1. Xiaowen Cha Law faculty, Dept of Social Science 06-08-31
The Law of WTO 世界贸易组织法
Xiaowen Cha
Law faculty, Dept of Social Science
Chapter 1 An introduction:WTO

2. Structure of the Course
Regulation of trade in goods,
services and trade-related
intellectual property
货物贸易、服务贸易以及
与贸易有关的知识产权的规则
Its development
and establishment
发展与建立
The law and institutions
of the WTO
Dispute-settlement
System
争端解决机制
Trade policy
review mechanism
贸易政策审查机制
Chapter 1 An introduction:WTO

3. Chapter 1 An introduction:WTO
Aims of the Course
The knowledge you will acquire and understand by the end of the course:
The fundamental principles of GATT 1994
The international legal and practical context in which international trade operates
The institutional structure and powers of the WTO, including its dispute settlement procedure
The interpretation of application of WTO rules
Teaching and Studying methods
Lecture
Seminar
Video-watching
Chapter 1 An introduction:WTO

4. Chapter 1 An introduction:WTO
Readings List
Note:
Besides textbook, readings will normally include review of secondary reading books, treaties, cases, government and international organization websites, and academic articles. These may be in English. I will indicate which page and what you should read for each class. The reading list will send you by before each class. So please make sure you make a good preparation before the class.
1.Text Book
栾信节, WTO规则中英文教程, 北京:对外经济贸易大学出版社 2003;
2. Necessary Reading
李双元, 世贸组织规则研究的理论与案例, 北京:人民法院出版社 2004 (D )
宣增益, 世界贸易组织法律教程, 北京:中信出版社2003 (F )
李双元, 世界贸易组织法案例教程, 北京:知识产权出版社 (D )
赵相林, 世界贸易组织法总论, 北京:中国法制出版社 (D )
All the agreements of WTO (available at:
3.Website:
Chapter 1 An introduction:WTO

5. Chapter 1 Introduction: World Trade Organization
I. The debates on World Trading system
II. The history of trade liberalization
III. China and WTO
IV. Function and Structure of WTO
Chapter 1 An introduction:WTO

6. What is WTO? Location: Geneva, Switzerland Established: 1 January 1995
WTO Office, Geneva （日内瓦）
Location: Geneva, Switzerland
Established: 1 January 1995
Created by: Uruguay Round negotiations ( ) (乌拉圭回合谈判） 
Membership: 149 countries (on 11 December 2005)
Chapter 1 An introduction:WTO

7. Chapter 1 An introduction:WTO
There are a number of ways of looking at the WTO.
an organization for liberalizing trade.
a forum for governments to negotiate trade agreements.
a place for them to settle trade disputes.
operates a system of trade rules.
Trade Negotiations Committee
Chapter 1 An introduction:WTO

8. Chapter 1 Introduction: WTO
MISUNDERSTANDINGS?
November 1999 — Third Ministerial Conference, Seattle — anti-WTO demonstration.
November 2001 — China became the 143rd member of the WTO at the Fourth Ministerial Conference, Doha.
BENEFITS?
Chapter 1 An introduction:WTO

9. I. Debates on World Trading System
The benefits
1. Disputes are handled constructively 2. Rules make life easier for all 3. Freer trade cuts the costs of living 4. It provides more choice of products and qualities 5. Trade raises incomes 6. Trade stimulates economic growth 7. The basic principles make life more efficient
The misunderstandings
1. The WTO dictates policy 2. Commercial interests take priority over the environment 3. … and over health and safety 4. The WTO destroys jobs, worsens poverty 5. Small countries are powerless in the WTO 6. The WTO is the tool of powerful lobbies 7. Weaker countries are forced to join the WTO
Chapter 1 An introduction:WTO

10. II. The history of trade liberalization
II-1 The multilateral trading system — past, present and future
II-2 GATT: a brief history
II-3 Eight trade "rounds" (multilateral trade negotiations)
II-4 WTO vs GATT: main differences
Chapter 1 An introduction:WTO

11. II-1 The multilateral trading system (多边贸易体制)
Originally set up under GATT
The system was developed through a series of trade negotiations held under the GATT, dealing with tariff reduction, anti-dumping and non-tariff measures(关税减让,反倾销和非关税措施).
WTO, the successor to the GATT, came into being in 1995
The trade negotiations still continued after WTO establishment
From GATT to WTO
Chapter 1 An introduction:WTO

12. II-2 GATT: a brief history
The GATT- A provisional set of rules
United Nation Conference on Trade and Employment(贸易和就业联合国会议), held in Havana, Cuba,1947
The Havana Charter for ITO was adopted(《国际贸易组织宪章》),but never entered into force.
Substantial tariff reduction agreed among a group of countries
The commercial policy of Havana Charter was taken and converted into GATT.
Countries signed a Protocol of Provisional Application (《临时适用议定书》） to bring the GATT into force quickly.
Originally 23 contracting parties
Entered into force: 1 January 1948
Terminated on 31 December 1995
Chapter 1 An introduction:WTO

