...China’s economy and the WTO All Change China’s entry into WTO On 11Dec 2011, China completed its 10 years of WTO entry. China had to wait 15 long years get the entry into WTO after reapplying in 1980s after the communist revolution of 1949. Because of this, China had to relax 7,000 tariffs, quotas and other trade barriers. China signed up for multilateral rules. China imposed lower tariffs compared to Brazil and India. China feared that entry into WTO would lead to the distress of farmers and local industries due to foreign competition. However, reverse happened China became the world’s greatest exporter and second-biggest importer. China is in the process of implementing economic reforms and transforming its economy into one, which is more market-based. Impact on China China has enjoyed one of the best decades in global economy. Its dollar GDP has quadrupled and its exports almost quintupled. Foreign direct investment increased to 13.5% from 9.7% worldwide. America became China’s single biggest trading partner. The entry in WTO has contributed to the economic development of the China. In terms of global trade, consumers everywhere benefitted from cheap Chinese goods. Chinese growth has created a huge market for other countries’ exports. WTO entry has promoted China's foreign trade system reform and the decentralization of the import and export rights. The marriage of foreign expertise, Chinese labour and the open, global market has succeeded beyond the expectations. Influence...
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...SUMMARY OF U.S.-CHINA BILATERAL WTO AGREEMENT AGRICULTURE The Agreement would eliminate barriers and increase access for U.S. exports across a broad range of commodities. Commitments include: Significant cuts in tariffs that will be completed by January 2004. Overall average for agricultural products will be 17.5 percent and for U.S. priority products 14 percent (down from 31 percent). Establishment of a tariff-rate quota system for imports of bulk commodities, e.g., wheat, corn, cotton, barley, and rice, that provides a share of the TRQ for private traders. Specific rules on how the TRQ will operate and increased transparency in the process will help ensure that imports occur. Significant and growing quota quantities subject to tariffs that average between 1-3 percent. Immediate elimination of the tariff-rate quota system for barley, peanut oil, sunflower-seed oil, cottonseed oil, and a phase-out for soybean oil. The right to import and distribute products without going through a state-trading enterprise or middleman. Elimination of export subsidies on agricultural products. China has also agreed to the elimination of SPS barriers that are not based on scientific evidence. INDUSTRIAL PRODUCTS China would lower tariffs and eliminate broad systemic barriers to U.S. exports, such as limits on who can import goods and distribute them in China, as well as barriers such as quotas and licenses on U.S. products. TARIFFS Tariffs cut from an average of 24.6 percent...
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...Change in China trade policy before and after WTO 1. Different aspects of china WTO accessions 1.1.Trade in goods One of the major parts of WTO accessions the changes in the trade of good policy which is mainly divided into two major components which are the reduction of tariffs and the elimination of the quotas. Due to WTO accessions china is obliged to reduce or eliminate all tariffs on imported goods mostly by 2004 with special condition in industrial material which tariffs reduced to an average of 9 percent and tariffs on agricultural goods will be lowered to an average of 15 percent. 1.2.Policy on trade of services The other major component of the change in trade policy is the changes in the service sector which aim is to ensure foreign firm to have an transparent and simple process for acquiring license in various sector such as banking and insurance, legal and other professional services, Telecommunications and tourism. 1.2.1. Right to trade and distribution Right to trade is one of the most regulated change due to WTO accession as it controls the right for foreign firm to import, export or retail goods in china. In the WTO accessions it is stated that within two years (by end-2003) foreign service suppliers will be permitted to engage in the retailing of all products, within three years (by end-2004)all firms will have the right to import and export all goods except those subject to state trading monopolies (e.g., oil or fertilizers);...
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...International Business Introduction Although the World Trade Organization (WTO) was formed in 1995, its predecessor, General Agreement on Tariffs and Trade (GATT) was formed in the 1947. The occurrence of the World War II proved the failure of the World War I’s Versailles Treaty. This made the finance ministers at the Bretton Woods Conference to create a new international monetary system that would be a backing in implementing the post-war reconstructions, stabilizing the economic condition and bring peace. Two prominent international economic institutions were established by the Bretton Woods Conference during the post-war period: International Monetary Fund (IMF) and the International bank for Reconstruction and Development (the World Bank). The International Trade Organization (ITO) was the third economic institution formed to overcome the unfavourable environmental factors generated because of the beggar-thy-neighbor tariff policies of the 1930s. This paper has discussed about the formation of GATT and its objectives associated with international business. Chinese WTO has been considered to present trading policies, settlement and business development. General Agreement on Tariffs and Trade The formation of General Agreement on Tariffs and Trade was fulfilling the objectives of its establishment to a great extent. Tariffs on manufactured products showed a fall of about 6.4 per cent, from a trade-weighted average of about 35 per cent before the framing of GATT in 1947...
