Study On The Definition Of Subsidy Under The WTO System

In international trade practice, the WTO members use anti-subsidy less as the measureto protect domestic trade, one of the main reasons is that affirming subsidies is acomplicated process, and obtaining evidence is rather difficult. And the precondition ofapplying anti-dumping is that find the existence of subsidies；the proper definition ofsubsidies is the fundamental issue that should be focus on in the negotiation for reaching aconsensus. This paper concentrates on the legal problems of the definition of subsidies soas to probe into the constitution elements and connotations. The author hopes this paperwill provide helpful guidance to perfection of China’s subsidy and anti-subsidy institution.The first part introduces the evolution of subsidies under WTO. First it introduces thedefinition of subsidies and the classifications, then it reviews the gradual progress of theinternational subsidy rules in different periods.The second part analyzes the identifiedfactors of subsidy. It first discusses the “financial contribution”, then affirms “grant tointerests”, finally gives the proposal of Doha round negotiations about the “definition” ofsubsidy. The third part probes into the determine criteria of “specificity”. First it analyzesthe origin、 implication and classification of specificity, and indicates the meaning ofresearch,and then it proposes four determine criteria.The last part discusses the inspirationto China’s anti-dumping work, After pointing out the shortage of China’s law ofanti-dumping, it offers proposals to complete the laws. And it also proposes Chinesegovernment to adjust the current subsidy policy. And Chinese enterprise should deal withanti-dumping investigation, have the initiative in hands.