Comparison Research On Dispute Settlement Mechanism Of China—asean Free Trade Area

Since 1994, international trade has largely been governed by the WTO as well as other regional trade agreements. Multilateral trade agreements usually contain a dispute settlement system where binding resolutions to conflicts are given. Recently, there is no denying the explosive growth in the number of regional free trade. All of these free trade agreements contain some form of dispute settlement mechanism, and China—ASEAN Free Trade Area has no exception. CAFTA is the world's third-largest free trade zone, the most populous free trade area, but also among developing countries, the largest free trade zone. East Asia's stability and prosperity depend on regional economic integration, and the spillover effects of this economic integration in turn strengthen the regional cooperation in political, security, social, and cultural areas. In the process of regional economic integration, the legal system plays an important role in stimulating communication, safeguarding cooperation and maintaining orders, the dispute settlement mechanism is the decisive safeguard in the whole legal system.This paper elaborates the characters of the dispute settlement mechanism of CAFTA,mainly based on the common conscience reached by China—and ASEAN countries in respect of dispute settlement mechanism agreement.By comparing and borrowing the provisions relating to dispute settlement mechanisms from WTO,NAFTA,EU and ASEAN etc,analyzing,and proposing some methods to improve dispute settlement mechanism of CAFTA.The paper holds that factors to determine the models of the dispute settlement mechanism are the background and goals of the organization, the integration level, and the economic and legal tradition of the member countries, etc. The first part of the paper reviews the background of foundation of CAFTA,and outlines Dispute Settlement Mechanism which governs formal dispute resolution in CAFTA, including the establishment of the organization,the Procedure and the means of implementation. Although these ASEAN national customs and trade authorities coordinate among themselves, disputes can arise. CAFTA members may seek mediation and good offices consultations. If these efforts are ineffective, they may settle the dispute through arbitration.The second part of the paper elaborates the rules and contents of Dispute Settlement Mechanism of CAFTA by making a comparison with world-wide dispute settlement mechanisms, such as WTO, ICSID, etc.The third part of the paper elaborates the rules and contents of Dispute Settlement Mechanism of CAFTA by making a comparison with regional dispute settlement mechanisms, such as EU, AFTA and NAFTA.The fourth part of the paper makes a comparison between dispute settlement mechanisms of CAFTA and China-Chile, China-Pakistan and China-New Zealand Free Trade Agreement.The fifth part of the paper puts forward some advices for Dispute Settlement Mechanism of CAFTA. The paper mainly analyzes problems that can arise from the overlap or conflict between these RTA dispute settlement provisions and the Dispute Settlement Understanding of the WTO and gives solutions to resolve the legal relationship between WTO and CAFTA, and gives advice to many problems that may exist in dispute settlement mechanism of CAFTA, including arbitration organs personnel, judicial re-examine, and enforcement.