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On the Relationship between “Legal” Specifics and “Factual” Specifics in Subsidy and Counter-subsidy Measures |
REN Qiang |
Law School of Renmin University of China, Beijing, 100872 |
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Abstract Under Agreement on Subsidy and Counter-subsidy Measures (SCM), the specifics of subsidies are classified into two kinds: one is “legal” specifics, the other is “factual” specifics. The determination of these two is mainly dealt with in the three articles of 2.1(a)、2.1(b)、2.1(c)in SCM. It is generally recognized that the first two articles are “legal” specifics while the last is “factual” specific. It is controversial as to how an investigation organization should apply article 2.1 in the agreement. From the perspective of treaty interpretation and against the background of DS437, this paper elaborates that only when the appellate body determine the “specific” of the subsidy in the logical order from “legal” to “factual” can a reasonable expectation of the result from all the parties in the lawsuit and the stability of WTO rules system be maintained.
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Received: 19 December 2016
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