Rating On The U.s. Trade Law "section 421"

As China's entry into WTO, it has further integrated into the global economy,while the promise China has made under WTO has taken into effect, and one of themis the "transitional product-specific safeguard mechanism", regulated in protocol onthe accession of the people's republic of china.According to this, other WTO members has the right to take safeguard measuresspecifically towards Chinese imported products, and the WTO members take this intotheir national law in order to make this system implementable. The United States isthe first country to make national law on Chinese specific product safeguard measures,which, to great degree, is the example of other nations' relevant legislation. Thisspecial safeguard measure is mainly regulated in "the Trade Act of 1974", i.e. Section421, 422, and 423 under the Chapter 12,Part 2- Relief From Market Disruption toIndustries and Diversion of Trade to the United States Market. We call them "421Clause" as a whole.Only five years after China being a WTO member, The United States haslaunched 6 special safeguard investigations towards Chinese imported productsaccording to "421 Clause", among which, 4 were concluded with an affirmativedetermination by ITC. Although the President at last overruled these determinationsand decided not to take special measures on Chinese products, the expansion of theadverse balance of trade deficit will make the application of the Clause more often,and this will take great negative effect on Chinese export. Therefore, it is particularlynecessary and essential for China to make a deep research on "421 clause" andrelevant cases, get more knowledge about the judicial application, and figure outcorresponding countermeasures.This dissertation is going to focus on the specific regulations of "421 Clause",based on the overview of the safeguard measures system in American Trade Law of1974, which consists of "201 Clause","406 Clause" and "421 Clause". After that, itwill summaries the advantages and disadvantages of the Clause towards China, andprovide advice for Chinese practices in order to reduce the adverse effect of theClause.