Abstract
Against some views presently prevalent in domestic and foreign academia, the author proposes a number of different opinions and suggestions for deliberation. China has been a WTO member for 9 full years and has entered the tenth since its accession. Chinese people ought to promptly summarize the experiences accumulated during the first 9 years and to dialectically and scientifically dissect and estimate the status quo of WTO regime, its lawmaking, lawgoverning, and law-enforcing, so as to improve their understanding and to guide their practice hereafter. China and the international weak groups shall not be limited only to “abide by” and “adapt to” current WTO laws. They also need to acquire proficiency in the operation of WTO through practice, so that they can attain the goodness and avoid the harmfulness at its maximum. Meanwhile, they shall also through practice distinguish truth from falsehood, right from wrong, and thoroughly probe into varied provisions and “rules of the game” which are obviously disadvantageous and unfair to them. Thus, they shall further conscientiously contemplate the law-reforming direction of the current WTO regime. Through “South–South” Coalition, through the agglomeration of their individual powers, and through the promotion in law-reforming, the weak groups will not only strengthen up themselves but also impel the current legal system and lawgoverning of WTO to advance with times for the benefit of the whole world.
This article was first published in the Journal of World Investment & Trade, Vol. 7, No. 2, 2006. Thanks are due to Dr. Hongxing Cheng for his kind help in preparing the English version of this article.
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Notes
- 1.
Cancún’s Charming Outcome, The Economist, 20 September 2003, p. 13.
- 2.
As the Report on the World Social Situation 2005: The Inequality Predicament reveals, 80 % of the world’s gross domestic product belongs to the one billion people living in the developed world; the remaining 20 % is shared by the five billion people living in developing countries. Report on the World Social Situation 2005: The Inequality Predicament; available at: www.un.org/esa/socdev/rwss/media%2005/cd-docs/media.htm
- 3.
The Final Communiqué of the Asian–African Conference, An Economic Cooperation; available at: big5.china.com.cn/chinese/2005/wlhy50/838285.htm (in Chinese).
- 4.
At this time, the members of the Group of 77 number 131, although its original name of historical significance is followed. After China’s restoration to its membership in the United Nations and the Permanent Membership in the Security Council, it has kept in close contact with the Group of 77, actively supporting the Group’s defense of the small and weak nations’ legitimate interests, along with their justifiable demands for the renewal of international lawmaking and the push for regeneration of the international economic order. See Clement Robes (Chair for the Group of 77 and China for 1999) [1].
- 5.
See, respectively, the Decision of the GATT L/3545, L/4093; Wang Xuan, The Trade Liberalization Under GATT; and Gao Yanping [2].
- 6.
The Charter was adopted with 120 votes of approval, among which were mainly developing countries; the six votes of dissent were from the United States, Great Britain, the Federal Republic of Germany, Denmark, Belgium, and Luxemburg. Ten countries—Japan, France, Italy, Canada, Austria, Netherlands, Norway, Spain, Ireland, and Israel—abstained from voting.
- 7.
The jurisprudence in the Declaration and the Charter can be concisely generalized as containing the following points. In the first place, they established that the economic sovereignty of nations is non-strippable, non-alienable, and non-infringeable. Every state has and shall freely exercise full permanent sovereignty, including possession, use, and disposal, over all its wealth, natural resources, and economic activities. Each state has the right to nationalize, expropriate, or transfer ownership of foreign property to its nationals, with appropriate compensation. Each state has the right to regulate and supervise the activities of transnational corporation within its national jurisdiction and take measures to ensure that such activities comply with its law and conform with its economic and social policies. No state shall be compelled to grant preferential treatment to foreign investment. Secondly, the two instruments established that the principle of the reallocation of the world’s wealth and economic benefits in accordance with the principles of fairness, reasonableness, and full equity with an aim to control and eradicate the vicious circle of the wealthy states becoming increasingly wealthy while the poor states become ever poorer, for which the unreasonable and inequitable legal system in areas such as international production assignment, international trade, international technology transfer, international taxation, international monetary system, international financing, international transportation, and high-seas exploitation of natural resources must be reformed. Meanwhile, nonreciprocal preferential treatment should be accorded to developing countries for this end. Thirdly, the two documents established that all states, especially developing states, are juridically equal and, as equal members of the international community, have the right to participate fully and effectively in the international decision-making process in the solution of world economic, financial, and monetary problems, inter alia, through the appropriate international organizations in accordance with their existing and evolving rules, and to share in the benefits resulting therefrom. International affairs should be jointly conducted by states around the world, neither to be monopolized by a few superpowers nor to be manipulated by a few wealthy states. Therefore, the existing decision-making mechanism in some international organizations and affairs under which the powerful and big states could bully the weak and small states should be transformed.
