...The Impact of Trade Protectionism on China’s Export Enterprise 1. Introduction The past several decades are commonly viewed as a period of widespread liberalization within the international trade. Besides, since reform and opening up in China from 1978 to now, over 30 years, China's economy has remained about 10% of high-speed development which called the creation of the "China miracle" (JU, 2008). During this era, China also became a big orient export country, which occupies a large place in the international market. Thus, American people considered that China export pose an economic threat to the United States even to the world. Other countries tried to use trade protectionism to limit the export from China and boost their own economy recovery. Trade protectionism means that government set up some specific barriers to trade in order to protect its own economy. However, it has a negative impact on China’s export enterprise, especially for small and medium-sized companies, so the countermeasures should be taken to resolve this issue. The purpose of this article is to explore several problems that trade protection bring to China’s export enterprises at first and then focus on some effective solutions to help these companies. 2. Situation Because of the trade protectionism, China’s private exporters from different kinds of industry are suffering obvious reduction of profit, and they are mainly reflected in labor-intensive, low-cost exporters, tight liquidity and a low...
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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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...Lecture 5 - World Trade Organisation What is the WTO? The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between nations. 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. Who we are | Location: Geneva, Switzerland Established: 1 January 1995 Created by: Uruguay Round negotiations (1986-94) Membership: 157 countries on 24 August 2012 Budget: 196 million Swiss francs for 2011 Secretariat staff: 640 Head: Pascal Lamy (Director-General)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 | | There are a number of ways of looking at the World Trade Organization. It is an organization for trade opening. It is a forum for governments to negotiate trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules. Essentially, the WTO is a place where member governments try to sort out the trade problems they face with each other. The WTO was born out of negotiations, and everything the WTO does is the result of negotiations. The bulk of the WTO’s current work comes from...
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...The World Trade Organization maintains a general agreement regarding tariffs and trade with its members. They believe that trade liberation leads to a better life for all. Countries set up tariffs to “give a price advantage to locally-produced goods over similar goods which are imported, and they raise revenues for governments”i. However it is more economic for countries to trade with one another the goods that they produce best. International trade liberation gives developing countries the opportunity to prosper and become more economically accountable. Every country has something that it can produce better, or make more efficiently than another. With zero trade barriers each country will be able to receive more goods at a higher quality, for a lower price. The General Agreement on Tariffs and Trade’s goal was to accomplish this, but was not as successful as the World Trade Organization. The WTO as it was the successor to GATTii was able to look at the problems GATT faced and made it so that the problems would not repeat. When GATT lowered tariffs, non-tariff barriers of trade went up; such things as technical barriers and importing licenses went up. Noticing this GATT decided to make more rules regarding the trade of goods to stop this problem, however only a few of its members signed its prospected agreements. Unlike the case with the GATT, all WTO Members automatically commit to all of the Agreements, whether they have to do with tariffs or not. Some of the other agreements...
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...Trade protectionism is any economic policy by a government to impose restrictions on import goods and services, provide special preferences to domestic goods and services to enhance the competition. There are two basic ways of trade protectionism, one is tariff barrier, another is called non-tariff barriers, including quotas, subsides and administrative barriers. This essay is to talk about the main ways of protectionism and its definition with some real examples. Tariffs are import taxes, raising the price of imported products to limit the number of imports, causing a contraction in domestic demand and an expansion in domestic supply (Riley, 2006). Normally, the volume of imports is reduced and the government received some tax revenue from the tariff. While, the Section 201 steel tariff is another case. In 2002, US imposed tariffs on imports of certain steel products for three years and one day (Francois & Baughman, 2003). Immediately, the European Union announced that it would impose retaliatory tariffs on the U.S., thus risking the start of a major trade war (Francois & Baughman, 2003). In this way, the price of both sides got higher, made impacts on each other. Steel tariffs caused shortages of imported product and put U.S. manufacturers of steel-containing products at a disadvantage relative to their foreign competitors. As a result, 200,000 Americans lost their jobs to higher steel prices during 2002. In the absence of the tariffs, the damage to steel consuming...
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...International business comprises all commercial transactions (private and governmental, sales, investments, logistics, and transportation) that take place between two or more regions, countries and nations beyond their political boundaries. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons.[1] It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc 1. The exchange of goods and services among individuals and businesses in multiple countries. 2. A specific entity, such as a multinational corporation or international business company that engages in business among multiple countries. Export policies Bangladesh’s exports are dominated by ready made garments, most of which are exported to the US and the EU. Nearly all garment exports are from firms operating in export processing zones or as bonded warehouses. In both cases they can import their textile and other inputs free of Customs duties and all other import taxes (including the 3% advance income tax) with the use of “back-to-back LCs” i.e. letters of credit based on LCs issued for their exports. As noted previously, machinery used by exporters is also exempt from all import taxes...
