Wto Trade Policy Review Mechanism Legal Issues

There are four measures to influence members' trade policies within WTO legal system. The first is the review to applicant before it enters into WTO. China's experience is one typical example. The second is the policy bounds to member by way of "commitment" when it enters into WTO. The third is the adjudication and enforcement of trade dispute. The losing party must modify their laws and policies which are decided as contrary to WTO agreements. And the fourth is to supervise members' trade policies by way of review and is called as trade policy review mechanism (TPRM).The focus of this dissertation is the fourth one, which is the TPRM. TPRM is a special supervision mechanism. Under the auspices of it, WTO provides for its members a chance to explain and discuss their trade policies, search information and express their concerns, as well as review members' trade policies and practices. It is called "peer" in order to distinguish with dispute settlement mechanism which has compulsory enforcement. But the two supervision mechanisms have a same purpose, which is to ensure WTO rules to be complied with effectively. As one of three mechanisms within WTO, TPRM is a positive attempt to make WTO rules be abided and make multilateral trade system operate smoothly based on GATT experiences of more than forty years.The whole dissertation comprises of six chapters.The first chapter is regarding the general research on the basic knowledge of WTO trade policy and its review mechanism. It discusses the free trade policies which WTO prefers from perspective of economics, political economics and philosophy. WTO has made a set of trade guidelines and rules based on market economy in order to establish and develop an open, sustainable multinational free trade system. The establishment of this system regulates and promotes the international trade activities from macro-layer and influences the formulation of trade policies of all nations. In order to keep rules to be complied with, it introduces a special supervision mechanism in WTO—TPRM, and probes its sources, its relationship with WTO trade policies, including its objectives, actual functions and practical values, etc. As to the discussion of the function of TPRM, it puts forward a new position. While most scholars have discussed the function of TPRM as to practicing WTO transparency principle, at most agree it is a supervision mechanism within WTO, the author especially emphasizes its function to make sure all members fulfill WTO commitments, that is, the function of enforcement in a wider meaning. It invites for the collective membership of WTO to evaluate and appreciate the respective member's trade policies and practices. This has the effect of inculcation a corrective influence, within a particular normative framework. Its very proffering has the added consequence of having the potential to engender a degree of sensitivity on the part of the member to the ethos of the WTO code. By this way, it has the similar function with WTO dispute settlement mechanism, which both influence trade policies of members and secure the rules, disciplines and commitments of WTO to be complied with in an effective way.The second chapter analyzes the status of TPRM. Starting from the system of supervision mechanism, it discusses the transparency procedure in WTO, ordinary review taken by administrative organs of WTO, special review launched by trade policy review body (TPRB) and dispute settlement mechanism respectively. Then, it takes a method of comparative analysis to probe the relationship between TPRM and other supervision mechanisms in WTO, especially the relationship between TPRM and transparency procedure and dispute settlement mechanism. It holds that TPRM could promote the development of domestic transparency effectively when it initiates international transparency. If domestic transparency could be realized, it will facilitate public to learn whether there is any damage and how hard caused by trade policies. At the same time, it will reduce the cost to public election activity, encourage public to take part in and influence the procedure of government strategic decision, counteract and combat the duress and pressure brought by minority interest groups through political election and other means. Thus it could support government's struggle to go along the road of free trade, benefit the multinational trade system which adopts liberalization further. At the same time, TPRM will prevent andeliminate trade disputes through increasing the foreseeablility of international trade, decreasing the contradiction and discrepancy of trade policies of all members. Actually, TPRM has the lubricant function when it supervises the implementation of trade policies through practicing transparency. Finally, it discusses the relationship between TPRM and the function of WTO, the relationship between TPRM and the Article of International Revenue and Expenditure as well as the relationship between TPRM and the overall view to the development of international trade climate in order to show the important status of TPRM in the system of WTO' supervision mechanism, even in WTO itself.The third chapter focuses on substantive regulations of TPRM. First, it discusses the subjects of TPRM, emphasizing the personnel arrangement of the trade policy review division (TPRD) of WTO secretariat and their work burden compared with employees in other international institutions. In this aspect, it is considered that TPRD is a low-put-in, high-put-out organ in international institutions. During the analysis, it shows the dilemma of shortage of secretariat resources. It holds that it may induce collapse of the ability of TPRM to realize the objectives suggested by Marrakesh agreement without enough personnel resources. Considering there is no consensus solution to resolve the problem of resources shortage, it proposes to increase the resources of TPRD orderly and steadily. In order to make it come true, we could consider the problem from the point of increasing the total budget of WTO. At the same time, it combines the resources problem with the question of giving technologic assistance to developing members because the capacity building for