Study On The Improvement Of The WTO Retaliation System

The dispute settlement mechanism of WTO forming from the Understanding on Rules,Procedures Governing the Settlement of Disputes.DSU regulates three implementing measures,which are withdraw,compensation and retaliatory measures.The retaliation system is the final remedy of the dispute settlement mechanism of WTO and the last insurance for the members who want to solve disputes.According to the study of retaliation’s history and basic ruling,adding to the 22 clause of DSU and the practice of retaliation system,and summed up the defects of retaliation system in substantive and process.At last,writer proposed many perfecting suggestions.However,the dispute settlement mechanism of WTO is regarded as unfair or incompatible for developing countries because of their limited power,economic and technical resources.As a.matter of fact,China is the largest developing country all over the world.With the development of Chinese trading,inevitably,China would involve in the retaliation practice of DSU.A comprehensive study about retaliation system will help China do better when facing and applying retaliation system.The full text is divided into four parts.Firstly,part one starts from the concept of retaliation system and concludes characteristics of WTO retaliation by analysing DSU terms.Retaliation system has its unique rules no matter in its entity or procedures,which included in DSU.Secondly,this part works on the difference between GATT retaliation and WTO retaliation,which demonstrates the advantages of WTO retaliation system.Finally,value of retaliation system is described and it is a combination positive rebalance and negative rebalance.Part two concentrates on the using and practices of retaliation system.Firstly,by reading DSU terms,this article summarizes retaliation system’s conditions and restrictions.Secondly,although retaliation is an important part of DSB,it is decided by domestic government.This part introduces existing problems of applying retaliation and considerable elements,including political and economic aspect.Finally,there are three typical cases,which demonstrate faults of retaliation system and provides reference for developing countries,especially China.Part three focuses on advantages and faults of WTO retaliation system.Firstly,strengthening power and efficiency of implement,which are WTO retaliation system’s advantages.Secondly,on the entity aspect,retaliation system exists many faults,such as going against the principle of trade liberalization,failing in shielding benefits of developing countries,harming innocent industries.Finally,on the procedure aspect,there are three problems,which are controversy of two procedures,unclear termination condition and transparency problem.The fourth part of this article concentrates on suggestions of perfecting WTO retaliation system and how China deals with it.Firstly,basing on the difficulties of implement when developing countries use retaliation,this article introduces some suggestions benefiting them,such as collective and punitive retaliation,retroactive retaliation.Secondly,many applicable suggestions is provided about procedure faults.Finally,the final purpose of studying WTO retaliation system is to help China cope with it.With two sides of retaliation,it benefits China more.And this part focuses on how to use WTO retaliation system in China.