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Study of Special Safeguard Measures under WTO Legal Framework

Author: ZhangLin
Tutor: SunXinQiang
School: Shandong University
Course: Legal
Keywords: safeguard measures specific safeguard mechanism Sino-US tire case
CLC: D996.1
Type: Master's thesis
Year: 2011
Downloads: 155
Quote: 0
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Abstract

WTO rules permits members to resort to "safeguard measures" when import of certain products from other countries cause harm to its relative domestic industry. Reasonable use of "safeguard measures" is a legal exception from the justified competition atmosphere. The clause 16 of Protocol on the Accession of the People’s Republic of China requires:in cases where products of Chinese origin are being imported into the territory of any WTO Member in such increased quantities or under such as to cause or threaten to cause market disruption to the domestic producers of like or directly competitive products, the WTO Member so affected may request consultations with China with a view to seeking a mutually satisfactory solution, including whether the affected WTO Member should pursue application of a measure under the Agreement on Safeguards.As exceptions of trade liberalization, Safeguard measures can protect domestic relevant industries promote the trade It’s also a protectionism shield. Our export products are cheap and have low tariff because of entering the WTO. So many western countries often adopts safeguards investigation or special security measures on Chinese goods. In recently, in the United States, the European Union and other major export markets of China appeared a trend. When the WTO members couldn’t find the proper reason to impose trade barriers or anti-dumping measure, they will turn to impose safeguard measure. Therefore, the quantity of special safeguard case with Chinese goods is steadily rising.In 2008, new trade protectionism come on to thrive because of the global financial crisis causing by American financial tsunami. As a larger exporting dependence developing country, China suffered more influence. On Septemberll,2009, American President Obama announced that America will charge punitive tariffs on the cars and light truck tires which imported from China. This is the first time to impose punitive tariffs on Chinese goods by using "special safeguard clauses" of U.S.A. Since then, Brazil, Argentina, India also start the safeguards investigation on Chinese tires. At the same tine, in the United States, steel, clothing textiles, footwear-highly industry also try to collect materials to investigate China’s relevant product. Practice clearly shows that the safeguard measures against Chinese has become a very important issue affecting foreign trade development of China. Therefore, it’s very important to study specific safeguard mechanism. Under the present international situation, China must strengthen the study on safeguard measures to avoid restrictions of specific safeguard measures from other WTO members. This is also this the purpose and meaning of the paper.The main studying process and way of the present are as follows:firstly, the essay reviews the historical origin and evolution of specific safeguard mechanism, and the process original applied. Secondly, on the basis of respectively expounding the brief conception of World Trade Organization’s safeguard measure and specific safeguard mechanism, the article analyzes the difference between the WTO safeguard measures and specific safeguard mechanism, further analyzes the application and the relevant revenge mechanism of special safeguard measure to WTO. Then analyzed the relationship between China and the specific safeguard mechanism to WTO, and paid more attention on the American special safeguard measure. Thirdly, the essay reviews China tire duty case with America, discusses and evaluates the legal problems involved in this case. In the last part, some suggestions for disposing special safeguard measure to the government and enterprises were given.

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