WTO Market Access Report:Two Steps Forward

Overview

The Protocol of Accession for China's entry into the World Trade Organization (WTO) will, for the first time, fully reveal the extent to which this most sought after market will be opened to the rest of the world. The Protocol of Accession consists primarily of three parts:

a) Protocol: Specific commitments required to bring China's legal regime into compliance with WTO principles, particularly issues which WTO member countries believe are not addressed adequately in the WTO Agreements.

b) Working Party Report: An elaboration of protocol commitments, description of China's trade and investment regime, and statement regarding China's intention to implement the Protocol.

c) Market Access Schedules: The Market Access Schedules, which will consolidate the results of all 37 bilateral market access agreements, signed by China with other WTO member countries into one comprehensive schedule of commitments covering agricultural products, goods and services. The Schedules will set forth lengthy tariff rate reduction timetables for goods ranging from lavatory seats to aircraft. The Schedules will also set forth China's commitments to gradually open its services sector and permit foreign investment in key service industries.

WTO practices, particularly the Most-Favoured-Nation treatment requirement that obligates China to treat goods and services sourced from different member countries equally, have effectively coordinated the divergent efforts of China's negotiating partners. The final product is foreseen to incorporate the most favourable terms from each of the 37 bilateral accords, among which the Sino-U.S. and Sino-EU bilateral agreements are the most comprehensive and have achieved the most significant concessions from China.