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

Free Dissertations - Economics Dissertations

It Is Through These Principles That Countries Like China Are Able To Trade ...

It is through these principles that countries like China are able to trade freely and not be inhibited by any newer laws once they have their products in the market. The idea of the WTO asserting that countries with their products in the market being immune to newer policies by member countries is to protect them from being pushed out of the market. The quotas being re-imposed by the EU is an example of China's textile and clothing products being mitigated. The WTO protects such countries that ordinarily would be driven out of competition. With its chief mission to maintain and promote competition in the market, the WTO seeks to make trading countries immune to newly introduced laws that seek to discriminate against them. This is interesting to discuss because of the fact that it is this law that the EU apparently is violating. It is thought that by them re-imposing quotas on China's exports they are discriminating against them. Particularly, it may be pointed out that the EU is re-imposing quotas because its domestic market and producers are being hurt by the exports coming from China in large volumes. Here, it may be asserted that GATT 1994, article 1 and 3 are of tremendous importance, as it is the fundamental principle of nondiscrimination that the WTO enforces.
To begin with, Article 1 asserts that products of member countries should not be treated differently. Along side this, Article 3 asserts that once products from WTO members have already been introduced into the market, they cannot be removed or inhibited by laws introduced later, such as the re-imposed quotas.
Is China an Exception?
In asserting that the EU may have violated WTO principles of non-discrimination, it may also be remembered that there was a particular clause inserted in the WTO agreement when China entered in 2001. The USA and the EU both were well aware of the rapid pace with which China could export textile and clothing products. Therefore, they needed to devise some mechanism that would prevent China from overwhelming their markets in this category. Therefore, the clause that they inserted asserted that any member has the right to impose quotas for a period of one year between 2005 and 2008. Since this was a point that the China agreed on, it is difficult to say whether it is right for the EU to impose quotas. In view of the research question that asks whether it is fair and in the interests of free trade and competition for the EU to impose quotas on China's textile industry, it might be asserted that the EU guilty of protectionism. To some, the EU may be guilty of protectionism. However, if it is being protective over its markets, it must be realized that it is being protective after making clear at the time when China entered the WTO agreement that it could impose quotas for a year.

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.