Analysis Of Benefit Pass-through In The WTO Framwork And Application For The First Agricultural Case In Respect To Countervailing Measures From China

As a common economic policy all around the word, subsidy has positive effects on exports and industries. However, the abuse of subsidies has adverse effects on other countries, as well as the world trade. According to the statistics of the measures taken, countervailing measures in respect to subsidies take into the smallest account due to the sensitiveness to challenge a country's territorial policy. In addition, the attribution of subsidy weights more difficulty on the investigation referring countervailing measures. In certain circumstances, a critical element during the investigation process is whether, and to what extent, the benefit has been passed through.Since Agreement on Subsidies and Countervailing Measures has not identified the issue of pass-through, the principles and analysis developed from the WTO cases. Meanwhile, this analysis applied in China's first countervailing case referring to agriculture products, this dissertation aims to explore the legal issues of the analysis of benefit pass-through, clear the misunderstanding of the potential application of the principles and make comments on China's case. After some discussion and introduction of the background knowledge, this dissertation makes a positive comment on the issue to analyze the benefit pass-through mainly required during countervailing measures.In a retrospect of the summary of WTO cases referring to pass-through issue, this dissertation make a comprehensive understanding of the products and measures in issue, the basic finding upheld by the Panel and/or the Appellate Body, then emphasize the significance to make a thoroughly deep understanding of these cases. In light with the cases, this dissertation categorized different situation applying pass-through analysis, which included privatization cases, upstream subsidies and the expected subsidies occurring in private-to-private transaction. Meanwhile, this dissertation makes a brief introduction of the United States'statues regulations and practice which mainly involved in the measures in issue. While the latest panel report referring to DS353 United States-Large Civil Aircraft illustrated the pass-through analysis, the author concludes the principles mainly depend on this report as well as reiterate the principles established from the former cases. The Panel/Appellate Body reiterate the specific certain circumstances and the same reasoning to apply the principles, this dissertation make a comprehensive illustration on the application field, presumption, certain circumstances and other issues for the analysis of the pass-through.According to the statistics, the countervailing measures taken against China take 75% into the world's account. It is necessary and urgent for China to take some active response. The countervailing investigation in respect to agricultural product from the United States is the first time to analyze the benefit pass-through. Although there are ostensible regulations in China's legislation, the authority of China solved the case successfully. The key point is to strictly apply the principles developed from WTO jurisprudence. Under Doha Agenda, Canada and Brazil submitted their opinion on pass-through issue in 2004 and 2005 respectively. To some extent, the Panel's report of DS353 upheld Brazil's opinion. However, in author's view, the deficiency in this issue of the statues contribute a loophole for the application of countervailing measures and makes some excuses of the parties to circumvent their obligations under SCM. This dissertation makes a hard try to advocate some effective suggestion to improve the current system.