- 8.
See Thirty Years of the Group of 77(1964–1994), United for a Global Partnership for Development and Peace, South Centre Publications, 1994, pp. 13–16. See also The Future of the Group of 77, South Centre Publications, 1996, pp. 5–11.
- 9.
See Declaration of the South Summit; Havana Programme of Action; available at: www.g77.org/Docs/Declaration_G77Summit.htm and www.g77.org/Docs/ProgrammeofAction_G77Summit.htm, respectively. The Chinese high-level delegation attended this South Summit meeting, at which the then vice premier of China delivered a lengthy speech stressing that the development of economic globalization is in more imperative need than ever of the institution of a fair and reasonable international political and economic order, that South–South cooperation is in the first place a spirit of union while also being an important approach through which the developing countries jointly strive for self-reliance and seek mutual development, that the exaltation of the spirit of union and the further consolidation of South–South cooperation is necessary and emergent when the South is confronted with the same challenges, and that only united could the status of the developing countries in the South–North dialogue be enhanced and could effectively participate in international economic decision-making, defending their interests in the process of globalization to the utmost. See Li Lanqing [4].
- 10.
See Martin Khor [5].
- 11.
See South Summit in Havana to Mark a “Turning Point” for Developing Countries; available at: www.g77.org/summit/pressrelease; see also Khor, ibid.
- 12.
Declaration by the Group of 77 and China on the Fourth WTO Ministerial Conference at Doha, Qatar, 22 October 2001, available at: www.g77.org/Docs/Doha.htm
- 13.
Ibid., para. 5.
- 14.
Doha Ministerial Declaration (hereinafter Doha Declaration), 14 November 2001, paras. 5, 2, 12 and 45; available at: www.wto.org/english/thewto-e/minis-e/mino/-e
- 15.
See ibid., paras. 12 and 45.
- 16.
Agriculture—Framework Proposal, Ministerial Conference, Fifth Session, Cancún, 10–14 September 2003, WT/MIN(03)/W/61, 4 September 2003. The joint proposal was submitted by Argentina, Brazil, Bolivia, China, Chile, Colombia, Costa Rica, Cuba, Ecuador, El Salvador, Guatemala, India, Mexico, Pakistan, Paraguay, Peru, Philippines, South Africa, Thailand, and Venezuela. Thereafter, Turkey applied to join the submission of the joint proposal, and these nations were altogether called the Group of 21. Subsequently, Egypt and Nigeria joined as proposing countries on 9 September and 30 September 2003, respectively.
- 17.
The original Framework Proposal, ibid., contains these “bracketed percentages” as given here as representing figures to be negotiated.
- 18.
Another category of controversial issues at this conference was the “Singapore Issues,” in which investment, competition, trade facilitation, and transparency in government procurement, the four new issues, are included. Those issues were raised at the First WTO Ministerial Conference, held in Singapore in 1996, but the multilateral negotiations were not launched yet. At the Cancún Conference, the developed and developing countries were in conflict over whether to formally launch negotiations on the Singapore Issues; therefore, no consensus has been reached yet and the negotiations are in deadlock.
- 19.
As reported at that time by a Chinese newspaper, during this meeting it appeared that developing countries were antagonizing the developed countries in three groups. In addition to the Group of 21, the other alliances are, respectively, the alliance among CARICOM, the OAU, and the least-developed countries such as Bangladesh; the alliance among the 33 countries; and a group comprised of Dominica, Kenya, and Sri Lanka. See The Developing Countries Were Antagonizing the Developed Countries in Three Groups at the WTO Ministerial Conference; available at: http://www.chinanews.com.cn/n/2003-09-15/26/346661.html
- 20.
Ministerial Declaration, by the Ministers of Foreign Affairs of the Group of 77 and China, New York, 25 September 2003; available at: www.g77.org/Docs/Dec/2003.htm
- 21.
See Robert Zoellick [7].
- 22.
Doha Work Programme ‑Decision Adopted by the General Council on 1 August 2004, UN Doc. WT/L/579; available at www.wto.org
- 23.
See Round-the-clock Meetings Produce “Historic” Breakthrough; available at: wto.org/english/news-e/news04-e/dda_package_sum_31july04_e.htm; see also A Step Forward, The Economist, 7 August 2004, p. 11.