13. Chapter 1 An introduction:WTO
II-3 Eight trade "rounds"
Year
Place/name
Subjects covered
Countries
1947
Geneva
Tariffs 23
1949
Annecy 33
1951
Torquay 38
1956 26
Geneva/Dillon Round 45
Geneva/Kennedy Round
Tariffs and antidumping measures 54
Geneva/Tokyo Round
Tariffs, non-tariff measures, 99
Geneva/Uruguay Round
Tariffs, non-tariff measures, rules, services, intellectual property, dispute settlement, textiles, agriculture, creation of WTO, etc
123
Chapter 1 An introduction:WTO

14. Evidence of the success of trade rounds
Chapter 1 An introduction:WTO

15. II-4 GATT vs.WTO: Main Difference
Legal basis
（法律依据）
Protocol Provisional Application of GATT
Agreement Establishing the WTO
Name of Membership
Contracting Party (缔约方）
Member （成员方/国）
Nature
(性质)
1. A set of rules
2. with no institutional foundation,
3. applied on a provisional basis
A permanent institution with a permanent framework. It has legal personality with the privileges and immunities.
Scope
(范围)
The rules just applied to trade in goods
Agreement covers trades in goods, trade in service, and TRIPS
Binding force
( 法律约束力）
Contracting parties may reserve right to fulfill certain GATT obligations
Members’s domestic regulation or measures must be consistent with WTO rules.
Chapter 1 An introduction:WTO

16. II-4 GATT vs.WTO: Main Difference
Approach
(方式)
A series of new agreements were adopted during the Tokyo Round on a plurilateral,selective basis, causing a fragmentation of the multilateral trading system.
The agreements are all multilateral, which have been adopted and accepted by its member as a single undertaking.
Dispute Settlement
(争端解决)
Dispute settlements mechanism is not uniform.
Function was not effective
1. Adopts a uniform dispute settlement system (DSU)
2.Has specific time limits and is therefore faster than the GATT system;
3. Has a permanent AB to review findings by DSP
4. A more detailed rules on implementation of findings
Chapter 1 An introduction:WTO

17. Chapter 1 An introduction:WTO
III. China and WTO
III-1 History of China’s accession to the WTO
III- 2 The Legal Status of the Chinese Taipei in GATT/WTO
III-3 Hong Kong and China and the WTO
III-4 Macau and China and the WTO
III-5 China in World Trade
Chapter 1 An introduction:WTO

18. III-1 History of China’s accession to the WTO
China was one of the 23 original signatories of GATT in 1948
1950.3, Taiwan government announced China leave GATT
1986, China notified the GATT of its wish to resume its status as a GATT contracting party.
Working Party established to examine China’s trade regime
1987, a GATT ~ concerned China’s trade regime for goods.
1995, a WTO ~ was converted and its scope was broadened to include trade in service, new rules on non-tariff measures and rules relating to IPR
Bilateral negotiations between China and each WTO member.
In the Fourth Ministerial Conference of WTO, China signed the Protocol on the Accession of the People‘s Republic of China (中华人民共和国加入议定书).
China became a WTO member
Chapter 1 An introduction:WTO

19. III- 2 The Legal Status of the Chinese Taipei in GATT/WTO
1965, Taiwan was granted observer status at GATT, but was removed in 1971
1992.9, a separate working party was established to examine the request for accession of the Seperated Customs Territory of Taiwan, Penghu, Kimen and Matsu (“Chinese Taipei”) ---“台湾、澎湖、金门、马祖单独关税区”（简称中国台北单独关税区）
, Chines Taipei, as a separate customs territory of China(中国台北单独关税区 ), access WTO
Chapter 1 An introduction:WTO

20. III-3 Hong Kong and China and the WTO
1986.4, Hongkong as a British Crown colony became contracting party of GATT.
1995, Hongkong became an original Member of the WTO
1997.7, PROC resumed the exercise of sovereignty over Hongkong. Therefore, Hongkong retain the status of a separate customs territory in WTO, to maintain and develop international relationship with States, regions and IO in the economic, trade and other fields.
Chapter 1 An introduction:WTO

21. III-4 Macau and China and the WTO
1991.1, Macau became a contracting party of GATT
1995, Macau became a founding member of the WTO, using the name of “Macau, China”
, Macau,as a separate customs territory of China, continued to be a WTO member.
Chapter 1 An introduction:WTO

22. III-5 China in World Trade
Chapter 1 An introduction:WTO

23. IV. Function and Structure of WTO
IV-1 Functions and Legal status
IV-2 Governing Structure
IV-3 Membership, accession
IV-4 Decision-making
IV-5 Legal Framework of WTO Agreements
“Agreement Establishing the WTO”
Chapter 1 An introduction:WTO

