Research On Subsidies And Countervailing Legal Issues In International Trade In Goods

This dissertation focuses on the legal problems of subsidies and countervailing measures in the international trade of goods. The dissertation primarily discusses how the substantive principles in this area interact soundly under the guidance of correct theories and the spirits of "fairness" and "freedom" in international trade, and reach an overall balance favorable to the healthy and stable development of the global economy and society. This dissertation also discusses the construction of the subsidies and countervailing measures legal system in China.Besides the preface and the conclusion, this dissertation is composed of the following seven chapters:Chapter One first reviews the contentions of the subsidies and countervailing measures among different economic schools and their effects on relevant laws. This chapter then analyzes the evolution progress of some important international and domestic rules in this area, i.e., the GATT/WTO rules, the U.S. and EC countervailing duty laws.Chapter Two discusses the definition of "subsidies" and the specificity standard. After explaining the three elements of the definition?the provider of a subsidy", "a financial contribution" and "a benefit conferred", this chapter makes an empirical analysis in light of the typical cases of the DSB, and discusses the specificity standard.Chapter Three discusses the classification of subsidies. Based on the "Trichotomy", this chapter mainly discusses three sorts of subsidies: "prohibited subsidies", "actionable subsidies" and "non-actionable subsidies". It then expounds on the reasonableness of these rules and practices for the purpose of safeguarding and promoting the fair and free trade. Furthermore, the "upstream subsidies" rule, a unique stipulation under the U.S. Countervailing Duty Law is also discussed.Chapter Four expounds on the key issues of the countervailing duty laws?the injury caused by subsidies and the causality therein. It starts with defining the key concepts as "like product" and "domestic industry", and then makes a comparative analysis of the SCM rules and U.S. legal practices, and discusses the three forms of injury and the elements that should be considered. The dissertation then discusses the cumulative assessment of injury problems before it goes into the causality issue. It finally analyzes the related SCM rules and legal practices in U.S. and EC, and puts forward the author's standpoints and suggestions.Chapter Five, from the law and economics perspective, discusses how the countervailing duty laws can be implemented under the guidance of correct theories more fairly and reasonably. It firstly discusses the Economy Distortion Theoryembodied in the U.S. legislation, then introduces the basic viewpoint of the Entitlement Model, and its critique of the Economy Distortion Theory and the evaluation.Chapter Six discusses the problems of the special and differential treatment rules for developing countries in the area of subsidies and countervailing measures, and the rules applied under the conditions of "transformation economy" and "privatization". These are vital for the establishment of the legal system of subsidies and countervailing measures suitable for the specific conditions of China.Chapter Seven discusses the method of establishing the legal system of subsidies and countervailing measures in China. It firstly discusses the problems of subsidies and the possible strategies under the current international countervailing situations; it then analyzes the legislation and administration of the countervailing duty law while counteracting subsidies of other countries. The author's suggestions on these issues are also provided in this chapter.