Barriers to International Trade Class ：商管 1201 Group members: 周妮璇 Eva 黄晓婷 Cindy 张家仪 Karrie 周逸云 Ian 康钰然 Nikki

Outline Brief Introduction Nikki Causes & Types Cindy Trade Barriers against Chinese export trade Ian Suggestions Eva Case Study Karrie Conclusion Nikki

Brief Introduction

Barriers to International Trade Restrictions against free trade between nations Some are natural, most are made by the government Most trade barriers work on the same principle Worse consequence: trade war

Barriers to International Trade All businesses encounter social and cultural, economic, legal and political barriers to both local and domestic trade

Causes & Types

Causes Barriers of International Trade Social and Cultural DifferencesEconomic Differences Political and Legal Differences

Social and Cultural Differences substainable development awareness of protecting the environment cultural distinctions Economic Differences technology living conditions Political and Legal Differences trade protectionism new laws

Different Types Barriers of International Trade Tariff Barrier 关税壁垒 Non-tariff Barrier 非关税壁垒 Tariff reduction Tariff classification Tariff peaks Tariff quotas Direct restriction Indirect restriction

Different Forms Barriers of International Trade legislation administration decisions policy or consencus practice

Barriers against Chinese Export Trade

Trade Restrictions Political & Legal Differences Technical Barriers Economic Barriers

Currency Conversion & Shifts Appreciation of RMB The restriction of export

Trade Restrictions Trade Remedy ( 贸易救济 )--- Anti-subsidy( 反 补贴 ) & Anti-dumping( 反倾销 ) China --- the top anti-dumping target country

Political & Legal Differences Legal Environment The CR Bill (The European Standardization Committee) E.g. lighters International Regulations

Technical Barriers Mainly from U.S.A, Japan, EU Turkey, India, Egypt Fields: --- commodity( 日常用品 ), manufacture, mineral products, farming

Main Barriers Reasons Trade protectionism of developed countries (technical standards) The relative weaknesses of domestic products Ignorance of TBT (cheap labor forces & low cost) Technical Barriers

Suggestions

Government Functions Guild( 行业协会 )Functions Enterprise Behaviours How to Reduce Barriers to International Trade

Government Functions Active Diplomacy Regional Economic Group WTO Laws and Regulations Normalize the producing process Warning System Provide guidance

Make Criteria Expand the influence Strengthen Contacts with Foreign Guilds Know about the variation of international criteria Be active in Trade Issues Offer Legal Aids Enhance negotiation abilities Guild ( 行业协会 )Functions

Competitiveness Brands Quality of Products Direct Investment Invest directly Produce and sell locally International Criteria Enterprise Strategic Alliances Advocate unified criteria Enterprise Behaviours

Case Study

Trade war of tire tariffs 轮胎特保案

United states International Trade Commission in June 29 th, 2009 suggested tire tariffs 55%,45%, 35% three years President Obama in September 11 th, 2009 announced 35% 30% 25%

Background Financial crisis America mainly produce high-end tires China export spare tires the amount of exporting tires valued 22 million dollars in 2008

Why? Consequences For China, the rate of exporting tires was decline For America, do harm to local people Sino-US Joint ventures brought less profit

Reasons The imbalance of Chinese and American economy development The pressure of domestic employment on America The policy of America The problem of Chinese industrial structure The law of WTO was not perfect

Tactics Acquire the rules of trade Complaint to the WTO Readjust industrial structure

Conclusion

Brief Introduction Causes & Types of International Trade Barriers Barriers against Chinese Export Trade Suggestions to Reduce Trade Barriers Case Study

References 4Hh07QnjASNNevOwFovvAlcfrWIR2S6R4BOmovgLY2UAV27qZeg K

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