On Legal Issues Of WTO Decision-making Regime

WTO is a young international economic organization, but it has gradually developed into one of the most important international economic organizations. On the basis of GATT, WTO has established complex organizational structure and independent Charter, also has improved international trade rules and resolved trade disputes between its members, through which the achievements of multilateral trading system in the past half century has continuously been strengthened and promoted. However, in the context of economic globalization and the development of a multi-polar world, WTO multilateral trading system has been facing many new challenges, such as defects of democracy and transparency in decision-making procedures, public participation, treaty interpretation and implementation issues of adjudication reports of DSB, and coordination between WTO and other international organizations, and the relationship between WTO law and its members’ laws. The main topic of this study is legal issues of decision-making regime in the WTO multilateral trading system.The first round of WTO multilateral trade negotiation— "Doha Development Round", being through several deadlocks, has not yet ended. People fear that the WTO’s ability to achieve its goal is suppressed because of the existing decision-making regime. Compared with the first eight rounds in GATT/WTO, Doha Round is fronted with more complicated international political and economic environment. The increasing number of negotiation issues has influenced members’ domestic laws and social order deeply and widely and trade competition between members has become fiercer. In particular, the number of developing country members has substantially increased and their overall strength has been raised. They have questioned the fairness and transparency of WTO multilateral trade negotiations and appealed for reform of it. The emerging powers, Brazil, India and China etc, have substantially impacted Doha Round. Together with other developing countries, they have become the vital powers that have influenced and even changed the direction and outcome of multilateral trade negotiations, and gradually broken the traditional pattern in which developed countries members led GATT/WTO negotiations.This paper is divided into three parts: Introduction, Main body test and Conclusion.Introduction introduces how the topic issue is raised, and the value and significance of the research, and also sorts out literature of the various issues under this topic systemically, and introduces research methods and summarizes new ideas and weak points of this study. The first chapter is Instruction of basic issues of international organization’s decision-making regime. This part explores concept and characteristics of decision-making and organizational decision-making, and then analyzes the basic characteristics of the international organization’s decision-making and the concept of international organization’s decision-making regime. Studies the meaning of the international organization’s voting system to clarify the relationship between the international organization’s decision-making regime and voting system, and points out the scope of decision-making regime is wider than the voting system---voting is a part of the decision-making process, and further analyses of the main elements of international organization’s voting system. This part focuses on research of definition and characteristics of "consensus" and compares the differences between the traditional voting methods and "consensus". At last concludes that “consensus" is not voting but a special decision-making method, and then explains its practices in international organizations.The second chapter is Analysis of basic issues of WTO decision-making regime. The part sorts out and assesses existing literature of concept of WTO decision-making regime in order to set forth a more accurate definition——there are two kinds of WTO decision-making regime: the narrow one and the broad one. The former means bills’ voting rules in WTO decision-making bodies, and the latter, besides the former, includes rules and regulations in multilateral trade negotiation process. This part also explores the origin and development of decision-making regime of GATT, and then analyzes how WTO inherits and develops GATT decision-making regime. Systemically studies the main contents of WTO decision-making regime, including the decision-making bodies, supporting agencies, decision-making content and its decision-making manners, basic procedures of multilateral trade negotiation, and the and "voting" system. Explores the current challenges of WTO decision-making regime—lack of fair multilateral trade negotiation rules, and insufficiencies of democracy and transparency, and also inefficiency of decision-making regime.The third chapter is Multilateral trade negotiation rules under WTO decision-making regime. There are no clear legal rules of negotiation in WTO, and multilateral trade negotiations in practice mainly follow rules of "A single undertaking", "Green room" and "Principal supplier principle ". This part analyses how "A single undertaking" was introduced into Uruguay Round, and gradually developed as a legal principle and a negotiation rule in WTO legal system, and then explores how it promotes multilateral trade negotiation, and also disuses its defects and current reform proposals. Explores origin and development of "Green Room", and studies its nature—an informal consultation mechanism that improves the efficiency of decision-making. And then points out that it can not replace the formal WTO decision-making regime. Analyses present reform proposals of “Green Room”, and argues against both abolition and mechanization of “Green Room”, and then suggests that great efforts should be made to improve its the democracy and transparency. Researches origin and development of "Principal supplier principle ", and points out it has deprived developing country members of rights to speak in tariff negotiations and other areas.The forth chapter is Participation of developing country members in WTO decision-making regime. Early GATT was defined as "Rich man’s club", and developing countries had no right to speak. Though developing countries had hoped to actively involve in negotiations of creating ITO and GATT’s seven rounds, finally they could not effectively participate in these negotiations because of principle of reciprocity, "Principal supplier principle” as well as exclusion of agriculture and textiles issues. After the establishment of WTO, to participate effectively in decision-making requires members to the provide delegation with sufficient personnel in order to take part in various meetings, but smaller developing country members can not provide adequate human and financial resources due to their limited economic strength. "A single undertaking" attempted to incorporate "Singapore issues", but developing country members have started using it as a bargaining chip to protect their own interests. Major developing countries began to regularly participate in "Green Room", but smaller developing country members are still excluded from it. In addition, staff from developing country members has actively strived for candidates of WTO Director-General, the chairmen of decision-making bodies and the Secretariat offices, but on the whole most of WTO offices are still occupied by the staff from developed country members.The fifth chapter is Negotiation groups under WTO decision-making regime. This part discusses the origin and development of negotiation groups from GATT to WTO, and analyses theoretical basis and concept of them from perspective of "group of countries", and divides them into Issue-based Group, Character-based Group and Geographical or Regional Group according to their characterization. Also comprehensively analyses the formation mechanism of WTO negotiating groups from perspectives of macroeconomic context, economic bases, institutional roots and political motivation, and highlights the lack of fair negotiations rules is the direct cause of developing country members to establish negotiation groups in Doha round. Analyzes active roles of negotiating groups in improving democracy, transparency and efficiency of WTO decision-making regime, and then summarizes instititional and practical difficulties currently facing WTO negotiating groups, and puts forward sound proposals.The last chapter is Participate of China in WTO decision-making regime. Since becoming WTO member, China has adapted to WTO laws and finally enter into "core decision-making circle," which fully reflects enhance of China’s status in WTO. This part analyses China’s current size of delegations, situations of participation in WTO decision-making bodies, the Secretariat, and holding of important offices, then points out that there is still a huge gap between China and US, EU, India and Brazil. Explores China’s participation in WTO negotiation groups, then points out common identity and interests are main criteria for China to consider to join certain groups. Discusses China’s localization in international trade system in order to give suggestions to China on how to effectively participate in WTO decision-making regime: actively advance reforms of WTO decision-making regime into a more democratic, transparent and efficient one, and play more positive role in WTO decision-making bodies, and pay more efforts to utilize negotiation groups on the fundamental basis of state’s own economic and trade interest. China should also properly handle relations with Brazil, India and other large developing countries, and with other developing countries, and with developed countries.Conclusion collates and summarizes the main content and important ideas of this paper.