A Study Of Compliance Issue Of European Union Emission Trading Scheme's Application To Aviation Sector With WTO General Agreement On Trade In Serivces

On January 1,2012,European Union decided to apply European Union-Emission Trading Scheme(“European Emission Trading Scheme” or “Emission Trading Scheme”)to the entire aviation sector that includes aviation service.Such legislative activity has significantly affected the international and domestic aviation service suppliers.The purpose of European Union is to reduce the greenhouse gas emission by counting the emission in the aviation sector as the total emission account.The Emission Trading Scheme has triggered enormous criticism and objections.Given the aviation service being significantly affected and the articles regarding compliance of Emission Trading Scheme with the WTO General Agreement on Trade in Services(“GATS”)being relatively insufficient,my dissertation aims to analyze the compliance issue regarding Emission Trading Scheme with GATS and its annexes,observe the A39-3 resolution of International Civil Aviation Organization and advise China on next step to be taken under the GATS and the A39-3 resolution.This dissertation is divided into five chapters.Chapter One outlines the major content of the Emission Trading Scheme that is relevant with GATS compliance issue,observes the reactions of all the related parties after the promulgation of the Emission Trading Scheme,summarizes the major dispute and observes the major impact to the entire economy and different individuals.The role of this chapter is stating the basic facts and paving the way for the analysis that follows.Chapter Two observes the preliminary issue of whether the Emission Trading Scheme is under the jurisdiction of GATS and its annexes,i.e.Annex on Air Transport Service and Annex on Financial Service,and concludes by Emission Trading Scheme falling within the jurisdiction of GATS and its two annexes.Chapter Three is based on the conclusion of Chapter Two.Chapter Three analyzes the issue of whether the Emission Trading Scheme complies with the principles of GATS,i.e.Most Favor Nation Treatment,National Treatment,Increasing Participation of Developing Countries and Subsidies.Chapter Four makes possible counter argument under Article 14(b)of GATS with respect to the ‘General Exceptions',for the purpose of comprehensive analysis,and concludes by the counter argument under Article 14(b)being difficult to demonstrate.Chapter Five observes the A39-3 resolution of International Civil Aviation Organization passed in October 2016,the major content of which is to establish a global ‘Market Based Measures'.This chapter suggests that given China's reservation towards the ‘Market Based Measures' and the reality of China's domestic emission trading market,China take advantage of this GATS compliance chance to actively participate into the rule making process with respect to the ‘Market Based Measures',and perfect its domestic emission trading market as soon as possible.