A Study On The Determination Of Subsidy In U.S. Countervailing Duty Investigation

Anti-dumping, countervailing and safeguard measures are permittied trade remedy measures under the WTO legal system. Since the entering into the the WTO, the foreign trade of China is increasing effectively, which promotes the devolpment of economy at high speed. But at the same time, the trade friction which China faces is increasing.The United State initiated the first countervailing duty investigation towards coated free sheet paper imported from China in November 2006. Up to April 2010, the United States has initiated a total of 25 countervailing duty investigation towards China. Anti-subsidy measures are becoming trade barrier for the government and export enterprises.During the financial crisis, trade protectionism is gaining ground, resulting in heightened trade friction. "Made in China"has become the primary objective of the U.S. trade protectionism. Anti-subsidy measures are becoming one of the important means to suppress the foreign trade of China taken by America. The determination of subsidy plays an significant role in the countervailing duty investigation. It is the prerequisite for the importing country to take countervailing measures.It is also the most important role in the countervailing duty law. In recent years, the United States repeatedly initiates countervailing duty investigation towards China. It gathers abundant experence in this field. So we should have a full understanding of subsidy in the U.S. countervailing duty law. In order to make a better understanding of this question, we should know the basic concept of subsidy. For example, we should know the meaning of subsidy and the constitution of it in the U.S. countervailing duty law. Because the subsidy is the premise of the contervailing legal system. At the same time, the specificity standard is the prerequisite for the importing country to take countervailing measures. Through study these questions and analyze the classification of subsidy and the calculation of the amount of it, we can have a full understanding of the the determination of subsidy in the U.S. countervailing duty investigation.The purpose of researching on this issue is to make the Chinese enterprises protect their own interests better during the trade of China and the United States. We should improve the Chinese subsidy policies, complete the Chinese countervailing duty law. Only in this way can we safeguard the legitimate right and interests of the export enterprises better.