[Speech,draft,of,Businiss,english] draft of

　 Speech draft

　In this part I’m going to show you two important information of GATT, they are the Relationship between GATT and China, and the Limit of GATT.

　First , let’s see the relationship between GATT and China.

　At the time 1948, China signed the contract with GATT and became one of the 23 members of GATT. But at that time, the political power of china is unstable , so did the relationship between china and Taiwan .

　 Then in 1950 , without any agreement of china government,Taiwan decided to quit GATT and became an observer.

　In 1971, GATT even cancelled Taiwan’s observer status, china became out of GATT.

　 But with the great development after china implement opening economy policy , china’s economy become closer and closer to the world. In accelerating the development, china decided to make application for restoring the contract states status in 1986. But it never be an easy way. After the application, GATT built a working party for china issue, and start a long negotiation with china. GATT list a lot of requirements and standards that they thought china can not reach. Look at the checklist posts on the e-library of Stanford University, the negotiation seem to be a long and difficult way.

　This negotiation ended in 2001 when china became the member of WTO successfully.

　Now let’s go to the second aspect, the limit of GATT.

　As it is mentioned before, GATT is a temporary organization , not a formal one, so there are many limit of it. Here I would like to introduce 5 main limits.

　First , Lack of legal constraints ,necessary inspection and supervision. For example, a country selling products with low price and damage the industry of another country, called dumping .Some countries distort the meaning of dumping to levy illegal tariff .This limit make it hard to arbitrate which country is right.

　The second limit is that “Gray Area” makes many rules difficult to implement.”Gray Area” means some contract states works on the edge even out of rules ,which damage the trade policy and authority of GATT.

　Third, GATT discriminate some central plan economy countries, such as China.

　Fourth , the dispute settlement mechanism is not sound . Though GATT built a settlement for international commercial dispute, the only means for the settlement is conciliation and it is not effective.

　The last one , some behaviors obey free trade principle. For example, the long term existence of textile quota and farm products allowance .

　It is all the limits in GATT that made this temporary organization replaced by WTO at last.

　That is all of our presentation, thanks for attention!