Multilateral Trading System

This dissertation aims at clarifying the challenges the multilateral trading systemfaced as well as the achievements the system has accomplished and finding out theappropriate solutions to meet these challenges.The core idea of the dissertation is that the multilateral system is successful in itsown history and it will benefit from the reinforcement of its mechanisms and institution.The staring point is that the multilateral trading system is a rule-based system and themultilateral trading rules makes the development of international trade more stableand more predictable. To continue its success requires the reform of mechanism ofmaking the rules, implementing the rules and supervising the rules.The multilateral trading system faced many challenges. More and more membersentered WTO, which makes it very difficult to conclude by so many members in thenegotiations. More interested parties, mainly civil societies or NGOs raised newrequirements to the system. The gap between the developed and developing members iswidened and the multilateral trade agreement had implementation problems. Thescope of the system is becoming broader and many non-trade issues included in the newagenda, which make it more difficult to come to terms. The global governance requiresthe system to cooperate with other international organization instead of functioning byit own. The proliferation of regionalism threatened the MFN-based non-discriminationprinciple of multilateral trading system.The following recommendations were made to meet the above-mentionedchallenges. The improvement of the multilateral negotiation mechanism as well as thedispute settlement mechanism and trade policy review mechanism must pay attentionto both efficiency and equity. The system should also improve both its internaltransparency to developing members and external transparency to civil societies. Tradewas widely regarded as a key catalyst for future growth of the world economy and fordeveloping members and more S&D should be given to meet the needs of developingcountries. Regulation of PTAs rules should be stricter to avoid the erosion tonon-discrimination principle of the system.China is now a trade giant in multilateral trading system and will play a moreimportant role in the future. China believes that a more fair, more efficient, moreconcentrating, more transparent and more authoritative multilateral trading system isbeneficial to both world and China and is prepared carry out new responsibilitiescompatible to China's development level.