Export subsidies (export subsidies), also known as export subsidies, a government, in order to reduce the prices of export commodities, to strengthen its competitiveness on foreign markets, the export of a commodity to give cash subsidies to exporters or financial benefits treatment. Export subsidies the way: 1 direct subsidies (direct subsidies): export a commodity, the direct subsidies paid to exporters of today. (2) indirect subsidies (indirect subsidies): the government for some export commodities give financial benefits. "Uruguay Round" reached "agreement on Subsidies and Countervailing" again numerous subsidies are divided into three categories: 1. The prohibited subsidies, which substitute for imports or exports in the production and marketing chain, direct and indirect subsidies. It directly distorting import and export trade, or serious damage to economic interests of other countries. (2) allows, but the complaint may be made against the subsidies. It can be implemented in a certain range, but if the other parties in the implementation of the trade interests of serious damage or serious discriminatory effects, damage to the Parties to the implementation of the subsidy of the Parties may raise objections, or file a complaint. 3 non-actionable subsidies measures. It generally has universal adaptability and economic development need not be caused by other parties against or countermeasures. Subsidies to a large extent can be used for the implementation of trade protectionism, non-tariff barriers in international trade. In domestic administrative law system, conferring a benefit not constitute unlawful administrative acts are held accountable, but in international trade-related interests on the domestic behavior of other members may constitute the negative side traders, subsidies can affect the flow of international goods market , subsidies often stimulate exports or restrict imports as a means.
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Way of export subsidies
1 direct subsidies (Direct Subsidies): export a commodity, the direct cash subsidies paid to exporters. (2) indirect subsidies (Indirect Subsidies): Government certain export commodities give financial benefits. "Uruguay Round" reached "agreement on Subsidies and Countervailing" again numerous subsidies are divided into three categories: 1. The prohibited subsidies, which substitute for imports or exports in the production and marketing chain, direct and indirect subsidies. It directly distorting import and export trade, or serious damage to economic interests of other countries. (2) allows, but the complaint may be made against the subsidies. It can be implemented in a certain range, but if the other parties in the implementation of the trade interests of serious damage or serious discriminatory effects, impaired Parties Parties can object to the implementation of subsidies, or the filing of complaints. 3 non-actionable subsidies measures. It generally has universal adaptability and economic development need not be caused by other parties against or countermeasures. Subsidies to a large extent can be used for the implementation of trade protectionism, the international trade in non-tariff barriers In domestic administrative law system, conferring a benefit not constitute unlawful administrative acts are held accountable, but in international trade-related interests on the domestic behavior of other members may constitute the negative side traders, subsidies can affect the flow of international goods market , subsidies often stimulate exports or restrict imports as a means.
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Analysis of export subsidies
In recent years, China and some developing countries in Europe continue to be the anti-dumping investigation, the domestic law experts, economists and business of the WTO Anti-Dumping Agreement and the national anti-dumping laws more in-depth research accordingly. However, GATT Article 6 of the same adjustment of subsidies and countervailing issues, but not seriously enough. China's accession to the WTO in final stage of negotiations, China's agricultural subsidies as one of the crux of an impasse in negotiations. With China's accession to WTO is approaching, it is necessary to strengthen this area of research related issues. Over the years, governments or other development for domestic economic policy needs, or to promote exports, at different times to different industries or product subsidies, which has become a common phenomenon. A government the right to adopt any policy it considers appropriate to promote domestic economic development and improve people's living standard, which is a sovereign country where the United Nations Charter is in line with the spirit of a State Government to take any kind of economic policies, the implementation of any kinds of specific methods, which subsidize the industry, this is a country's internal affairs, other countries had no right to interfere. However, a State subsidies to the domestic industry will be directly or indirectly affect its foreign trade, and once these measures affect domestic subsidies country's economic exchanges with other countries, the problem is not so simple. In international trade, subsidies and countervailing measures has been a complex and difficult problems, a lot of controversy issue. From the following list of some of the figures we can see, a government subsidy measures taken by the subsidies countervailing measures taken by affected countries, and countries affected by the countervailing measures but use other methods to deal with this struggle on Subsidies and Countervailing International trade has become an important aspect. GATT was established from 1948 to the end of 1994, 244 received the General Agreement on international trade disputes, there are 46 or countervailing measures and subsidies related to accounting for 18.85% over the same period the total number of disputes since WTO was established in 1995 to 2001 On May 2, a total of 38 anti-subsidy cases, accounting for the same period the total number of disputes (231) and 16.45%, the WTO disputes