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...words NOTE: UNITED STATES-CHINA TRADE WAR: SIGNS OF PROTECTIONISM IN A GLOBALIZED ECONOMY? NAME: Kara Loridas LEXISNEXIS SUMMARY: ... Among the aims of the Doha Development Round are a rejection of protectionism and an attempt to ensure fair application of trade rules to developing countries. ... China argued that the increased tariffs imposed by the United States on Chinese tires exceed the permissible maximum tariff rates that the United States may impose on Chinese imports. ... An example of effective negotiations is the settlement of the U.S. complaint alleging a Chinese violation of the national treatment concept by its preferential treatment of domestic products over "like" imported products. ... Cooperative trade relations between the United States and China are important to the global community because the economies of each country are dependent on the rest of the world and the global economy will be harmed by protectionist measures from the first and third largest trading powers. ... Moreover, multilateral negotiations, as opposed to bilateral trade negotiations, are better suited to resolve the United States-China trade disputes because the disputes affect other WTO members in ways beyond the immediate economic impact. ... The most effective way to combat the rapid escalation and retaliatory nature of the disputes is to conduct multilateral negotiations that will preserve the WTO's goal of reducing trade barriers, avoid the adversarial nature of WTO litigation, and allow...
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...30/05/2014 Working Title: An analysis of the effect of WTO on textile industry in India and China from 2000-2012. Pattern of Organisation: Tropical Order Statement of Purpose: The purpose of this report is to analyse the effects of WTO (World Trade Organisation) on Textile Industry in order to assist the International garment traders to improve export performance of Textile and Garment Industry in India and China from 2000-2012. Report Structure 1.0 INTRODUCTIONBackground informationStatement of purposeScopingOutline2.0OVERVIEW OF MAIN PLAYERS 2.1 WTO AND ITS HISTORY 2.2 HISTORY OF THE TEXTILE INDUSTRY 2.3 HISTORY OF WTO ACTIONS AND THE GARMENT INDUSTRY UP TO 20003.0 Impacts of WTO on Textile Industry since 2000 3.1Impacts of WTO on Textile Industry In India 3.2Impacts of WTO on Textile Industry in China 3.3Other Nations4.0 SOLUTIONS TO THE GARMENT INDUSTRY’S CONCERNS 4.1Exports of Indian Textile Industry 4.2 4.35.0 5.1 5.2 5.3 | Brief Content with ReferencesThe WTO is the only global international organization dealing with the rules of trade between nations. The goal of the WTO is to help producers of good and services, exporters and importers conduct their business.The Textile Industry primarily concerned with the production of yarn, cloth and the subsequent design or manufacture of clothing and their distribution.The purpose of this report is to analyse the effect of WTO (World Trade Organisation) on Textile Industry in order...
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...How disputes are settled in World Trade Organizations (WTO) The countries can settle their disputes themselves at any stage, but these are the procedures that are usually followed:- 60 days Consultations, mediation, etc. 45 days Panel set up and panelists appointed 6 months Final panel report to parties 3 weeks Final panel report to WTO members 60 days Dispute Settlement Body adopts report (if no appeal) Total = 1 year (without appeal) 60-90 days Appeals report 30 days Dispute Settlement Body adopts appeals report Total = 1y 3m (with appeal) • Consultation & Mediation (up to 60 days). This is when the countries that are in dispute come together and try to reason better each other and settle their differences. And or ask the World Trade Organization director- general to intervene or mediate to try help them in any other way. • The panel (up to 45 days for a panel to be appointed, plus 6 months for the panel to conclude) At this stage the complaining country can ask for a panel to be appointed, the other country can block the creation of a panel once but when the dispute settlement body meets for a second time, the appointment can no longer be blocked. • Officially, the panel is helping the Dispute Settlement Body make rulings or recommendations. The panels conclusion are difficult to overturn and only can be rejected by consensus in the dispute settlement body. The panel’s conclusion have to be based on agreements referred to. According to the wto.org site,...
