Comments On The Case Of The Chinese Auto Parts Import Measures

Since China's entrance into WTO,the trade disputes with other numbers of WTO are on the increase.In 2006,the case—Chinese measures affecting imports of automobile parts catchs more attention of the public,because it is the first case to be applied to set up a panel in which China is the respondent.The main cause of this case is the Measures for the Administration of Importation of Automotive Parts and Components for Complete Vehicles,which entered into force on 1 April 2005.Since the tax rate of imported cars is at least 10%lower than that of imported auto parts,many car manufacturers import auto parts and assemble them together into a completed cars in China with little increase of value to avoid the higher rate of imported cars.In order to prohibit this kind of conduct,China has promulgated the Measures for the Administration of Importation of Automotive Parts and Components for Complete Vehicles and other relative measures.The measures povide for the entire car features of auto parts,when auto parts meet this feature they will be imposed tax rate as high as imported cars.The European Communities,the United States and Canada considered that China's measures are inconsistent with China's obligations under its Access Protocol and with the stipulation of GATT1994,TRIMs Agreement and the SCM Agreement.So they brought China to the WTO panel proceedings.This thesis focuses on the analysis of the main focal point questions of the case to research on the appropriateness of China's measures by means of standardized analysis and comparative analysis.Through the research on the WTO case,this thesis is aimed at understanding and mastering WTO rules to guide WTO practice and promulgation of regulations and policies.There are four main focal point questions in this case:first,whether China violates its obligations under its Access Protocol and what's the relation of entire car and auto parts which meet the entire car features;second,whether China violates the principle of national treatment;third,whether China's measures are the measures relating with trade and violate TRIMs Agreement;the forth,whether the car manufacturers'conduct is a taxes evasion conduct.With the reference of WTO principle and the related case practice,this paper will analyse and research on the four focal point questions one after another.Now China is playing a very important role in global trade,so trade disputes with other nations are unavoidable.In recent years,the scope of trade disputes are becoming more wider than before.As a great nation,China's deep understanding of WTO rules and smooth operation of them are essential and significant.So through the participation in and research on WTO cases,China can accumulate more practical experiences and find a good balance between obeying WTO rules and protecting national interests.Deeply research on WTO cases can keep China not only obey WTO rules but also achieve China's trade and policy goals,when China takes part in trade activities and promulgates policies.