2. 广东省省级精品课程 《国际贸易》 13. GATT&WTO 广东外语外贸大学 周骏宇副教授

3. 13.1 GATT GATT (General Agreement on Trade and Tariffs) GATT (General Agreement on Trade and Tariffs) 1947, Marrakech, Morocco 1947, Marrakech, Morocco Three basic elements: Three basic elements: Trade shall be conducted on a nondiscriminatory basis. Trade shall be conducted on a nondiscriminatory basis. Protection shall be afforded to domestic industries through customs tariffs rather than quotas. Protection shall be afforded to domestic industries through customs tariffs rather than quotas. Consultation shall be the primary method used to solve global trade problems Consultation shall be the primary method used to solve global trade problems

4. Much of the history of those 47 years was written in Geneva. But it also traces a journey that spanned the continents, from that hesitant start in 1948 in Havana (Cuba), via Annecy (France), Torquay (UK), Tokyo (Japan), Punta del Este (Uruguay), Montreal (Canada), Brussels (Belgium) and finally to Marrakesh (Morocco) in 1994. During that period, the trading system came under GATT, salvaged from the aborted attempt to create the ITO. GATT helped establish a strong and prosperous multilateral trading system that became more and more liberal through rounds of trade negotiations. But by the 1980s the system needed a thorough overhaul. This led to the Uruguay Round, and ultimately to the WTO. Much of the history of those 47 years was written in Geneva. But it also traces a journey that spanned the continents, from that hesitant start in 1948 in Havana (Cuba), via Annecy (France), Torquay (UK), Tokyo (Japan), Punta del Este (Uruguay), Montreal (Canada), Brussels (Belgium) and finally to Marrakesh (Morocco) in 1994. During that period, the trading system came under GATT, salvaged from the aborted attempt to create the ITO. GATT helped establish a strong and prosperous multilateral trading system that became more and more liberal through rounds of trade negotiations. But by the 1980s the system needed a thorough overhaul. This led to the Uruguay Round, and ultimately to the WTO.rounds of trade negotiationsUruguay Roundrounds of trade negotiationsUruguay Round

5. From 1948 to 1994, the General Agreement on Tariffs and Trade (GATT) provided the rules for much of world trade and presided over periods that saw some of the highest growth rates in international commerce. It seemed well-established, but throughout those 47 years, it was a provisional agreement and organization. From 1948 to 1994, the General Agreement on Tariffs and Trade (GATT) provided the rules for much of world trade and presided over periods that saw some of the highest growth rates in international commerce. It seemed well-established, but throughout those 47 years, it was a provisional agreement and organization.

6. GATT was provisional with a limited field of action, but its success over 47 years in promoting and securing the liberalization of much of world trade is incontestable. Continual reductions in tariffs alone helped spur very high rates of world trade growth during the 1950s and 1960s — around 8% a year on average. GATT was provisional with a limited field of action, but its success over 47 years in promoting and securing the liberalization of much of world trade is incontestable. Continual reductions in tariffs alone helped spur very high rates of world trade growth during the 1950s and 1960s — around 8% a year on average.

7. And the momentum of trade liberalization helped ensure that trade growth consistently out-paced production growth throughout the GATT era, a measure of countries’ increasing ability to trade with each other and to reap the benefits of trade. The rush of new members during the Uruguay Round demonstrated that the multilateral trading system was recognized as an anchor for development and an instrument of economic and trade reform. And the momentum of trade liberalization helped ensure that trade growth consistently out-paced production growth throughout the GATT era, a measure of countries’ increasing ability to trade with each other and to reap the benefits of trade. The rush of new members during the Uruguay Round demonstrated that the multilateral trading system was recognized as an anchor for development and an instrument of economic and trade reform.

8. The GATT trade rounds Year Place/ name Subjects covered Countries Year Place/ name Subjects covered Countries 1947 Geneva Tariffs 23 1947 Geneva Tariffs 23 1949 Annecy Tariffs 13 1949 Annecy Tariffs 13 1951 Torquay Tariffs 38 1951 Torquay Tariffs 38 1956 Geneva Tariffs 26 1956 Geneva Tariffs 26 1960 – 1961 Dillon Round Tariffs 26 1960 – 1961 Dillon Round Tariffs 26 1964 – 1967 Kennedy Round Tariffs and anti-dumping measures 1964 – 1967 Kennedy Round Tariffs and anti-dumping measures 62 62 1973 – 1979 Tokyo Round Tariffs, non-tariff measures, “ framework ” agreements 102 1973 – 1979 Tokyo Round Tariffs, non-tariff measures, “ framework ” agreements 102 1986 – 1994 Uruguay Round Tariffs, non-tariff measures, rules, services, intellectual property, dispute settlement, textiles, agriculture, creation of WTO, etc 123 1986 – 1994 Uruguay Round Tariffs, non-tariff measures, rules, services, intellectual property, dispute settlement, textiles, agriculture, creation of WTO, etc 123

9. 13.2 WTO WTO is short for “The World Trade Organization “ The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between countries. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in their parliaments. The goal is to help producers of goods and services, exporters, and importers conduct their business.

