Study On Transitional Product-Specific Safeguard Mechanism

Transitional product-specific safeguard clause, which is mentioned in article 16 of the Protocol on Accession to WTO of the People's Republic of China and section 245-250 of the Report of the Working Party on Accession of China, represents a discriminatory safeguard mechanism which differs from the one provided in the Safeguard Agreement of WTO. And it has been recognized as one of the unfavorable clauses imposed on China after its accession to WTO.Wholly aimed at imports from China to other members of WTO, transitional product-specific safeguard clause has been violating the basic principles of WTO and also is an unreasonable and unfair clause bearing its discriminatory and unilateral nature. This clause is actually the lamentable tool to contain the economic development of China by other WTO parties rather than a real safeguard mechanism. Faced by the serious challenge, China should value the difficulties calmly and objectively and avoid and solve the trade frictions and disputes to minimize the negative effects caused by transitional product-specific safeguard clause and to create a better environment for future development.The structure of this paper is as follows:Chapter One: Brief Introduction of transitional product-specific safeguard clause. In this chapter, the paper firstly makes a brief introduction on the origin, history and present situation of transitional product-specific safeguard clause and then summarizes by comparing transitional product-specific safeguard clause with Safeguard Agreement , the discrimination in terms of the prerequisites for and period of implementation of the clause, trade compensation and the privileges enjoyed by the developing parties.Chapter Two: Irrationality of transitional product-specific safeguard clause. Starting with the analysis on discriminatory nature of transitional product-specific safeguard clause, in this chapter the paper sets forth its views that this clause has been violating the basic principles of WTO, worsening the trade environment of developing countries and undermining the fair and undicriminating principles of Safeguard Agreement. The paper then make a further analysis on the basic elements of the prerequisite for implementation of the clause and the legislativeactions of other WTO members in a more detailed way and summarizes the irrationalities and harmfulness of the clause.Chapter Three: Challenges faced by China and the Solutions.This chapter introduces the challenges faced by China currently and the relevant suggestions and practices against them. Furtherly the paper presents the basic rules and detailed measures for the above challenges.