Promote multilateral and bilateral tariff negotiations and open up a new situation of mutual benefit and win-win results

In the 20 years since its accession to the world trade organization, China has actively practiced the concept of free trade, made great efforts to safeguard the multilateral trading system, played a key leading and promoting role in the multilateral and plurilateral tariff negotiations of the world trade organization, accelerated the implementation of the promotion strategy of free trade areas, and worked hard to build a network of mutually beneficial and win-win free trade areas, which has promoted China's cooperation with countries all over the world The common development of all regions has made important contributions to Global trade liberalization and global economic governance.

review of multilateral and bilateral tariff negotiations since China's accession to the World Trade Organization

(1) Actively participate in global governance and promote multilateral and plurilateral tariff negotiations in the world trade organization

First, we firmly support the Doha round of negotiations of the world trade organization. In November 2001, the Doha round of multilateral trade negotiations was officially put on the agenda. China participated in the negotiations after its accession to the world trade organization. The main topics of the Doha Round negotiations involve agriculture, non Shenzhen Agricultural Products Group Co.Ltd(000061) market access, services, intellectual property rights, rules, dispute settlement, trade and environment, trade and development, and the key is agriculture and non Shenzhen Agricultural Products Group Co.Ltd(000061) market access. As an important developing member, China has continuously put forward constructive suggestions and made positive contributions in the tariff negotiations of the Doha Round: in the field of Shenzhen Agricultural Products Group Co.Ltd(000061) tariff concessions, China has put forward Shenzhen Agricultural Products Group Co.Ltd(000061) layered mixed formula for tariff reductions, which has contributed Chinese wisdom to the promotion of the negotiations and has been warmly affirmed by some members; In the field of non Shenzhen Agricultural Products Group Co.Ltd(000061) tariff concessions, it is proposed to introduce the core factor of the average tax rate restricting the tax rate before reduction into the tariff reduction formula, creatively solve the fairness problem of applying the same concession formula to different countries, safeguard the interests of developing countries including China, and have been fully affirmed by many international organizations and developing members.

Second, actively participate in the negotiations on the expansion of the information technology agreement. The information technology agreement of the World Trade Organization entered into force in 1997 to promote tax reduction and free trade in information technology products. When China joined the world trade organization, it joined the information technology agreement and gradually abolished import tariffs on some information technology products before 2005. In May 2012, the WTO negotiations on expanding the product scope of the information technology agreement (hereinafter referred to as the "expansion negotiations") were launched. Major information technology product trading countries such as China, the United States, the European Union, Japan and South Korea participated in the negotiations. As the only large developing country, China played a constructive role in the negotiations. In December 2015, the expansion negotiation reached an agreement, which added 201 products on the basis of the original scope. In October 2016, China submitted its commitment to the expansion of the information technology agreement to the director general of the world trade organization, and implemented the first tax reduction in September 2016. As of July 2021, China has completed the six step tax reduction in the information technology agreement extension agreement, and the average tax rate of the expanded products has been reduced to 0.4%.

Third, promote the negotiation of the agreement on environmental products in a pragmatic manner. The negotiation of the agreement on environmental products of the world trade organization was launched in 2014 to reduce or eliminate tariff and non-tariff barriers to environmental products and create a "win-win" situation of trade facilitation, environmental benefits and development benefits. As one of the important participants in the negotiation of the agreement on environmental products, China has always participated in the consultation with a positive and constructive attitude and promoted the negotiation to reach important consensus during the Hangzhou summit of G20 leaders held in September 2016.

(2) Accelerate the implementation of the free trade area strategy and promote regional and bilateral tariff negotiations

First, promote the gradual expansion of the territory of the free trade zone. Since joining the world trade organization, China has complied with the world trend, actively promoted regional economic cooperation and accelerated the implementation of the free trade area strategy. In May 2001, China officially became a member of the Bangkok Agreement (renamed the Asia Pacific trade agreement in 2005), which is also the first time that China has obtained preferential tariff treatment lower than the most favored nation treatment of the world trade organization through regional trade negotiations. Starting from the Asia Pacific Trade Agreement, China has gradually promoted the negotiation of free trade agreement on a larger scale. In 2002, the China ASEAN Framework Agreement on comprehensive economic cooperation was signed. The China ASEAN free trade area is the first free trade area built by China for foreign trade, marking the beginning of China's participation in institutional regional economic integration. By the end of 2021, China has signed and implemented 17 free trade agreements or preferential trade arrangements for tax reduction with 28 countries or regions, including free trade agreements between China and ASEAN, Chile, Pakistan, New Zealand, Singapore, Peru, Costa Rica, Switzerland, Iceland, South Korea, Australia, Georgia and Mauritius, The Asia Pacific Trade Agreement, the Cross Strait Economic Cooperation Framework Agreement (ECFA) and the closer economic and trade relationship arrangement (CEPA) between the mainland and Hong Kong and Macao respectively.