10. FACT FILE OF WTO Location: Geneva, Switzerland Established: 1 January 1995 Membership: 149 countries(on11 December 2005) Budget: 175 million Swiss francs for 2006 Secretariat staff: 635 Head: Pascal Lamy (Director-General) Location: Geneva, Switzerland Established: 1 January 1995 Membership: 149 countries(on11 December 2005) Budget: 175 million Swiss francs for 2006 Secretariat staff: 635 Head: Pascal Lamy (Director-General)

11. Functions : Functions :Functions :Functions : Administering WTO trade agreements Forum for trade negotiations Handling trade disputes Monitoring national trade policies Technical assistance and training for developing countries Cooperation with other international organizations Administering WTO trade agreements Forum for trade negotiations Handling trade disputes Monitoring national trade policies Technical assistance and training for developing countries Cooperation with other international organizations WTO's core : the promotion of trade liberalization.

12. Purpose Promote economic and trade development, to improve living standards, ensure full employment, protection of real income and effective demand growth; Promote economic and trade development, to improve living standards, ensure full employment, protection of real income and effective demand growth; According to the goals of sustainable development and reasonable utilization of the world's resources, and expanding the production of goods and services; According to the goals of sustainable development and reasonable utilization of the world's resources, and expanding the production of goods and services; Reach mutually beneficial agreements, substantial reduction and elimination of tariffs and other trade barriers and the elimination of discriminatory treatment in international trade. Reach mutually beneficial agreements, substantial reduction and elimination of tariffs and other trade barriers and the elimination of discriminatory treatment in international trade.

13. Three important agreements Three important agreements : Three important agreements the Agreement on Tariffs and Trade (GATT); the Agreement on Tariffs and Trade (GATT); Special copyright, industrial design and trademark agreements (TRIZP); Special copyright, industrial design and trademark agreements (TRIZP); General Agreement on Trade in Services (GATS) (education are areas of trade in services). General Agreement on Trade in Services (GATS) (education are areas of trade in services).

14. Basic principle Basic principle Non-discriminatory principles -- primarily in the MFN and national treatment, that is, not differentiating, nor are other things outside. Non-discriminatory principles -- primarily in the MFN and national treatment, that is, not differentiating, nor are other things outside. The principle of transparency -- is the trade in services requested by Member States must publish the administrative laws, regulations and policy measures to ensure that the policies are predictable, the other members of the party members to understand the legal environment. The principle of transparency -- is the trade in services requested by Member States must publish the administrative laws, regulations and policy measures to ensure that the policies are predictable, the other members of the party members to understand the legal environment. The principle of fair competition -- not to take improper trading practices (dumping and subsidies into) competition. The principle of fair competition -- not to take improper trading practices (dumping and subsidies into) competition. Legal principle of unity -- to the local regulations in line with the central government's commitment. Legal principle of unity -- to the local regulations in line with the central government's commitment.

16. Timeline 1995Creation of the WTO 1995Creation of the WTO 1996Singapore Ministerial 1996Singapore Ministerial 1998 Geneva Ministerial 1998 Geneva Ministerial 1999 Seattle Ministerial 1999 Seattle Ministerial 2001Doha Ministerial 2001Doha Ministerial 2003Cancún Ministerial 2003Cancún Ministerial 2005Hong Kong Ministerial 2005Hong Kong Ministerial

17. 13.3WTO & China TIME ： November 10th 2001 Doha on the 10th at all to consensus, consideration and adoption of China's accession to the WTO decision. Chinese government representatives signed in China's WTO accession protocol, and the WTO secretariat to China's accession to the WTO 30 days after ratification, China become a member of the WTO. Doha on the 10th at all to consensus, consideration and adoption of China's accession to the WTO decision. Chinese government representatives signed in China's WTO accession protocol, and the WTO secretariat to China's accession to the WTO 30 days after ratification, China become a member of the WTO.

