The WTO and Infant. Industry Promotion. in Developing. Countries. Perspectives on the Chinese Large. Civil Aircraft Industry.
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1 The WTO and Infant Industry Promotion in Developing Countries Perspectives on the Chinese Large Civil Aircraft Industry Juan He O Routledge % Taylor & Francis Group LONDON AND NEW YORK
2 List of Tables Foreword Acknowledgements Table of GATT/WTO Cases Table oftreaties and Other Legal Instruments List ofabbreviations xi xiii xvii xix xxvi xxxiii 1 Introduction Infant industry promotion: an omitted legal discussion Chinese large civil aircraft and China's WTO accession commitments Framing the main discussion and possible implications Emerging challenges for international trade regulation 19 PARTI Infant Industry Promotion in Historical and Legal Contexts 25 2 Infant Industry Promotion and the WTO in Historical Perspective Anlnventory of early industrializßtion policies andpractices Import-substituting industrializfition A provisional shift to liberalizfltion Export-oriented industrializfition An overview ofwto legal constraints on industrial policy-making Further shrinkage of development policy options Challenges for China's technology-led industrial development A concluding remark 46
3 viii 3 Infant Industry Promotion and the Government Role in the WTO 3.1 Development as the core value of the WTO Overarching objective Basic principles A reinforced call for adequate development Space in the WTO Justifying infant industry promotion in free markets How states intervene to promote infant industries A concluding remark 67 PART II Implications of Policy Constraints, Evolving Jurisprudence and Negotiations 4 GATT 1994: No Retreat to Import Substituting Industrialization 4.1 Intensified multilateral strictures against import substitution Industrial tariffs Quantitative restrictions Local content requirements The Doha accelerated agenda on industrial tariffs Less than füll reciprocity: an undefined benchmark Horizontal tariff negotiation Sectoral tariff negotiation Effectiveness concerns about the GATT S&DTprovisions A concluding remark 98 5 SCM: Graduation from Ostensible Export Subsidization 5.1 A rigorous multilateral prohibition of export subsidies Subsidy Export contingency Illustrative list Where to continue the story of export promotion Ready to graduate from export subsidies? Export finance subsidy Domestic production subsidy Effectiveness concerns about the SCM S&DT provisions A concluding remark 126
4 6 TBT/SPS: Technical Barriers and the Stan dar dizati on Strategy 6.1 Differentiating between technical regulations and technical barriers Internal consistency Three-pronged necessity Science and risk assessment The harmonization goal An unabated trend towards regulatory heterogeneity Harmonization: a way forward in TBT? Science: a way forward in SPS? Effectiveness concerns about the TBT/SPS S&DT provisions A concluding remark 154 ix 7 TRIPS: Pursuing an Intellectual Property Right Law Balance Developing countries' emerginglpr balance challenge Ambiguities inherent in TRIPS fundamental provisions Public and private interests clash Minimum or maximum Standards debate Conditions restrictive in TRIPS general exceptions Boundaries of the three-step test Impact on other industrial-related exceptions Regulatory flexibilities alternative to general exceptions Effectiveness concerns about the TRIPS S&DT provisions A concluding remark PART III Contemporary Challenges for International Trade Governance Patting into Perspective: China's Large Civil Aircraft Manufacturing and Trade International legal frameworkfor regulating trade in civil aircraft Overview of the Chinese LCA support scheme Civil aircraft tariffs and investment laws Government subsidies Technical regulations and aviation Standards Chinese IPR regulation A concluding remark 215
5 Contemporary Challenges for International Trade Regulation 9.1 Reflection on the present: WTO constraints on regulating for industrial development Against retreat to import substitution Graduation from export subsidization Appeasing the race towards regulatory heterogeneity Pursuing an indigenous IPR law balance Looking into the future: contemporary challenges for international trade governance Chinese LCA project and its development future Wider assessment Possible accommodation 232 Bibliography Index
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