War claims

Patience burst. China has long and persistently violated accepted rules and ignore the agreements. Since last August, Beijing is already seven times increased export tariffs, and the cup was overfilled. In late June, the U.S. and the EU filed a complaint against China to the World Trade Organization.

cause for complaint is that the rules of WTO, Beijing now restricts the export of key commodities produced in the PRC. And not only in raising export tariffs, but also that the Chinese had introduced a quota for export abroad, almost 400 (!) The names of raw materials, many of whom, incidentally, produced only here. As a result, complained to the EU, the prices of these products in the Chinese market which is lower than in other countries, but the price on world markets is growing. This means that Chinese manufacturers have a significant advantage over their foreign competitors. As the European and U.S. can only count the losses and missed opportunities for export.

However, the United States and the EU will have to wait - except for them, action against China in the WTO special body to deal with trade disputes, sent a few nations, including Australia. WTO has become the scene of fighting in the area of trade, the number of countries, major trade war is constantly growing, and each issue requires careful consideration. With the advent of crisis, the world's States to erect barriers at its borders to foreign goods and then go to the resentment in the world trading club to complain to a neighbor, hoping that the organization of Pascal Lamy will be able to solve their problems. Are these expectations justified?
 

deterrent

For the most part - yes. WTO - the main platform for resolving international trade disputes. In connection with the recession the demand for foreign markets is limited, so most of the countries in any way seek to protect its domestic market from foreign producers, while retaining it for their own people. Over the last three months of the state are twice as likely to take measures to protect its own market than in its liberalization, the WTO study said.

Last year, the number of antidumping investigations in the world has proven 25% more than in 2007. However, because of the decline in demand in foreign markets, exporters are also very attentive to the slightest opportunities to achieve their share of the market of another country. Therefore, sudyatsya with the protectionists.

such trade disputes in recent years more and more. And as a last resort, hoping to solve the trade dispute, the country turned to the WTO. United States and the EU have tried to solve the problem of restrictions on exports from China to the level of bilateral talks over the past two years. But if you have a Washington and Brussels could afford lengthy persuasions, now the recession all tuzhe delaying udavku on the neck of European and American exporters. And additional complexity in the form of protectionist measures by trading partners for them - absolutely
amiss. Only last year, calculated in the EU, measures to restrict Chinese exports hurt the interests of 4% of European industry and the impact on the 500 thousand jobs. But the imposition of duties on the export of China has cost 4.5 billion euros Brussels. And each year, complained to the EU, measures to limit exports to China are becoming stronger.

In other words, if the usual time for such a situation the world even as it turned a blind eye, but today, in times of crisis, nuisance value on any trade matter. Accordingly, the WTO, as the main floor and the last body to address trade disputes in demand than ever. As the World Bank study, the existence of the trade organization is seriously hampering the growth of global protectionism.

Despite the depth of the current financial crisis, fears about the rolling world into protectionism is not confirmed, - said Igor Burakhovskiy, director of the Ukrainian Institute for Economic Research and Policy Consulting. - It means that the system of international trade rules, the arbitrator, and the embodiment of which is WTO works.

Most states understand that if they do not react to the decision of the Special Body of WTO, other countries to impose measures against them. But among them there are exceptions.

Achilles heel

Beijing, for example, the WTO is not an order. On the one hand, China is too dependent on exports, especially in the United States and Europe - the largest Chinese trading partners, - says Svetlana Taran, economics research center BEST (Bureau of Economic and Social Technologies). Therefore, Beijing has to make sense in that dispute to compromise. But on the other hand, do so - then set aside the interests of their producers, while the closure of enterprises in China is a threat to the sharp rise in unemployment, and with it - and social unrest. Therefore, Beijing has decided to play a wah-bank and rejected all charges of violation of WTO rules.

the mouths of the Speaker of the Ministry of Trade of the Peoples Republic of China Yao Zhiana Beijing authorities have stated that the main objective of China's policy on exports is to protect the environment and natural resources. And instead of a compromise is called the Middle Kingdom's accession to the WTO to complain about a dozen of its trading partners.

problem of the moment that the decision of a special WTO to resolve trade disputes are of a simple board and not necessarily for execution. Because of this, the World Trade Organization is very vulnerable - Burakhovskiy said. - In fact, during the financial or economic crisis, the temptation to ignore its rules - and even solutions of trade disputes - is too high.

It is no coincidence that Russia has in fact contributed to the WTO customs union with Kazakhstan and Belarus. In early June, Premier Vladimir Putin of Russia declared that joining the organization in Moscow would trade only in conjunction with Minsk and Astana. This is delay the process of entry, since both the capital is lagging behind in the white matter of acceding to the Commercial Club and has not met even the minimum requirements of the WTO. But Moscow is not worried, because this move will enable it to establish itself as a regional economic leader. Not to mention that, according to Burakhovskiy, it would allow Russia vytorgovat for more favorable terms of entry into the organization.

The same processes - and the WTO itself. The largest countries in the trading organization, prefer the real economic interests are not always obvious benefits of trade globalization. And it is not just about China. Although the United States and the EU, and complain of Beijing, they themselves have many reasons for lawsuits against them. Beijing slogan Buy Chinese has become, for example, merely a response to the position of the U.S. Buy American ( Buy American). So, in response to accusations of Brussels and Washington to Beijing took advantage of the principle of best defense - attack, and himself filed a lawsuit against the States in the WTO.

In other words, in times of crisis, many major global economic players are not to neglect the rules of the World Trade Organization and the bang in protectionism. So is it any wonder that, according to the professor at Columbia University and senior fellow of the American Council on matters of foreign policy, Jagdish Bhagwati, the U.S. is unlikely to win a dispute against China, because Washington himself did not clean hands.

Darius Ryabkov

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