A Study Of Specificity Test Of SCMA

The influence of subsidies on international economy has its dual nature, one the one hand, one country can promote industrial upgrading and enhance the competitiveness of backward regions through subsidies, while on the other hand, giving subsidies to its domestic industry inappropriately may lead to international trade distortion and market mechanism failure, thereby hurt the development of free trade.So it’s necessary to take countervailing measures in response to unrestricted subsidies to promote trade liberalization, however, the rationality of how to determine the subsidy is a highly controversial topic. If the criteria is unclear, the abuse of countervailing measures based on the consideration of trade protection will impede the process of trade liberalization.The Subsidies and Countervailing Measures Agreement (SCM Agreement) reached in the Uruguay Round after many twists and turns adopts specificity test to judge the rationality of the subsidies. Subsidies doesn’t meet the specificity test should not take countervailing measures. In recent years, China is faced with rapidly increasing countervailing investigations, so it is of importance to study specificity test so that to deal with international trade disputes and safeguard the trade interests of our country. This paper explores the origin, the development of connotations of the specificity test combined with the relevant cases in US and WTO, so as to give a complete picture of the connotation of specificity test in SCM Agreement.This paper includes the following4sections.Section Ⅰ is the overview of the specificity test. In this section, this paper first introduce the definition of subsidy, based on which this article discuss the classification of subsidy, which in turn introduced the specificity test, then this article explore the specificity test combining with articles in SCMA.Section Ⅱ studies the test and practice of CVDL in America. Since specificity test stem from America, this article discuss the history of specificity test in America. Combining it with carbon case, softwood case and PPG case, this article discuss how specificity test developed to mature gradually.Section Ⅲ focuses on the specificity test and practice in SCM. In this section this article first describe the introduction of specificity test in SCMA in history, then this article explain some important concepts in specificity test, combined which this article analyze the cases in WTO.Section IV explores the reaction steps can be taken in our country. First this article discussed the subsidy systems that are not in accordance with specificity test, which our country ought to reform as soon as possible, so that we can keep in a favorable position in international trade disputes. Next, the measures we can take in response to countervailing measures taken by other countries toward our country are also discussed.