Research On Recent Development Of US Countervailing Law-GPX Bill

On March, 2012, U.S. President Obama signed the GPX Bill into law, which breaks the tradition that U.S. Countervailing law was not applied to the Non-Market Economy Country and provides statutory basis for U.S. Department of Commerce. At the same time, GPX Bill will be valid for all countervailing cases since November 20, 2006. As we all know, U.S. government always treat China as Non-Market Economy Country. With the rapid development of China’s foreign trade, the surplus is increasing faster between China and U.S., especially for the subprime mortgage crisis, trade protectionism is more serious. Until October 19, 2012, 24 of 29 countervailing cases were imposed countervailing duty. Countervailing is one of important measures to protect the domestic industry security, which gradually replaces anti-dumping, and becomes the main problems affecting the development of China’s foreign trade. Countervailing has affected the export of Chinese enterprises and employment, we should pay more attention. In order to settle U.S. countervailing investigation and protect China’s legal interest, it’s necessary to study the contents and holes of GPX Bill. Then, we could find the relevant coping strategy, fighting for the abuse of trade protection measures.The article has been divided into four parts. The first part is about the recent development of U.S. Countervailing legislation and practices, which introduces the history of U.S. Countervailing legislation and its strategy from inapplicability to conditional applicable then to fully applicable for it. The second part begins with the case of off-road tires, analyzing the background and content of GPX Bill. The third part is about the compliance analysis of GPX Bill. This part points out problem in retroactivity and double remedies, on the basis of the panel’s report and the appellate report. The fourth part is about strategies for Chinese government and enterprises. For enterprises, Chinese enterprises and government should work together, using the U.S. judicial procedure to protect our legal interest. For government, Chinese government should be initiative to change subsidies, make efforts to market economy status, and the Dispute Settlement Body.