the admissibility of all types accounted for the highest proportion. In order to standardize anti-subsidy measures, the GATT Article 16 to the Tokyo Round of the "countervailing Code", GATT gradually formed on subsidies and countervailing issues a series of provisions, but also through the GATT expert handling of the issue of subsidies and countervailing disputes, and accumulated some experience. "Subsidies and Countervailing Measures Agreement" (hereinafter "Agreement") as a result of the Uruguay Round, the issue of subsidies and countervailing measures have a more clearly defined: the subsidies have been classified on the procedure and anti-subsidy investigations detailed provisions subsidies, _set_ up a special body to deal with subsidies and countervailing measures, and provides members the obligations in the agreement. However, members of the party if you want to follow the "agreement" requirement specification domestic subsidies, or the practice of other WTO members to appeal, but it is not a simple matter. Although WTO rules seem very clear, but the provisions in detail and can not foresee the different situations that arise in practice. To truly understand the meaning of WTO agreements, WTO, the practice must be studied, especially in the WTO's dispute _set_tlement mechanism over the dispute. "Agreement" will be divided into export subsidies and domestic subsidies, and from another angle also can be divided into actionable subsidies, non-actionable subsidies and prohibited subsidies. Of export subsidies and domestic subsidies, subsidies for primary products and non-primary product subsidies, "the Agreement" provided for members of the different obligations: "Agreement" is prohibited by all members of the non-primary products of export subsidies. Therefore, to determine whether there is involved in export subsidies Subsidies and Countervailing the key. In this paper, DSB-treated on the "agreement" of the dispute, analysis of "agreement" in the "export subsidies" real meaning. "Agreement" Article 1: "For purposes of this Agreement, such as ... in the territory of a Member of memory by the Government or any public agency to provide financial assistance, or there is the sense of Article 16 GATT1994 any form of income or price support, and is therefore given interest subsidy shall be deemed to exist. "From the perspective of this provision constitutes a subsidy there are two conditions, one by the Government or any public agency to provide financial support, the second is the funding to to the interests of the recipient. "Agreement" Article 3, paragraph 1, states: "In addition to the Agreement on Agriculture, the following is the first within the scope of subsidies should be prohibited: (a) law or in fact upon export performance as the only condition or a variety of other conditions a grant of subsidies, including subsidies listed in Annex I; ... "" Agreement "in Annex I is illustrative list of export subsidies, lists 12 kinds of prohibited export subsidies. These provisions appear to be very clear, but in dealing with practical problems, DSB of the Panel and the Appellate Committee needs to make a detailed explanation based on specific circumstances, be able to determine the nature of subsidies. Panel and the Appeal Board to make case-specific analysis can help us better understand the "Agreement" the relevant provisions. 1, the funding does not constitute a subsidy by the government or public institutions In the United States and New Zealand and Canada on dairy dispute, the Panel and the Appeal Board analysis of the "Agreement" referred to in Article 1 must be financial assistance if the problem of government spending. Prior to 1995, the Canadian Dairy Commission, where direct charges from the milk producers to export subsidies, domestic sales of milk and milk price difference. Canada became a WTO member, in order to make the system consistent with its domestic obligations, Canada developed a special classification scheme of milk, replacing the original producer directly to the practice of charging the milk. Particular classification scheme to milk divided into five categories, the first four categories are for the domestic market of milk and dairy products, the fifth so-called "special category of milk," one of the 4 and 5 respectively are specially negotiated export products. These two _set_s of product prices by the dairy processors or exporters Committee and negotiated, it is significantly lower than the domestic market for industrial milk. Belong to these two groups need to purchase milk from dairy processors must receive Commission approval of holders of the certificate of approval to the provincial milk marketing boards to buy low-priced milk, dairy products, while retaining the export certificate for inspection by the Committee. For sale Section 5, Class 4, 5 milk milk producers, the law to ensure that they can be "sufficient to compensate for processing the difference between the cost and return on investment." Because all of the milk producers through the provincial milk marketing boards to be traded, not privately trade, the province of milk from the dairy marketing boards also get the price of milk sold, the provincial milk marketing boards, the total income from milk sales _set_ aside a subsidy to sell Category 5, 4, 5 group of milk producers. United States and New Zealand pointed out that the purchase of special category 5, class 4 and 5 _set_ for the production of export dairy milk producers can get the price lower than the domestic dairy raw materials, which constitute export subsidies. Canada's main defense is that subsidies are not provided by the Government, but by the milk producers indirectly. For this case the two sides have no objection. The focus of the case: by the milk producers and not indirectly by government subsidies, whether the "agreement" called "subsidy." In this case, the Government did not use government funds to pay for subsidies, but the Government of Canada participated in the special classification schemes of milk, and it is this program led to a particular classification of Category 5, 4, 5 groups