Abstract

Since China’s late entrance into the WTO as a member state at the beginning of the 21^st century, the nation’s rapidly expanding global economic prospects have instigated a number of ongoing WTO disputes with the developed countries in particular, as the country advances in exportation of virtual stockpile of inexpensive products, and including a massive influx of auto and other related products, such as tires, into the national markets of former world trade leaders in export like the United States. The foregoing proposal looks at the impact of the DS340 Auto Parts Dispute against China, and in particular as it pertains to the export tire industry and the country’s anti-dumping violations in the United States.

Background

GATTire: An Analysis of China-U.S. Trade in Tires looks at the development of China’s formative trade policies since the country’s quite recent signatory Membership to the World Trade Organization, and subsequent dispute cases pertaining to its trade in Auto Parts, and attendant cases responsive to Anti-Dumping protocols. In 2006, the European Union and United States followed by Canada filed dispute (DS340) for consultation with the World Trade Organization (WTO) against China in complaint of Auto Parts export trade to those markets. In 2008, the WTO reached decision regarding the grievance, and measures responsive to importation of China – Auto Parts to those countries includes taxes and tariffs, and the export to China.

Implementation on August 31, 2009 articulated Subsidies and Countervailing Measures: Art. 3, 3.1(b), 3.2; Trade-Related Investment Measures (TRIMs): Art. 2, 2.1; and GATT 1994: Art. II, II:1, III, III:2, III:4, III:5, XI:1, with respect to the claim(s), and the United States countered decision indicating that the Policy Order 8, Decree 125 and Announcement 4 are inconsistent with Article III:5 of the GATT 1994, TRIMs Agreement and SCM Agreement. According to the WTO mediation, the Panel “decided to exercise judicial economy,” and “recommended that the DSB request China to bring these inconsistent measures as listed above into conformity with its obligations under the GATT 1994 and the WTO Agreement” (WTO, 2008).

With China’s late entrance as a member state of the WTO at the beginning of the 21^st century, the nation’s expanding global economic prospects have created a number of ongoing WTO disputes with G7 countries, in particular, as the country advances in exportation of virtual stockpile of inexpensive products, and including a massive influx of auto and other related products into the national markets of former world trade leaders in export like the United States. The WTO disputes with China have been promoted by, and furthered by a high degree of protectionism, as China and its trade partners attempt to shore up inequitable GDP and industrial surplus in their economies, not to mention compete (Brown, 2009).

Problem Statement

Ethics and corporate responsibility can only be approached from a legal perspective. Since the fall of companies such as Enron, we have witnessed a shift in corporate self-representation as companies attempt to shore up responses to regulatory and political pressures that may threaten by way of external factors such as environmental advocacy. Social responsibility and sustainability are now almost uttered on a single breath, as corporations positioned in the energy securities market and other high risk incidence segments attempt to ‘mitigate’ through identity management and strategic planning to the best effect possible.

While not positioned in lieu of policy application and adherence, the entire culture of international business has changed at almost light speed since the twentieth century, and the influx of policy as an informational moniker for the generation of new capital markets now seemingly exceeds actual activities and risk assessment models employed by the financial suitors whom court venture capital. In short, the global market and its regulatory regime(s) is not surprisingly far more influenced by the expectations of treaties like the Doha than ever before. Coupled with a climate of privatization seeded during the era of structural adjustment in the 1990s, the landscape of industrial manufacturing in China has opened its doors to foreign investment, and in return its liberal exchange amongst stakeholders. What is critical to remember in advancement of the theories contained within this research proposal, is that the global market has surpassed all preconceived ideas about the potential of trade, and with it the legislative policies and the responsibilities that go along with signatory membership to international protocols on commerce and inclusion.