The Controversial Subsidies: Illustrating the US-IRA Case through the US-Cotton Case

DOI

10.2991/978-94-6463-748-9_105How to use a DOI?

Keywords

WTO; Subsidies; Electric vehicle

Abstract

The subsidies are of great significance in international trade. There are plenty of disputes over subsidies over recent years. Be aware of the relevant provisions, prohibitions and exceptions on subsidies can help countries to promote exports while avoiding international trade disputes. The US-Upland Cotton Case is a classic WTO case related to subsidies, for it has covered almost all types of prohibited subsidies and actionable subsidies, which are subsidies that might be forbidden by WTO. While the US-IRA (China) Case is an ongoing case whose outcomes will cause substantial influences on world trade patterns. The article consists of 4 parts. In the first section, the article will briefly introduce the subsidies and countervailing measures and related agreements. In the second section, the article will illustrate three types of subsidies involved in international trade through the US-Upland Cotton case. Then in the third section of the article, the US-IRA (China) will be presented completely, comprehensively and in full detail. In addition, legal controversies, as well as political complexities over this case will also be discussed in this section. Finally, a constructive summary will be made in the conclusion part. Since the current uncertain situation and the complexity of the subsidy itself in this case, the article believes that the only method to solve the problem is active negotiation between two countries. Meanwhile, the article holds an open attitude towards the future of the case.

Copyright

© 2025 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Sinuo Chen
PY  - 2025
DA  - 2025/07/03
TI  - The Controversial Subsidies: Illustrating the US-IRA Case through the US-Cotton Case
BT  - Proceedings of the 2025 International Conference on Financial Risk and Investment Management (ICFRIM 2025)
PB  - Atlantis Press
SP  - 964
EP  - 971
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-748-9_105
DO  - 10.2991/978-94-6463-748-9_105
ID  - Chen2025
ER  -