The document discusses the impacts of China's WTO accession on trade relations between the U.S., India, and China, addressing trade disputes, tariff policies, and the challenges and opportunities arising from these relationships. It highlights the growing tensions in U.S.-China trade and the potential competitive threats China poses to Indian industries, while also noting the cooperative opportunities for India and China in the global market. The document also touches on the broader implications for BRICS nations and their role in global economic growth.

1. &
IMPACT ON US AND INDIA.

2.  HISTORY
 IMPACTS OF WTO ACCESSION ON CHINA
 IMPACT ON US-CHINA & INDIA-CHINA
 IMPORT EXPORT RELATION (US, INDIA &
CHINA)
 BRICS- (BRAZIL, RUSSIA, INDIA, CHINA
AND SOUTH AFRICA) REFERENCES
 CONCLUSION
 REFERENCES

4.  Tariff Reductions
 Service Commitments
 Systemic Reforms
 Adherence to Existing WTO Agreements
 China-Specific Trade-Liberalizing Provisions
 Safeguard Special, Pre-existing Trade
Agreements

5.  Impact on Economic Growth
•Theoretical benefits and costs
•Impact on foreign investments
•Impact on trade
•Impact on Institutional Reforms
 Impact on legal institutions
 Impact on political institutions
 OPPORTUNITIES AND CHALLENGES

7.  In recent years the World Trade Organization has been the main venue for
airing trade differences between the U.S. and China.
 Growing tensions in U.S.-China trade relations generated by the rapid
expansion of Chinese exports to the U.S. have led both countries to
frequently resort to the World Trade Organization (WTO)’s dispute
settlement mechanism (DSM).
 Both Washington and Beijing seem to be more frequently using the DSM
to target issues of critical concern to their respective domestic
constituencies.
 the U.S.’ WTO trade disputes against China tend to target Chinese
industrial policy and challenge the dominance of state-owned enterprises
(SOEs).
 Since its WTO accession, China has been the target of 29 WTO disputes
initiated by its trading partners, with the United States accounting for the
lion’s share of these cases.

8.  The Chinese measures being challenged by the United
States include semiconductors, auto parts, intellectual
property rights, trading rights and distribution services for
certain products, grants and loans and, more recently, wind
power equipment, renewable energy, and access to
resources.
 The World Trade Organization sided with the U.S. in a
dispute with China over duties on imported American
automobiles, the latest in a series of victories that the
Obama administration hopes will halt Beijing's use of
questionable tariffs to settle political scores.
 In 2009, the U.S. imposed anti-dumping tariffs of as much
as 35% on Chinese tires that had flooded the American
market. China challenged the move with the WTO, but lost.

9.  The Chinese government imposed duties ranging from 2% to 21.5% on
imports of large American-made cars and sport utility vehicles.
 The tariffs affected about two-thirds of the $8.5 billion worth of U.S. auto
exports to China, administration officials said.
 China is the second-largest foreign market for U.S. automakers after Canada,
accounting for 13% of U.S. exports last year.
 China enacted the anti-dumping and countervailing duties after it said that
imported American vehicles had been sold at below fair-market value and
had benefited from U.S. subsidies, such as the bailouts of General Motors
Corp. and Chrysler.
 U.S. officials said the Chinese duties affected vehicles manufactured in
California and nine other states. The duties were applied to cars and SUVs
with an engine capacity greater than 2.5 liters, including the Jeep Grand
Cherokee and Cadillac Escalade.

10.  Lawmakers from some of those states, particularly Michigan and
Ohio, praised the ruling and called on China to halt its use of
discriminatory tariffs.
 Examples of China exploiting divisions within the American
business community include: China restricting poultry imported
from the United States in the aftermath of U.S. tire tariffs against
China, Beijing’s decision to launch investigations into U.S. clean-energy
projects in response to U.S. trade restrictions on
Chinese solar panels, and China's threats to impose tariffs against
American automotive exports to China in the poultry case.
 AND-All this suggests that the WTO DSM has become the primary
means for handling politically salient issues for both countries. If
this is the case, the growing utilization of the DSM in the past
decade may have helped to channel the tensions surrounding the
bilateral trade relationship and prevented intense interest group
pressure from impairing overall U.S.-China trade relations.

11.  Both the countries are growing fast. They are home to the world’s largest
pools of skilled work force and are expected to be the engines of global
economic growth in the present century.
 Both the countries are developing closer economic relations with each
other and with the rest of the Asian countries through bilateral and
Regional agreements.
 China’s entry into the WTO has provided new opportunities and
challenges for both the countries to establish cooperation in the areas of
negotiations.
 India and China could take a common stand in issues such as agriculture
subsidies, trade related aspects of intellectual property rights, trade
facilitation, trade in services and trade dispute settlement, to name but a
few
 They don't see eye to eye about relations with the U.S. China has been a
longtime supporter of Pakistan, India's bitter rival
 And Indians look enviously at China's manufacturing strength, while
Chinese want to replicate India's IT services success.
 China's entry into the WTO opens up both opportunities as well as threats to
the Indian industry.