- 24.
Supachai Panitchpakdi [8].
- 25.
Statement to the media by Pascal Lamy upon taking office on 1 September 2005; available at: www.wto.org/english/news_e/news05_e/dg_lamy_1sept05_e.htm
- 26.
See The G-20 Bhurban Ministerial Declaration, South Bulletin, No. 110, 15 September 2005. The current members of the G-20 are slightly different from those in September 2003. Its now 21 members are Argentina, Brazil, Bolivia, Chile, China, Cuba, Egypt, Guatemala, India, Indonesia, Mexico, Nigeria, Pakistan, Paraguay, Philippines, South Africa, Thailand, Tanzania, Uruguay, Venezuela, and Zimbabwe.
- 27.
See Comprehensive Report, The Doha Round is Highly Likely to be Finished in 2006, Chinese Economy Report, Issue 1276, 17 September 2005; available at: www.ceh.com.cn/focus_detail.asp?id=22628
- 28.
See Statement of Mr. George W. Bush, President of the United States of America, 2005 World Summit High Level Plenary Meeting, 14 September 2005; available at: www.un.org/webcast/summit2005/statements.html
- 29.
See Statement by J. Patterson, Prime Minister of Jamaica, on Behalf of the Group of 77 and China in the Financing for Development Session of the UN General Assembly, 14 September 2005; available at: www.g77.org/Speeches/091405.htm
- 30.
Ministerial Statement, supra, footnote 20.
- 31.
Lamy Opens “New Phase” in Trade Talks, available at: www.wto.org/english/news_e/news05_e/tnc_stat_lamy_14 sep05_e.htm
- 32.
Lamy: Trade is “Fundamental Tool” in Fight against Poverty, 6 October 2005; available at: www.wto.org/English/news_e/sppl_e/spp105_e.htm
- 33.
Lamy Says the Engines of Negotiations are “Buzzing” Again, 13 October 2005; available at: www.wto.org/english/news_e/news05_e/tnc_13oct05_e.htm
- 34.
Speech by Director-General Pascal Lamy, 16 October 2005, at Hong Kong Foreign Correspondents Club; available at: www.wto.org/english/news_e/sppl_e/sppl08_e.htm
- 35.
Lamy: We Need to Act Now; available at: www.wto.org/english/news_e/news05_e/tnc_19oct05_e.htm Lamy’s speech to the Annual Conference of the Parliam ≥ entary Network of the World Bank, http://www.wto.org/english/news_e/sppl_e/sppl11_e.htm
- 36.
See Martin Khor [9].
- 37.
Lamy Says Differences Require “Recalibration” of Hong Kong Expectations, Calls for “Negotiating Spirit” to Advance Trade Talks; available at: www.wto.org/english/news_e/news05_e/stat_lamy_nov05_e.htm
- 38.
Id.
- 39.
Id.
- 40.
Lamy Says Improved Draft Text Will Help Ministers in Hong Kong; available at: www.wto.org/english/news_e/news05_e/tnc_chair_report_2dec05_e.htm
- 41.
Christina Davis [10]. Christina Davis is assistant professor of Politics and International Affairs at Princeton University’s Woodrow Wilson School and the author of Food Fights Over Free Trade: How International Institutions Promote Agricultural Trade Liberalization.
- 42.
See Day 6: Ministers Agree on Declaration that “Puts Round Back on Track”; available at: www.wto.org/English/thewto_e/minist_e/min05_e/min05_e18dec_e
- 43.
Statement by Scit and WTO Hong Kong Ministerial Conference Chairman at the Final Press Conference; available at: sc.info.gov.hk/gb/www.info.gov.hk/gia/general/200512/18/P20
- 44.
Statement of Hong Kong Sar President; available at: sc.info.gov.hk/gb/www.info.gov.hk/gia/general/200512/18/P20
- 45.
See Developing Countries Sacrifice to Save Doha Negotiations, Press Release, Hong Kong, 18 December 2005; available at www.southcentre.org : see also infra note 52.
- 46.
See A Grand Coalition of the South: Day 4 of Hong Kong Ministerial, 16 December 2005; available at: www.southcentre.org/hkupdated 4.pdf; see also supra, footnote 42.
- 47.
See. Martin Khor [11].
- 48.