Second, we helped regional economic and trade integration achieve major results. The regional comprehensive economic partnership agreement (RCEP) was officially signed on November 15, 2020. As the world's largest free trade area, RCEP covers nearly half of the world's population and nearly one-third of the world's trade volume. Its successful signing is a landmark event of regional economic integration. Although ASEAN is the initiator of RCEP, China has played an important role in promoting the smooth signing of RCEP. China has always maintained a positive attitude, participated in various negotiations of RCEP and hosted relevant negotiation meetings. In view of the differences and difficult issues in the negotiations, China has actively played a coordinating role and promoted the negotiation process with practical actions. After RCEP comes into force, the proportion of zero tariff in intra regional trade of goods will eventually reach more than 90%. China and Japan will implement bilateral tariff concession arrangements for the first time, which will promote the growth of intra regional trade and investment, improve the level of regional economic integration in East Asia, consolidate and promote regional industrial chains The integration of supply chain and value chain and boosting the confidence of members in post epidemic economic growth are of great significance.

Third, promote the further improvement of the free trade area network. One belt, one road, along the periphery, and the key areas and regions for production capacity cooperation, China is striving to accelerate the negotiation process of trade in goods and trade. Further build and improve the global free trade area network. So far, China Japan ROK free trade agreement and 10 free trade agreements between China and GCC, Israel and Norway are under negotiation.

China's achievements in multilateral and bilateral tariff negotiations

(1) Significantly improve the level of liberalization of trade in goods. Tariff is the main topic of the liberalization of trade in goods. In the 20 years since its accession to the world trade organization, China has actively participated in multilateral and bilateral tariff negotiations, earnestly fulfilled its duty to reduce taxes, and made important achievements in the field of opening up trade in goods. At present, among the 17 free trade agreements or preferential trade arrangements that China has signed and implemented to reduce taxes, the free trade agreements between China and ASEAN, Chile and Singapore have completed tax reduction, and the proportion of zero tariff in goods trade has reached more than 94%; China's free trade agreements with South Korea, Australia and Pakistan further reduced the agreed tax rate of some products in 2021, and the level of trade liberalization of goods was further improved.

(2) We will vigorously promote regional economic and trade cooperation.

The implementation of the free trade agreement has significantly promoted the economic and trade cooperation between China and its free trade partners. From 2012 to 2020, the proportion of trade between China and its free trade partners in China's foreign trade increased from 12% to 35%, an increase of 192%. Against the background of global economic and trade disorder and rising trade and investment uncertainty, the construction of free trade zone will not only help China's foreign trade stability and serve China's high-quality development and consumption upgrading needs, but also provide other countries with larger markets and more opportunities, promote the complementary advantages of regional countries' industrial structure to give full play, and realize mutual benefit, win-win results and common development.

(3) Enhance China's voice in global governance. Since joining the WTO, China has not only actively fulfilled its WTO commitments, but also fully exercised its member rights, gradually changing from a learner and follower of multilateral trade rules to a promoter of rule making. Through issuing "China's voice" and putting forward "China's proposal" in the Doha Round negotiations, the expansion negotiations of the information technology agreement and the negotiations of the agreement on environmental products, we have continuously injected vitality into the reform and development of the World Trade Organization and effectively promoted the stable development of the multilateral trading system, It has enhanced China's voice in the formulation of international economic and trade rules and global governance.

policy suggestions for China's future participation in tariff negotiations

(1) Based on China's international double cycle, plan the tariff negotiation strategy as a whole. At present, China's economy has entered a new stage of development. It is urgent to coordinate China's two international markets and two resources to realize the optimal allocation of resources. As an important bridge connecting the international market, it is of great significance to actively play the role of tariff dynamic regulation. In future tariff negotiations, based on China's international double cycle, we should coordinate the relationship between upstream and downstream, production and consumption, seriously grasp the development interests of China's relevant industries and residents' consumption demands, and plan the tariff negotiation strategy as a whole from the starting point of building an industrial chain supply chain cooperation system.

(2) Adhere to the bottom line thinking and use tariff means to promote the construction of diversified and stable trade channels. With the adjustment of global industrial pattern, China continues to catch up with cutting-edge countries in the field of high and new technology, but it still faces the risk of "neck" in key technology fields. Tariff negotiations should adhere to the bottom line thinking, not only support high-level opening-up, but also coordinate development and security. China needs to give full play to the important role of tariffs in the international economic and trade game, use tariff means to strengthen the weak links of China's industrial system, and build diversified and stable trade channels.

(3) We will continue to open to the outside world at a high level and build a global network of high standard free trade areas. Under the influence of the global multilateral trade negotiations in trouble and the great power free trade area strategy, China's free trade area has developed rapidly. However, at present, the free trade agreements signed by China are far from developed countries such as Europe and the United States in terms of scale and standards. In the future, China needs to accelerate the implementation of the promotion strategy of free trade zones, expand the distribution of free trade zones around the world, realistically formulate tariff negotiation schemes suitable for the characteristics of different free trade zones, deepen the flow opening of commodity factors, and promote the deep integration and development of regional economy.

(author: China WTO Research Institute, University of international business and Economics)

(China Financial News)

 

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