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...STUDY CHINA “UNBALANCED” In this case study, we will attempt to answer what measures China took in preparation for acceptance into the WTO and how it adjusted to its eventual admittance in December of 2001. We will also review some of the problems associated with China’s economic growth strategy. We will begin our analysis of these questions by examining China’s economy at the time of Deng Xiaoping’s accession to power in 1978 and the economic growth strategy he and his successor implemented which ultimately led China to ascension into the WTO. We will then review various conditions imposed upon China by the WTO and how China reacted to those changes and to what extent these lead to China’s current status and interaction with its principal economical partners .. We will conclude our analysis by outlining some of the problems associated with China’s growth strategy and the missing components that would be needed in order to become a free economy and to achieve sustainable growth in the future. During the time of Mao Zedong’s term in power, China was a communist state that had a closed economy, a population of just fewer than one billion and state-owned companies that were financially unsuccessful and a drain on the economy. The choice of economic systems is based on the belief that the system will bring the highest goods to the majority of the people, most of the time. Mao Zedong adopted a Chinese nationalist and anti-imperialist outlook with which he ruled China. In...
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...International trade issues in China Intellectual Property Rights (IPR) issues United States business and government representatives have voiced out on growing concern of the economic losses suffered by U.S. firms which are the impact from the invasion of intellectual property rights (IPR) in China for example cyber attacks. U.S. innovation and the intellectual property that is generated by such activities have been cited by various economists as a critical source of U.S. economic growth and global competitiveness. For example, according to the Department of Commerce, in 2010, U.S. Intellectual Property intensive industries supported at least 40 million jobs and contributed $5.1 trillion to U.S. gross domestic product (GDP). A study by NDP Consulting estimated that in 2008, workers in IP-intensive production earned 60% more than workers at similar levels in non-IP industries. A study on the Apple iPod concluded that Apple's innovation in developing and engineering the iPod and its ability to source most of its production to low-cost countries, such as China, have helped enable it to become a highly competitive and profitable firm as well as a creator of high-paying jobs such as engineers engaged in the design of Apple products in the United States. Lack of effective and consistent protection of Intellectual Property Right (IPR) has been cited by U.S. firms as one of the most significant problems they face in doing business in China. Besides that, U.S. firms have expressed concern...
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...Current situation analysis after China’s accession to WTO Introduction Since the reform and opening-up policy operated in China in 1978, China has already experienced a process of economic development and international trade improvement. In the early 1980s, China had tried to take several steps to end its economic isolation condition. After that, accompanying with the accession to WTO, China had received a new tide of development no matter in the field of economy or world trade. It has no doubt that China’s accession into WTO would bring about tremendous changes in China’s economic performance. Known as “World Trade Organization”, WTO is one of the most important international economic organizations and also a platform for ideas’ negotiation among different countries. Currently WTO has 159 members and is regarded as the "Economic United Nations”. China has joined the World Trade Organization as the 143rd member of it. From then on, China has made a significant economic improvement in foreign and international trade area, whereas, it also has brought some problems underlying the surface economy boom. And as some experts’ sayings, the disadvantages are far more than the advantages that WTO has brought along these 12 years’ development based on the analysis on the current economic environment, which has also been a challenge to China’s economy and future development from my point of view. The benefits that WTO has brought into China As some experts’ saying, China’s accession would...
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...Facts and Figures: * During the 30 years of communist rule (1949 – 1979), China had an autakrick economy i.e. it prohibited foreign investment & restricted foreign trade. * China’s policy also reflected its historical belief that contact with foreigners tended to corrupt its politics and harm its culture. Still, in order to ahead of the other countries economically, China enacted the Law on Joint Ventures using Chinese and Foreign Investment in 1979. * Since then, China has experienced a dramatic rise in FDI. The largest recipient of FDI among all developing countries, and it ranked second to the United States for FDI inflows since 1993. * By mid – 2002, total FDI in China had exceeded $700 billion and was invested in nearly 4, 00,000 ventures. * Japan, Taiwan, US are China’s most important sources of FDI. * China is world’s third largest country in area and largest in population, which makes it attractive to market-seeing FDIs. * It modified their practical aspects on trade by steadily adopting the principles of free trade. * China restricted imports & let foreign investors propose their preferred mode of entry by giving stringent criteria i.e. each foreign investment application should determine whether the investment was in the best interests of China – whether it helped in capital formation, promoted exports, created jobs, or transferred technology. * All FDIs had to go through an extensive process of the Chinese Ministry of Foreign...
