and United States.Chapter Five put forward some suggestions to improve China's actionable subsidies system. Firstly, we should adjust existing actionable subsidies, and learn how to make use of WTO rules. Secondly, we should take measures to establish a mechanism to deal with countervailing measures. The government,the industrial organizations and the enterprises themselves should closely cooperate to reduce and control the risks of accusation.The government should preside to build the information service system,and give the priority to the construction of infrastructures related to export.The industrial organizations should help the enterprises to study the rules and knowledge about the subsidy&counter-veiling measures,and build up the alarming system against counter-veiling,and organize the enterprises to actively response to the accusations.Last part is the conclusion of this article and makes some general suggestions on China's strategy under the international anti-subsidy rules.The author's suggestions are as follows: As for China,we should lay emphasis on studying international rules of subsidies and countervailing measures under the current and new situations.In order to further promote the development of our foreign trade and economy,we should make ready to face the international countervailing situations against China,while further perfecting our legislation of the countervailing duty law.