See Day 6: Ministers Agree on Declaration that “Puts Round Back on Track,” supra, footnote 42; see also Ministerial Declaration, Sixth Ministerial Conference, adopted on 18 December 2005, Article 6, WTO Doc. WT/MIN(05)/DEC.
- 49.
See Pascal Lamy’s Ministerial Conference Diary; available at: www.wto.Org/english/thewto_e/dg_e/pl_visitors_e/min05_blog_e.htm
- 50.
See Ministerial Declaration, Sixth Ministerial Conference, supra, footnote 48, Annex F, (36)(a)(i) and (ii).
- 51.
See Khor, supra note 47, pp. 1, 7.
- 52.
See On WTO’s Hong Kong Conference: Half Praising, while Half Blaming, a comprehensive report, Can KaoXiao Xi (News for Reference, a Chinese newspaper), 20 December 2005, p. 4; also available at: http://61.132.51.61:8080/ht/c/wsnews/mEntrance?
- 53.
Developing Countries Sacrifice to Save Doha Negotiations, supra note 45.
- 54.
Zhong Guo Dao Biao Tuan Cheng Hong Kong Hui Yi Qu De Jin Zhan Shi Ji Ji De, Xin Hua News Agency, Hong Kong, 18 December 2005: available at: www.people.com.cn/GB/1029/3952111.htm (in Chinese).
- 55.
Duo Ha Hui He Qi Dai Tu Puo, Gong Gong Shang Wu Xin Xi Dao Bao (Chinese newspaper), 20 December 2005, p. 1.
- 56.
United States—Subsidies on Upland Cotton, Report of the Appellate Body, WT/DS267/AB/R, 3 March 2005; available at: www.wto.org/english/tratop_e/dispu_e/cases_e/ds267_e.htm
- 57.
European Communities—Export Subsidies on Sugar, Report of the Appellate Body, WT/DS265/AB/R, WT/DS266/AB/R, and WT/DS283/AB/R, 28 April 2005; available at: www.wto.org/english/tratop_e/dispu_e/cases_e/ds266_e.htm
- 58.
For example, Mr. Lamy recently made a speech in Johannesburg,10 February 2006, entitled Concluding Doha Round: Post Hong Kong Road Map, and described recent development after the Hong Kong Conference with some impressive points, such as follows: [1] Explaining the reluctant lower recalibration of the expectation for the HKC: “The reasons for this were quite straightforward. There was insufficient convergence in member’s positions on key areas of the negotiations and therefore any attempt to force through consensus would have resulted in a failure.” [2] Expressing his prudential optimistics: “[T]here is widespread commitment to making good on what was agreed at Hong Kong; … there is a shared intention to move ahead across the whole of the DDA, making progress on all issues, and… all interlocutors understand that they will all have to move from their current positions and are willing to do so by moving ‘in concert.’” “The good news is that we have already solved the question of ‘who makes the first move.’ All members agree they have to move in concert.” [3] Reminding that there still remain many key and difficult issues to be solved while time limit is very tight: “Obviously, agriculture and industrial tariffs remain the flagships of the convoy since ministers have agreed to reach modalities by April. But no-one is in any doubt that our convoy is a large one. These two issues have an important role in leading the convoy to port, but we all know that the convoy must arrive together. Beyond Agriculture (including cotton) and industrial tariffs, we also have services, where for the negotiations to achieve real progress over the next weeks, the request/offer negotiations must be intensified. And we also have Rules, Environment, Trade Facilitation, not to forget issues such as small economies, the treatment of commodities or the erosion of preferences.” [4] Forecasting that the coming road ahead must not be plan and easy: “History has taught us that trade negotiations by definition are difficult. Trying to balance the interests of 14 SADC members in the negotiations for a SADC trade protocol was a headache as most of you will attest. Now, what about 149 countries with widely different ambitions and levels of development?” Lamy described his hardness in working as the WTO’s director-general during recent months, humorously saying, “You will have noticed that I lost some hair and got some new wrinkles in the meantime!” available at http://www.wto.org/english/news_e/sppl_e/sppl18_e.htm[2].
- 59.
See Understanding the WTO, 3rd edition, previously published as “Trading into the Future,” September 2003, revised in October 2005, available at: http://www.wto.org/english/thewto_e/whatis_e/whatis_e.htm
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CHEN, A. (2013). A Reflection of the South–South Coalition in the Last Half Century from the Perspective of International Economic Lawmaking: From Bandung, Doha, and Cancún to Hong Kong. In: The Voice from China. Understanding China. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-40817-5_7
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