Research On The International Financial Service Rules Of CPTPP

Due to its sensitivity characteristic and concerning about the spillover feature of financial crisis,the financial industry is the last sector to be opened in economic globalization.Derived from TPP,CPTPP maintain the high standards of financial service rules.This paper focus on four issues,there are financial service liberalization rules,financial supervision rules,financial service information rules,and financial service dispute settlement rules.The introduction shows research background of this thesis and the last part is the summary and prospect of the research.The main body of this thesis is the first part to the sixth part:The first part clarifies some basic issues of international financial service rules.The connotation of financial services is “any service of financial nature”,and its denotation has been cleared up in the definition clauses of the FTA,as well as some documents issued by international organizations.The internationalization of financial services is an important topic of economic globalization,which is mentioned in the relevant research results of international financial services rules for times.Firstly,its forms include cross-border trade in financial services and international investment in financial services.Secondly,the internationalization of financial services is different from the liberalization of financial services.The former includes two kinds of value pursuit——free competition and financial security,which are more suitable for developing countries.The United States and European Union are members of two representative financial markets in the world,which have designed representative financial service rules.Therefore,it’s generally believed that financial service rules can be divided into WTO model,American model and European Union model.The final content of this part is to summarize the framework of financial services rules,which including the definition,market access scope,treatment terms,regulatory rules,information rules,dispute settlement mechanism,etc.In the second part,the financial service liberalization rules in CPTPP expand the scope of financial services and strengthen the responsibility of member states.Firstly,financial services are divided into financial institutions,financial investment and cross-border trade in CPTPP,which was named "Trisection Method".Compared with "Quartering Method",which is used in GATS,it is more in line with the development of modern international finance.In addition,more types of financial services are included in CPTPP financial service chapter.Also,it designs flexible negative lists for financial services trade and investment.Finally,it applies the minimum standard of treatment principle and the prohibiting reversal mechanism,so as to improve and lock in the opening level of financial services.In the third part,the CPTPP specifies the scope of prudential reasons,which includes maintenance of the safety,soundness,integrity or financial responsibility of individual financial institutions or cross-border financial service suppliers,as well as the safety,and financial and operational integrity of payment and clearing systems.This definition is fully absorbed by the USMCA and RCEP.Compared with GATS,the prudent defense scope in CPTPP is expanded,which excludes trade in goods only.Abandoning the strict double review standard on prudential in NAFTA,it only implements the requirement of "no circumvention of contractual obligations or commitments" which properly protecting the regulatory rights of the states.In the fourth part,the rules in the financial services chapter is different from the e-commerce chapter——which completely forbids cross-border transmission of information.In principle,the financial institutions in CPTPP should adopt or maintain information unless one of three conditions be met.The first is the information processing of financial institutions based on daily business needs;Second,to protect personal information,accounts and privacy reasons;Third,it is based on careful consideration and realizes the designated receiver to transfer it.In this way,attention should be paid to the protection of financial specific information while clearing the cross-border channels of specific information.In the fifth part,there are a unique financial services dispute settlement procedure in CPTPP.Investor-state dispute settlement rules in the financial services chapter show that the financial service authorities of both the respondent and the claimant need to make a joint decision,which will have an impact on the arbitration results.In the absence of this decision,the financial authorities of either party can request the establishment of a panel,the final report of the panel shall be transmitted to the arbitration tribunal and making sense.The arbitration tribunal and the panel are relatively independent,and the latter result has influence on the former.The dispute settlement provisions on financial service in CPTPP created the juridical relief right for financial service investors,and leaf the supervision space for the state at the same time.The sixth part is the enlightenment of the above financial service rules in CPTPP to China.Obviously,the development of Chinese economy apartment is so fast.Although the financial industry has not started to carry out effective reform until after China’s entry into WTO,it has achieved remarkable results.Unmatched with the booming domestic financial industry,China maintains a cautious attitude towards financial liberalization,and the construction of financial service rules at the international and domestic levels shows a lag.As for the pilot free trade zone,it is necessary to strengthen the construction of financial service rules.It is necessary to formulate a special list of financial service liberalization,and try to expand the opening scope of cross-border financial services.To sort out the decentralized cross-border information rules in China,distinguish the cross-border transmission of financial service information according to the purpose,and regulate it differently.Strengthening the coordination of supervision and management information sharing among financial service sectors,and exploring the combination of science and technology with supervision.As for negotiation the FTA,the negotiation between China,Japan and South Korea is at the right time.The financial services issue needs to be negotiated by comprehensively considering the similarities and differences of RCEP,China-South Korea FTA and CPTPP.China-Canada bilateral FTA negotiations have lockout in 2018 and will not restart in the short term.But Canada is an important role of the north American financial markets,and also good economic partners of highly beneficial.Therefore,it is not meaningless to consider the negotiation of financial services issues in the agreement first.