World Trade Organization

World Trade Organization:
China´s Trade and Accession to WTO.



INDEX:

1.Abstract

2.World Trade Organization (Overview)

3.China’s Trade before WTO Accession

3.1. Increasing role in World’s Trade
3.2. Changes in composition of Trade


4.China´s WTO Accession:

4.1. China’s Commitments
4.2. Tariff Commitment
4.3. Commitments on Trade
4.4. International Impact5. Conclusion

6. Bibliography

1. Abstract


On this paper, I’m going to analyze China´s accession to the World Trade organization, and all the benefits that this specific accession has brought to World Trade and to China´s Trade. The whole purpose is to explain how China has become so important for World´s Trade in the past two decades and how important it was for the World an forChina itself to have entered the WTO.
We analyze China’s Trade before its accession to the WTO, give a detailed information of all conditions at which China made its accession and analyze the consequences that the accession brought.


2. The World Trade Organization


The World Trade Organization (WTO) is the only international organization dealing with the global rules of tradebetween nations. Its main function is to ensure that trade flows as smoothly, predictably and freely as possible.

The purpose of WTO is assurance. Consumers and producers know that they can enjoy secure supplies and greater choice of the finished products, components, raw materials and services that they use. Producers and exporters know that foreign markets will remain open to them.
Not onlyWTO’s goal is bringing assurance to producers and consumers, but also it achieves a more peaceful, prosperous and accountable economic World.
Trade friction is channeled into the WTO’s dispute settlement process where the focus is on interpreting agreements and commitments, and how to ensure that countries’ trade policies conform with them. That way, the risk of
disputes spilling over intopolitical or military conflict is reduced.
By lowering trade barriers, the WTO’s system also breaks down other barriers between peoples and nations.
The goal is to improve the welfare of the peoples of the member countries.


3. China´s Trade Before WTO’s Accession
1. Increasing role in World’s Trade:

China´s international trade has expanded steadily since the opening of the economy in1979. Its exports and imports have grown dramatically faster than the whole World´s trade for more than 20 years and China’s trade has increased steadily since 1979 (Table 1) . This process began slowly in the 1980’s, but accelerated in the 1990’s with trade reformas and a significant tariff reduction.
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China has incrased its penetration into advanced country markets, and has become amore important export destination, specially for regional economies. The share of advanced country imports by China has risen over the two last decades, with particularly dramatic increases since the 1990’s in Japan, the United States and the European Union (Table 2). In addition, China’s role in Asian trade has become very important(Table 3). China is now the most important export destination forother Asian countries.
Cina´s integration with the world economy is a landmark event with implications for both global and Asian economies.
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2. Changes in composition of Trade

China’s export base has diversified from an initial heavy reliance on textiles and other light manufacturing. In the early 1990’s, light manufacturing accounted for more than 40% of China’sexports. A large part of the remaining exports were manufactured goods and machinery and transport. In the recent years, China has made huge gains in other exports categories, such as sophisticated electronics, furniture, travel goods, or industrial supplies. As an example, we can see that China’s exports in machinery and transport (mosty electronics) has risen from 17% in 1993 to 41% in 2003, while...