New national foreign trade legislation on subsidies and international standards

• Main Author: Divljak Drago
• Format: Article
• Language: English
• Published: University of Novi Sad, Faculty of Law 2012-01-01
• Series: Zbornik Radova: Pravni Fakultet u Novom Sadu
• Subjects: subsidy; national law; countervailing measures; rules; WTO; EU; export subsidy
• Online Access: http://scindeks-clanci.ceon.rs/data/pdf/0550-2179/2012/0550-21791204157D.pdf
• ISSN: 0550-2179; 2406-1255

Currently, the subsidies are one of the main sources of restrictions in international trade, and a disturbance factor of liberalization process in that field, which is particularly emphasized in the times of economic crises. Due to its economic impact, such behavior causes unavoidably the implementation of countervailing measures. However, as its extensive use has the potential to turn them into the instrument of protectionism, it is necessary to deploy the appropriate legal rules in order to determine precisely the conditions and regime for the use of such subsidies, as well as the implementation of countervailing measures in the case of violation of that regime. The processes of liberalization of our foreign trade system and constant foreign trade deficit make the need for protection of our own economy and creating of appropriate set of defense instruments against non-permitted/illegal subsidies in our law more and more relevant. The reply to that need in new economic circumstances was the enactment of a new Law on Foreign Trade Operations in 2009 and, in particular the enactment of the accompanying bylaws. Its rules in the field of subsidies have been largely harmonized with the requirements of the World Trade Organizations, and consequently with the European Union standards, in both the conceptual aspect and aspect of individual solutions. However, there is still a chronic issue of the lack of institutional and appropriate human resources assumptions for its full and optimum implementation.