How to Pass a Pass-Through Test: The Case of Input Subsidies
AbstractThe pass-through principle evolved from countervailing duty cases means that where a producer of a downstream product obtains a subsidized input from an upstream producer at arm's length, the investigating authority cannot presume, but rather must establish whether and to what extent the benefit of the input subsidy has actually been passed through downstream. The positive pass-through determination enables the importing country to impose a countervailing duty on the downstream product found to be indirectly subsidized. In this article, we show that the legal basis for the input subsidy pass-through goes beyond the scope of Part V of the SCM Agreement. We also argue that what necessitates the pass-through test is a market price paid by the downstream producer to the upstream producer, rather than the fact of corporate non-affiliation. Furthermore, the pass-through determination for all elements of the input subsidy should, in our opinion, be made at the levels of both direct and indirect subsidization. Finally, in the light of our observations, we suggest a few amendments to a proposed Doha Round text on the subsidy pass-through. The Author 2012. Published by Oxford University Press. All rights reserved., Oxford University Press.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Oxford University Press in its journal Journal of International Economic Law.
Volume (Year): 15 (2012)
Issue (Month): 2 (June)
Contact details of provider:
Postal: Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK
Fax: 01865 267 985
Web page: http://www.jiel.oupjournals.org/
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oxford University Press) or (Christopher F. Baum).
If references are entirely missing, you can add them using this form.