The meaning and role of the ‘pass-through analysis’ in subsidy and countervailing investigations

Abstract

This research examines the complex issue of subsidies granted to input resources used in the production of goods traded internationally. The focus is on the "pass-through analysis," which determines whether subsidies benefiting input resources should be considered in countervailing measures imposed by importing countries. The study investigates the legal framework governing this analysis, its challenges, and the ambiguity surrounding its interpretation by the WTO Dispute Resolution Body. The research aims to shed light on this vague concept and provide recommendations for clarification. The study begins by exploring the fundamental concepts of subsidies, their benefits, and preconditions, before delving into the intricacies of countervailing investigations. The findings will contribute to a deeper understanding of the pass-through analysis and its implications for international trade law, ultimately informing policy decisions and promoting fair trade practices.