Basic Principles of the WTO WTO 规则的基本原则

1. Chapter Three Basic Principlesof the WTOWTO规则的基本原则

2. Exercise • True or false • 1. All WTO members may participate in Dispute Settlement Panels. • 2. Decisions on accession are taken by the Ministerial Conference, which shall be approved by a three-quarters majority of the Member of the WTO. • 3. General Council convenes to discharge the responsibilities of Dispute Settlement Body or the Trade Policy Review Body.

3. Translation • 争端解决机构 • 贸易政策审议机构 • 工作组 • 协商一致

4. 1 3 4 5 2 Non-discrimination Liberalization of trade Transparency Special and differential treatment to developing countries Reciprocity Contents

5. Most-Favored-Nation Treatment (MFN) (最惠国待遇) National Treatment (国民待遇) Definition Explanation Articles Exceptions Non-discrimination非歧视原则

6. In such matters as : (1) customs duties and charges, (2) the method of levying such duties and charges, (3) all rules andformalities, internal taxes or other internal charges and all laws, regulations and requirements, (4) any advantage, favor, privilege or immunity granted by any member to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for the territories of all other members. Definition of MFN consuming taxes, value-added taxes e.g. licensing, invoices, ect. the charges of storage, transportation and other services the properties, quality, the end-uses, customers' tastes and habits. Case: coffee no principle of reciprocity.

7. 在关税和费用及其课征方法方面，在规章手续，国内税和国内费及所有法令，条例和规定方面，任何成员国对来自或运往其他国家的产品所给予的利益，优惠，特权或豁免，应当立即无条件地给予源自或运往其他所有成员国的相同产品。在关税和费用及其课征方法方面，在规章手续，国内税和国内费及所有法令，条例和规定方面，任何成员国对来自或运往其他国家的产品所给予的利益，优惠，特权或豁免，应当立即无条件地给予源自或运往其他所有成员国的相同产品。

8. Explanation • Favorite one, favorite all. • 一国得益，众国皆得益

9. A D 2% tariffs A, B, C, D are WTO members.

10. B C B & C are WTO members. A is not the WTO member. The shape of MP3 A C B

11. A D A,B,C are WTO members. D is not a member of the WTO. Hairdresser’s certification

12. Art I of GATT any advantage, favour, privilege or immunity granted by any contracting party to any product originating in or destined for any other country shall be accorded immediately and unconditionally to the like product originating in or destined for the territories of all other contracting parties. Art II of GATS any measure covered by this Agreement, each Member shall accord immediately and unconditionally to services and service suppliers of any other Member treatment no less favourable than that it accords to like services and service suppliers of any other country Articles of the WTO Agreement-Treating others equally (MFN) • Art IV of TRIPS • With regard to the protection of intellectual property, any advantage, favour, privilege or immunity granted by a Member to the nationals of any other country shall be accorded immediately and unconditionally to the nationals of all other Members.

13. Art XXIV (frontier trade, customs unions and free-trade areas) Dealing with tariff preference in customs unions(关税同盟) and free trade area(自由贸易区) Art XX (General exceptions) Permit a country to take certain measure to protect environment. Art XXI (Security exceptions) Permit for national security reasons 15 kms MFN Treatment-Exceptions (例外条款) Mad cow diseases

14. Internal taxes and other internal charges, and laws, regulations and requirements affecting the internal sale, offering for sale, purchase, transportation, distribution or use of product, and internal quantitative regulations requiring the mixture, processing or use of products in specified amounts or proportions, should not be applied to imported or domestic products so as to afford protection to domestic production. National Treatment (国民待遇) The composition of cigarettes: 30% domestic tobacco leaves. Natural rubber and synthetic rubber

15. 国内税和其他国内费用及影响产品的国内销售，供货，购买，运输，分销或使用的法令，条例和要求，以及对产品的成分要求条例(成员方对产品的混合，加工或使用实施国内数量管理时，不能强制要求生产者必须使用特定数量或比例的国内产品)，在被适用于产品或本国产品时，不应用来对国内生产提供保护。国内税和其他国内费用及影响产品的国内销售，供货，购买，运输，分销或使用的法令，条例和要求，以及对产品的成分要求条例(成员方对产品的混合，加工或使用实施国内数量管理时，不能强制要求生产者必须使用特定数量或比例的国内产品)，在被适用于产品或本国产品时，不应用来对国内生产提供保护。

16. Explanation • A country should not discriminate between its own and foreign products, services or nationals—at least after the foreign goods have entered the market. • Love your neighbor as yourself. • 爱邻如爱己

17. Art III of GATT Internal taxes and other internal charges, and laws, regulations and requirements affecting the internal sale, offering for sale, purchase, transportation, distribution or use of products, and internal quantitative regulations requiring the mixture, processing or use of products in specified amounts or proportions, should not be applied to imported or domestic products so as to afford protection to domestic production Art XVII of GATS In the sectors inscribed in its Schedule, and subject to any conditions and qualifications set out therein, each Member shall accord to services and service suppliers of any other Member, in respect of all measures affecting the supply of services, treatment no less favourable than that it accords to its own like services and service suppliers. Articles -Treating foreigners and locals equally • Art III of TRIPS • Each Member shall accord to the nationals of • other Members treatment no less favourable than • that it accords to its own nationals with regard to • the protection of intellectual property, subject to • the exceptions already provided in, respectively, • the Paris Convention (1967), the Berne • Convention (1971), the Rome Convention or the • Treaty on Intellectual Property in Respect of • Integrated Circuits.