12.  Chinese entry shall increase the voice of developing nations in the
WTO
 enable them to have their demands of greater protection to
domestic industries accepted.
 INDIA and China globally compete in the same export markets.
 Chinese entry shall make Indian exports uncompetitive .
 Threaten traditional Indian strongholds such as textiles, tea and
jewellery.
 There is also the fear that Chinese goods may flood the Indian
markets .
 Causing domestic producers to go out of business.

13.  China is ahead of India both in terms of trade openness as well as its
promised commitment to further trade liberalization.
 China's Entry into the WTO shall force Indian industry to become more
competitive .
 Shall pave the way for second-generation market reforms in India.
 Labour market reforms, interest term structure reforms and basic
infrastructure reforms shall spur growth and competitiveness by cutting
costs.
 China's huge market also becomes a potential market for Indian goods
and increasing domestic competitiveness can be leveraged by pushing
exports.
 The potential for Indian industry to take advantage of the opportunity is
large, but needs to be backed up with forward-looking strategic policy
initiatives form the government

14. US-CHINA
 China was the fourth largest U.S. importer supplier
in 2000.
 U.S. imports from China almost doubled within five
years from 51.5 billion dollars in 1996 to 102
billion dollars in 2001.
 China’s exports to the United States mainly
composed of toys and games, clothing and
apparel, footwear, telecommunications, electrical
machinery etc.
 Major categories of U.S. exports to China include
chemical products (fertilizers), transport
equipment (mainly aircraft and aircraft parts),
cereals and cereal preparations, textile fibers etc.

15. INDIA- CHINA
 Indo-China bilateral trade IN years (2000–2004), it
grew by 25.5 per cent on an annual basis.
 Indian exports to China increased by 26.3 % on an
average per annum
 Imports from China enhanced by 24 % on an
average per annum
 Indian products exported to China were ores, slag
and ash, cotton, organic chemicals, plaster, lime
and cement etc.
 Chinese products exported to India were mineral
fuels, oils, distillation products, etc. organic
chemicals, nuclear reactors, boilers machinery, etc.

17.  2001, goldman sachs coined the term “BRIC” (brazil,
russia, india, china)
 South africa joined the group during the brics summit
held in sanya, china in april 2011.
 Trade between brics highly complementary brazil and
russia -commodity and natural resources sectors
China and india are net importers in these areas. India
and china have cheap labour.
 Intra-brics trade was to the tune of us$ 230 billion in
2011

18.  BRICS to global value added in manufacturing has
increased from 2.6 % in 1971 to 16.5% in 2008.
 BRICS increasingly dependent on manufacturing for
economic growth.
 BRICS Development Bank is a case in point and an
initiative whose time has come following the Delhi
Summit in 2012.

19.  China also occupies 48th position in the World Economic Forum’s new
Enabling Trade Index (which uses commercial infrastructure, market
access and the business environment to measure a country’s
encouragement of trade), South Africa (59th), India (71st), Brazil (80th)
and Russia (103rd)
 China’s world rankings for trade and foreign direct investment (FDI) above
Japan, to become the world’s third largest trading nation.
 7% of world trade by 2006 (7.7% of goods trade and 3.5% of services
trade).
 China’s trade-to-GDP ratio had reached 70%(ratio is extremely rare).
 China has a 2.4% share of global inward FDI, second largest recipient of
FDI in the world since 2000.

20.  China has moved ahead of most developing countries and the
other BRICs in generating economic growth, and perhaps more
importantly, large amounts of employment, poverty reduction
and improvements in human welfare, especially in urban areas.
 Phenomenal GDP growth in Brazil, Russia, India and China over
the past decade. These four emerging economies, as a
grouping, contributed 36.3% of the growth in world GDP in PPP
terms during the first decade of the century (2000-2010)
 Over the past two decades, the rate of growth of per capita GDP
in the BRICS has outpaced the global trend.
 In 1990, BRICS accounted for only 3% of global trade, In 2011,
BRICS accounted for 19% of global exports and 16% of global
imports of goods and services.

21.  China’s first Ten years after accession
achieved win win outcome with the rest of the
world
 China will continues its integration into the
World in an all-round way

22.  http://unpan1.un.org/intradoc/groups/public/documents/APCITY/
UNPAN013122.pdf
 http://thediplomat.com/2013/02/china-america-and-the-wto/
 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=303439
 http://www.ustr.gov/about-us/press-office/press-releases/
2011/october/united-states-details-china-and-india-subsidy-
prog
 http://www.wto.org/english/thewto_e/countries_e/china_e.htm
 http://www.bloomberg.com/news/2013-03-25/brics-nations-plan-
new-bank-to-bypass-world-bank-imf.html
 http://writepass.com/journal/2012/12/evaluate-the-likely-impact-
of-chinas-accession-to-the-wto-on-the-world-economy/