| China has always been a major oilseed planting country in the world. In recent years, domestic consumption of vegetable oil increased significantly. However, good demand for domestic oil products market is not accompanied with booming development of China oil industry, but the sharply increasing of vegetable oil product imports year by year, the trade deficit is widening. A large number of imported genetically modified oil products had a serious impact on the domestic market by their superiority on prices and quality, reduction of production efficiency cut down the positive of the domestic farmers to grow oil crops, oilseeds plantings and production are standstill, Self-sufficiency rate decreased year by year,65% of oil produce depend on import at the moment. In addition, foreign capital have also entered into vegetable oil processing industry, and gradually monopoly China vegetable oil processing industry, more than 60% of large enterprises has been the acquisition or equity participation by foreign company. Chain of oil industry is facing the risk of fracture, China oil industry security is in risk.China oil industry is in danger, but there is a domestic "give up" theory:The import of oil products is equal to the import of water and land, large imports of oil products can make up the deficiency of China's cultivated land resources. Indeed, lack of agricultural resources in China is an objective fact, there is a considerable period of time that China need to import oil products from abroad because of the gap beween domestic demand and production. However, it is unacceptable to give up our oil industry. Because vegetable oil is a kind of important food and an essential source of nutrition, meanwhile, the oil industry chain can be extended to animal feed, medicine, military, aviation and more than twenty fields. Vegetable oil industry has a pivotal position in national economy. China oil industry safety is the basis of national economic security and the healthy development of related industries. It is the requirements of sustainable development of agriculture, the protection of consume and farmers'interests.After joining WTO, in order to Compliance with the commitments as a member country of WTO, China began to cut farm import barriers. But China vulnerable oil industry has failed to enjoy the rights of protection. WTO is still implementing "Agriculture Agreement" which is completed in Uruguay Round to require the reduction of domestic support and export subsidies. But it has considerable limitations. The major oil product export country still had ability to dumping their product and made impact on the other country's oil industry because of huge domestic Subsidies. In order to compensate the defects of Uruguay Round, the World Trade Organization hold the fourth World Trade Organization ministerial meeting in November 2001 in Doha, in order to open a new round of multilateral trade negotiations. But the result of the Doha Round negotiations was still out of the foreseeable future, which was surposed to be ended before 2006. However, the protection of the China fragile oil industry is urgent; it is necessary and timely to find a effective measures to protect China vulnerable oil industry. In this context, this paper attempts to research the trade remedy problem of China oil industry in Oder to find an effective ways to secure China oil industry.From the basic research on the economic effects and requirement for implementation of trade remedy measures, I found that trade remedies can ease the pressure on imports in the short term by cost and quantity controlling, but it may also lead the Trade Diversion and Investment Crossing effect which can weaken its protected effect.In addition, we should concern about the adverse impact of trade remedy. For example, the implementation of trade remedy will reduce domestic consumers'welfare and increase the production cost of downstream industries. Therefore, the trade remedy is a "double-edged sword", the implementation need to be carefully considered, or it may bring more harm than benefits. In addition, there are requirement for implementation of trade remedy. So misusing of trade remedy can easily lead to new trade disputes in the background that the shadow of the financial crisis has not completely disappeared and trade friction is raising worldwide. Therefore, we must answer following questions before researching the problem of using of trade remedy measures to protect China's oil industry.1. Is it necessary to implement trade remedy to China oil industry in the condition that there is high cost of implementing trade remedies? 2. What is positive and negative effects of trade remedy on China oil industry, can it effectively protect our oil industry? 3. Is it reasonable to implement trade remedy to China oil industry bound by WTO rules? 4. How to improve our trade remedies system of oil products to let it more effectivly protect China oil industry? Each of issues in this paper will also conduct a detailed analysis; the article is divided into eight parts depending on the research content, the specific sections as follows:Chapter 1 is the introductory section. It described the background and the significance of this study, and then it introduced the objects, the content, the framework and the data sources of the research. It also reviewed and summarized the domestic and foreign research trends related to it. The second chapter is the presentation of the theoretical basis and the related content. Firstly, it reviewed five basic theories of trade remedies including the mercantilist theory and the infant industry protection theory; then it outlined the definitions, classifications, economic effects and the implementation conditions of trade remedy measures such as the anti-dumping, countervailing and safeguard measures, technical barriers and others. Among them, it focused on the conditions of implementing several trade remedy measures and the possible economic effects. Through these basic researches, it brought some inspiration for the trade remedies of our oil industry, so as to make the next research steps more targeted.The third chapter is the analysis of status of the oil industry security in China. Combined with the actual situation of the oil industry in China, it selected the indexes such as oil per capita acreage, the comparative income growing, international competitiveness, self-sufficiency in the production, import pricing, control the rate of processing enterprises, oil products brand control rate, production capacity of space, the appreciation rate of oil products. These Indexes tried to evaluate the security situation of the oil industry in our country from the aspects of industrial capacity of the main features, industrial control and industrial capacity of sustainable development, so as to analysis of the urgency of protecting the oil industry in our country.The fourth chapter is the analysis of the domestic and the international environments of the oil industry in our country, including the advantages comparison between the import oil products and the domestic oil products, and the impact of domestic trade policy and WTO rules to the oil industry in China. Its Purpose is to analyze the necessity of the protective measures for our oil industry from the aspects of foreign oil products have more competitive advantages, domestic trade policies are defective and WTO rules can not timely maintenance our oil industrial security.In the fifth chapter, the protective effectiveness of trade remedy is researched.The conclusion that trade remedy can effective protect China fragile industry is given by the comparision of its positive and negative effects issued by its cost controlling, quantity controlling and trade diversion effect.The sixth chapter is the analysis of the rationality of implementing trade remedy on China oil industry. First the rationality of implementing Anti-dumping and countervailing safeguards is analysed through the research of damage behavior, damage fact and the relationship between them. Then reasonable standards of TBT are found by comparing the differences between domestic oil products and imports of oil products. Through research of this chaper, I found that it is optional and rational to use some of trade remedy to protect China oil industry.In the beginning of Chapter seven, the current situation of trade remedy system is analysed, loopholes and shortage in the legal system and organizational system was found. Then by referencing trade remedy system experiences of the United States, European Union, Japan and India. This research seek the way to improve trade remedy system of China oil products, trying to use trade remedy more efficiently and rationally to protect the safety of China oil industry.Through the analysis of above seven chapters, A few basic conclusions were formed in the final chapter:1. China's oil industry security is in crisis.2. Existing policies and WTO rules will not help China's oil industry out of trouble, So China vulnerable oil industry need to seek a protection measures actively.3. Trade remedies can effectivly protect China oil industry.4. Some trade remedy can be used to protect China oil industry has adequate basis.5. There is great need and room for improvement of China's trade remedy system, strengthening of organizational system of laws and regulations and early warning and effective tracking mechanism of oil industry trade remedy system should be the main direction of improving in future. Several suggestions were given based on the conclusions:1. it is time to choose appropriate trade remedies to protect domestic oil industry.2. we should continue to improve the trade remedy system of oil products.3. Government should increase the support of domestic vegetable oilseed cultivation.
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