Wto Trade Policy Review Mechanism

Trade Policy Review Mechanism is one of the three importantmechanisms that make the world's free trade much easier. The other twomechanisms are Trade Negotiation Mechanism and Dispute SettlementMechanism. TPRM is the only place where WTO can take a singlemember's trade policies into deliberation in all aspects. TPRM is not onlythe transparency mechanism, but also the surveillance mechanism of WTO.It fully shows the WTO's transparency policy and all the members canknow the others' trade policies more clearly through this mechanism.Besides, this is also the best way for one country to know the views aboutits trade policies from other countries.In 1947, GATT didn't set up a surveillance mechanism to limit thetrade parties. It can only depend on the members to surveille each other inorder to keep the transparency of the international trade policies. As timegoes on, the market competition also became more and more drastic andthe surveillance of each member cannot settle the conflicts in theinternational trade. It deadly needed a new mechanism to deal with theproblems. Therefore, TPRM was set up and became one of the threeimportant mechanisms. At the same time, TPRM is WTO's Annex 3 andwent into effect. TPRM has many advantages to the free trade of the world,but it also has some disadvantages. As a successful mechanism, TPRMshould gradually change its shortcomings and grow more and more perfect.The effect on trade policies of TPRM is developed through its transparencyand surveillance functions. Therefore, reinforcing the transparency andsurveillance mechanism can strength this effect. This indicates the futuredirections for TPRM should be reinforcing the transparency andsurveillance mechanism and making more cooperation with DisputeSettlement Mechanism. Nevertheless, we must know it will be a long timeto do the above. It needs not only the hard work of WTO but also theefforts of each member.With the development of China's economy, according to the trade quantity, China has become the third one in the world. As TPRM requires,China must be reviewed once every two years. On April 19th,2006 Chinareceived the first review by TPRM. This is the first time for China to bereview formally. Before the review, China has been making preparations toface the review. Not only the government but also the enterprises all trytheir best to show the best of our country the officials of TPRM. Thisreview brings China many chances together with many challenges. Thegovernment and the enterprises must recognize the importance and theadvantages of the review, facing TPRM with correct attitude.This thesis analyzes the appearance of TPRM, the main idea ofTPRM, the WTO's members' opinions to TPRM and the trade policyreview to the United States and China. With the analysis, we hope to find abetter way for China to face TPRM.