Treaty Interpretation, The Perspective Of Chinese Imports Of Auto Parts Case

The rule of treaty interpretation in the WTO Dispute Settlement Mechanism is governed by the principles codified in the Articles 31 and 32 in the Vienna Convention on the Law of Treaties. By centering on the textual approach, it employs a holistic manner in interpretation. Treaty interpretation plays a crucial role in settling the disputes, which to some extent may determine the final direction and conclusion of a case. Therefore, the distribution of rights and duties of the most concern to the relevant parties can be made thereafter. The present case known as Chinese Measures Affecting the Imports of Automobile Parts, which marks the first time for China to be involved into the panel proceedings under the WTO Dispute Settlement Mechanism as a defendant, has come to a losing result for China. Thus, from the perspective of treaty interpretation, the paper intends to probe into the key legal issues therein, such as the difference between custom duties and internal tax, the definitions of CKD and SKD and so forth, in order to analyze the wins and losses of China and its potentially valuable experience and lessons from this case. It is worth noting that the disputed parties are innovational in breaking through the traditional mechanical approach of depending solely on the dictionary in interpreting the terms. Furthermore, they are both good at analyzing the details and exploring enormous resources, showing a strong sense of the importance of treaty interpretation. On the contrary, China is comparatively weak in reasoning by over-emphasizing its domestic policy and legislative objectives, without a comprehensive and thorough understanding of the relevant rules in the previous cases. It is therefore fundamentally important and urgent for China to reflect its negligence in bridging the domestic legal system with the international rules and duties, as well as a generally insufficient recognition of the WTO rules and China' s commitments at home.