The us should work with allies and china to

  • No School
  • AA 1
  • 25

This preview shows page 4 - 6 out of 25 pages.

The U.S. should work with allies and China to reintroduce the China specific safeguard as well as craft an agreement with China regarding its ongoing use of NME methodology until such time that China is able to substantiate that it has become a market economy. 7 Progress on this issue could be the result of a negotiated settlement of the WTO case that China has brought against the EU and U.S. regarding their continued use of NME methodology in trade remedy cases. 8 The U.S. should work to reform the WTO dispute settlement system to ensure quicker dispute settlement proceedings, including potential injunctive relief for unfair trade practices, would be an institutional change that could be useful vis-à-vis China. 9 7 Mavroidis, Petros and Merit Janow. “Free Markets, State Involvement, and the WTO: Chinese State Owned Enterprises (SOEs) in the Ring.” EUI Working Paper, RSCAS 2017/13 (2017). 8 China has challenged the EU’s and US’ continued use of NME methodology in trade remedy actions at the WTO. See DS515, DS516. 9 WTO communication from the European Union, China, Canada, India, Norway, New Zealand, Switzerland, Australia, Republic of Korea, Iceland, Singapore, and Mexico To The General Council, WT/GC/W/752. November 26, 2018.
Image of page 4

Subscribe to view the full document.

The US-China economic relationship: A comprehensive approach 5 The U.S. and China should use a bilateral deal or a BIT as the basis for re-energizing the negotiation of new rules at the WTO on areas such as technology transfer, SOEs, and digital trade. Work with U.S. allies A key part of the U.S. strategy with respect to the China challenge needs to include new trade agreements with allies, which raise the standards for trade. This strategy would provide benefits to the parties to such free trade agreements (FTAs) and create economic costs to China from nonparticipation, which should further encourage China to reform its economy and trade practices with the aim of joining the new trade agreements. The Trans-Pacific Partnership (TPP), from which the U.S. withdrew in 2017, included important new rules in areas that matter for the U.S. such as on SOEs, IP, digital trade, and transparency and due process in the making of regulations affecting trade. With China outside the trading block, TPP would have created costs for China. According to one estimate, TPP could have decreased Chinese income by $40 billion annually and this would have grown as more countries joined the agreement. 10 Taken together, TPP would have been an important part of the “comprehensive toolkit” USTR refers to in creating pressure on China to reform. The TPP has now been reconstituted without the U.S. as the Comprehensive and Progressive TPP (CPTPP) and most of the rules for addressing U.S. concerns with Chinese trade practices remain. The importance of the CPTPP for addressing the China challenge warrants the U.S. to reconsider its position on the agreement and rejoin.
Image of page 5
Image of page 6
  • Fall '19

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern

Ask Expert Tutors You can ask 0 bonus questions You can ask 0 questions (0 expire soon) You can ask 0 questions (will expire )
Answers in as fast as 15 minutes