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...Development 29 January 2008 Background In general, tariffs are declining as a result of multilateral and regional trade liberalisation, leaving Non-Tariff Measures (NTMs) and other trade barriers as the major obstacles to trade. These non-tariff barriers are often designed to meet certain specific policy objectives of a country such as technical standards requirements. In the process, the trade and development performance of other countries are however adversely affected as a result of such barriers. The problem is compounded for developing countries, which have difficulties to access information on these barriers and to comply with the requirements. In practice, it has also been proven difficult to analyse non-tariff measures and other barriers to trade in a very effective manner due to a lack of a common definition, inadequate data and an agreed methodology for quantifying them. It is against this backdrop that the Secretary General of UNCTAD has mandated a Group of Eminent Persons on Non-Tariff Barriers (GNTB) to work on the issue of NTBs. A Multi-Agency Support Team comprising of the World Bank, FAO, IMF OECD, UNIDO, WTO, UNCTAD and the International Trade Centre (ITC) has been tasked to provide the necessary technical support to the Group. Objectives The project will provide an opportunity to concretely work on the issue of non-tariff measures and barriers to trade from a developing country’s perspective and to provide more transparency on this worldwide issue. The long-term...
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...Journal of Economic Surveys, 2006, 11: 24-25. Green Barriers Trade and its Influences on China's Foreign Trade Thomas J. Sargent ABSTRACT In recent years, green consumption has become a main trend of the consumption in many developed countries and these countries began to make strict standards to restrict the entry of foreign products below their standards of environmental protection. Key words：Green Barriers; products; Trade In recent years, green consumption has become a main trend of the consumption in many developed countries and these countries began to make strict standards to restrict the entry of foreign products below their standards of environmental protection. These regulations have many unfavorable influences on the export of developing countries and are generally known as "Green Barriers to trade". In accordance with the provisions of the Agreement on Green Barriers to Trade of WTO, "Green Barriers to Trade" is defined as the compulsory and arbitrary Green regulations, standards and conformity assessment procedures of the importing countries in the name of the protection of human health and environment that actually form barriers to trade with an aim to protect its home market and domestic products. 1. Analysis on the causes of formation of "Green Trade Barriers" Firstly, the worsening of ecology is the major reason for "Green Barriers". With the development of industry and technology, the economy increases...
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...World Trade Organisation History At the United Nations conference held at Geneva in 1947, twenty three countries including United States of America signed General Agreement on Tariffs and Trade (GATT). During the same year, a charter was put on the table for setting up, within the United Nations Organisation, of a new agency to be called International Trade Organisation (ITO). Fifty nations signed the charter in Havana the following year, but it was never subsequently ratified by the required number of countries. The purpose of the agreement was to promote international trade free of barriers in the aftermath of World War II, and to draw up proposals for the implementation of policies based on those principles set in the agreement. It covered all the issues like tariffs, quotas, taxes, international commodity agreements and whatever was considered to have a bearing on the development of international trade, and was based on policies of non-discrimination and tariff reductions. GATT has been expanded and updated through a series of multi-year conferences. The most famous have been the Kennedy Round (1963-1967), the Tokyo Round (1973-1979), and the Uruguay Round (1986-1994). The Uruguay Round ended with the decision to dissolve GATT and establish the more powerful and more institutionalised World Trade Organization (WTO) in 1995. The WTO replaced GATT as an international organization, but the General Agreement still exists as the WTO’s umbrella treaty for trade in goods. Trade...
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...Impact of WTO on Globalization Trade Policy Introduction World Trade Organization (WTO), found in 1995 and headquarters is in Geneva, has its clearly main purposes since its beginning that to promote economic and trade development all over the world. Up to the end of 2008, there are more than 135 members in the organization. In particularly, with the expansion of globalization trade, international business is more often than any time in the history. As one of the most crucial carrier of economic globalization, WTO establishes a set of international trade rules focusing on the liberalization, which play a strong role of encouraging and guiding in the process of economic globalization (Pauwelyn, 2005). This essay will mainly discuss WTO’s influence on the rules of globalization trade in combination with the current reform of trade policy. It will explain the topic from the following four aspects in detail: first, the basic rules WTO set up for the international trade, then, rules on e-commerce, the new rising global business, third, the preferential rules made by WTO for developing countries, and at last, it will discuss the impacts of WTO’s regulations on environmental issues when doing global trade. Basic Rules WTO set up for the Global Trade WTO's main objective is to provide adequate competitive opportunities for the trade among the members, which needs recognized common rules and principles for members to abide. There are two basic principles, namely the MFN principle (referred...
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...Barriers to International Trade- Non-Tariff Barriers and Infrastructure on freight transportation Intro Average applied tariffs on industrial products have declined from 15.5 per cent in 1990 to 7.9 per cent in 2003.[1] Yet, the volume of international trade is still less than one would expect from observed differences in factor endowments, tastes and technology between countries (Trefler, 1995). A possible explanation of the missing trade is non-tariff barriers to trade, including transport costs and other costs related to searching for international suppliers or customers, entering into contracts and shipping the goods or services from the domestic producer to the foreign customer. These transaction costs have several dimensions. First, there are the direct monetary outlays on communication, business travel, freight, insurance and legal advice. These are partly determined by the physical and cultural distance between the trading partners, but also the quality of infrastructure and the cost and quality of related services. EXAMPLE A second dimension of transaction costs is time. The proverbial "time is money" suggests a linkage between monetary outlays and the time dimension, but time also plays a role in its own right. This is particularly the case in industries that have adopted just-in-time business practices and have an international supply network. Just-in-time business practices imply that producers have small inventories of intermediate goods and the...
