| According to Article XV of GATS, establishing subsidy disciplines on Trade in Service becomes one of the new topics of WTO. Trade-distorting Subsidy on Trade in Service is the incentives of negotiation among all members of WTO, while GATS' goal is not only to pursue the liberalization of Service Trade, but also to decline market admittance limits in order to overcome the barrier of Service Trade among WTO members. At first, establishing the multilateral disciplines is based on information-exchange. WPGR, as the organizer of negotiation of establishing disciplines on Trade in Service, puts forward the necessity of information-exchange, while it organizes many round negotiation on Service Trade Subsidies, which helps the negotiation lead to a success. The designing of subsidy disciplines is ultimate settled through the negotiation, which involves a large mount of schemes.According to WTO, the Service Subsidy disciplines address that GATS rules are limited the subsidies in services not only by the most favored nation clause, but the national treatment clause as well. However, the rules now are only committed to all members'promise to decrease the specific sectors in the commitment schedules. It is fact that the most favored nation clause and the national treatment clause discriminates against countervailing measures. Except this, Non-Violation Complaints restrains on Service Subsidy to some extent, so it should be listed in the commitment schedules.Subsidy imposes numerous side effects on Service Trade. For example, first, Service Subsidy may affect environment negatively. Second, certain sectors will addict to Service Subsidy instead of innovation and rethinking profoundly. Last but not least, Service Subsidy will lead overused and certain sectors'overdeveloped. Therefore, multilateral disciplines should be established not only to encounter the subsidies which make up trade barriers, but to pursue the liberalization of Service Trade as well. According to the circumstances mentioned above, the ruling Service Trade work group has discussed on the subsidy issues many times. And these discussions may be divided into two processes. The first process, from 1996 to 1999, concerns fundamental issues on Service Subsidies among the members and the possibility of duplicating the definition of Service Subsidy in Agreement on Subsidies and Countervailing Measures into the fields of Service Subsidy. The second process covers from 1999 on. In July 2000, the president makes a list of issues for further discussion. In recent 10 years after 2000, all members have made discussion according to the list. However, the discussion makes little progress, nor reaches a common view on the definition and measures.In conclusion, we should take some important factors into account in the future discussion. The first one is Trade-distorting Subsidy. Though WTO doesn't give a clear definition of Trade-distorting Subsidy, but it implies that every nation should offer the service with higher proficiency comparing with other countries. Thus, the definition of Trade-distorting Subsidies has two disciplines; those are the specificity and interests influenced. As there are similarities between service trade subsidies and goods trade subsidies, referencing goods trade subsidies disciplines is helpful for establishing service trade subsidies disciplines. At present, goods trade subsidies disciplines can be found in the Agreement on Subsidies and Countervailing Measures and Agreement on agriculture. These two agreements have stipulated for the definition of subsidy, the types of subsidy and measures may be taken by the aggrieved party. Combining WTO goods trade subsidies disciplines with the reality of goods trade subsidies disciplines, establishing service trade subsidies disciplines should be composed of four parts:the definition of service trade subsidy, the consistency of the types of service trade subsidy, the obligation of communication of information of service trade subsidy, effects on service trade subsidy. |
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