Lets Talk about Trade Policy and Trade IssuesMD, who else?I Preliminary Knowledge1 Tariff(1) Specific Tariff（从量关税）Weight, quantity, volume(2) Ad Valorem Tariff（从价关税）A percentage of the price(3) Compound Tariff（复合关税）A mixture of specific tariff and ad valorem tariff2 Non-tariff(1) Quota(2) License（进口许可证）General license and specific license; usually combined with quota, bidding(3) Custom Valuation(4) Technical Barriers(5) Environment issues(6) GMO（Genetically Modified Organism，转基因生物）3 VER & VIE(1) VER(Voluntary Export Restriction)(2) VIE(Voluntary Import Expansion)Aiming at trade balance, either domestic or foreign.II GATT & Agreements1 Historical Perspective of WTO(1) Havana Charter (GATT 1947)a) Background: protectionism after WW II, Great Depression, need to establish ITO (International Trade Organization);b) The charter is mainly about trade and commercial policies, employment, economic activities, economic reconstruction, investment, restrictive business practice;c) Failed to meet some countries interest, but much content of Commercial policy survived in GATT 1947, provisional rather than legal;(2) Marrakesh Agreements (establishing WTO)a) The importance of Uruguay Round on Marrakesh Agreements and the establishment of WTO;b) Including Agreements about trade in commodity, GATS, TRIPs, DSU(Understanding on Rules and Procedures Governing the Settlement of Disputes), TPRM, PTA(Plurilateral Trade Agreements);c) Entered into force on 1 Jan. 1995, 128 GATT signatories;d) 160 members since 26 Jun. 20142 GATT 1947(1) Basic Principles of WTOa) Nondiscrimination(MFN, NT), Graduation Clauseb) Trade Liberalization(tariff, non-tariff, market access)c) Transparenced) Fair Competition(2) MFN clause-Article Ia) Most-Favored-Nation Treatment(MFN): any advantage, favor, privilege or immunity granted by any contracting party to any product shall be accorded immediately and unconditionally to the like product of all other contracting parties;b) Accord the basic principles, nondiscrimination, promote trade liberalization as its Multilateral;c) Exceptions: GSP, FTA, Anti-dumping. safety issues, etc.d) Chinas benefits: double-edged sword;(3) National Treatment-Article IIIa) National Treatment on Internal Taxation and Regulation: the contracting parties should treat imported products and domestic products equally in terms of internal taxes and/or other internal charges, laws, regulations, and requirements;b) Exceptions: government procurement, domestic subsidies, etc.c) Preference Policy and NT: depending on different industries;(4) Anti-dumping-Article VIa) Dumping: products of one country are exported to another country at a price less than the normal value, and is causes or threatens material injury to the importers industry;b) “normal value” is defined by the comparable price, in the ordinary course of trade, for the like product for consumption in the exporting country; or if domestic price not available: the highest comparable price for the like product exported to a third country, or the cost of the product plus a reasonable additional for selling and profit;c) Determinants in dumping: Dumping Margin and Material Injury(5) Rule of Origin(RoO)-Article IXa) Marks of Origin: marks, characters, patterns, etc. that indicate the original country/region of an imported product or service;b) Article 7: contracting parties cooperate to minimize the difficulties, and to prevent misrepresent of the true origin;c) Determining origin and whether “substantial transformation”: value-added, process test, change in tariff classification(CTC);d) Controversial issue on trade balance: different standards to determine origin and processing trade;e) MFN or not determined by the origin of the product;(6) Administration of Trade Regulations-Article Xa) Publication: laws, regulations, judicial decisions and administrative rulings of general application about international trade (e.g. custom classification and valuation, rates of duty/taxes, requirements, restrictions, etc.) shall be published promptly to enable traders become acquainted with them;b) Administration: contracting parties shall maintain, or institute judicial, arbitral, or administrative procedures to deal with custom matters, and administrate laws, regulations in a uniform and reasonable way;(7) QRs(Quantitative Restrictions)-Article XIa) Elimination of QRs: except duties, taxes or other charges, contracting parties shall eliminate restrictions made effect through quotas, licenses or other measures.b) Exceptions: food, agriculture or fisheries product. (shortage or surplus)(8) General Exceptions-Article XXa) Protect public morals;b) Protect human, animal or plant life or health;c) Trade relating to gold or silver;d) Secure compliance with laws or regulations consistent with the provisions (e.g. intellectual property);