(WTO架构下之贸易谈判)by.pptx
Trade Bargaining under the WTO:An Example of US-China Trade(WTO架構下之貿易談判架構下之貿易談判)Dr.Pei-Shan Kao,Assistant ProfessorNational Chiao Tung UniversityCentre for General EducationUnit 6I.IntroductionII.US-ChinaTradeContactsandExchangeIII.BilateralTradeDisputesandFrictionsIV.AnalysisonUS-ChinaTradeBargainingundertheWTORegimeV.ConclusionQuestion1:DidtheWTOpromoteUS-ChinatradebargainingsinceChinasentryin2001?Question2:HavetheirtradefrictionsbeenresolvedundertheWTOregime?Question3:CanthemechanismoftheWTOfacilitateeffectivelyUS-Chinatradebargaininghenceresolvestheirdisputesandpromotestheirrelations?Question4:HowdidtheWTOchangeandaffectChinastradebehaviorandChinasrelationswithitstradingpartners?Source:http:/english.pravda.ru/img/2005/10/wto2.jpg,“consultedinMarch2009”.US-ChinaTradeRelations:Sincetheyestablishedformaldiplomaticrelationsin1979,theysignedatradeagreementgrantingeachotherthemost-favoured-nation(MFN)status.Thetwo-waytradedevelopedandgrewrapidly.Manytradedisputesandfrictionsoccurred.Americanswereunsatisfiedwithmanyproblems:e.g.Chinasarbitraryadministrativeinterferenceanddiscriminatoryregulatoryprocesses,tradebarriers,andunfairandnon-transparenttradepracticeswereprevalent.TheU.S.AwelcomedChinasentryintotheWTOAmericansandWesternCountriesExpectationsofChinasaccessiontotheWTO*OpeningtheChinesemarkettobringhugecommercialbenefitstothem.*ReducingChinesetradebarriersingoods,servicesandagriculturalproducts.*ReducingChinasrestrictionsonimportsanddistribution.*TodecreasetheirtradedeficitwithChina.*ToensurethetransparencyofChinastradepolicyandestablishafairandstabletradingenvironment.*ToobligeChinatobehaveaccordingtothewestern-stylerulesoflawandtoexpanditsOpenDoorpolicy.II.US-ChinaTradeContactsandExchange*According to the US-China Business Council,the bilateral trade increased from$85.5 billion in 1998 to$386.7 billion in 2007;it grew 4.5 times.Figure1AnnualGrowthRateofUS-ChinaBilateralTrade1998-2008*China now is worlds third-largest economy after the United States and Japan.*China is also now worlds third-largest trading nation,following the USA and Germany.*China-US two-way trade accounted for 17.7%of Chinas total trade amount.*The United States now is Chinas largest trading partner.It is also Chinas largest export market,and its fourth-largest import supplier.*China is Americas third-largest export market and it is also Americas fastest growing export market.*China has passed Canada,becomes Americas biggest import supplier.Sourceofthephotos:http:/ has gradually shifted its export structure from labour-intensive products such as textiles;shoes;and toys to capital-intensive goods.US-China trade reached a particularly high level of growth:(1)the years after 1979,when they established formal diplomatic relations(2)in the post-Cold War era.TotalUS-Chinabilateraltradeincreasedfrom$17.8billionin1989toover$409billionin2008 China has become the USAs largest deficit trading partner,China had a trade surplus with the United States of$266.3 billion in 2008.Trade Disputes and Conflicts Appeared Quarrels before China joined the WTO:Chinas MFN status,Chinese exchange rate,IPRIII.BilateralTradeDisputesandFrictionsAfter China joined the WTO:Disputes sent to the DSB AdisputeariseswhenonememberbelievesanotherisviolatinganagreementoracommitmentAppealtotheDSBtoresolvethedisputeTheDSBwillestablish“DisputePanels”toconsiderthecase(Thepanelswillmakerecommendation)The“AppellateBody”canamendthepanelsrecommendationDisputessettled“outofcourt”,orremaininaprolongedconsultationphaseTable3.US-ChinaTradeDisputesBroughttoWTOComplaintRespondentChinaChinaChinaUSAUSAUSAsteel safeguards(DS 252)anti-dumping duty on coated free sheet paper(DS 368)anti-dumping duties(DS 379)Chinapreferential VAT for IC(DS 309)auto parts(DS 340)ComplaintRespondentUSAUSAUSAUSAUSA ChinaTax refunds(DS 358)IPR(DS 362)Publication and audiovisualservices(DS 363)financialservices(DS 373)grants,loans(DS 387)IV.AnalysisonUS-ChinaTradeBargainingundertheWTORegime1.Savetheconsultationandbargainingtime:e.g.OnthecasesofChinaspreferentialVATratefordomesticallyproducedICs(DS309);themeasuresChinaimposedonforeignfinancialinformationservicesandservicessuppliers(DS373)wereresolved“out-of-court”within4monthsevenwithoutestablishingapanelasChinaagreedtoamendthemeasures.2.Disputesresolvedwithoutexchangingconditionsasbefore:e.g.(before)MFNlinkedwithhumanrightsissues(after)Tradeissuesdonotneedtobe“politicised”3.Toensuretherealisationofstatescommitment:WTOisalong-termanditerativegame,“theshadowofthefuture”canbelengthened;therewillbenocommitmentproblems.e.g.onthecaseofUSsteelsafeguardmeasures(DS252),althoughAmericawasunsatisfiedwiththepanelreport,andappealedtotheAppellateBody,iteventuallyacceptedthedecisionoftheDSBandpromisedtoterminatealloftherelativesafeguardmeasures.thegameisrepeated,ifChinaandtheUnitedStateswanttoplayit,theywilleventuallychoosetocooperate.4.Trade Policy Reviews Mechanism(TPRM):WTO helps to monitor and supervise states behaviour and trade practices:e.g.Press released by the WTO(June 2008):The United States has taken further steps to liberalise its trade regime since its previous review in 2006.5.To provide information about others preferences and intentions;decrease states uncertainty and fears for cooperating with others:e.g.On the case of restricting foreign financial information services and service suppliers(DS 373),China released information by the WTO expressing its will to revise the measures and reached an agreement with the United States.Conclusion-SinceChinajoinedtheWTO,althoughtheWTOcouldnothelptheUnitedStatestodecreaseitsdeficitswithChina,itdidpromoteUS-Chinatraderelationsbyresolvingtheirtradefrictions.-ManydisputessuchasUSsteelsafeguardmeasures,ChinasVATrefundsonICsoritschargesonimportedautomobilepartshavebeenresolvedsuccessfully.-Althoughsomecomplicateddisputesmaytaketimetoberesolved,orChinamayneedtimetoreviseitstradepractices,ahealthiertradeenvironmentinChinacanbeexpectedsinceChinasentryintoWTO.-Thisthereforehelpstostabliseinternationaltradeenvironment,thatis,theworldneedsChina,andviseversa,particularlyundercurrentglobalfinancialcrisis.-TheregimeofWTOwillnotonlycontinuetoplayacriticalroleinUS-Chinatradebuthelptoresolvetheirtradedisputesandfrictionshencepromotethedevelopmentoftheirrelations.-Inaddition,sinceChinajoinedtheWTO,itstradepracticeshavebeenregulatedandperformedbetterthanbefore.
