Question

China was an original signatory to GATT, but after the communist revolution the Nation Government of China retreated to Taiwan as the Communist Party of China took over the mainland to from the People's Republic of China. Approximately a year later, the National Government decided to withdraw From GATT to prevent the communist government from enjoying the benefits as a GATT party. The PRC did not attempt to keep its Status.

   Decades after its establishment, the PRC attempted to rejoin the International trading Body, and then its successor, the WTO. What benefits did China expect to derive from re-engaging with the organization? What benefits did the existing members anticipate. Where their respective expectations met in your opinion? Please explain.

Answer 1

The basic benefits China expects from re-engaging with WTO is low trading tariffs and benefits as are available for most favored nations. Above all its textile, metals and machinery sector will boost up as China has comparative advantage in these sectors over other member countries.

Existing members anticipate following benefits out of membership of WTO:

1. Peace among all member countries

2. Benefits of disputes resolution body in case of any dispute with any other member country

3. Benefits of standard rules as are set by WTO

4. Benefits of free trading

5. More choice between varieties of goods

6. Economic growth etc.

Member countries follow standard rules and regulations set by WTO and also trading between nations are governed by these rules only. Member countries are benefited in terms of trading volume, income and economic growth. In my opinion there expectations from WTO have always been fulfilled. There are few flaws in every system which are rectified with time and situation same is happening with system of WTO. In case of any flaw in its system it is rectified and benefit is passed on to the member countries.