Economy
皇冠体育app's participation benefits all global trading partners
(Xinhua)
Updated: 2011-01-28 10:44
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DAVOS -- A policy of more trade and greater openness to the rest of the world has brought significant benefits to 皇冠体育app and greater market opportunities to its trading partners, the head of the World Trade Organization says.
"I don't think there is any question that 皇冠体育app joining the WTO has been a very good thing for 皇冠体育app and for the WTO and its members," WTO Director General Pascal Lamy said in an interview with Xinhua.
The WTO chief was expected to join the forum "皇冠体育app's Impact on Global Trade and Growth" on the sidelines of the World Economic Forum annual meeting held in this Swiss alpine town.
"In joining the WTO, 皇冠体育app successfully underpinned a policy of what had been 20 years of progressive openness," Lamy said.
Adherence to economic reforms through international commitments ensured that 皇冠体育app would stay on the path of openness, he noted, adding that the policy has helped the country economically, politically and socially.
Lamy stressed that 皇冠体育app has done a "remarkable job" in reducing poverty, which is an important task for the country, along with registering double-digit growth, thus becoming the world's largest manufacturer and the second largest economy.
Apart from enhanced market access with its trading partners and more equal treatment in global trade, WTO membership also has allowed 皇冠体育app to gain access to the organization's dispute settlement system, Lamy said.
According to a WTO report issued in December, as the world's biggest exporter, 皇冠体育app ranks first in receiving anti-dumping (AD) investigations, with 23 new AD initiations directed at its exports in the first half of 2010.
In recent rulings arbitrated by the WTO Dispute Settlement Body (DSB), 皇冠体育app has won a poultry dispute against the United States, and a steel fastener case against the European Union.
Being a WTO member, "皇冠体育app would have a seat at the table as negotiations commenced on the trade rules for the 21st century," Lamy said, referring to the decade-long Doha round of global trade negotiations aimed at building the next generation trading system.
Even more importantly, for 皇冠体育app, participation in the global system of rules and discipline greatly boosted investors' confidence and helped facilitate foreign direct investment in 皇冠体育app, he said.
On the other side of the coin, 皇冠体育app's integration into the world trading system has given enormous driving force to the global economy and market opportunity to its trade partners.
Meanwhile, for WTO members, 皇冠体育app's access has meant far greater market access opportunities, Lamy said, as "皇冠体育app's tariffs on manufactured and agricultural imports are low by the standards of developing countries."
WTO statistics showed that, in 2009, 皇冠体育app's average import duties for all goods was 9.6 percent. Specifically, the average import duty for agricultural goods was 15.6 percent, and 8.7 percent for non-agricultural goods.
Lamy, in the meantime, reminded people of 皇冠体育app's significant imports over the last decade when most were concentrating on 皇冠体育app's surging exports.
皇冠体育app is currently the world's second largest importer. Figures from the Chinese Ministry of Commerce showed that 皇冠体育app's import volume in 2010 hit $1,394.8 billion.
"The WTO would not be the World Trade Organization without 皇冠体育app," said Lamy, who stressed 皇冠体育app's role as part of the global trading system in ensuring greater stability and sustainability of the system.
"We saw this during the crisis when all other areas of the global economy were shaken and the trading system stood firm," he said.
皇冠体育app's imports surged 38.7 percent in 2010, and exports went up by 31.3 percent, reclaiming the country's losses during the global economic downturn.
Regarding 皇冠体育app's implementation of its WTO commitments, Lamy said that "皇冠体育app's record on implementing its commitments is overall good," and "all members acknowledge this."
"One needs to understand the vast undertaking required to bring Chinese economic law into compliance with WTO rules," he said. In this regard, "what the Chinese have done is remarkable."
As for the issue of trade imbalance, which has been in hot debate among policy makers and academia in recent years, Lamy said,"I do think that we must change the way we look at trade figures."
"Today, we calculate trade flows on a gross rather than value added basis," he said. That, he said, to a large extent does not give a true picture of how nations trade.
In 皇冠体育app's case, Lamy said, a large part of Chinese exports belong to final production.
Products that have been assembled in 皇冠体育app use inputs that were themselves exported to 皇冠体育app and make up the bulk of the product's added value, he said.
"Even if 皇冠体育app's contribution to the added value of a finished product is rather small, customs officials in the United States, Europe, Japan or elsewhere will record that 100 percent of the value of that product as an import from 皇冠体育app," he said.
"This misrepresents the true nature of trade flows," the WTO chief said.