Give full play to the role of WTO, the current business situation to deal with the crisis of the Third Review Series


Review of the current business situation of the Three Series

Give full play to the role of WTO, to deal with crisis
Secretary for the Ministry of Commerce World Trade Organization


At present, the world is plunged into the last century the most serious since the Great Depression of the financial crisis and economic recession, but the crisis is still spreading. The United States, Europe and Japan are the three major developed economies into recession. World Bank, International Monetary Fund, the United Nations and the OECD, respectively, in 2009 to reduce world economic growth of 0.9%, 1.3%, 1.6% and 2.75%. Affected by this, since November last year, world trade is also in a sharp recession, the major developed and emerging markets have emerged more than 10% of negative growth.
Global trade in 2009, the major institutions are forecasting negative growth, the World Bank is expected to decline 6.1%; IMF forecasts 2.8%; WTO lowered the forecast of 9%, OECD lowered the forecast of 13.2%.

Historical experience shows that trade protectionism and the economic crisis haunting. The current crisis, countries have taken various measures, including trade protectionism. According to the World Bank report, since November 2008 has been, G20 members of the 17 members of trade protectionist measures. World Bank President Robert Zoellick on April 23 said that since April 2 G20 summit in London since the G20 has been the United States and other nine countries have taken or are considering the implementation of 23 measures of trade restrictions, a violation of their G20 summit the commitments made. Trade protectionism on the fragile world economy is one disaster after another.

In this context, as represented in WTO multilateral trading system is the coordinated joint response to financial crisis, an effective tool in the fight against trade protectionism and the promotion of economic growth in the process of restoration of an irreplaceable important role to play.

First, WTO rules and the existing dispute settlement mechanism will help curb the trade and investment protectionism. Covered by existing WTO agreements on agricultural and non-agricultural tariffs and agricultural domestic support and export subsidies, trade in goods and services, anti-dumping, countervailing, safeguard measures, animal and plant inspection and quarantine measures, technical barriers to trade and intellectual property rights and other fields multilateral trade rules. If the Member is in breach of WTO rules has been established, it would be possible by other WTO members to resort to WTO dispute settlement body, thus leading to other WTO members of retaliatory trade measures, more harm than good. This deterrent help curb the global trade and investment protectionism.

Secondly, the success of the Doha round of negotiations will not only help curb the trade and investment protectionism, will also promote the growth of global trade and promote economic recovery. Under the current circumstances, the successful conclusion of the Doha round of negotiations is to revive the world economy and boost the international community's confidence in the multilateral trading system, a "medicine" is a constantly improve the multilateral trading system, continues to open up international markets and encourage global economic growth means and motivation to deal with trade protectionism is a "policy." Conclusion of the Doha Round negotiations at an early date, on the one hand, from system level to more effectively restrict trade protectionism, especially in the international economic order of today's remodeling efforts, the Doha Round negotiations on the outcome of the rules will be the next 20 years or even longer period of time play a normative role in international trade; on the other hand, can further reduce tariffs, the success of the Doha negotiations will enable the global tariff levels based on the existing 50 percent decline to expand the national level of market opening, at least for the world economy 150 billion U.S. dollars to create the the yield at which the world economy out of the shadow of financial crisis, provide a valuable confidence.

Third, WTO Trade Policy Review Body to start monitoring mechanisms to curb trade protectionism. WTO Trade Policy Review Body to set up a special trade policy review mechanism, WTO members through the periodic review of trade policy, WTO members for the oversight of mutual trade and investment protectionism measures to build a platform for long-term. At present, WTO Trade Policy Review Body has been distributed two measures of global trade monitoring report, in the international community have given rise to repercussions. G20 financial summit in London, the leaders also approved a mechanism to strengthen the WTO in dealing with financial and economic crisis and the role of resistance to protectionism.

China has always supported and actively participated in the multilateral trading system, we firmly believe that a fair, reasonable and stable multilateral trading system is an important guarantee to respond to crises. China will continue to firmly support the work of WTO, to strengthen cooperation with other countries and jointly promote the WTO in dealing with the crisis, and oppose trade protectionism, resumption of economic growth to promote a greater role to play. At the same time, China is also willing to work with other members to work together to promote the success of the Doha Round negotiations at an early date the end of the world economic recovery and development to make its own contribution.
2009-06-09