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China and the world trading system

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  • Mattoo, Aaditya
  • Subramanian, Arvind

Abstract

The World Trade Organization has been until recently an effective framework for cooperation because it has continually adapted to changing economic realities. The current Doha Agenda is an aberration because it does not reflect one of the largest shifts in the international economic and trading system: the rise of China. Although China will have a stake in maintaining trade openness, an initiative that builds on but redefines the Doha Agenda would anchor China more fully in the multilateral trading system. Such an initiative would have two pillars. The first is a new negotiating agenda that would include the major issues of interest to China and its trading partners, and thus unleash the powerful reciprocal liberalization mechanism that has driven the World Trade Organization process to previous successes. The second is new restraints on bilateralism and regionalism that would help preserve incentives for maintaining the current broadly non-discriminatory trading order.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 5897.

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Date of creation: 01 Dec 2011
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Handle: RePEc:wbk:wbrwps:5897

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Keywords: Emerging Markets; Economic Theory&Research; Free Trade; Debt Markets; Trade Law;

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  1. Elhanan Helpman & Marc Melitz & Yona Rubinstein, 2007. "Estimating Trade Flows: Trading Partners and Trading Volumes," NBER Working Papers 12927, National Bureau of Economic Research, Inc.
  2. James E. Anderson & Eric van Wincoop, 2000. "Gravity with Gravitas: A Solution to the Border Puzzle," Boston College Working Papers in Economics 485, Boston College Department of Economics.
  3. Carsten Fink & Mart´┐Żn Molinuevo, 2008. "East Asian Free Trade Agreements in Services: Key Architectural Elements," Journal of International Economic Law, Oxford University Press, vol. 11(2), pages 263-311, June.
  4. Wunsch-Vincent, Sacha, 2009. "Opening Markets for International Trade in Services: Countries and Sectors in Bilateral and WTO Negotiations edited by Juan A. Marchetti and Martin Roy Cambridge University Press, 2009," World Trade Review, Cambridge University Press, vol. 8(04), pages 619-622, October.
  5. Shang-Jin Wei & Arvind Subramanian, 2003. "The WTO Promotes Trade, Strongly But Unevenly," IMF Working Papers 03/185, International Monetary Fund.
  6. Bown, Chad P. & McCulloch, Rachel, 2009. "U.S.-Japan and U.S.-China trade conflict : export growth, reciprocity, and the international trading system," Policy Research Working Paper Series 5102, The World Bank.
  7. Jonathan Eaton & Samuel Kortum, 2002. "Technology, Geography, and Trade," Econometrica, Econometric Society, vol. 70(5), pages 1741-1779, September.
  8. Aaditya Mattoo & Francis Ng & Arvind Subramanian, 2011. "The Elephant in the "Green Room": China and the Doha Round," Policy Briefs PB11-3, Peterson Institute for International Economics.
  9. World Trade Organisation WTO, 2011. "World Trade Report 2011- The WTO and Preferential Trade Agreements: From Co-existence to Coherence," Working Papers id:4335, eSocialSciences.
  10. Chad P. Bown, 2010. "China's WTO Entry: Antidumping, Safeguards, and Dispute Settlement," NBER Chapters, in: China's Growing Role in World Trade, pages 281-337 National Bureau of Economic Research, Inc.
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