of subsidies. Government of Canada's involvement has become particularly the case classification key. Facts of the case from the point of view, particularly the Class 1 classification to Category 4 and Category 5 in the first three groups are "in-quota milk (in-quota)", all the milk into a total sales income account (special class pooling), then by the provincial milk marketing boards assigned to the milk producers. For Category 5, 4, 5 group from the total subsidy expenditure account. Group 5, Class 4,5 exports of milk each year by the Canadian Milk Supply Management Committee determined that exporters apply to the Commission dairy, dairy products, the Commission issued the certificate of approval, under which exporters to buy milk for the production of exported dairy products certificate of approval shall be marked with planned production of dairy type. Run in such a system, not by the producers of milk are exported, but by the Dairy Board in recognition of "surplus" milk, decide; processors only with relevant agencies of the approval certificate, in order to buy the first Group 5, class 4, 5 cheap milk; exports to maintain domestic market at high prices. Dairy Commission, Canadian provincial milk marketing boards and the Canadian Milk Supply Management Committee are "government or government agencies", in the actual purchase, production and sales process, these agencies have been involved, and often their own committee to act as dairy exports Business, Government of Canada in the entire milk marketing system in the role it plays in the end, it is no more explanation. In this case, the export of dairy products for processing the first group of 5, class 4 and 5 on the surface of the milk subsidy is provided for all milk processors, in fact, by the Canadian Government or its agencies. "Agreement on Agriculture" article 9, paragraph 1 (c) clearly pointed out, as long as the subsidies provided by the government action, "regardless of whether the expenditure of public accounts" are all members should bear the obligation of subsidies. Classification system of milk from Canada to run a series of special facts, we can clearly see that while subsidies are not paid directly by the government, but its operation has been constituted 9, paragraph 1 (c) calls "due to government action provided funding "and therefore still" agreement "called" subsidy. " 2, "government spending" is not "interest" standard of existence In Brazil and Canada on measures affecting civil aircraft export dispute, the Panel and the Appeals Board constitutes a subsidy of another analysis of the conditions, that financial assistance is given to the "interests" of the problem. From the "interest" to see the ordinary meaning of the word, refers to the benefits from the meaning of the term itself to see, does not include interest expense must be given to parties of any meaning. To determine whether to grant financial assistance to the "interests", depends on whether the recipient of financial assistance than without assistance when in a better position, the standard measure of the market. Only recipients of financial assistance from the market conditions than the conditions can be favorable, it may give "good." Canada has proposed, should be "interest" to do a narrow interpretation. Government signed a contract with the company (such as government procurement), an ordinary business practices, but it can also bring benefits to the company, in order to provide such benefits and subsidies to the interests of the difference, there is no government spending should be given as to whether the interests of a standard. Government of Canada is the substitution of the concept. "Agreement" referred to "benefit" from the contract can not be profit, but rather than the recipient can get from the market in excellent condition. If the market economic indicators to measure the "benefit", the problem is not difficult to solve. If the Government and signed contract is truly "ordinary business practices" that the contract better than the market conditions of the contract after negotiations in good condition, then the company can get and will not get in the market than the more superior, so also let alone be "agreement" referred to "good." Canada also requested under the "Agreement" Appendix IV section 1 of the "interest" as explained, this requirement is not justified. Appendix IV is entitled "Calculation of total ad valorem subsidy", the first one is about how to calculate the Article 6, paragraph 1 (a) the provision of subsidy. Only after determining the existence of subsidies, only need to calculate the subsidy, calculated on the amount of subsidy provisions can not be simply applied to determine the existence of subsidies. Visible, regardless of whether the government spending by the government or public agency to provide "financial assistance" if the recipient has brought to market conditions than under better conditions, is to give the "benefit", which constitute the "Agreement" section one called "subsidy." 3, the interest subsidy should be given to determine the actual situation Of "interest" properly understood is the key to solve the case. We should follow the GATT Article 6, paragraph 3, "the Agreement" and Article 10 of the provisions of Notes, to determine whether to grant subsidies to producers of interest, that is, from the market depends on whether producers can get the same financial support. U.S. Department of Commerce proposed, BSC, UES, BSplc / BSES is the same company, the BSC subsidies is subsidizing other companies, so no need to confirm the UES, BSplc / BSES received benefits. From the case of the actual situation, the British government initially subsidized state-owned British Steel Corporation, and later in the privatization process, BSC's as_set_s are transferable to the BSplc. From a legal point of view, the ownership has been transferred, the new company and is entirely state-owned steel company two separate legal entities. Although the inheritance of property between two legal entities on the relationship between the U.S. Department of Commerce If you want to continue to