24. IV-1 Functions and Legal status
Functions (Art III of Agreement Establishing the WTO)(职能)
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(IMF and World Bank)
Legal status (法律地位)
It is formally endowed with existence, legal personality and legal capacity as an international organization
It must be acorded privileges and immunities that are in accordance with its functions.
Chapter 1 An introduction:WTO

25. Chapter 1 An introduction:WTO
IV-2 Governing Structure
Chapter 1 An introduction:WTO

26. IV-3 Membership and accession
The original WTO Membership consisted of all GATT contracting parties
Countries may join the WTO after negotiating terms of accession.
The Ministerial Conference must approve the terms of accession by a two-thirds majority of the WTO members.
Accession (加入) – accomplished through obtaining a consensus of all WTO members
First, “tell us about yourself
Second, “work out with us individually what you have to offer”
Third, “let’s draft membership terms”
Finally, “the decision”
Chapter 1 An introduction:WTO

27. Chapter 1 An introduction:WTO
IV-4 Decision-making
Art IX of Agreement Establishing the WTO
Decision-making by consensus (协商一致)
“the body concerned shall be deemed to have decided by consensus if no Member, present at the meeting when the decision is taken, formally objects to the proposed decision”
协商一致是指在作出决定的会议上,如果出席会议的成员没有一个对作出的决议提出反对意见,决议机构被认为以协商一致的方式对提交审议的事项作出了决定
Voting
Where a decision cannot be arrived at by consensus, the matter at issue shall be decided by voting
Chapter 1 An introduction:WTO

28. Chapter 1 An introduction:WTO
IV-5 Legal framework of WTO Agreements (English Version is at page 12 of textbook)
第一部分：多边贸易协议包括《世界贸易组织协定》及其附件1、附件2、附件3。
附件1：
1A——货物贸易的多边协议（关于附件1A的总体解释说明，1994年GATT，农业协议，实施卫生与植物卫生措施协议，纺织品与服装协议，技术性贸易壁垒协议，与贸易有关的投资措施协议，反倾销协议，海关估价协议，装运前检验协议，原产地规则协议，进口许可程序协议，补贴与反补贴措施协议，保障措施协议）
1B——服务贸易总协定（GATS）
1C——与贸易相关的知识产权协定（TRIPS）
附件2：关于争端解决规则和程序的谅解（DSU）
附件3：贸易政策审查机制（TPRM）
第二部分：诸边贸易协议，主要由附件4组成。
包括航空器贸易协议，政府采购协议，国际奶制品协议，国际牛肉协议，信息技术产品协议。
Chapter 1 An introduction:WTO

29. Assignments of this class
1. Reading assignments:
（1）栾信节 pp.1-8
（2）李双元, (D ) pp11-27 (as to question 1)
（3）宣增益, (F ) pp4-11(as to question 5-6), pp (as to question 2-4)
（4）Read Page 4-13 of this paper. (as to question 4)
（5）Review the WTO Agreements, paying particular attention to preamble, Art I~VI, Art VIII (as to question 5-6)
（6） Preamble of GATT 1947, available at: (in English).
（7）The organization of WTO, available at:
2. Reflect on the following questions while/after reading the material:
（1）To know the debate on free trade (advocates and challenges)
（2）To know the Eight Multilateral Trade Negotiations
（3）To understand the difference between GATT and WTO
（4）To know the history of China’s accession to WTO
（5）To master the function, accession, governing structure, decision-making of WTO
（6）To know the legal structure and legal status of WTO
Chapter 1 An introduction:WTO

30. CHAPTER 2 PRINCIPLES OF WTO
Chapter 1 An introduction:WTO

31. Chapter 1 An introduction:WTO
Reading assignments
1. Reading assignments:
（1）栾信节, WTO规则中英文教程, 北京:对外经济贸易大学出版社 2003; pp (as to question 1-5)
（2）赵相林，世界贸易组织法总论, 北京:中国法制出版社 2004 (D ) pp (as to question 1-5)
（3）宣增益, 世界贸易组织法律教程, 北京:中信出版社2003 (F ) pp11-27 (as to question 3-4)
（4）See Page of this paper. (as to question 1-5)
（5）Art 1 of General Agreement on Tariffs and Trade (GATT); Article 2 of General Agreement on Trade in Services (GATS); Article 4 of Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) (as to question 1)
（6）Art 3 of GATT; Article 17 of GATS; Article 3 of TRIPS(as to question 2)
（7）Art 20,2124 of GATT(as to question 3)
（8）Art 2 of GATT (as to question 4)
其中（2）和（3）任选一本即可
2. Reflect on the following questions while/after reading the material:
（1）What is Principle of Non-discrimination? Which Article does it appear in GATT, GATS, TRIPS?
（2）What’s the difference between Most-Favored-Nation principle and National Treatment?
（3）The Exceptions of Most-Favored-Nation principle and National Treatment
（4）To understand the Principle of Freer Trade. What is Tariff and non-tariff barrier?
（5）To understand the Principle of Predictability, promoting fair competition, and encouraging development and economic reform.
Chapter 1 An introduction:WTO