Study Of State-run Trade Rules Of Wto

State Trading Enterprises (hereinafter referred to as "STEs") are easily be used as policy instrument of the government to intervene in trade because of their close relationship with the government, special operating methods and privileges not available to private enterprises. Article 17 of the GATT 1947 set the rules for STEs. However, since most of the contracting parties of GATT are market economies which have few state enterprises, for a long time since the conclusion of GATT 1947, STEs didn't gain much attention from the contracting parties. In recent years, more and more WTO members begin to concern about STEs, because of China's accession into WTO, Russia continuously pushing its way into WTO and the further progress of the Doha Round negotiation about Agriculture. On the one hand, since all the agreements of GATT/WTO were established on the presumption of free trade and market economy, the accession or seeking accession of so-called non-full market-oriented economies like China and Russia makes the members concern whether the WTO disciplines on STEs will prevent negative impacts on the WTO law system caused by such enterprises which are playing an important role in such economies. On the other hand, with the further progress of the Doha Round negotiation, members pay much attention to the state enterprises which have significant influence on the agriculture field. US, EU and other members strongly require the cancellation of state trading system and eliminate the passive impact on international trade by STEs. Under such circumstances, in order to implement of China's accession commitment, deepen the development on foreign trade system and develop domestic economy by using WTO rules, it is very import for China, who has a large number of STEs, to deeply research the WTO disciplines on STEs, get acquainted with the attitude and position of individual member and analyze the future development of WTO state wading system.This essay has three sections. SectionⅠintroduces the basic information of STE, including its emergence and development, definition, characteristics, its relationship with the governments and activities involved. SectionⅡexpounds significant rules of WTO on STEs, including discussing the three significant principles applicable to STEs after introduction of the framework of STE rules before and after the emergence of WTO and stating China's accession commitment and implementation thereof. SectionⅢdiscuses the debate on STEs and analyzes the future reform or development of WTO STE rules.SectionⅠof this essay addresses the basic information of STEs. First of all, it illuminates the development course of STE both in developing countries and developed countries. Secondly, it makes comparative analysis on the definition of STEs and holds that STEs are such enterprises or organizations which have been granted exclusive or special fights or privileges by law or constitution and the excise of such rights or privileges in their purchases or sales will significantly influence the level or direction of imports or exports. Thirdly, it lists the features of STEs as having spedal rights, no ownership requirement and result impact. Fourthly, it analyzes the main kinds of STEs. And the last but not the least import, it discusses the relationship between STEs and governments and the activities STEs involved in.SectionⅡof the essay attaches importance on the main contents of WTO STE rules. First of all, it presents the historical development course of STE rules in GATT time and WTO time. Secondly, it discusses the principles set by WTO on STEs including but not limit to non-discrimination treatment, transparency, and non intervention. When analyzing the non-discrimination treatment, by citing relative cases and opinions of famous scholars, this essay also addresses the relationship between paragraph 1 (a) and (b) of ArticleⅩⅤⅡand that the non-discrimination treatment applicable to STEs shall not include national treatment principle and in fact it is a modified most-favored-nation treatment. When expatiate on the transparency principle, it presents the content of notice, questionnaire, counter-notice as well as notice period, exemption of notice and establishment and function of the working group. When addressing the no intervention principle, this essay provides that the governments have no responsibility to supervise the activities of STEs by citing cases and opinions of famous scholars. Thirdly, it expounds China's accession commitment and implementation thereof. China's accession commitment on STEs including commitments on trade rights, STEs maintained and list of products operated by STEs. After the accession, to confirm to the WTO system, China has promulgated, modified and repealed a number of laws and regulations and China has made relative notices in accordance with the requirement of WTO.SectionⅢof the essay analyzes the future development of the rules of WTO on STEs. First, it analyzes the functions of STEs as trade instrument in both developed countries and developing countries. Then, it addresses the controversy on STEs. Those who oppose the existence of STEs hold that STEs distort trade and enjoy unfair trade advantages. And those who support the existence of STEs consider that STEs are powerful instruments for developing and small countries to fight against large multinationals and are effective methods for protecting the sovereignty and preventing the unbalanced development of the world economy. At last, this section analyzes the future development of rules of WTO on STEs. After analysis, this essay holds that the first step of the reform on rules of WTO on STEs shall clarify the applicable scope and meaning of the current disciplines to unify members' understanding on STEs and then introduce the principles of competition law into the STE rules to expose STEs to market competition and keep it in an appropriate limit.