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13. GATT&WTO13. GATT&WTO

广东外语外贸大学广东外语外贸大学 周骏宇教授 周骏宇教授

13.1  GATT13.1  GATT

• GATT (General Agreement on Trade and Tariffs) GATT (General Agreement on Trade and Tariffs) • 1947, Marrakech, Morocco1947, 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 Protection shall be afforded to domestic industries through

customs tariffs rather than quotas.customs tariffs rather than quotas.• CConsultation shall be the primary method used to solve global onsultation shall be the primary method used to solve global

trade problemstrade problems

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

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

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

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

The GATT trade roundsThe GATT trade rounds

• Year Place/ name Subjects covered CountriesYear Place/ name Subjects covered Countries• 1947 Geneva Tariffs 231947 Geneva Tariffs 23• 1949 Annecy Tariffs 131949 Annecy Tariffs 13• 1951 Torquay Tariffs 381951 Torquay Tariffs 38• 1956 Geneva Tariffs 261956 Geneva Tariffs 26• 1960–1961 Dillon Round Tariffs 261960–1961 Dillon Round Tariffs 26• 1964–1967 Kennedy Round Tariffs and anti-dumping measures 1964–1967 Kennedy Round Tariffs and anti-dumping measures

• 6262• 1973–1979 Tokyo Round Tariffs, non-tariff measures, “fram1973–1979 Tokyo Round Tariffs, non-tariff measures, “fram

ework” agreements 102ework” agreements 102• 1986–1994 Uruguay Round Tariffs, non-tariff measures, rules, 1986–1994 Uruguay Round Tariffs, non-tariff measures, rules,

services, intellectual property, dispute settlement, textiles, agricservices, intellectual property, dispute settlement, textiles, agriculture, creation of WTO, etc 123ulture, creation of WTO, etc 123

13.2 WTO13.2 WTO

WTO is short for “The World Trade Organization “WTO is short for “The World Trade Organization “

The World Trade Organization (WTO) is the only global The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade international organization dealing with the rules of trade between countries. between countries.

At its heart are the WTO agreements, negotiated and At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and signed by the bulk of the world’s trading nations and ratified in their parliaments. ratified in their parliaments.

The goal is to help producers of goods and services, The goal is to help producers of goods and services, exporters, and importers conduct their business.exporters, and importers conduct their business.

FACT FILE OF WTOFACT FILE OF WTO

• LocationLocation: Geneva, Switzerland: Geneva, SwitzerlandEstablishedEstablished: 1 January 1995: 1 January 1995MembershipMembership: 149 countries(on11 December 2: 149 countries(on11 December 2005)005)BudgetBudget: 175 million Swiss francs for 2006: 175 million Swiss francs for 2006Secretariat staffSecretariat staff: 635: 635HeadHead: Pascal Lamy (Director-General): Pascal Lamy (Director-General)

• FunctionsFunctions::

• Administering WTO trade agreementsAdministering WTO trade agreements• Forum for trade negotiations• Forum for trade negotiations• Handling trade disputes• Handling trade disputes• Monitoring national trade policies• Monitoring national trade policies• Technical assistance and training for develop• Technical assistance and training for developing countriesing countries• Cooperation with other international organiza• Cooperation with other international organizations tions 

WTO's core : the promotion of trade liberalization.

PurposePurpose • Promote economic and trade development, to improve Promote economic and trade development, to improve

living standards, ensure full employment, protection living standards, ensure full employment, protection of real income and effective demand growth;of real income and effective demand growth;

• According to the goals of sustainable development According to the goals of sustainable development and reasonable utilization of the world's resources, and reasonable utilization of the world's resources, and expanding the production of goods and services;and expanding the production of goods and services;

• Reach mutually beneficial agreements, substantial Reach mutually beneficial agreements, substantial reduction and elimination of tariffs and other trade reduction and elimination of tariffs and other trade barriers and the elimination of discriminatory barriers and the elimination of discriminatory treatment in international trade.treatment in international trade.

Three important agreementsThree important agreements ::• the Agreement on Tariffs and Trade the Agreement on Tariffs and Trade

(GATT);(GATT);

• Special copyright, industrial design and Special copyright, industrial design and trademark agreements (TRIZP);trademark agreements (TRIZP);

• General Agreement on Trade in General Agreement on Trade in Services (GATS) (education are areas Services (GATS) (education are areas of trade in services). of trade in services).

