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Determination Of Export Subsidies In Agreement On Subsidies And Countervailing Measures Of The WTO

Posted on:2006-12-11Degree:MasterType:Thesis
Country:ChinaCandidate:Y H ZhangFull Text:PDF
GTID:2166360182466255Subject:International law
Abstract/Summary:PDF Full Text Request
As it concerns the domestic policy goals of a country and includes many political, cultural and social-welfare factors, export subsidy is a very complicated issue in international trade. On one hand, export subsidies run contrary to the spirit of free trade and are assumed to be trade distorting. Thus, the WTO members have agreed to ban their use in Agreement on Subsidies and Countervailing Measures. On the other hand, their use remains pervasive worldwide. And export subsidies have been the frequent topic of disputes in the WTO. Study on determination of export subsidies has a great significance, both on ensuring a government's policies compatible with WTO Agreements and on avoiding an abuse of countervailing measures. As with any treaties, the parties can have disagreements about the text. In the WTO these disagreements are settled by the Dispute Settlement Body. As with the issue on determination of export subsidies, the DSB has established a basic approach.After an introduction on the relevant provisions, this article generalizes the basic approach dealing with this issue. Further, it focuses on the three elements: a financial contribution made by a government or any public body; a benefit conferred on the recipient; and the financial contribution must be contingent upon export performance. The discussion is mainly based on relevant Panel Reports and Appellate Body Reports adopted by DSB.,This article has four chapters.Chapter one gives a brief introduction on the provisions of SCM regarding export subsidies and summarizes the basic approach.Chapter two delves into the element of "a financial contribution made by a government or any public body". The general test for determining whether a financial contribution has been made is to determine whether there has been a transfer of economic resources by the grantor.Chapter three discusses the term"benefit".The marketplace provides an appropriatebasis for comparison in determining whether a"benefit"has been conferred. When analyzing "benefit", it must focus on the recipient.Chapter four has a detailed study on the element of "be contingent upon export performance".This contingency can be either in law or in fact. The former is demonstrated on the basis of the law or other relevant legal instrument, without reference to external factual elements. The latter is demonstrated on the basis of facts. But they have the same legal standard, .i.e. it must be demonstrated whether there is a relationship of conditionality or dependence between the grant of the subsidy and the anticipated exportation or export earnings.
Keywords/Search Tags:SCM Agreement, export subsidy, financial contribution made by a government or any public body, benefit, contingent upon export performance
PDF Full Text Request
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