Under The Wto Countervailing Mechanism

In recent years with the growing economic reform and developing foreign trade in China, people are getting to be familiar with "Subsidy" and "Anti - Subsidy". Meanwhile, after the promulgation of Chinese Anti - Dumping and Anti - Subsidy Regulations and China' s entrance into WID, the problems related to Anti - Subsidy play an important role not only in theory but also in practice. Based on all the reasons above, the essay aims at analyzing the situation in Chinese Anti - Subsidy practice and the countermeasures to deal with it.The essay is divided into three parts. The signficance of Anti - Subsidy is discussed in the first part. From the writer' s point of view, Subsidy is a kind of financial assistance provided by the government or any public body of a country. Since it simply aims at domestic economic development, Subsidy is only a domestic issue. However, when Subsidy profoundly affects the international trade, the country where Subsidy takes effect is entitled to taking Anti - Subsidy measures. Therefore, the legislation of every country is just intended to protect domestic industry by lessening the subsidy related price gap. But due to the flexibility in operating Anti - Subsidy and its liability in operating Anti - Subsidy and its liability to be affected by economy and politics , laws on Anti - Subsidy are strongly colored as trade protection. Therefore, to regulate Anti - Subsidy is becoming more and more important. In this part, the writer also points out that because of western countries' long - time unfair Anti - Subsidy measures to Chinese products and services, China should reinforce its legislating and executing Anti - Subsidy laws so as to protect its interests.The second part emphasises on the development history of Anti - Subsidy Mechanism in WTO. Three stages can be traced. The first "GATT" was signed in October, 1947.The 6trul6th and 23th items of "GATT" draw principles of Anti -Subsidy, but they appear to be weak in avoiding abusing Anti - Subsidy. Tokyo Round is the multi - leteral negotiation, and as a result, the agreement on subsidy and Anti - Subsidy came into being. However, owing to its structural flaw and ambiguity in words, the Agreement needs further amendment. The third stage is the U-ruguay Round. In it, a more practical Agreement on Subsidy and Anti - Subsidycame into force. After introducing the three stages, the writer illustrates how to employ the items in the agreement by taking the "disputes on plane Subsidy between Canada and Brazil" as an example.The third part focuses on China' s countermeasures after entering WTO. At first, the writer discusses about the problems in China's Anti-Subsidy practice, including the government' s role and administrative mechanism concerning Anti-Subsidy. Then the writer lists the tasks that China has to shoulder. At last, in order to safeguard the country interests, China ought to make full use of its role as a developing country.The writer specially stresses on the point to protect our agriculture by citing the 13th items in the agreement.