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2019.05.14 23:00 GMT+8

China submits proposal on WTO reform

CGTN

China on Monday submitted a proposal on the World Trade Organization (WTO) amid a rise in unilateralism and protectionism that are challenging the authority and efficacy of the intergovernmental organization.

Commenting on the proposal, a spokesperson for China's Ministry of Commerce said that the world's economic landscape is undergoing profound changes, noting that the efficiency of the WTO needs to be improved, and that the transparency of trade policies strengthened. China supports necessary reforms of the WTO in order to maintain the multilateral trading system, and promote the construction of an open global economy, the spokesperson added.

WTO reform should cover four areas of concrete action, including "resolving the crucial and urgent issues threatening the existence of the WTO," increasing its relevance in global economic governance, improving its operational efficiency and enhancing the inclusiveness of the multilateral trading system.

"The abuse of national security exception, unilateral measures inconsistent with the WTO rules, as well as misuse or abuse of existing trade remedy measures have severely damaged the rules-based, free and open international trade order," the proposal said.

The document pointed out that "certain member" has taken unilateral measures of raising trade barriers and imposing import tariffs in an arbitrary way and without authorization from the WTO. It did not name the country in question.

In addition, the member has imposed economic sanctions on other countries and extended "secondary sanctions" to overseas business activities of third-country nationals or companies, without authorization from the United Nations or legal basis under international treaties.

China noted in its proposal that it is necessary to effectively curb such unilateral measures, reinvigorate the efficiency and authority of the WTO, safeguard the rules-based multilateral trading system and protect the legitimate rights of the WTO members.

The document outlined that the unilateral measures should be prohibited by enhancing the multilateral review mechanism as well as authorizing the members affected to "take prompt and effective provisional remedies in cases of urgency and accelerating relevant dispute settlement proceedings."

The document added that transparency and due process of anti-dumping investigations should be improved and the assessment of their effectiveness and compliance should be reinforced since there are rising discriminatory practices based on country-of-origin and types of enterprises.

China and 75 other WTO members issued a joint statement on e-commerce in January this year, implying the country's intention to initiate negotiations on trade-related e-commerce issues based on existing WTO agreements and frameworks. China suggests the WTO conduct the rule-making process "in an open, transparent, inclusive and flexible manner and welcome participation of all members."

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