Article
Can the WTO Dispute Settlement Mechanism Resolve Trade Disputes between China and Taiwan?

Author: Kong Q.

Source: Journal of International Economic Law, Volume 5, Number 3, August 2002 , pp. 747-758(12)

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Abstract:

Following China's accession to the WTO, Taiwan joined the trading body smoothly. This was believed to present a bright prospect for the trade relations between China and Taiwan, because, inter alia, the WTO Dispute Settlement Mechanism is supposed to facilitate and resolve trade disputes among members. However, the reality does not permit to unfold such a rosy picture. As illustrated by what both Beijing and Taipei have done since their accession, they seem unprepared to treat each other in a way as required by the WTO Agreement, which suggests prospective disputes across the Taiwan Straits. Moreover, the WTO Dispute Settlement Mechanism might be helpless or, at least, not as effective as it should be when it comes to the cross-straits trade disputes. As Beijing and Taipei appear to be constantly obsessed with political concerns that override trade considerations, both parties are likely to politicize the use of the Dispute Settlement Mechanism at the cost of effectiveness as well as the credibility of the procedures. The international trade community should advisably help both Beijing and Taipei foster a common approach to the WTO Dispute Settlement Mechanism.

Language: English

Document Type: Original article

Affiliations: 1: Hangzhou Institute of Commerce, China

Publication date: 2002-08-01

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