The Legal Environment Of China's Textile Trade, And Today Corresponds To A Policy

Trade in textiles and clothes belongs to the category of trade of goods, GeneralAgreement on Tariffs and Trade (GATT) is an international treaty which regulates thetrade of goods. Trade in textiles and clothes is supposed to governed by GATT,however , in 1961, the United States suggested that the countries which are the maintextiles import countries set down the Short Term Arrangement on Textiles andthereafter the Long Term Arrangement in order to protect the domestic textileindustry . The two arrangements render GATT 1947 out of power in internationaltrade of textiles and clothes. The Multifibre Arrangement which went into effect in1974 broadens the applicability to the trade of rayon, wool and woolen products. As aresult, the trade of textiles and clothes was no longer governed by GATT 1947's rulesand disciplines. In order to make the international trade of textiles and clothes returnto be governed by the framework of GATT 1947, the Uruguay Round of MultilateralTrade Negotiations set down the Agreement on Textiles and Clothes as a transitionalagreement, which take the place of Multifibre Arrangement since 1995.Even the Multifibre Arrangement did not function well in the background ofGATT 1947, the Agreement on Textiles and Clothes, which is under the framework ofWTO and the interaction of several agreements will also meet much difficulties. InJanuary 1st 2005, three years after China has entered WTO, on the one hand, the rulesof trade of textiles under the WTO became invalid, on the other hand, as there aremany differences between the Arrangements for Trade in Textiles in the Protocol onChina's WTO Accession and agreements of WTO and the trade of textiles in othermember countries will completely be governed under the framework of WTO,however China's textile trade will not be govern by this framework. Then from theAgreement on Textiles and Clothes went out of effect to the year China has been amember of WTO for 15 years, what legal environment the trade of China's textile willface? In the long run, in December 11th 2014, in which the restrictions included inArrangements for Trade in Textiles in the Protocol on China's WTO Accession are nolonger in effect, and the trade of textile of China will completely be governed by theGATT 1994 and the other agreements of WTO, what legal environment the trade oftextile of China will face?This article mainly addresses the evolution on framework of multinational textiletrade and the influence of the framework on China's textile trade, and will make asystematic analysis on the legal issues of China's textile trade: Section 242 of Reportof the Working Party on the Accession of China.The article includes five chapters:The first chapter mainly analyzes the legal environment of textile trade around theGATT coming into effect. This chapter is divided into two parts: it first makes ananalysis on the legal environment of textile trade before the GATT coming into effect,then it introduce the legal environment of textile trade before the GATT coming intoeffect.The second chapter reviews some arrangements which go far away from theGATT's regulation. This chapter is divided into three parts: The first section reviewsthe evolution from Short Term Arrangement on Textiles to Multifibre Arrangement.The second section mainly introduces the process of Multifibre Arrangement goinginto effect and evaluates the content of it.The third chapter mainly evaluates the legal environment of China's textile trade ofdifferent periods. The chapter is divided into four sections: the first section mainlyanalyze the legal environment of China's textile trade under the MultifibreArrangement. The second section legal environment of the period from theestablishment of WTO to the time China enters into WTO. The third chapter remarkson the special acceptance after China's entering into WTO. The fourth sectioncomments on the legal environment of China's textile trade in upper quota time.The fourth chapter makes a legal analysis on the present legal issues of China'stextile trade: work report section 242. This chapter is divided into three sections: thefirst section analyzes the implementation of China's textile safeguard. The secondsection analyzes the legal explanation and criteria of China's textile safeguard. Thethird section reviews the legal explanation of China's textile safeguard from theaspects of procedural and substantial provision.In the last chapter, countermeasures and suggestions have been stated for China'sgovernment, China chamber of commerce and import and export textiles enterprises.