Trade Policy Review: WTO Secretariat Report on the People's Republic of China

Author: Compiled by the Secretariat of the WTO, translated by Liu Jindong et al.
Publisher:
Publishing Date: 2006-09-01
Features: On April 19-21, 2006, the World Trade Organization (WTO) conducted its first trade policy review of China since China's entry into the WTO. The legal basis for this review was Annex 3 of the "Marrakesh Agreement Establishing the World Trade Organization" (the "WTO Agreement"), titled the "Trade Policy Review Mechanism." Under this mechanism, the trade policies and practices of all WTO members are subject to regular review by the WTO. The top four trading entities in the world are reviewed every two years, the next 16 entities every four years, and other members every six years. As a new member, China's review from April 19-21 this year marks the first WTO trade policy review since China joined the WTO over four years ago. Since China is now the world's third-largest trading nation, it will be reviewed every two years in the future [01], demonstrating that accepting the WTO's review of China's trade policies is a treaty obligation for China. It should be noted that this review is not based on the "Transitional Review Mechanism" clause in China's "Accession Protocol," as this clause specifically addresses China and involves annual special reviews by the WTO General Council or specialized WTO bodies on China's implementation of the "WTO Agreement" and the provisions of China's "Accession Protocol" after its entry into the WTO [02]. In contrast, this review is part of the WTO's general review of its members. For China, a new member of the WTO, this trade policy review can be seen as a major examination of China's work in the nearly five years since its entry into the WTO. The results show that China passed this "major examination" successfully. Representatives from the WTO members who participated in the review highly praised China's achievements in economic development. They generally agreed that China's entry into the WTO not only promoted China's reform and opening-up process but also brought opportunities to the world. China's fulfillment of its commitments represents a significant contribution to the multilateral trading system!