trade policy (within WTO and outside WTO) would assist developing members to take part in WTO activities, including TPRM activities more effectively, so the technologic assistance outside WTO could solve the resources problem in part. Then, it goes to explain and comment the contents of trade policy reviews, taking the stand that the contents of trade policy review need to be reformed. But how far the contents should be extended remains a problem to concern, it involves in the whole reform of WTO. It holds that there are many factors that make it unrealistic to extend the scope of review to "social, labor, and gender" problems. The review meeting based on WTO rules may not be the ideal arena to involve these problems. Finally, it discusses the standard of trade policy reviews, insisting that the review procedure will proceed against WTO rules considering the objective of trade policy review is to improve adherence by all members to WTO rules, disciplines and commitments. The reference standard put forward to reviewed members by TPRD should be WTO rules, disciplines and commitments. Meanwhile, the review will describe dynamically some policy changes of members and analyze their effects to multinational trade system in quantity. So the review will also take some economical standards.The fourth chapter concentrates on procedure regulations of TPRM. First, it analyzes why so many suggestions about rhythm adjustment have not been accepted and probes the possibility of collective review. Then, it elaborates the procedure of secretariat report and country's report respectively, paying much attention to the former one. Besides considering the material resources, structure, length and effect of the secretariat report, it discusses the shortcomings of the report in some aspects, such as its bias to different members, over-optimism, lacking analysis to the costs of protection, etc. Further, it prospects the future trends of the report, which are to take a longer-term perspective, adding more analyticelements. On the other hand, for the relatively small developing members, taking part in the procedure of trade policy review and preparing country report are a big challenge. So, it could also be jointly considered with the technologic assistance sponsored by TPRB and the organ of technology cooperation and training of WTO. Finally, it discusses -the meeting of trade policy review and the dissemination of all related reports. It takes the opinion that even there is an enough increase in resource as one of many reforms made to TPRM, the actual value could not be achieved without improving the scope of dissemination of all reports. It holds that review reports should be distributed to many potential users besides sending to negotiating groups, for example, to prominent joumalists and other writers on business, trade, and politics; to leaders of trade and industry associations, chambers of commerce, and labor organizations; to trade experts and lobbyists; to academics and research institutions specializing on international economical and trade policies, to managers of enterprise and their consultants, and to political leaders and their advisers.The fifth chapter involves in a practical analysis to trade policy review. By way of comparative analysis, it shows a close examination of two of reviews, i.e. the two reviews of European Community (EC) before WTO and after WTO respectively. It hopes to reflect on TPRM in some way. Both reviews provide transparency in, and understanding of, trade policies and practices of EC. The reviews have made other GATT parties / WTO members know much about EC's information. But it still needs to bring greater transparency in trade policies and practices of individual EC Member States. This could have been achieved without necessarily violating the nature of the juridical relationship of EC with WTO, and without negating the process of integration within EC, or ignoring its particular institutional structure. Further, analysis to the governing trade policies and practices of EC from a legal perspective should be enforced. TPRD report should comment on the relationship between GATT/WTO guidelines, rules and trade policies and practices of EC, explaining the effect of EC trade policies and practices to multinational trade system thoroughly. Therefore, the quality of review needs to be improved. Finally, there should be some form of follow-up of the reviews. For example, where it is evident that trade policy and practice should be changed, but that the proposed changes cannot be made known, or are not made known, then the Director-General should be authorized to discuss those changes with the Member on a confidential basis, remind the Member to pay much attention to the results of the review.The six chapter concerns the practice of China. It suggests several reactions and solutions when China faces the challenge of review. China has become a member of WTO since December 11, 2001. China began to practice trade policy review in 2002 shortly after its entrance. Not only accept the normal review launched by TPRB, China will accept the "transitional trade policy review" according to Article 18(1) of China Accession Protocol. As the largest developing socialist country with public ownership and relatively low market-oriented economy, it is undoubtedly, the ability of China to obey WTO rules and fulfill its commitments brings great concern for other members of WTO. All other members are showing great interest in any change and improvement in China's trade policies. It is necessary and wise to prepare well for any review no matter it is transitional or normal one. We should try to make our trade policies and practices evaluated thoroughly and justly, showing our trade policies and practices to the world through all reviews. On the other hand, we should realize that it is one of our basic obligations to be reviewed, and it is also one of our significant rights to take part in reviews against trade policies and practices of other members of WTO. So, we should utilize the opportunity of view to influence other members' trade policies and practices, make TPRM service our economic construction actively and properly, accelerating economic development in our country ultimately.