Chapter One Theoretical Basis of the WTO 1
1.1 The Theory of Comparative Advantage 1
1.1.1 Basics of the Theory 1
1.1.2 Historical Overview 3
1.1.3 David Ricardo’s Numerical Example 4
1.1.4 The Ricardian Model — Assumptions and Results 6
1.2 The Theory of Market Economy 8
1.2.1 Spontaneous Order or “Invisible Hand” 9
1.2.2 Free Market Economy 10
1.2.3 Government Intervention 13
1.2.4 Criticism of Market Economy 14
1.3 The Theory of Sustainable Development 15
1.3.1 Scope and Defiinitions 16
1.3.2 History of Sustainable Development as a Policy Concept 19
1.3.3 The Earth Summit and Environmental Sustainability 22
1.3.4 WTO and Sustainable Development 25
CASE STUDY 28
CS 1.1 True Meaning and Intuition of the Theory of ComparativeAdvantage 28
CS 1.2 China’s Market Economy Status （MES） 31
Chapter Two Development of the WTO 37
2.1 Basics of the WTO 37
2.1.1The WTO in Brief 37
2.1.2 The Multilateral Trading System 38
2.1.3 The GATT Years: from Havana to Marrakesh 39
2.2 Development of the WTO 43
2.2.1 The 1947 GATT Agreement 45
2.2.2 GATT Multilateral Trade Negotiation Meetings 49
2.2.3 Uruguay Round and the World Trade Organization 51
2.3 The Organization of the WTO 54
2.3.1 Introduction to WTO Organization 54
2.3.2 WTO Organization Chart 58
2.3.3 Membership, Alliances and Bureaucracy 59
2.3.4 The Secretariat Chart 63
2.3.5 Special Policies 64
2.4 China and WTO 67
2.4.1 China’s WTO Entry 67
2.4.2 The Right-and-Duty Balance in the WTO 75
CASE STUDY 77
CS 2.1 Doha Development Round 77
Chapter Three Basic Principles of the WTO 82
3.1 Reciprocity 82
3.1.1 Two Folds of Reciprocity 83
3.1.2 WTO Rules of Reciprocity 83
3.1.3 Theoretical Interpretation of Reciprocity 84
3.2 Non-discrimination 85
3.2.1 Most-favoured-nation （MFN） 85
3.2.2 National Treatment :Treating Foreigners and Locals Equally 94
3.3 Liberalization of Trade 97
3.3.1 Liberalization for Goods 98
3.3.2 Liberalization for Services 102
3.3.3 Limits to Liberalization 106
3.4 Transparency 108
3.4.1 Introduction to Transparency 108
3.4.2 Publication and Administration of Trade Regulations 108
3.4.3 Transparency Rules for GATS 110
3.4.4 Transparency Rules for TRIPS 110
3.4.5 Trade Policy Review Mechanism （ “TPRM” ） 111
CASE STUDY 111
CS 3.1 MFN Exception: Promotion of RegionalIntergration-Custom Unions 111
CS 3.2 National Treatment 112
Chapter Four Trade in Goods 114
4.1 Basics of Trade in Goods 114
4.1.1 GATT 1994 114
4.1.2 Interpretation of GATT 1994 Articles 117
4.1.3 Basic Principles of the GATT 1947/1994 118
4.2 Tariff Concessions 130
4.2.1 Tariffs: More Bindings and Closer to Zero 130
4.2.2 Tariff Cuts 130
4.2.3 More Bindings 131
4.2.4 Tariffs and Agriculture 131
4.3 Non-tariff Measures 132
4.3.1 Standards and Safety 132
4.3.2 Import Licensing: Keeping Procedures Clear 134
4.3.3 Rules for the Naluation of Goods at Customs 135
4.3.4 Preshipment Inspection: a Further Check on Imports 135
4.3.5 Rules of Origin 136
4.3.6 Investment Measures: Reducing Trade Distortions 137
4.4 Trade in Specific Products 138
4.4.1 Textiles and Clothing 138
4.4.2 Information Technology Agreement 140
CASE STUDY 142
CS 4.1 Sanitary and Phytosanitary Measures 142
CS 4.2 Safeguard 143
Chapter Five Agriculture Agreement 146
5.1 Basics of Trade in Agriculture 146
5.1.1 New Rules 147
5.1.2 Market Access 147
5.1.3 Domestic Support 148
5.1.4 Export Subsidies: Limits on Spending and Quantities 149
5.1.5 The Least-developed and Those Depending on Food Imports 150
5.2 Understanding the Agriculture Agreement 150
5.2.1 Introduction 150
5.2.2 Market Access 155
5.2.3 Domestic Support 159
5.2.4 Export Competition/Subsidies 165
5.2.5 Other Issues 168
5.2.6 Net Food-Importing Developing Countries 170
5.2.7 Summary 171
5.3 The Agriculture Negotiations 174
5.3.1 The Doha Mandate 174
5.3.2 The Current Negotiations 175
CASE STUDY 179
CS 5.1 Japan — Import Quotas on Dried Laver and SeasonedLaver （DS323） 179
CS 5.2 European Communities — Protection of Trademarksand Geographical Indications for AgriculturalProducts and Foodstuffs （DS174, 290） 180
Chapter Six Trade Remedy Measures 184
6.1 Safeguards 187
6.1.1 Safeguards: Emergency Actions for Imports of Particular Products 187
6.1.2 Conditions to Apply Safeguards 189
6.1.3 Summary of Safeguards 193
6.2 Subsidies and Countervailing Duties 194