be identified Bsplc and BSES subsidies can not simply BSC subsidized to reasoning, but should prove that the privatization of the BSC did not pay market price when Bsplc , but gained a favorable market conditions than the benefits. Interests are not abstract, nor is it given to a product, there must be subsidized beneficiaries. BSC privatization is according to market conditions, negotiations, business transactions, the United States on this point does not deny that being the case, on what basis the United States that receive subsidies 1985-86 BSC was to benefit the company? Subsidies given to the BSC and then the company may indeed related to subsidies given to the BSC may also benefit the company later, but the U.S. must prove it. United States did not prove that UES, BSplc / BSES received benefits, but also failed to prove that these companies export to the UK hot rolled steel sheet, lead and bismuth to provide subsidies. In this case, the United States after the three annual review of hot-rolled steel plate of lead bismuth countervailing duties, clearly inconsistent with the "agreement" with the relevant provisions. You can see from this case, subsidies can "inherit" is a complex issue. When the subject does not match the subsidies were already there, through merger, consolidation or merger into another company, the original company, whether by subsidies were later inherited the company, depends on many factors, mainly in the merger, consolidation or acquisition time was The company paid the price, if later paid to the target company to the price of the market price, it is generally not considered was the company from the subsidies received any benefit; if paid on the price below the market price, is very likely subsidized by "better than market prices" to benefit the company later, that was the company benefits from subsidies received. Government subsidies and countervailing duties the time between the time the time difference is also a consideration. U.S. Department of Commerce that the UK state-owned steel company in 1985, before the subsidy is to be subsidized in its production, later Bsplc and BSES are producing the same product, from before 1985, therefore still benefit from the subsidies. In the absence of any specific evidence in the case, the U.S. government's conclusion is too far-fetched. 4, in law or fact on export subsidies, export subsidies constitute Brazil that the Export Development Corporation is established under the Export Development Act the government agency, its purpose is to support the development of Canadian export trade, the development of trade standards, to respond to international trade opportunities; in Canada accounts established for the sole purpose is to support exports, Therefore, the Canadian Export Development Corporation and the account itself is the "Agreement" referred to in Article 3 of export subsidies. In the GATT and WTO practice, handling international trade disputes, the group places great emphasis on mandatory and arbitrary distinction between norms. "Expert Group has always maintained that only the General Agreement do not meet the mandatory standard is the object of direct charges, if a statute to authorize the executive, administrative agencies do not meet the General Agreement to act in a manner that the regulations do not directly be charges only in the implementation of these specifications do not meet the specific behavior is the General Agreement could be accused. "It can be seen, if the law requires a mandatory obligation, the law itself can become the object of the complaint; However, if the law only provides for administrative agency authority, the executive in enforcing the law in violation of the measures taken by "the Agreement", the only specific administrative measures on appeal. In this case, the only evidence provided by Brazil, the development of the corporate charter is quoted saying: "The company's aim is to support and develop, directly or indirectly, Canada's export trade, support and develop Canada's trade capacity, and international marketing plan to respond. "" support and development "does not amount to subsidies because the support and development can take many forms. Itself from this statement, obviously can not conclude that the development of Canadian law requires companies to provide prohibited subsidies. Even if "the Canadian exporters an edge" is to provide subsidies, even if the company's practice is to give subsidies to the project, still can not say that, from a legal point of view the articles of incorporation require subsidies, and subsidies can only say the company's discretion in the interpretation of the charter results. Brazil failed to prove that Canada's Export Development Corporation or the accounts of the project is a mandatory standard, they can only belong to arbitrary norms, it would only review the constitution through the aircraft industry to determine the actual implementation of the specific subsidies to be prohibited whether subsidies. In another case, the dispute _set_tlement panel analysis, "in fact depends on" exports. October 1996 to March 1997, the United States and Australia through the negotiations to solve the Australian textiles, clothing and footwear subsidies, Australia announced the cancellation of subsidies on automotive leather. However, the Australian Government also announced that the Australian government and Australia's only car with leather exporters HOWE and its parent company signed two agreements: contribution agreements and loan agreements, to provide financial assistance to help maintain its economic vitality. Donations to provide three times the total amount of 30 million Australian dollars, signing an agreement to pay the first $ 5 million, second and third pen of 12.5 million in July 1997 and July 1998 under the agreement targets the completion HOWE circumstances to pay. Agreement indicators are divided into sales targets and investment targets, sales targets which the agreement provides for total sales during the various stages of sub-indicators and targets; and investment indicators is A $ 22.8 million over four