18. Art III:8 (允许为发展本国经济对国内生产者提供补贴) Allow a country to provide subsidies to domestic producer in order to develop domestic economy. Art XX (一般例外) & Art XXI (安全例外) (same to MFN treatment exceptions) National treatment-----Exceptions Green boxes of subsidies Restricting exports of domestic materials as part of a governmental stabilization plan. e.g. exports of arms Case: EC vs. UK Armed conflicts

19. Non- Discrimination at the Border: Equal Treatment between WTO Members’ Products, services and nationals. Article I GATT (Article II GATS Article III TRIPS) Non-Discrimination Inside Border: Equal Treatment between Imported and DomesticGoods, services and nationals. Article III GATT (Article XVII GATS Article IV TRIPS) MFN Treatment v. National Treatment

20. II. Reciprocity互惠互利原则 • 1. Nature:not a legal principle • 2. Definition: Countries seek to make equivalent changes in policies, as opposed to striving to establish equal absolute level of protection.

21. 3. Object: To limit the scope for free-riding that may arise because of the MFN rule and the desire to obtain a “payment” for own trade liberalization. • 4. Application: when countries accede to the WTO. No “payments” in that the acceding country cannot ask for greater market access in return what it gets is the sum total of all commitments negotiated among Members in the past.

22. III. Liberalization of Trade • Lowering trade barriers (贸易壁垒) • Tariff (customs duties) • A tax imposed at the border on imported goods • Non-tariff barriers（NTBs） • Custom formalities • Quota (quantitative restriction) • Unfair trade

23. Tariff (关税征收) A tariff concessions or binding-----not exceed the maximum level of duty agreed to. • Ad valorem tariff (从价税) • a tax set as a percent of value of imported goods. • e.g. A product valued at $100, it subject to a 10% ad valorem tariff, $10 would be due upon importation. • Specific tariff(从量税) • a charge per unit or quantity of goods. • $1.00 per ton • Mixed tariff (混合税) • It combines above two concepts. • 5 Yuan per Kg plus 10% of value

24. Schedules of Concession减让表 • Nature: preferential schedules • These schedules establish “ceiling bindings”. • (P76) • 减让表实质是成员国提供的优惠表。减让表中规定的商品在进入该成员国时，若满足相应的条件和资格要求，即免除超额课征的关税及其他税费。 4%-90s

25. Non-tariff barriers (非关税措施) • Quota (quantitative restriction) (配额) • Specifies the quantity of a particular good that a country will allow to be imported during a specified time period • Unfair trade • Dumping (倾销) • Subsidies (补贴) • Custom formalities(海关手续) • -- invoices and certificates • ---licensing • ---statistic services etc.

26. Negative effects:the effect of nullifying or impairing the value of the tariff concession. • Measures taken: Customs Valuation, SCM Agreement, and so on.

27. Tariffs Reduce and bind Schedules of concessions NTBs Restrain or eliminate A bulk of agreements pertaining to the specific sectors. Summary of trade liberalization

28. IV. Transparency透明原则 • GATT Article X and GATS Article III and TRIPS • Internal requirements: • Publication of trade regulations (laws, regulations, judicial decisions and administrative rulings of general application) • Enquiry points under GATS, SPS and TBT Agreements (咨询点)

29. Uniform, impartial and reasonable administration of rules / regulations • Independent legal review • External surveillance: • The Trade Policy Review Mechanism (TPRM) Periodic country-specific reports reviews

30. Special treatment To developing countries. To least-developed countries V. Special and differential treatment to developing countries给予发展中国家以特殊区别待遇原则

31. 1. Increasing Trade opportunities • ---WTO members reduce, eliminate trade barriers, and refrain from imposing them. • ---the principle of non-reciprocity • ---elaborated in the Enabling Clause • 2. Measures in support of economic developments • ---the “infant industry” sections • --- the “balance of payments” section Under certain conditions

32. 3. Longer periods for implementation • ----additional time • e.g. TRIPs----1, Jan, 2000 • (normally, 1996) • 4. Technical assistance • ----many agreements on technical assistance • e.g. the TBT Agreement • the SPS Agreement • Doha Development Agenda –Concerns of developing countries placed at the heart of the negotiations Given by the developed countries or the WTO secretariat

33. Funding for technical cooperation activities in CHF million

34. Language points • 1. key words • Commitmentn. • A pledge to do 承诺 • Schedule of commitments 减让表 • Pertain v. 与 …有关 • If one thing pertains to another, it relates, belongs, or applies to it. (formal) • E.g. Policies pertaining to labor standards, the environment, or investment involve domestic regulatory .

35. 2. Compound words • (P44) • There+介词的用法常在文献中出现。There=that,一般指上文刚刚提到的事物或行为，可以理解为介词+that • Thereby=by that way通过那种方式 • Therefore=for that 所以 • Therein=in that 在那里，在那件事里 • Thereabout=about that大约，在那附近（or之后） • herewith=with this因此，同此 • henceforth=from now on • Forthwith=immediately • Hereto=along with, by this means

36. Keys to P44 • 1. thereabout • 2. therefore • 3. thereby • 4. herewith • 5. hereto • 6. henceforth • 7. forthwith • 8. therein

37. 3. key terms • Schedules of Concession • The Trade Policy Review Mechanism (TPRM) • Most-Favored-Nation Treatment (MFN) • National Treatment • Reciprocity

38. Assignment • What do the MFN treatment obligation and the national treatment obligation have in common? In what do they differ? • What do the MFN treatment obligation and the national treatment obligation have in common? In what do they differ?