Supachai: recommends China to play a more balanced trade role

Worried about the weak recovery in the global economy led to increased trade disputes

Sheng-yuan

"China should play a more global trade balance. "The United Nations Conference on trade and development (UNCTAD), World Trade Organization (WTO), former Director-General Supachai · Bani-dropping recently received the" business news "interview that China has always been the goal of trade disputes," to balance "is probably one of the ways to reduce disputes.

At the same time, he expressed concern that in the global economy experienced a fragile recovery, States began to exit the stimulus policies, global trade disputes will increase.

Supachai is the Expo area at the United Nations to organise a press conference and the theme "Science and technology innovation and the urban future" Expo Wuxi Forum this reporter's interview.

"Diplomatic negotiations to solve trade disputes

Cheaper "

As early as 10 years ago, China has not acceded to WTO, Supachai has said that the Chinese as their strength and more powerful, in the global trading system will face a growing number of challenges.

"At that time, you may not have this feeling, but now — 10 years after, you should have felt. "Supachai has said," the Chinese become now that strong economies, trade disputes are inevitable. People usually like to stare strong economies, because your product is so competitive. Therefore, China will be a lot of comment, criticism, will also have more trade measures against China. ”

Statistical data show that in the framework of WTO, last year China new survey of trade for the first time the Global 100, 30% of the anti-dumping investigation and nearly 70% of countervailing investigations are aimed at China. China has worked continuously for 15 years as anti-dumping investigation up economy, suffered for three consecutive years, become the anti-subsidy investigation most economies. Chinese Vice Minister of Commerce, had indicated at the end of Zhongshan, China has become a global trade protectionism most affected countries.

"The Chinese Government is using every means to deal with these problems, including through the WTO dispute settlement mechanism. "Supachai says.

In mid-June, China in the WTO v. u.s. poultry restrictions case win, this is China's first challenged United States Congressional legislation, nor is the United States Congress legislative acts in charged of victory for the first time.

"China should be fully prepared to take advantage of trade dispute settlement mechanisms. "Supachai also said," not all of the trade dispute should be resolved through legal means, negotiations are important, sometimes people too easily using legal means, I do not entirely agree with. ”

He explained that: "the high cost of legal means, is not conducive to the establishment of trust between States. I usually recommends greater use of diplomacy and negotiation. ”

Global trade protection measures will not reduce

Supachai believes that global trade disputes will not be because of the fragility of the current global economic recovery, he worried trade disputes will increase. His logic is: confronts economic recession in the world, Governments have introduced economic stimulus plan, support and related industries. But as the economy recovers, Governments began to implement the "exit strategy", Government support of the protection of the industry is through other means to maintain and increase competitiveness, one of the means may be asked to take trade protection measures.

"This is a feeling. Because the current is going through a fragile recovery, but at this point the Government incentives, the withdrawal will still need to rely on Government support and have not been fully restored by the industry may need some protective measures. Once the protective measures and disputes. "Supachai says.

14, OECD, UNCTAD and WTO jointly publish a report to be submitted to the Group of twenty (G20) Toronto Summit report. The report, November 2009-2010 in mid-May, the G20 countries generally fulfilled under the financial and economic crisis do not add new international trade and investment barriers, most investment policy on foreign investors "" more open "and" transparent ".

But the report also noted that some Member States, the Government adopted a new trade restriction measures, these measures targeted at the basic metal products (in particular steel products), machinery, agricultural products and transportation equipment, etc. G20 leaders report to remind the Member States to remain vigilant, continue to resist protectionism.

"Trade restrictions there are many, many are not in the form of a serious violation of WTO rules of formal, but is not conducive to the growth of trade, is not conducive to the establishment of trust between States. "Supachai underlines," I must stress again, although they are not contrary to the formal WTO rules, but we do see potential and hidden trade protection measures. ”

He said: "we know that the United States in the automotive industry — they got the support of the Government, has been able to maintain a strong competitive power, competition with other countries. The Government supports the longer, the more easily lead to unfair competition. Therefore, in the areas of trade and investment, we do not want to see the Government on an industry to support a long time. ”

As for the Chinese how to reduce trade friction, Supachai's view, there is a lot like China's trade surplus countries, should as much as possible to balance the import and export, "China should play a more global trade balance, so hopefully reduce trade disputes. ”