The Comparative Study On Subsidies And Countervailing Laws Between US And EU According To The WTO’s Regulation

Every country will use subsidies for its own economic development. The subsidies’characteristics are variety, strong concealment, and high transparency. On the one hand, the government has the right to formulate certain areas of policy support to promote economic development and improve people’s living standard; On the other hand, other governments, also has right to filed a countervailing investigation when its’ economic damage because of subsidies. Since 2004, the number of our country suffered countervailing investigation is 69, accounting for 22% of the global total,34 of them are filed by the United States, six by the European Union. The purpose of this paper is make out the differences between United States and European Union substantive law and procedural law of countervailing law system, and help the Chinese government and enterprises formulate corresponding strategic choice in practice.The logical structure of this article is:using the analysis methods of economics and law, obtain the anti-subsidy law system of economics and jurisprudence basis, and use this as the logic starting point, under the WTO frame to the United States and the European Union countervailing legal rules of substantive law and procedural law of comparative analysis, respectively, to test the beauty, the countervailing legal rules are in conformity with the WTO multilateral rules, at last, by the United States, the European common anti-subsidy cases of the same products for China, based on economics and jurisprudence foundation as the judgment standard, to evaluate the effect of countervailing law system of the United States and the European Union, and according to the result of the above comparison, the our country government and enterprises strategic option to respond the friction in the international trade.This article is divided into seven parts altogether, the first part of introduction elaborated the paper selected topic background and significance, the research achievements of predecessors and logic structure as well as the innovation place and the future research direction. Based on the analysis methods of economics, the second part analyzed the welfare of the domestic subsidies to domestic and foreign influence, and the change of other countries for the welfare of the countervailing measures, for the rationality of the specification on subsidies and countervailing. Analysis shows that for export subsidies distort international competition and has a similar injury consequence of domestic support necessary rules and restrictions, but does not support the widespread use of countervailing duties policy. And by building a model of "rights" theory for countervailing economics basis is provided for the existence of the legal system. The third part based on the analysis of the economics of the situation, after the United States and the European Union are introduced the development course of domestic countervailing method and the current law, and then analyzed the background of the subsidies and countervailing measures, political and economic reasons, different positions of the countries and to explore the origin of subsidies and countervailing measures, legislative spirit, and the objective target, subsidies and countervailing jurisprudence basis is provided for the rule of law. The fourth part and fifth part respectively from the perspective of substantive law and procedural law, compared the difference between us and the Eu countervailing law. In substantive law, mainly to compare the elements and initiating countervailing measures of subsidies that, bound state, not the elements of v. upstream subsidies, subsidies, and determination of damage as well as to the "Non-market economy countries" and "double remedy" rule. In the procedural law, is the comparison of the two countries anti-subsidy investigation agencies, investigation procedures, implementation measures and review process. Sixth part to confirm the above analysis the theory of difference, selected the United States, the European common against China for countervailing investigation and countervailing duties case of coated paper, from the beginning to the final countervailing duties, do every step of the comparative analysis, and reveals the reason of the difference behind the United States, Europe, and evaluate the beauty, the countervailing rules of law. The seventh part according to the United States and the Eu anti-subsidy law system of different characteristics, the Chinese government and enterprises from the strategic and tactical strategy to coordinate and deal with the selection of friction. Allowing China to the United States and the European Union in the countervailing measures and policy of external responsibility, improve the terms of trade gain win-win, choice of market entry.In this paper, the main conclusions:first, the economics of the existence of anti-subsidy law system is based on, importer subsidies products manufacturers have a "right" to the damage by the effects of trade remedy measures to eliminate subsidies; Second countervailing legal meaning lies in the fact that the legal system exists in the "fair" and "free" under the guidance of the spirit of realize the benign operation, between countries and achieve a conducive to the healthy and stable development of global economics and society of overall balance; Third, the United States and the European Union’s countervailing substantive law and procedural law has a lot of differences. In terms of substantive law, the United States to more severe and harsh, surveyed in the procedural law, the program design is more complex and sophisticated, also on the investigation organ set more obligations; Fourth, the United States and the European Union anti-subsidy law system differences, mainly by the different law origin and law system, and independent in different countries and economies; Fifth, based on economics and jurisprudence basis as the judgment standard, American countervailing law rules tend to be more punitive, rather than offsetting. Sixth, the United States, the mechanism of separation of powers and checks and balances and separation of Chinese companies surveyed provides more opportunities for complaint.Innovation point of this paper is:first, using the model of "right" problem of countervailing legislation and the legal system of economics analysis; Second, in many cases to the United States and the European Union by the same product to China filed a countervailing investigation of typical cases, the unique depth of beauty, the in the substantive law and procedural law of law enforcement, for our country enterprise to coordinate the friction and has provided a legal basis to protect themselves; Third, from the laws of the state and the economy behavior main body the reason of the difference profound analysis of the legal system of subsidy; Fourth, this paper focus on China and the United States, China and the Eu countervailing friction, the Chinese government and enterprises, this paper presents the concrete policy strategy choice, different from other literature gives policy Suggestions.