Unit 2 Legal Framework of the WTO Text I Principles of the Trading System -To understand the 5 principles throughout the WTO document Text II The Agreements -To have an overview of the WTO agreements Typical Sentence Patterns: Legislative Text (II)

Text I Principles of the Trading System Useful expressions: under…agreement, ceiling on customs tariff rates, in limited circumstances, market economy, require sth. of sb., transition period Terms: MFN treatment, national treatment Proper names: GATT, GATS, TRIPS, TPRM

Text I Principles of the Trading System What are the 5 principles of the WTO agreements summarized in the text? 1. Trade without discrimination: MFN & national treatment 2. Freer trade: progressive liberalization 3. Predictability: bound tariffs, predictable and growing access to markets & transparency of trade policies 4. Fair competition: relief for damage caused by unfair trade 5. Development and economic reform: transition period given to developing countries and technical assistance provided by developed countries

Terms and proper names MFN treatment 最惠国待遇 The most-favored-nation clause has been the pillar of the system since the inception of the GATT in The contracting parties to GATT 1947 were bound to grant to the products of other contracting parties treatment no less favorable than that accorded to products of any other country.

Terms and proper names national treatment 国民待遇 The national treatment principle condemns discrimination between foreign and national goods or services and service suppliers or between foreign and national holders of intellectual property rights. Members of WTO are committed to grant to nationals of other Members treatment no less favorable than that accorded to their own nationals.

Terms and proper names GATT ： the General Agreement on Tariffs and Trade 关税与贸易总协定 GATS: the General Agreement on Trade in Services 服务贸易总协定 TRIPS: the Agreement on Trade-Related Aspects of Intellectual Property 与贸易有关的知识产权 ( 分 ) 协议

Terms and proper names TPRM: the Trade Policy Review Mechanism 贸易政策审议机制 The TPRM was introduced into GATT in The purpose of establishing the TPRM is not confined to a consideration of the trade policies from the point of view of consistency with WTO rules, but also is to enable a collective appreciation and evaluation of these policies and practices.

Terms and proper names Scope of reviews in the TPRM 1. Transparency of trade policies 2. Non-discrimination in treatment of trading partners 3. Whether their policies contribute to trade liberalization 4. The degree of stability and predictability in trade policies 5. The pattern of protection and the extent to which tariffs only are used as measures of protection in trade in goods 6. Restrictions used in trade in services 7. The record of adherence to the multilateral trading system, including dispute settlement

Text II The Agreements Search