Trade barrier investigation: Ministry lowers requirements for application
( 2002-10-08 10:00 ) (1 )

The Chinese Ministry of Foreign Trade and Economic Co-operation (MOFTEC) issued a temporary rule late last month that allows businesses to apply for investigations into other members' trade barriers.

Due to take effect on November 1, the rule draws on present practice, legislation and experiences in Europe and the United States and is in line with the World Trade Organization (WTO), said Li Chenggang, an official with MOFTEC's Fair Trade Bureau for Import and Export. Li is also the director of the office that is authorized to implement the rule and conduct investigations.

The rule has lower requirements for firms to apply for investigations into trade barriers compared to similar rules in Europe and the United States.

Since many Chinese firms are less aware of this investigation avenue, the rule also stipulates that should MOFTEC deem it necessary, it can begin an investigation without an application from a domestic company or organization.

The rule is among a flurry of new ones that MOFTEC has released, that are in line with the WTO, since the establishment of its fair trade bureau late last year to protect domestic industries and to fight discriminatory trade actions against Chinese firms.

Trade barriers include government actions that bar market access of other members' products or weaken their competitiveness and go against bilateral and multilateral trade agreements.

"The promulgation of the standard is an important step for China to carry out its rights as a member of the WTO," Li said.

Li said he expected the rule to help facilitate the resolution of China's trade disputes with other members and help start the multilateral dispute settlement mechanism.

But Li noted that the rule is only one means of coping with other members' trade barriers.

"The rule will be referred to only in complicated cases that domestic companies have huge interest in," he said.

He said the majority of trade barrier issues can be resolved through bilateral negotiations.

If bilateral talks fail, the office can bring cases against WTO members using the multilateral dispute-settlement mechanism for judgement or suggest the Chinese Government take retaliative measures against non-members.

The bureau also has offices that deal with other members' abuse of anti-dumping, anti-subsidy and safeguard measures.