China's New Trade Issues in the Post-WTO
Total Page：16
File Type：pdf, Size：1020Kb
Public Disclosure Authorized China‘s New Trade Issues in The Post-WTO Accession Era Public Disclosure Authorized Public Disclosure Authorized Poverty Reduction and Economic Management Unit East Asia and Pacific Region World Bank Public Disclosure Authorized Table of Contents Foreword i Acknowledgments ii Glossary of Abbreviations and Acronyms iii Introduction and Overview 1 Part I Guideline to Free Trade Agreement Negotiation 11 1 Status Quo of The Development of China‘s FTAs 11 2 Market Access Provisions 19 3 Rules of Origin 25 4 Disputes Settlement in Free Trade Agreements 32 5 Managing Multiple Trade Negotiations in Services 39 6 FTAs in Services—Positive vs Negative List Approach 44 7 Labor Mobility Provisions in FTAs: Lessons for China 52 8 Competition Provisions in FTAs: Lessons for China 67 9 Environment Provisions in FTAs: Lessons for China 76 Part II China Options in The Post-WTO Accession Era 88 10 Tariff Policy for Cotton Imports in China 88 11 Rethinking Trade and Poverty Linkages: Implications of the Doha Round Negotiations for China‘s Agriculture 97 12 Trade and the Environmental Debate 114 Part III Promoting Trade in Services 127 13 Trade in Services Overview 127 14 Lessons From Leaders In Services Trade 132 Korea 132 India 136 European Union 140 United States 144 Japan 150 China, Hong Kong Special Administrative Region 156 15 Promoting Trade in Services: Case Studies 166 Information technology services 167 Transport 179 Animation 192 Tables: Table 1.1 Status of China‘s regional trade agreements by end-October, 2008 ................. 18 Table 3 A.1 Rules of Origin in East Asian FTAs ............................................................. 31 Table 4.1 Key Elements to be Considered while Designing Dispute Settlement Provisions of RTAs ............................................................................................................................. 37 Table 4.2 Choice of Forum Clauses in RTAs ................................................................... 38 Table 6.1 Scheduling approaches in East Asian FTAs ..................................................... 46 Table 10.1 Key statistics on cotton production and trade in China, marketing years....... 88 Table 10.2 Applied over-quota tariff generated by the 2007 formula .............................. 90 Table 10.3 China‘s Net Exports of Processed Cotton, 2006............................................. 91 Table 10.4 China: Cotton Production, Trade and Disappearance ..................................... 91 Table 10.5 Tariff bindings on selected cotton products and substitutes ........................... 93 Table 11.1 Comparisons between China‘s import tariff and external tariffs in 2006 ...... 98 Table 11.2 Proposed tariff reductions of agricultural commodities ................................ 99 Table 11.3 Comparisons of USA, G20 and EU proposals on agricultural domestic support policy............................................................................................................................... 100 Table 11.4 The macro impacts on China under EU, G20 and USA proposals in 2015 .. 102 Table 11.5 Impacts on China‘s import of major agricultural commodities .................... 103 Table 11.6 Impacts on China‘s export of major agricultural commodities .................... 104 Table 11.7 The impacts on production in China under different scenarios in 2015 ....... 106 Table 11.8 The impacts on per capita agricultural income in rural area by income groups ......................................................................................................................................... 108 Table 11.9 Shares of output values for competitive and noncompetitive agricultural products for different groups of farmers under baseline in 2015.................................... 109 Table 11.10 Impacts on per capita agricultural income of different farmers by province ......................................................................................................................................... 111 Table 12.1 Top Chinese ―Climate-Friendly‖ Exports..................................................... 119 Table 12.2 Impact of a US trade-related climate measure on Chinese exports .............. 121 Table 13.1 Examples of Restrictions on Trade in Services ............................................ 129 Table 14.1 Leading Exporters of Other Commercial Services for 2006 ........................ 132 Table 14.2 Korea's Focus on Transparency in the Marketplace ..................................... 134 Table 14.3 Korea's Focus on Competition Policy ........................................................... 135 Table 14.4 Examples of Korean Service Industry Policy Tools ..................................... 