China's Long WTO March

Overview

After 15 arduous years, China's long march towards World Trade Organization (WTO) accession is on the verge of fruition. Upon attaining membership, China will accede to all WTO multilateral agreements, thereby embarking on the painful economic and legal restructuring that is necessary to bring its trade and investment regime into compliance with WTO standards.

Upon accession, China will be subject to some 60 WTO agreements effectively covering the three main areas of international trade - goods, services and intellectual property. These include the:

• General Agreement on Tariffs and Trade (GATT)
• General Agreement on Trade in Services (GATS)
• Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS)
• Understanding on Rules and Procedures Governing the Settlement of Disputes (DSU)
• Trade Policy Review Mechanism (TPRM)

China will also have to accede to a number of ancillary agreements to the GATT. These agreements set forth detailed implementing rules in relation to specific GATT requirements, including the:

• Agreement on Agriculture
• Agreement on Technical Barriers to Trade (TBT Agreement)
• Agreement on Trade-Related Investment Measures (TRIMs Agreement)
• Agreement on Implementation of Article VI of the General Agreement on Tariffs and Trade (Anti-dumping Agreement)
• Agreement on Import Licensing Procedures
• Agreement on Safeguards

In addition to the rule of law embraced in the WTO agreements, the most favorable terms from the 37 bilateral accords that China has signed, including the Sino-U.S. and Sino-EU agreements, will also be incorporated into binding market access schedules. The schedules will take the form of a binding commitment by China on tariffs for goods in general and combinations of tariffs and quotas for some agricultural products. They also set forth certain commitments in relation to market access for priority service sectors such as telecommunications, banking and insurance.