The Law and Economics of Contingent Protection in the WTO
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The Law and Economics of Contingent Protection in the WTO

Petros C. Mavroidis, Patrick A. Messerlin and Jasper M. Wauters

In this important book, three of the leading authors in the field of international economic law discuss the law and economics of the three most frequently used contingent protection instruments: anti-dumping, countervailing measures, and safeguards. When discussing countervailing measures, the authors also discuss legal challenges against prohibited and/or actionable subsidies. The authors’ choice is mandated by the fact that the effects of a subsidy cannot always be confined to the market of the WTO Member wishing to react against it. Assuming there are effects outside its market, an injured WTO Member can challenge the scheme as such before a WTO Panel. Taking the three agreements for granted as a starting point, the book provides comprehensive discussion of both the original contracts, and the case law that has substantially contributed to the understanding of these agreements.
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Chapter 9: Counteracting subsidies - a two-track approach

Petros C. Mavroidis, Patrick A. Messerlin and Jasper M. Wauters


8. Procedural requirements relevant to the countervailing duty investigation The procedural obligations concerning initiation and conduct of the countervailing duty investigation are very similar or, on various occasions, identical to those set forth in the AD Agreement with respect to AD investigations. Much of what we said in respect of these obligations in the AD context could thus be transposed to this chapter dealing with countervailing duty procedures. In what follows, we will therefore simply describe the obligations as they appear in the SCM Agreement and point to the small number of differences that exist between AD and CVD investigations. Where appropriate we refer to case-law in the CVD context interpreting these provisions. It seems fair to say, however, that much of what we said, based on the case-law in the AD context, is equally applicable in the CVD context. 1 Initiation Article 11 SCM Agreement deals with the initiation of an investigation. Except in special circumstances, an investigation to determine the existence, degree and effect of any alleged subsidy shall be initiated upon a written application by or on behalf of the domestic industry. Such an application shall include sufficient evidence of the existence of (a) a subsidy and, if possible, its amount, (b) injury and (c) a causal link between the subsidized imports and the alleged injury. The application shall contain such information as is reasonably available to the applicant on a number of items listed in Article 11.2 SCM, such as the identity of the applicant; the...

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