18. (1) make our products and services and intellectual property in 135 members enjoy unconditional and multilateral, permanent and stable MFN and national treatment; (1) make our products and services and intellectual property in 135 members enjoy unconditional and multilateral, permanent and stable MFN and national treatment; (2) for most of our industrial and semi-manufactured goods exported by developed countries enjoy GSP treatment; China and other WTO members to bring the same enjoyment of the fundamental rights rights

19. (3) The use of the WTO dispute settlement mechanism, fair, objective and rational solution to the economic and trade frictions with other countries, to create a good economic environment for development; (3) The use of the WTO dispute settlement mechanism, fair, objective and rational solution to the economic and trade frictions with other countries, to create a good economic environment for development; (4) WTO members enjoy the use of the rules, take exception, that measures to promote the economic development rights. (4) WTO members enjoy the use of the rules, take exception, that measures to promote the economic development rights.

20. Accession to the World Trade Organization, China should carry out the corresponding obligations obligations Reduction of tariffs and non-tariff regulation measures, and gradually open up the services market to expand; Reduction of tariffs and non-tariff regulation measures, and gradually open up the services market to expand; In goods, services, intellectual property rights, in accordance with WTO rules, to the other members of MFN, national treatment; In goods, services, intellectual property rights, in accordance with WTO rules, to the other members of MFN, national treatment; According to the "Intellectual Property Agreement" stipulates further regulate intellectual property protection; According to the "Intellectual Property Agreement" stipulates further regulate intellectual property protection; Regulate trade in goods for foreign investment; Regulate trade in goods for foreign investment;

21. WTO Entry Boosts Economy GDP grew by 7.9% in the year following entry to WTO GDP grew by 7.9% in the year following entry to WTO Increase of 18.4% in trade volume with the United States after one year Increase of 18.4% in trade volume with the United States after one year China’s exports increased by 19.7% after one year China’s exports increased by 19.7% after one year Due to improved trading environment, China became the 4 th largest trade body in the world behind only the United States, EU and Japan Due to improved trading environment, China became the 4 th largest trade body in the world behind only the United States, EU and Japan

22. Actual Implementation-tariff

23. Trade With the World

24. Exports Exports = $438.4 Billion f.o.b. (2003) Exports = $438.4 Billion f.o.b. (2003) Export Commodities Export Commodities – Machinery & Equipment, Textiles & Clothing, Footwear, Toys, Sporting Goods, Mineral Fuels, etc. Top Export Partners (2003): Top Export Partners (2003): – U.S. = 21.1% – Hong Kong = 17.4% – Japan = 13.6% – South Korea = 4.6% – Germany = 4%

25. Imports Imports = $412.8 Billion f.o.b. (2003) Imports = $412.8 Billion f.o.b. (2003) Import Commodities Import Commodities –Machinery & Equipment, Mineral Fuels, Plastics, Iron & Steel, Chemicals Top Import Partners (2003) Top Import Partners (2003) –Japan = 18% –Taiwan = 11.9% –South Korea = 10.4% –U.S. = 8.2% –Germany = 5.9%

26. FDI into China after 2001 (US$ billion)

27. Machinery Sector Market openness did not cause shocks. On the contrary, this sector experiences the best period of development in history Market openness did not cause shocks. On the contrary, this sector experiences the best period of development in history – Lead by domestic demand, so rapid economic growth is favorable to the machine sector – Previously protected by national trade barriers, but the protection rate was not high due to licensed import policies. Thus the short term effect of WTO was not big. – Long-term effect will take time to be reflected completely.

28. Machinery Sector Output Total Sales ProfitTaxes Year Billion Yuan Growth Growth Growth Growth 20021820.523.4%1718.824.1%97.447.5%78.920.6% 20032522.531.9%2432.433.3%153.148.7%10324.2% 20043271.127.4%3190.227.7%185.816.5%116.111.0%

29. Automobile Sector The market becomes more open after WTO, which did not cause the negative impact which was expected. The market becomes more open after WTO, which did not cause the negative impact which was expected. – From 2005 to 2006, the import quotas for automobiles was eliminated, – the import tariff was reduced to the binding rate, i.e. the average tariff for vehicles as 25%, and that for auto parts, 10%.

30. Automobile Sector ExportImportBalance Year Billion USD Growth Growth Growth 200244.226.8%69.729.3%-25.533.8% 200358.348.9%97.750.9%-39.354.0% 200485.849.9%13742.8%-52.230.3%