Study On Competitive Neutrality In The U.S. FTA

The study of the competitive neutrality in the U.S. Free Trade Agreement has a great significance to our country. With the increasing of competitiveness of the transnational state-owned enterprises which in our country as well as the emerging economies in the international market,it threatened the competitive position of the U.S. so that the U.S. actively promote competition neutrality in the negotiations of its FTA with the purpose of regulating the competition behavior of the state-owned enterprises in the international market. And their real intention is to get the opportunity to formulate the new international investment and trade rules which represent their own interests. So the competition neutrality is not only an external challenge to our country, but also a great opportunity to advance our domestic reform. Competitive neutrality policy originated from Australia, why the U.S. actively promote it in the FTA. What is the provision of competitive neutrality in the FTA text,especially in TPP. What are the changes in the terms of competition neutrality in TPP compared with the previous terms, what are the problems and what the effects on the development of relevant international rules, what is respond of China. All those problem should be solved by this dissertation. This dissertation start from the concept of competitive neutrality and from three levels to research: the level of Australian domestic competition neutrality policy, the level of competition neutral framework proposed by OECD, the level of competition neutrality terms international in the U.S.FTA and the third level is the key point of the dissertationThe U.S. actively promote competitive neutrality in the FTA performances that further refine conventional international trade rules to regulate financial advantage and management advantage enjoyed by the state-owned enterprises and reduce the unfair competitive advantage enjoyed by state-owned enterprises to realize competition neutrality. The characteristic is that it not restrain the competitive advantages of the state-owned enterprises, but restrain the government to ensure that the competition neutrality by the treaty obligations. The effects on the development of relevant international rules of the U.S.FTA is that it is beyond WTO’s existing rules, providing a rule template for regulating the competition behavior of state-owned enterprises, responding the demand for new rules of the development of the international market and rules at the same time still reflects the U.S. as the dominant and at the same time reached to the national border measures. China should takes positive action to catch the opportunity to promote and deepen the reform of the state-owned enterprise in our country, at the same time, to prevent the United States restricting the pace of China’s state-owned enterprises to go out by using competitive neutrality. And international trade and investment rules have little effective constraint to the competition behavior of transnational state-owned enterprisesThis dissertation includes the introduction, body and conclusion, and four chapters in total about thirty thousand words.Chapter 1 is a summary of the research of competitive neutrality. Including the definition of competitive neutrality, domestic practice of competitive neutrality policy in the Australian which include the reason and development of the competition neutrality, application conditions, the way of realization, the implementation and supervision procedure, and the research on competitive neutrality framework by the OECD.Chapter 2 analysis the reason why the U.S. implement competitive neutrality in its free trade agreement. Its include : First, at present international trade regulations for the state-owned enterprises, especially for transnational state-owned enterprises are inadequate that can not restrain the unfair competition acts; Second, a rapid rise of multinational enterprises in the emerging market economies after the financial crisis, especially transnational state-owned enterprises, has gradually become emerging power in the national trade and investment market. It threat the U.S. to participate in the competition in the international trading system. Third, the domestic interest groups of the U.S. promote the U.S. government to implement actively competitive neutrality in its free trade agreement.Chapter 3 the analysis of the competitive neutrality rules in the U.S.FTA and its problems and effect. Provisions on state-owned enterprise competition embodied in the competitive neutrality terms mainly divided into three categories: first is the regulation of the state-owned enterprises granted by the authority of the government; the second is the regulation of trade behavior engaged by the state-owned enterprises as the main body of trade, mainly reflected in non-discrimination treatment when the state-owned enterprise engaged in trade activities and its behavior should be based on commercial considerations when purchase or supply of goods or services. And TPP agreement have a further detailed provisions and the main features of the rules as follow: further refined the rules, enlarged the scope of regulation, the emergence of the non-mandatory rules. At the same time, this chapter also analyzes the problems and the impact to the relevant international rules in the future.Chapter 4 the impact of competitive neutrality on China and its response. the impact of competitive neutrality on China should look at both sides. It is a promotion of the reform of state-owned enterprises in China, but have adverse effects of the Chinese state-owned enterprises to participate in the competition in the international market. China should deepen the reform of state-owned enterprises in the domestic level, while actively participate in formulating rules on state-owned enterprises in international negotiations in order to safeguard the interests of China.