31-8-2006chapter 1 an introduction:wto1 the law of wto 世界贸易组织法 xiaowen cha law...

31-8-2006 Chapter 1 An introduction:WTO 1

The Law of WTO世界贸易组织法

Xiaowen Cha Law faculty, Dept of Social Science

06-08-31


Structure of the Course

The law and institutions of the WTO

Its development and establishment

发展与建立

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

Dispute-settlement System

争端解决机制

Trade policy review mechanism贸易政策审查机制


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


Readings List

• 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 (D996.139)– 宣增益 , 世界贸易组织法律教程 , 北京 : 中信出版社 2003

(F743-431)– 李双元 , 世界贸易组织法案例教程 , 北京 : 知识产权出版社 200

4 (D996.1-439)– 赵相林 , 世界贸易组织法总论 , 北京 : 中国法制出版社 2004

(D996.132)– All the agreements of WTO (available at: http://

www.wto.org/english/docs_e/legal_e/legal_e.htm)

• 3.Website: www.wto.org

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 email before each class. So please make sure you make a good preparation before the class.

http://www.wto.org/english/docs_e/legal_e/legal_e.htm

http://www.wto.org/english/docs_e/legal_e/legal_e.htm

http://www.wto.org/


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


Location: Geneva, SwitzerlandEstablished: 1 January 1995Created by: Uruguay Round negotiations (1986-

94) ( 乌拉圭回合谈判）

Membership: 149 countries (on 11 December 2005)

WTO Office, Geneva （日内瓦）


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 Introduction: WTO

November 2001 — China became the 143rd member of the WTO at the Fourth Ministerial Conference, Doha.

November 1999 — Third Ministerial Conference, Seattle — anti-WTO demonstration.

BENEFITS?

MISUNDERSTANDINGS?


• The benefits– 1. Disputes are handled

constructively2. Rules make life easier for all3. Freer trade cuts the costs of living4. It provides more choice of products and qualities5. Trade raises incomes6. Trade stimulates economic growth7. The basic principles make life more efficient

• The misunderstandings– 1. The WTO dictates policy

2. Commercial interests take priority over the environment3. … and over health and safety4. The WTO destroys jobs, worsens poverty5. Small countries are powerless in the WTO6. The WTO is the tool of powerful lobbies7. Weaker countries are forced to join the WTO

I. Debates on World Trading System


• 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

II. The history of trade liberalization


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


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


II-3 Eight trade "rounds"

Year Place/name Subjects covered Countries

1947 Geneva Tariffs 23

1949 Annecy Tariffs 33

1951 Torquay Tariffs 38

1956 Geneva Tariffs 26

1960-1961

Geneva/Dillon Round

Tariffs 45

1964-1967

Geneva/Kennedy Round

Tariffs and antidumping measures

54

1973-1979

Geneva/Tokyo Round

Tariffs, non-tariff measures,

99

1986-1994

Geneva/Uruguay Round

Tariffs, non-tariff measures, rules, services, intellectual property, dispute settlement, textiles, agriculture, creation of WTO, etc

123


Evidence of the success of trade rounds


II-4 GATT vs.WTO: Main Difference

GATT WTO

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.


II-4 GATT vs.WTO: Main Difference

GATT WTO

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


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


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

• 1989.5-1999 Bilateral negotiations between China and each WTO member.

• 2001.11 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 ).

• 2001.12.11 China became a WTO member


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） •2002.1.1, Chines Taipei, as a separate customs

territory of China( 中国台北单独关税区 ), access WTO


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.


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”

• 1999.12.20, Macau,as a separate customs territory of China, continued to be a WTO member.


III-5 China in World Trade

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Exports 148.8 151.1 182.7 183.8 194.9 249.2 266.2 325.6 438.4 593.4 762

% change 23 1.5 20.9 0.5 6.1 27.8 6.8 22.3 34.6 35.4 28.4

Imports 132.1 138.8 142.4 140.2 165.7 225.1 243.6 295.2 412.8 561.4 660.1

% change 14.3 5.1 2.6 -1.5 18.2 35.8 8.2 21.2 39.9 36 17.6

Total 280.9 289.9 325.1 324 360.6 474.3 509.8 620.8 851.2 1,154.80 1,422.10

% change 18.7 3.2 12.1 -0.4 11.3 31.5 7.5 21.8 37.1 35.7 23.2

Balance 16.7 12.3 40.3 43.5 29.2 24.1 22.5 30.4 25.5 31.9 101.8

China's Trade with the World ($ billion)

Source: PRC General Administration of Customs, China's Customs Statistics


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”


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.


IV-2 Governing Structure


IV-3 Membership and accession

• Membership ( 成员资格 )– 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”


• 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

IV-4 Decision-making

Art IX of Agreement Establishing the 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。


Assignments of this class• 1. Reading assignments:

• （ 1 ）栾信节 pp.1-8

• （ 2 ）李双元 , (D996.139) pp11-27 (as to question 1)

• （ 3 ）宣增益 , (F743-431) pp4-11(as to question 5-6), pp183-188 (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: http://www.wto.org/english/docs_e/legal_e/legal_e.htm#goods (in English).

• （ 7 ） The organization of WTO, available at: http://www.wto.org/english/thewto_e/whatis_e/tif_e/org2_e.htm

• 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 2 PRINCIPLES OF 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.36-56 (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 (D996.132) pp 62-73 (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 (F743-431) 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.

31-8-2006chapter 1 an introduction:wto1 the law of wto 世界贸易组织法 xiaowen cha law...

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