Legal Analyses On "pass-through" Benefits In Countervailing Investigation

Subsidy is a kind of economic instrument, almost every nation has used subsidies to promote the development of its own economy. However, in international trade area, improper use of subsidies may distort resource allocation and impair fair competition. The course of determining a subsidy is so complicated, and to determine that a benefit is conferred is the key to prove whether subsidy exists."Pass-through"benefits in countervailing investigation is an issue worthy of research.Besides the preface and the conclusion, this dissertation is composed of the following four chapters:Chapter 1 introduces the basic concept of subsidy and benefit. The definition and conposition of subsidy is the basis for settlement of all disputes relating to subsidy issues. This chapter discusses related knowledge of a subsidy in SCM Agreement and domestic law of main members of WTO. Depending on whether or not benefits given to recipients are transferred, benefits in subsidies can be categorized into static benefits and dynamic benefits.Chapter 2 discusses dynamic benefits of subsidies. On the premise that the recipient of a subsidy and the final beneficiary is not the same entity, the analysis of"pass-through"benefits of subsidies is necessary. This chapter discusses"pass-through"benefits in both"upstream subsidies"and the process of privatization. Based on the specific analyses in four countervailing cases by the panels and/or Appellate Body under Dispute Settlement Body (DSB), the author finds common rules of proving"pass-through"benefits of subsidies.Chapter 3 does research on"pass-through"benefits from regulatory aspects. This chapter starts with introducing the legislative defects of SCM Agreement in this regard and effects of judicial law making by the DSB, introduces the process and achievements of rules negotiations in Doha Round, and also prospects the regulatory development of"pass-through"benefits in WTO legal system.Chapter 4 focuses the research on relationship between"pass-through"benefits and Chinese practice. On the one hand, this chapter analyses probable occurred problems of"pass-through"benefits during the process of privatization of state-owned enterprises, and gives several strategies to avoid the formation of"pass-through"benefits; on the other hand, it also puts forward some advice on how to promote the development of relevant legislation and judicial practice.