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TWN
Info Service on WTO and Trade Issues (Jul24/22) Geneva, 22 Jul (D. Ravi Kanth) — The chair of the World Trade Organization’s Trade Policy Review Body (TPRB) on 19 July delivered a mixed report of praise and compliments by several developing countries on China’s trade policies, said people familiar with the report. However, the chair also drew attention to deep concerns expressed by the United States and other industrialized countries on China’s allegedly “non-market, State-directed, and heavily subsidized state enterprises among others.” At the concluding session of China’s ninth trade policy review on 19 July, the chair of the TPRB, Ambassador Adamu Mohammed Abdulhamid of Nigeria, said: “A common theme in Members’ statements was the significant role of China within the WTO, with a strong expectation that China further enhances its constructive engagement.” The chair said, “Members expressed appreciation for China’s contributions to the WTO’s efforts, particularly its active participation in various initiatives, such as the joint statement initiatives and the ongoing negotiations on the Fisheries Subsidies Agreement” and Beijing’s “involvement in WTO dispute settlement reform discussions and its participation in the Multi-party Interim Appeal Mechanism (MPIA).” The chair said that “members encouraged China to assume the responsibilities that come with its economic weight and play a corresponding role in the WTO” by committing itself “to refrain from claiming WTO developing country status in the future or voluntarily withdraw from those who stand to benefit from the Special and Differential Treatment provisions in the WTO Agreements.” NEGATIVE SPILLOVERS Without naming countries, the chair said that “some Members considered that in order for China to take on responsibilities that could match its economic significance, it would be crucial for its authorities to consider reducing negative spillovers emerging from China’s domestic and trade-related policies and practices.” These unnamed countries “expressed concerns about certain practices, such as economic coercion and the use of economic measures for political reasons, which undermined confidence in China’s assertion of being an open, rules-based, transparent, and non-discriminatory economy,” according to the chair’s remarks, seen by the SUNS. Transparency has been a major concern during China’s trade policy review, as “considerable scepticism remained among Members about the thoroughness and overall quality of China’s subsidy notifications.” “In addition to the lack of transparency, many Members believed that China’s subsidies distorted global markets and promoted overcapacity,” the chair said. Further, some unnamed countries “urged China to join other major economies in discussions on industrial policies to help mitigate their possible negative global impacts”. Echoing the sharpest concerns expressed by the US against China at the TPRB meeting, the chair said “the role of the State and the importance of SOEs in China’s economy remained an issue for numerous Members. A particular issue was the absence of a competitive neutrality framework for SOEs. Several Members highlighted that the size of China’s economy and the significant presence of SOEs could have profound impacts on global markets.” According to the chair, the unnamed countries urged “China to pursue more extensive reforms of its SOEs and adopt international standards and best practices to enhance productivity growth and business performance.” According to the chair, “several Members raised concerns about China’s imposition of restrictive SPS measures on certain agricultural products and other foodstuffs from various partners. Some argued that these measures lacked scientific justification and were not in line with relevant international standards.” “China was requested to promptly reconsider its stance on these issues and refrain from using measures that create non-tariff barriers,” the chair said, adding that “some Members also voiced concerns about China’s growing implementation of technical regulations that diverged from established international standards.” IPRs On intellectual property rights (IPRs), the chair said, “while some Members continued to highlight a lenient IP framework, including problems that could relate to forced technology transfer, others commended recent reforms by Chinese authorities that have improved the country’s IPR enforcement framework. China was urged to intensify its efforts and aim at fully eradicating IPR violations.” [The current IP regime is increasingly criticised as being unbalanced against development/public interest as evidenced by the TRIPS Waiver discussions at the WTO during the COVID-19 pandemic and Colombia’s proposal in April 2024 seeking a “comprehensive” review of the implementation of the TRIPS Agreement. – SUNS] According to the TPRB chair, “the substantial number of questions, over 1,500, posed to China during this Review, alongside interventions by 72 Members, including on behalf of groups of Members, underscore the importance of China in the multilateral trading system.” China, however, succinctly rebutted the criticisms made by the US and other industrialized countries in its responses circulated on 19 July, said people familiar with the Chinese replies. +
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