6.2.1 Article ⅩⅥ Subsidies 194
6.2.2 Types of Subsidies 195
6.2.3 GATT — Subsidies and Countervailing Duties 197
6.2.4 Countervailing Measures 200
6.2.5 Summary 201
6.3 Anti-Dumping and Anti-Dumping Duties 202
6.3.1 Article Ⅵ Anti-Dumping and Anti-Dumping Duties 202
6.3.2 Determination of Dumping 206
6.3.3 Summary on Dumping and Anti-Dumping Measures 214
6.4 Escape Clauses: General and Security 214
6.4.1 Article ⅩⅩ : General 214
6.4.2 Article ⅩⅪ: Securiry 215
CASE STUDY 216
CS 6.1 Anti-Dumping — Like Product 216
CS 6.2 Escape Clause 217
Chapter Seven Trade in Services 219
7.1 Basics of Trade in Services 219
7.1.1 Definition of Trade in Services 219
7.1.2 Main Purpose of the GATS 221
7.1.3 Basic Principles 221
7.1.4 GATS Annexes 222
7.2 Understanding the GATS 223
7.2.1 A Summary of GATS 223
7.2.2 Liberalization of Trade in Services 227
7.2.3 Structure of the GATS 230
7.2.4 Legal Rules of GATS 231
7.3 Trade in Financial Services 244
7.3.1 Decision on Financial Services 244
7.3.2 Understanding on Commitments in Financial Services 245
CASE STUDY 250
CS 7.1 The United States — Measures Affecting the Cross-BorderSupply of Gambling and Betting Services （WT/DS285） 250
CS 7.2 Canada — Certain Measures Concerning Periodicals （DS31） 255
Chapter Eight Intellectual Property Rights 256
8.1 Basics of Intellectual Property Rights 256
8.1.1 Defiinition of Intellectual Property Rights 256
8.1.2 Acquitisition of Intellectual Property Rights 257
8.1.3 Transfer of Intellectual Property 259
8.1.4 Licensing Agreement 262
8.2 The TRIPS Agreement 267
8.2.1 Main Features of the Agreement 267
8.2.2 Certain General Provisions 268
8.2.3 Geographical Indications 270
8.3 Standards of Protection 274
8.3.1 Copyright and Related Rights 274
8.3.2 Trademarks 278
8.3.3 Geographical Indications 279
8.3.4 Industrial Designs 281
8.3.5 Patents 282
8.3.6 Layout-Designs of Integrated Circuits 283
8.3.7 Protection of Undisclosed Information 284
8.3.8 Control of Anti-Competitive Practices in Contractual Licences 285
8.4 International Protection of Intellectual Property Rights 286
8.4.1 International Institutions 286
8.4.2 Bilateral Agreements 287
8.4.3 Multilateral Comprehensive Conventions 288
8.4.4 TRIPS Agreement 291
CASE STUDY 295
CS 8.1 India — Patent Protection for Pharmaceutical andAgricultural Chemical Products （DS50） 295
CS 8.2 European Communities —Protection of Trademarks andGeographical Indications for Agricultural Products andFoodstuffs （WT/DS174, 290） 296
Chapter Nine Other New Issues of the WTO 301
9.1 Trade and Environment 301
9.1.1 Trade and Environment in the WTO 301
9.1.2 WTO Rules and Environmental Policies 304
9.1.3 Related Work in the WTO 317
9.1.4 Trade and Climate Change 319
9.2 Labor Standards and the WTO 320
9.2.1 Introduction 320
9.2.2 Definition and Scope of Labor Standards 321
9.2.3 Effects of Labor Standard 321
9.2.4 An Alternative Route 326
9.2.5 Conclusions 328
9.3 Trade and Competition Policy 329
9.3.1 Interaction Between Trade and Competition Policy 329
9.3.2 Investment and Competition 329
9.3.3 Working Group on the Interaction Between Trade andCompetition Policy （WGTCP） 330
CASE STUDY 331
CS 9.1 The Tuna-Dolphin Dispute 331
CS 9.2 The United States — Import Prohibition of Certain Shrimp andShrimp Products 334
Chapter Ten Procedural Rules of the WTO 338
10.1 Decision-Making Mechanism 338
10.1.1 Decision-Making: Article Ⅸ of the WTO Agreement 338
10.1.2 Amendments: Article X of the WTO Agreements 339
10.1.3 Accession to the WTO and Non-Application: Article Ⅻ andArticleⅩⅢ 342
10.1.4 The WTO in Global Economic Policy-Making 343
10.2 Trade Policy Review 343
10.2.1 General Introduction 343
10.2.2 Trade Policy Reviews and Transparency 349
10.2.3 Trade Policy Review Mechanism 351
10.3 Dispute Settlement Mechanism 354
10.3.1 Introduction to the DSM of the WTO 354
10.3.2 Practices of Dispute Settlement 356
10.3.3 The Panel Process 359
10.3.4 More about the Dispute Settlement Procedure 361
CASE STUDY 363
CS10.1 WTO Step by Step in the Settling of Disputes 363
CS 10.2 The U.S.and Venezuela Case — Timetable in Practice 366
CS 10.3 An Example of Dispute Settlement Documents 367
Annex Ⅰ Agreement Establishing the World Trade Organization 371
Annex Ⅱ Protocol on the Accession of the People’s Republic of China 387
Bibliography 403