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...Trade Name Institution Barriers to trade are government-induced restrictions on trade. There are several different types of trade barrier. They include tariffs and non-tariff barriers. A tariff is the amount of import duty charged on a particular type of goods. Non-tariff trade barriers are measures intended to favor local industry (Maskus, 2001). They can include trade regulations, labeling rules, and unfair government subsidies The World Trade Organization (WTO) deals with the global rules of trade amongst nations and its main purpose is ensuring that trade flows as smoothly, predictably and freely as possible. A major rule of the multilateral trade system states that reductions in trade barriers are applied, on a most-favored-nation basis, to all World Trade Organization members (Hoekman, 2009). This means that no WTO member is discriminated against by a fellow member's trade regime. Regional trade agreements (RTAs) are however an exception to this rule. Under RTAs reductions in trade barriers apply only to the parties to the agreement. There are two major types of regional trade agreements under the World Trade Organization; customs unions and free trade areas. Some countries may decide to sign interim agreements operating during a transition period, ultimately leading to the creation of a customs union or a free-trade area. Regional trade agreements must be consistent with the World Trade Organization rules that govern such agreements, which require...
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...Economics of the European Union ECN309X Essay term 1 To what extent did the 1992 Single Market programme create a single market across the EU? Linde Cloosterman 10418300 14th December 2012 In January 1992 The European Single Market was formed. The prospects were compromising. Hooley et al. (2012) explain that the programme would provide the free flow of products and services, people and capital between the member states of the European Union. Another point was the intention to improve economic performance by lowering costs of trading across national borders within the European Union. But also to boost economies of scale of operation to achieve more competitiveness against the US internal market. However, the developments within the Single Market were not always positive. An example that illustrates this are diverse economies in the euro-zone operating at different speeds, facing different levels of public sector debt but without the freedom to set separate exchange or interest rates (Hooley et al., 2012). The economic crisis within the euro-zone had negative effects on the Single market as well. Therefore it can be questioned: to what extent did the 1992 Single Market programme create a single market across the European Union? Due to the prolonged economic recession by the beginning of 1980 it was clear that the competitive position of the European Community was decreasing. Outcomes with stagnating negative effects within the European economy, rising unemployment...
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...2, 2012 – CASE STUDY | | | I Executive Summary This report briefly assesses the World Trade Organisation (WTO), and in particular, the Doha Round, which has been the longest running trade liberalization round in the history of the GATT/WTO era. Launching in November, 2001 in the wake on the September 11 Terrorist attacks on the USA, it had the explicit aim to conclude a broad deal to facilitate development through trade and thereby better integrate the more disadvantaged into the global economy. The conclusion of the Doha Round however has been much harder to conclude than any other trade round in the history of the WTO for many reasons that will be highlighted below. Table of Contents I Executive Summary 1 II Introduction 3 III The World Trade Organisation 3 IV Other Rounds of the World Trade Organisation 3 V The Doha Round 4 Negotiations: geographical indications —multilateral register for wines and spirits 4 TRIPS, biological diversity and traditional knowledge (Doha paragraph 19) 4 Geographical indications — ‘extension’ 4 VI Problems With Concluding the Doha Round 4 The Single Undertaking Method: 5 Changed Geopolitical Situations: 5 Trade Liberalisation and Non-agricultural Market access (NAMA): 5 Agriculture: 5 VII Conclusion 6 VIII References 6 II Introduction The effort to launch a new round of multilateral trade negotiations in the late 1990s was turbulent in two ways. First, the WTO, with its broader mandate...
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...← Essay writing Topic: What pros might Cambodia get from ASEAN? Nowadays, it is well known that Cambodia is going to join with the ASEAN Economic Community in 2015, making every organization of the country are eager to develop and prepare in various ways to a par with international economics, politics, education and culture. It was also featured on the cultures of neighbouring countries. The majority point of ASEAN wants people, business, and many others organization in south East Asia become one. So, at this time, each country in south east Asia have to learn about ASEAN, but what is going to happen when ASEAN has started? , and is it good for people or business in Cambodia? So, they are sure that the prediction of ASEAN will be very great for almost every business in every single countries member. However, Cambodia is not ready for AEC in 2015 given its development status compared to the six older ASEAN members, because there are many constraints that Cambodia needs to address if it wants to have a successful integration into AEC 2015. While the quality of the Kingdom’s agricultural products and garments and textiles is sufficient, the quality of some other products is not so good. So, what pros might Cambodia get from ASEAN? First of all, human Resource in one nation is very important to develop the nation. After Khmer Rouge regime, nearly two million Cambodians including intellectuals, skilled workers, and ordinary people were killed and died of diseases...
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