| Arising and developing with the internationalization of trade, subsidy mainly exists in the field of international trade. It has meanings in many aspects , especially in the aspects of economics and law. Economists and jurists generally think that subsidy is very disadvantageous to international trade and is easy to result in unfair trade. In order to protect the domestic market and the development of economy, all the importing countries confront it with ooutervailing measures. Subsidies and countervailing measures influence the healthy development of international trade and distort or damage the benefits of every trading country. Hence, in order to restrict the subsidies and countervailing activities, the international community has always beenj|aeavouring to set out some rules from the end of World War Two. The agreement on Subsidies and Countervailing Measures (for short: SCM Agreement)arrived at U-mguay Round established more perfect legal mechanism for subsidies and countervailing measures for the WTO, which was approved in a pattern of package and has enforcing restrictive force to all members of WTO. The SCM Agreement is bound to become a standard on subsidies and countervailing activities of all members of WTO.In the past , western countries considered that it was difficult to distinguish the governmental subsidies from the actual productive cost because the price of productive material is controlled by the government in the countries of non-market economy, such as China, so they didn't apply the antisubsidy rules to the countries of non - market economy like China. However, with our economy's transformation into market economy and China's entry to the WTO as well as western countries' deleting China from the roll of non - market e-conomy countries, the subsidy and antisubsidy rules of WTO and the antisubsidy law of western countries will apply to China very soon. There is a large difference between China' s legislation as well as practice and the rules ofWTO, so China must adjust its legislation and practice according to the rules of WTO after its accession to the WTO. Otherwise, China will probably suffer heavy losses again like antidumping. It is urgent to verify our subsidy policy, amend and perfect our subsidy legislation. This article elaborates the basic theory of subsidy and the rules about subsidy of SCM Agreement, reflect our legislation and practice on subsidy, emphatically inquires into our legal coun-termeasures.This article is composed of five sections. The first section is introduction. It expounds the high probability of foreign countries applying their countervailing measures to China, the present situation of research on subsidy and the urgency and necessity of researching it.The second section is the basic theory of subsidy. It elaborates the definition and classification of subsidy in economical and legal aspects, analyses the advantages and disadvantages of subsidy to international trade and elaborates the regulation of WTO to it.The third section construes the subsidy rules of SCM Agreement. It include: the definition and scope of subsidy; the classification of subsidy; the remedies for subsidy; the supervising institutions, the obligation of notifications ; the agreement's application to differnt parties.The fourth section reflects China' s prohibited subsidies and actionable subsidies going back on the SCM Agreement.The last section inquires into our legal countermeasures. We should take the following measures: 1. adjusting our subsidy policy and perfecting our subsidy legislation according to the SCM Agreement. Specifically speaking, we should abolish the prohibited subsidies step by step; controll the amount limitation and form of actionable subsidies and non - actionable subsidies; increase the degree and scope of non - actionable subsidies and regulate them by law; further perfect and regulate our system of drawback of export taxes;strengthen the coordination between the financial aid to exporting industries and the financial aid to the whole industr... |
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