Legal Issues Related To The Agricultural Subsidy

As a basis of national economy, agriculture has always been one of the highly protected sectors. Over the years, the high subsidies and protection policy of agriculture from U.S., Europe and other developed countries formed an unfair internationally competitive environment of agricultural trade. The agricultural protection level of China remains relatively low. Internationally agricultural trade of China is in a state of deficit for years. And its competitiveness is in a weak position in the international market. Before2013, China’s agricultural products encountered mainly on anti-dumping in the international trade frictions, anti-subsidy investigations have never been encountered. Until2013, the United States launched a countervailing duty investigation on China’s frozen warm water shrimp industry.The significance of U.S.&China frozen warm water shrimp case is the first case of U.S. anti-subsidy investigations on China’s agricultural products. Furthermore, controversial problems existed in the countervailing legal system including the validity of "Double Remedy", the elements on U.S. subsidies countervailing rules, specific subsidy and the determination of the damage caused by countervailing. Those result in specialty on this case.Therefore, this thesis will be on the view of U.S.&China frozen warm water shrimp case:Briefing of the case followed by the three main problems involved; in the next place, analyzing whether the U.S. countervailing measures violate WTO relevant regulations; domestic law upon the investigation in this case; lastly, several countermeasures raising for encountering countervailing on farm product from our country.