136 Table 14.5 Impact of Poor Regulatory & Administrative Quality on Service Firms ..... 139 Table 14.6 Leading Exporters of Trav., Transport., Other Commercial Services 2006 . 143 Table 14.7 Gross Value Added Growth and Contributions ............................................ 145 Table 14.8 Capital Inputs to the Knowledge Economy .................................................. 145 Table 14.9 US Commercial Service Activities ............................................................... 147 Table 14.10 Examples of Singapore Service Industry Policy Tools .............................. 150 Table 14.11 Policies to Address Service Industries Weaknesses ................................... 153 Table 14.12 Competition in Wholesale & Retail ............................................................ 153 Table 14.13 Primary Practices for Service Export Success ............................................ 154 Table 14.14 Examples of Japan Service Industry Policy Tools...................................... 155 Table 14.15 Hong Kong SAR Services % of GDP ......................................................... 157 Table 14.16 Trade Barriers to Environmental Service Industries................................... 158 Table 14.17 Examples of HKSAR Service Industry Policy Tools ................................. 160 Table 15.1 Sample Factors Influencing Export of Computer and Information Services 168 Table 15.2 Average Annual IT Salary in Dollars for Selected Countries, 2006 ............ 171 Table 15.3 Favorable Labor Pool Attributes for IT firms ............................................... 172 Table 15.4 The Philippines BPO Industry Overview 2005/2006 ................................... 176 Table 15.5 Percentage of Total Software Revenues Spent on Pirated Software, 2006 .. 179 Table 15.6 Sample Industry Value Chain ....................................................................... 195 Table 15.7 Sample Internet Interests of Conglomerates ................................................. 196 Table 15.8 Sample Animated Feature Filmsure Films ................................................... 196 Figures: Figure 2.1 Distribution of Liberalization by RTA ............................................................ 23 Figure 2.2 Distribution of Liberalization by RTA Parties in Chapters, Year 10 .............. 23 Figure 2.3 Coverage of Agricultural Provisions in Selected RTAs .................................. 24 Figure 2.4 Coverage of Textile Provisions in Selected RTAs .......................................... 24 Figure 3.1 ROOs are not cheap! ....................................................................................... 28 Figure 3.2 Trade impact of preference margins ................................................................ 28 Figure 4.1 Main Steps in Dispute Settlement ................................................................... 34 Figure 12.1 Comparison of Import/Export Ratios in Climate Friendly Technologies ... 118 Figure 13.1 Services Value Added (% of GDP) ............................................................. 127 Figure 13.2 Services Policy Dialogue in a Supportive Environment ............................. 131 Figure 14.1 Korea % Value Added by Activity .............................................................. 133 Figure 14.2 2006 Commercial Services Exports ............................................................ 140 Figure 14.3 Service Industry Clusters ............................................................................. 148 Figure 14.4 Magnets to Attract Service Industry Talent ................................................. 149 Figure 14.5 Services Productivity and Enabling Environment ....................................... 151 Figure 15.1 Major Exporters & Importers of Cmp. & Inf. Services, 2005 ..................... 168 Figure 15.2 Worldwide Services Spending by Foundation Market ................................ 172 Figure 15.3 Worldwide Services Spending by Foundation Market ................................ 173 Figure 15.4 Worldwide IT Spending by Vertical Market ............................................... 173 Figure 15.5 Structure of Transportation Services Exports Extra-EU (25), 2005............ 181 Figure 15.6 Structure of Transportation Services Exports United States, 2005 ............. 181 Figure 15.7 Trade in Transportation Services with China in 2005 ................................. 182 Figure 15.8 Development of Intl. Seaborne Trade, Selected Years ................................ 183 Figure 15.9 Destination of 05‘ US Exports of Audiovisual & Related Services ............ 193 Boxes: Box 8.1 Models of Competition Regimes in RTAs .......................................................... 70 Box 9.1 Provisions on Environment in U.S. RTAs .........................................................