Research On Dispute Settlement Mechanism Of China-ASEAN Free Trade Area

Economic globalization and regional integration are the theme of the currentinternational economic development, between them is the dialectical unificationrelations. On the one hand, the EU, NAFTA as a representative of the regionalintegration process, focusing on the common development of free trade area withinthe exclusion of external trade object; On the other hand, the expansion of theregional integration process makes more and more countries into the scope of the freetrade area, which objectively promoted the development of economic globalization.China-ASEAN free trade area is the world’s third largest trade area, it is also one ofthe biggest free trade area of the developing world. It reinforces the member states ineconomic, political, cultural, and comprehensive cooperation in security, whichpromotes the prosperity and stability in East Asia.In the process of regional integration and the legal system to promote exchangesand cooperation between the countries plays a crucial role, dispute settlementmechanism is the crucial guarantee of the legal system effective operation. All kindsof free trade zone and the World Trade Organization, usually contains a bindingdispute settlement mechanism, China-ASEAN free trade area is not exceptional also.Internationally, the dispute settlement mechanism has experienced great development,since1928, the convention came into effect, war is no longer the legal disputeresolution methods. At present, the international dispute settlement methods are based on a mutually voluntary basis, including the solution to the political and legal solution.Political solutions contain negotiation, mediation, investigation, reconciliation and soon, legal solutions contain international arbitration and judicial solution. Bycomparison, legal solution generally has perfect organization and fixed process rules,legally binding, and therefore more predictability and stability than the politicalsolution. All civilizations have common characteristic, they need a set of applicable toexplain the rules of norms and procedures, the peaceful settlement of disputes, whichis the common experience of international and domestic legal system. In fact, thedevelopment of the EU, NAFTA, ASEAN has its effective dispute settlementmechanism as the guarantee. Dispute settlement mechanism of CAFTA is formulatedaccording to its circumstance in East Asia, and trade plays a significant role topromote trade liberalization and protection. But, this kind of dispute settlementmechanism should be improved, and should be how to effectively participate in Chinaare worth thinking about. Study the positive significance of dispute settlementmechanisms of CAFTA, which not only is to force China to better protect thelegitimate rights and interests of their trade interest, but also for China’s participationin other dispute settlement mechanisms provide the beneficial experience.