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...Impact of China's WTO Entry on Sino-Philippine Economic Relations and on the Philippine Economy SHEN HONG FANG impact of China's WTO entry on trade, investment and services between the Philippines and China, as well as on Philippines economic growth and development. Section I introduces different analyses of China's WTO entry from the perspectives of Philippine official, academic as well as business circles. Section 2 discusses bilateral cooperation through trade, investments, and other forms of cooperation such as contracted projects, labor cooperation, air services agreement, and the development of agricultural technologies. Section 3 looks at the concerns of the Philippine government and the public with respect to China's accession to the WTO, reviewing the state of current relations and comparing this with China's relations with other Southeast Asian countries. Section 4 advances five issues pertaining to the rise of a Chinese "economic threat" following its entry into WTO. The paper concludes that China's WTO accession will help promote bilateral trade expansion, and bring about opportunities for Chinese private entrepreneurs to invest in the Philippines. However, China's WTO entry will also put added pressure on Philippine manufactures, further facilitating the flow of Chinese commodities, capital and personnel and aggravating the disputes that had already existed in the economic intercourse betv•.reen the two countries prior to WTO admission. This paper examines...
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...In 1865, Hong Kong and Shanghai Banking Corporation (HSBC) was founded to meet the demand for local banking facilities in Hong Kong and on the China coast. The increasing and frequent trade was undertaken between Europe, India, and China, which contributes to the extension of the bank. HSBC now is one of the world’s largest banks with extensive international operations. Although the bank rapidly expanded across the globe, HSBC retained a clear focus on China market. In view of these changes of HSBC’s China strategy, it may be instructive to examine how banking environment and police of China changed over the years. Upon China’s accession to the WTO, foreign bank were allowed to enter China’s bank sector. HSBC seized the tremendous opportunity to strengthen its presence in China. This essay will begin by examining the evolution of HSBC’s Strategy in pre-WTO and post-WTO China. Next, It turned to analyse the impetus to these changes of HSBC’ China strategy. In the following part, this essay will introduced the background of HSBC expanding in China’s rural areas and evaluated this strategy from advantages and disadvantages aspects. Having presented the HSBC’s presence and strategy in China, the paper then analyses HSBC’s operating in other emerging markets with the evidence from India and Argentina. Moreover, the data and facts will be provided to evaluate the operation of HSBC during the recent world economic crisis. The further research about the reasons that Asian was identified...
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...Legal Aspects Of International Trade Non-tariff Barriers to International Trade #0735817 1. In the Xia case, if the WTO were to rule in favor of Brazil, which of the WTO trade agreements would contain the justification and why? According to the case, because of the some unofficial speculations of using hazardous material in Xia's goods, that are manufactured in China, Brazil banned them to be imported to their country, until further investigation and tests, that were being performed to examine the health risks. Because of fear of other countries negligence and ban on the Chinese product, country took this issue in the WTO to be resolved. For ruling the issue or justification towards Brazil WTO will use Technical Barriers of Trade Agreement, as this agreement intends to the technical regulations and standards to meet up with required assessment as the procedures of conformity do not unnecessarily act as the barrier in international trade. This agreement recognize that the members are not breaching the regulatory objectives which can harm national security, life of animals and humans and environment. Reasons for this trade agreement:- * Technical Regulations:- Product has to meet the requirements that have been set up, under which all the documents need to be provided where all the product characteristics have been mentioned along with terminology, marking packaging and all other aspects which applies to the production method, and as per the unconfirmed report of...
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...1. In the Xia case, if the WTO were to rule in favor of Brazil, which of the WTO trade agreements would contain the justification and why? Brazil banned Xia goods because they manufactured from harmful ingredients. These goods might be caused of health issues. However, the Chinese government refused this claim. If WTO were to decide for Brazil, it would be a justified basis of Technical Barriers to Trade Agreement (TBT). In this agreement, the privilege of Members to take administrative measures to accomplish its objectives such as national security, human health safety animal health and environment protection. The TBT agreement applies to Technical regulation, which is measured that the features of the product and the manufacturing process method. Standards body follows the rule and regulation and measure that the product should be approved or not. The procedures for conformity assessment use to evaluate that the all requirements has fulfilled by technical regulation and standard or not. These measures apply to protect human, animal and plant's life. It stated that the Xia goods have health risks, so it was justified that temporary ban to import till it was provided the proof that the goods are free of health risk. 2. If the details of the Xia case were indeed presented to the WTO, explain what the WTO ruling would most likely be and why. If it is proved that Xia manufactured its products with "hazardous materials such as lead paint, potentially carcinogenic plastic...
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