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TradeBargainingundertheWTO:AnExampleofUS-ChinaTrade(WTO架構下之貿易談判)Dr.Pei-ShanKao,AssistantProfessorNationalChiaoTungUniversityCentreforGeneralEducationUnit6
I.Introduction
II.US-ChinaTradeContactsandExchange
III.BilateralTradeDisputesandFrictions
IV.AnalysisonUS-ChinaTradeBargainingundertheWTORegime
V.Conclusion
Question1:DidtheWTOpromoteUS-ChinatradebargainingsinceChina’sentryin2001?Question2:HavetheirtradefrictionsbeenresolvedundertheWTOregime?Question3:CanthemechanismoftheWTOfacilitateeffectivelyUS-Chinatradebargaininghenceresolvestheirdisputesandpromotestheirrelations?
Question4:HowdidtheWTOchangeandaffectChina’stradebehaviorandChina’srelationswithitstradingpartners?↗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.China’sarbitraryadministrativeinterferenceanddiscriminatoryregulatoryprocesses,tradebarriers,andunfairandnon-transparenttradepracticeswereprevalent.↓∴TheU.S.AwelcomedChina’sentryintotheWTOAmericans’andWesternCountries’ExpectationsofChina’saccessiontotheWTO*OpeningtheChinesemarkettobringhugecommercialbenefitstothem.*ReducingChinesetradebarriersingoods,servicesandagriculturalproducts.*ReducingChina’srestrictionsonimportsanddistribution.*TodecreasetheirtradedeficitwithChina.*ToensurethetransparencyofChina’stradepolicyandestablishafairandstabletradingenvironment.*ToobligeChinatobehaveaccordingtothewestern-stylerulesoflawandtoexpanditsOpenDoorpolicy.
II.US-ChinaTradeContactsandExchange*AccordingtotheUS-ChinaBusinessCouncil,thebilateraltradeincreasedfrom$85.5billionin1998to$386.7billionin2007;itgrew4.5times.Figure1AnnualGrowthRateofUS-ChinaBilateralTrade1998-2008*Chinanowisworld’sthird-largesteconomyaftertheUnitedStatesandJapan.*Chinaisalsonowworld’sthird-largesttradingnation,followingtheUSAandGermany.*China-UStwo-waytradeaccountedfor17.7%ofChina’stotaltradeamount.*TheUnitedStatesnowisChina’slargesttradingpartner.ItisalsoChina’slargestexportmarket,anditsfourth-largestimportsupplier.*ChinaisAmerica’sthird-largestexportmarketanditisalsoAmerica’sfastestgrowingexportmarket.*ChinahaspassedCanada,becomesAmerica’sbiggestimportsupplier.
Chinahasgraduallyshifteditsexportstructurefromlabour-intensiveproductssuchastextiles;shoes;andtoystocapital-intensivegoods.
US-Chinatradereachedaparticularlyhighlevelofgrowth:theyearsafter1979,whentheyestablishedformaldiplomaticrelationsinthepost-ColdWarera.TotalUS-Chinabilateraltradeincreasedfrom$17.8billionin1989toover$409billionin2008
ChinahasbecometheUSA’slargestdeficittradingpartner,ChinahadatradesurpluswiththeUnitedStatesof$266.3billionin2008.
TradeDisputesandConflictsAppeared
QuarrelsbeforeChinajoinedtheWTO:
China’sMFNstatus,Chineseexchangerate,IPR
III.BilateralTradeDisputesandFrictionsAfterChinajoinedtheWTO:DisputessenttotheDSBAdisputeariseswhenonememberbelievesanotherisviolatinganagreementoracommitment▼AppealtotheDSBtoresolvethedispute▼TheDSBwillestablish“DisputePanels”toconsiderthecase(Thepanelswillmakerecommendation)▼The“AppellateBody”canamendthepanels’recommendationDisputessettled“outofcourt”,orremaininaprolongedconsultationphaseTable3.US-ChinaTradeDisputesBroughttoWTO
ComplaintRespondentChinaChinaChinaUSAUSAUSAsteelsafeguards(DS252)anti-dumpingdutyoncoatedfreesheetpaper(DS368)anti-dumpingduties
(DS379)ChinapreferentialVATforIC(DS309)autoparts(DS340)ComplaintRespondentUSAUSAUSAUSAUSAChinaTaxrefunds(DS358)IPR(DS362)Publicationandaudiovisualservices(DS363)financialservices(DS373)grants,loans(DS387)
IV.AnalysisonUS-ChinaTradeBargainingundertheWTORegimeSavetheconsultationandbargainingtime:e.g.OnthecasesofChina’spreferentialVATratefordomesticallyproducedICs(DS309);themeasuresChinaimposedonforeignfinancialinformationservicesandservicessuppliers(DS373)wereresolved“out-of-court”within4monthsevenwithoutestablishingapanelasChinaagreedtoamendthemeasures.2.Disputesresolvedwithoutexchangingconditionsasbefore:
e.g.(before)MFNlinkedwithhumanrightsissues (after)Tradeissuesdonotneedtobe“politicised”3.Toensuretherealisationofstates’commitment:∵WTOisalong-termanditerativegame,“theshadowofthefuture”canbelengthened;therewillbenocommitmentproblems.e.g.onthecaseofUSsteelsafeguardmeasures(DS252),althoughAmericawasunsatisfiedwiththepanelreport,andappealedtotheAppellateBody,iteventuallyacceptedthedecisionoftheDSBandpromisedtoterminatealloftherelativesafeguardmeasures.∵thegameisrepeated,ifChinaandtheUnitedStateswanttoplayit,theywilleventuallychoosetocooperate.4.TradePolicyReviewsMechanism(TPRM):WTOhelpstomonitorandsupervisestates’behaviourandtradepractices:e.g.PressreleasedbytheWTO(June2008):TheUnitedStateshastakenfurtherstepstoliberaliseitstraderegimesinceitspreviousreviewin2006.
5.Toprovideinformationaboutothers’preferencesandintentions;
decreasestates’uncertaintyandfearsforcooperatingwithothers:e.g.Onthecaseofrestrictingforeignfinancialinformationservicesandservicesuppliers(DS373),ChinareleasedinformationbytheWTOexpressingitswilltorevisethemeasuresandreachedanagreementwiththeUnitedStates.Conclusion
-SinceChinajoinedtheWTO,althoughtheWTOcouldnothelptheUnitedStatestodecreaseitsdeficitswithChina,itdidpromoteUS-Chinatraderelationsbyresolvingtheirtradefrictions.-ManydisputessuchasUSsteelsafeguardmeasures,China’sVATrefundsonICsoritsc
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