Dissertation Creation - The UK's original provider of custom dissertations and dissertation help...

Free Dissertations - Economics Dissertations

Having Mentioned China's Abidance By The Wto Rules, It Is Worth Noting That ...


Having mentioned China's abidance by the WTO rules, it is worth noting that China had Seventy Thousand Textile and clothing enterprises in 2002, of which only twenty percent are state-owned. With more than 80 percent of the textile industry in the hands of the private sector, China is doing well to abide by WTO policies.
In 2000, China's output in the textile and clothing industry has stood at 97.7% while the US has stood at 76.3 %. In contrast to these high percentages, the EU's output has dropped from 53% (1980) to 29% (1995). Quite obviously, the EU textile market has been on the decline, and has also been known to undergo a continuous process of restructuring in this industry.
Another interesting fact to note is that while import quotas were reduced in the past 15-20 years, China's exports to the EU increased by a startling 164%. In contrast to China's huge volume of export to the EU in the category of textile and clothing, other countries only increased their exports to the EU by 10 %.
Since the USA and the EU both had anticipated such a situation in which China would overwhelm domestic markets in these two countries [in the category of textile and clothing products], when China entered the WTO the agreement included allowing any member to re-impose quotas in order to safeguard themselves. The agreement allowed any member to impose quotas for a period of one year between 2005 and 2008, but this was only in the case of domestic markets being affected in the USA and the EU. It is because of this particular clause that one can assert the similarity between the European Union-China Relationship and the UK- China relationship. This is because the WTO law is supposed to minimize the chances of quotas being imposed. In China's case, through a clause in its WTO agreement can have quotas imposed on it. Similarly, if the UK is trading directly with China, it can do the same thing. This leaves little difference between the EU-China trade relationship and the UK-China relationship.
What Does the WTO Say About Discrimination?
It is known that agreements formed between member countries are meant to benefit all members as a whole. It is rare that agreements in trade discriminate against some countries. In order to prevent discrimination in trade taking place, the WTO has set standards that are to be followed closely. Being a successor to the GATT, it follows the principles set by the GATT as well. Indeed, many of the newer policies established are a result of GATT policies that were first established in the 1940s.
The WTO [World Trade Organization] is the successor of the GATT [General Agreement on Tariffs and Trade]. The WTO is at present, an organization, which has further developed various policies dealing with multilateral trade, and also has maintained and followed policies that were established under GATT.

Please note: The above dissertation snippet was written by a student and then submitted to us to display and help others. Thanks to all the students who have submitted their work to us.