years will be directly invested in production of automotive leather on. Loan agreement provides for 15 years, and its parent company to HOWE provide $ 25 million in the first five years without debt service, start from the first six years to repay the loan, the interest rate by 10-year government bonds by two percentage points higher. This case involves a subsidy based on two forms of loans and donations, and whether they are "Agreement" prohibited by Article 3.1 of the subsidy? Australia made the complaint Fang Meiguo not legally export subsidies conditional on performance, so the key issue is the case, "Australia's export subsidies are in fact dependent." The two sides disagree on subsidies and export performance of the relationship or contact between the nature and scope of how to understand, the key lies in how to interpret the agreement section 3.1 (a) of the "in fact depends on the" export performance and give subsidy. To solve this problem, we must carefully examine the case to grant or maintain subsidies in the background facts, including subsidies and structural conditions, and to grant or maintain subsidies, unable to be confined to review of relevant legal documents and administrative arrangements. Section 3.1 (a) the second sentence of the comment is clear that not just on subsidized export companies confirmed the existence of export subsidies. But the "agreement" does not prohibit the analysis of this issue to take into account the relevant facts, nor prohibited to analyze a company's actual level of exports, that is, in determining whether the subsidy "in fact depends on the" export performance, they should consider the specific legal and administrative arrangements other than the factors. According to "Agreement" Section 3.1 (a) and its comments clearly provides that in determining whether a subsidy, "in fact depends on the" export performance should be considered with the grant or maintain subsidies on all factors, including the nature of subsidies, the structure and operation, environmental subsidies. Overall, these facts must show that the grant or maintain subsidies based on actual or anticipated exports or export earnings for the conditions. A $ 30 million for the total amount of contributions agreement, although the agreement is the Australian Government and its parent company with HOWE signed, but the conditions are for HOWE, especially for its production of automotive leather. Australia acknowledges that without the removal of subsidies for car leather, it will not enter into contribution agreements with HOWE. Although not conclude that this is the providing of assistance to HOWE only reason, but HOWE leather exports from the car to get great benefits, it is indisputable. Australian Government and HOWE agreement signed loans and grants, at least in the loss of subsidies in order to maintain HOWE after position. In HOWE enjoy subsidies, a substantial increase in its exports, and in the elimination of subsidies before, HOWE most export products, the Australian government is aware of this. The Australian Government hopes HOWE can continue to stay in business, and decided to end their financing. From this point can be clearly seen: continue to provide assistance to export is an important condition. Australian automotive leather market is too small to absorb all the existing production HOWE, HOWE and no capacity to absorb financial assistance received after the expansion of production. Order to expand its sales to achieve the donor agreements in 制定 sales targets, HOWE must continue to export, Er Juji Keneng increase exports. In the agreement, the Government is aware of this situation and, therefore, expected to HOWE continued, may increase exports. HOWE expected export performance is one of the conditions of government subsidies, there is sufficient evidence that the export and the expected close link between subsidies.
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Economic 百科
Also known as export subsidies, or export bonuses, in order to reduce the price of export commodities, export commodities in foreign markets to enhance the competitiveness in the export of a commodity, to give cash subsidies to exporters or financial privileges.
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Encyclopedia
Export subsidies A government export subsidies for exports of a commodity exporter to give up cash Stickers or other preferential treatment. Also known as "export subsidies", or "export incentives." Country Home is an important measure to encourage exports. Purpose is to reduce export costs and selling prices, to mention The high commodity Competitive Sales force in foreign markets, competition for markets, expanding exports, in order to achieve favorable The balance of payments. Subsidies in two ways: ① direct subsidies. That is, cash subsidies, Is a traditional means of export incentives. The amount is usually the domestic price and export price Difference grid. Where the export of goods designated by the government, an immediate cash up by exports Paste, without any conditions, America, for most agricultural products out of the European Economic Community Way of direct subsidies to the mouth. ② indirect subsidies. Government to grant other concessions to be exporter Event, such as transportation, financial concessions. Including exports and imports for the processing of raw materials, Implement a temporary exemption or tax rebates, reduced freight for exports, reduce the foreign tax (income Tax, consumption tax); to give low-interest export credits. As domestic prices of subsidized goods Generally higher than export prices, it provided the conditions for the realization of dumping, continue to lead in the international Tariff wars and trade wars. To this end, the inclusion in trade treaties limit the export incentives of some Section, but no tangible results. In principle, the prohibition of the General Agreement on Tariffs Export subsidies, and regulations affected Parties may resort to countermeasures, but the primary products (excluding Including minerals), under certain limited conditions, while allowing subsidies.