Basic principle Basic principle • Non-discriminatory principlesNon-discriminatory principles -- -- primarily in the MFN and national primarily in the MFN and national

treatment, that is, not differentiating, nor are other things outside. treatment, that is, not differentiating, nor are other things outside.

• The principle of transparencyThe principle of transparency -- -- is the trade in services requested by is the trade in services requested by Member States must publish the administrative laws, regulations and policy Member States must publish the administrative laws, regulations and policy measures to ensure that the policies are predictable, the other members of the party measures to ensure that the policies are predictable, the other members of the party

members to understand the legal environmentmembers to understand the legal environment.. • The principle of fair competitionThe principle of fair competition -- -- not to take improper trading not to take improper trading

practices (dumping and subsidies into) competition. practices (dumping and subsidies into) competition.

• Legal principle of unityLegal principle of unity -- -- to the local regulations in line with the to the local regulations in line with the

central government's commitmentcentral government's commitment..

TimelineTimeline

• 1995Creation of the WTO1995Creation of the WTO• 1996Singapore Ministerial1996Singapore Ministerial• 1998 Geneva Ministerial1998 Geneva Ministerial• 1999 Seattle Ministerial1999 Seattle Ministerial

• 2001Doha Ministerial2001Doha Ministerial• 2003Cancún Ministerial2003Cancún Ministerial• 2005Hong Kong Ministerial2005Hong Kong Ministerial    

13.3WTO & 13.3WTO & ChinaChina

TIMETIME ： ： November 10th 2001November 10th 2001

Doha on the 10th at all to consensus, consideration and Doha on the 10th at all to consensus, consideration and adoption of China's accession to the WTO decision. Chinese adoption of China's accession to the WTO decision. Chinese government representatives signed in China's WTO government representatives signed in China's WTO accession protocol, and the WTO secretariat to China's accession protocol, and the WTO secretariat to China's accession to the WTO 30 days after ratification, China accession to the WTO 30 days after ratification, China

become a member of the WTO.become a member of the WTO.

(1) make our products and services and intellectual (1) make our products and services and intellectual property in 135 members enjoy unconditional and property in 135 members enjoy unconditional and multilateral, permanent and stable MFN and national multilateral, permanent and stable MFN and national treatment; treatment;

(2) for most of our industrial and semi-manufactured (2) for most of our industrial and semi-manufactured goods exported by developed countries enjoy GSP goods exported by developed countries enjoy GSP treatment; treatment;

China and other WTO members to China and other WTO members to bring the same enjoyment of the bring the same enjoyment of the

fundamental fundamental rightsrights

• (3) The use of the WTO dispute settlement (3) The use of the WTO dispute settlement mechanism, fair, objective and rational mechanism, fair, objective and rational solution to the economic and trade frictions solution to the economic and trade frictions with other countries, to create a good with other countries, to create a good economic environment for development; economic environment for development;

• (4) WTO members enjoy the use of the rules, (4) WTO members enjoy the use of the rules, take exception, that measures to promote the take exception, that measures to promote the economic development rights. economic development rights.

Accession to the World Trade Accession to the World Trade Organization, China should carry out Organization, China should carry out

the correspondingthe corresponding obligationsobligations • Reduction of tariffs and non-tariff regulation measures, Reduction of tariffs and non-tariff regulation measures,

and gradually open up the services market to expand;and gradually open up the services market to expand;

• In goods, services, intellectual property rights, in In goods, services, intellectual property rights, in accordance with WTO rules, to the other members of accordance with WTO rules, to the other members of MFN, national treatment;MFN, national treatment;

• According to the "Intellectual Property Agreement" According to the "Intellectual Property Agreement" stipulates further regulate intellectual property protection; stipulates further regulate intellectual property protection;

• Regulate trade in goods for foreign investment; Regulate trade in goods for foreign investment;

WTO Entry Boosts EconomyWTO Entry Boosts Economy

• GDP grew by 7.9% in the year following entry GDP grew by 7.9% in the year following entry to WTOto WTO

• Increase of 18.4% in trade volume with the Increase of 18.4% in trade volume with the United States after one yearUnited States after one year

• China’s exports increased by 19.7% after one China’s exports increased by 19.7% after one yearyear

• Due to improved trading environment, China Due to improved trading environment, China became the 4became the 4thth largest trade body in the world largest trade body in the world behind only the United States, EU and Japanbehind only the United States, EU and Japan

Actual Implementation-tariffActual Implementation-tariff

Trade With the WorldTrade With the World