The Construction Of Arbitration System Of China Korea Free Trade Agreement(FTA)dispute Settlement

China——South Korea Free Trade Agreement(hereinafter referred to as the "China——Korea FTA") reached to substantive outcomes in November 10, 2014. Since the beginning of 2005, the State Council Development Research Center of China and the Korea Institute for international economic policy have begun to jointly study the FTA. After 5 times of Sino——South Korea joint research and 14 rounds of negotiation, the free agreement was finally reached between China and Korea. For South Korea, the FTA is an important agreement with the world’s largest growing market, investment partner a country gaining trade profits. It also means that South Korea has concluded FTAs with the three largest economies in the world American, EU and China. The purpose of this paper is to study the arbitration mechanism of China——Korea FTA. Arbitration is an legal means important to solve conflicts among FTA members. The WTO dispute settlement mechanism also provides arbitration function to its members. However, in the current China——Korea FTA, the arbitration mechanism has not been paid enough attention and research to. There are many legal problems to be solved in dispute settlement practice of FTA arbitration system as well. The "Arbitration Law" of South Korea is under modification at the time being, which is a great opportunity to further improve Korean arbitration system, strengthen its compatibility with the China——Korea FTA arbitration system and promote the effective use of arbitration system in FTA disputes settlement. Thus, this paper will compare the Korean international commercial arbitration system and the China——Korea FTA arbitration system in terms of rules and application in resolving disputes between China and South Korea.Chapter I makes a brief overview of FTA and its significance to China and South Korea.Chapter II provides recommendations to Chin——Korea FTA dispute settlement mechanism, especially its arbitration system. This part first introduces the basic direction of China——Korea FTA dispute settlement mechanism, including rules on conflicts of jurisdiction, the legal status of arbitration experts, implementation standards, appellate procedures, and rules governing dispute settlement between a state and investors from another.Chapter III elaborates the significance of FTA dispute settlement mechanism. the main function of FTA dispute settlement mechanism is to reduce trade disputes between contracting states. Generally, FTA dispute settlement procedures are simpler than the WTO dispute settlement procedure, and disputes between a few countries within a region could be solved more meticulously than those at multilateral platforms. FTA gains the same legal effect with domestic laws from domestic legal procedures. FTA dispute settlement modes can be divided into three categories. The first category is based on traditional consultation, mediation, mediation and other diplomatic ways. The second category is arbitration dispute settlement mechanism. The third is Permanent Court dispute settlement mechanism. Arbitration is the most common dispute settlement mechanism among all above categories.Reviews NAFTA arbitration mechanism provided in the eleventh chapter of NAFTA. Its main purpose is to create a "foreseeable framework for business operation and investment". NAFTA arbitration mechanism undertakes dispute settlement in trade, investment and other areas. It also provides three kinds of arbitration rules for parties in dispute to choose, including International Centre for settlement of Investment Disputes(ICSID) arbitration rules, ICSDI additional facility rules of arbitration; the United Nations Commission on International Trade Law(UNCITRAL) arbitration rules. This chapter mainly studies the NAFTA dispute settlement rules and procedures on arbitration and award execution.Examines the arbitration rules of the WTO dispute settlement procedures(DSU). The Korean Industry Trade and Resources Department issued the "China Korea FTA detailed information"(November 2014), which states that the dispute settlement rules of China——Korea FTA includes the WTO dispute settlement system. Therefore, this chapter reviews DSU, especially its rules on arbitration rules, revenge and appellate procedureChapter IV Chapter V analyzed and compares dispute settlement rules and procedures of China——Korea FTA with those of some existing FTAs. First this chapter introduces dispute settlement rules and procedures of China——Korea FTA, and then compares them with dispute settlement mechanisms of the Korea——US FTA, China——Thailand Bilateral Investment Agreement(BIT) and other FTAs or BITs entered into by China or Korea with other countries or economies, such as ASEAN, Chile, Peru. On the basis of above analysis and comparison, this chapter discusses the trend of arbitrion mechanism development of China——Korea FTA.Chapter V focuses on the main problems in China——Korea FTA dispute settlement rules. Dispute settlement mechanisms can be divided into two kinds according to two criteria. According to the first criterion, dispute settlement mechanisms can be divided into normative solution approach and peaceful settlement approach, and integrated dispute resolution system and decentralized system of dispute resolution by the second criterion. In general, powerful countries(or developed countries) fully and usually use "power——oriented" dispute resolution consultations between states, while weak countries(or developing countries) usually choose “rule——oriented” binding judgment to settle disputes. WTO and all FTAs have provided dispute settlement mechanisms compromising different interests and preferences, which includes power——oriented negotiations and rule——oriented arbitration or normal dispute settlement mechanisms. In FTAs signed by China, dispute settlement mechanisms are mainly mediation, reconciliation and arbitration.Chapter VI provides recommendations to Chin——Korea FTA dispute settlement mechanism, especially its arbitration system. This part first introduces This part first introduces how to improve the arbitration mechanism of China——Korea FTA, mainly on the appointment of arbitrators, the application of substantive laws of China and Korea in FTA dispute resolution, and the finality of arbitral awards of China——Korea FTA abitration. Then this part discussed reviews and analyzes the arbitration rules of Shanghai Free Trade Test Area of China(SFTTA) of China and Chinese new rules for international commercial arbitration. SFTTA was set up according to experiences of international free trade zones, guided with principles of “open” and “safe, efficient control and free transfer within the zone”, and coupled with new trade supervision mode. But SFTTA, aimed to be an international free trade zone, lacks adequate legal supports. There are two main regulations: the " General Scheme of SFTTA" released by the State Council, and the “Administration Measures of SFTTA” released by Shanghai provincial Government. In terms of law, neither regulation is sufficient legal support for SFTTA. This chapter mainly introduces mechanism innovations of SFTTA arbitration rules and procedures, and then compares it with China——Korea FTA arbitration rules and procedures. The main mechanism innovations of SFTTA include: emergency tribunal mechanism, renewed arbitrator list mechanism, refined rules for consolidation arbitration, the improvement of the dispute settlement mechanism combining arbitration, and mediation and the establishment of arbitration procedures for disputes with small controversial objects.