Construction And Determination Of Subsidies In The Scm Agreement

A subsidy shall be deemed to existing if there is a financial contribution given by a government or any public body within the territory of a Member and a benefit is thereby conferred. Along with the international trade, the problem of subsidy and countervailing has not drawn the common conclusion. Especially since the First World War, more and more countries use the subsidy measures to influence their international trade affairs. The consistence of subsidy is the core problem of the settlement of all the dispute of subsidy issues. In recent years, from the practice of Panel, we find the main elements of the consistence of subsidy including the followings: the way of subsidy, the direct influence of subsidy, export performance, specificity and industry prejudice.This article will discuss the important problems in the first five chapters by analyzing the report of Panel according to the SCM Agreement, then clarify the problems and draw conclusions. Our research is based on the following cases: Brazil -export financial program for aircraft; Subsidy provide to produces and exporters of automotive leather; Measures affecting the export of civilian aircraft; Measures affecting and the exportation of dairy producers; preliminary determinations with respect to certain softwood lumber from Canada. Furthermore, we draw conclusions about the following problems in order to make thegovernment and the enterprises know more details about subsidy. When is the beneficial conferred; what is subsidy provided upon export performance in fact; the status of export performance; the rule of the existence specificity; the relationship between subsidy and prejudice. In the last chapter, we discuss how to improve our Countervailing Ordinance, how to make full use of SCM Agreement; what measures we should take when we carry out the duties we have promised.