IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Privatization and The Definition of Subsidy: A Critical Study of Appellate Body Texturalism

Listed author(s):
  • Richard Diamond
Registered author(s):

    Analysis of the Appellate Body's (AB) treatment of a particular legal question often provides insight into issues of more general importance. In this article, examination of the AB's treatment of a particular subsidy issue is used to explore the Agreement on Subsidies and Countervailing Measures' (SCM Agreement) definition of subsidy and to question the efficacy of the AB's reliance on texturalism. The legal question analyzed arose when European governments challenged the US's imposition of countervailing duties (CVDs) on steel manufactured by 'privatized' steel companies. The US claimed the CVDs were proper since subsidies provided prior to privatization had 'passed through' to the privatized companies. The AB, relying heavily on the meaning of words rather than on consideration of 'object and purpose', found that the US had violated its obligations under the SCM Agreement. An analysis of the AB's logic and the authorities cited demonstrates that neither justifies the AB's conclusion. A heuristic model of the definition of subsidy is used to show that the question raised by privatization implicates issues of causation, overlooked by the AB, that are important in correctly interpreting the SCM Agreement. The problems arising from AB texturalism are contrasted with the justifications given for that approach, suggesting that a change in approach may be warranted. , Oxford University Press.

    If 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.

    File URL:
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

    Article provided by Oxford University Press in its journal Journal of International Economic Law.

    Volume (Year): 11 (2008)
    Issue (Month): 3 (September)
    Pages: 649-678

    in new window

    Handle: RePEc:oup:jieclw:v:11:y:2008:i:3:p:649-678
    Contact details of provider: Postal:
    Oxford University Press, Great Clarendon Street, Oxford OX2 6DP, UK

    Fax: 01865 267 985
    Web page:

    Order Information: Web:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:oup:jieclw:v:11:y:2008:i:3:p:649-678. See general 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 you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.