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1、Trade and barrierSusanFree Trade and protectionismThe nuts and bolts come apartInternational tradeInternational trade develop fast since world war II. So did Vertical specialization.Vertical specialization occurs when a country uses imported intermediate parts to create a good it later exportsthat i
2、s, the country links sequentially with other countries to produce a final good. vertical specialization has accounted for a large and increasing share of international trade over the last several decades. They also note that because the trends encouraging vertical specializationlower trade barriers
3、and improvements in transportation and communications technologiesare likely to continue, this type of international trade should become even more prevalent in the next century .But since trade protectionism grows, the nuts and bolts come apart. Contents ContentsClassification of trade protectionis
4、m Forms of non-tariff barrier Forms of new trade protectionismWhat can we do to deal with it?Trade barrierTrade barriers are government-induced restrictions on international trade.1. From the form of trade barrier, it can be divided as tariff and non-tariff barrier.2. From the time order, trade barr
5、ier can be divided into : traditional trade barrier and NTP (New trade protectionism)Non-tariff barrierImport licensesExport licensesquotasSubsidiesVoluntary Export RestraintsLocal content requirementsEmbargo Devaluation of currency(1)An import license is a document issued by a national government a
6、uthorizing the importation of certain goods into its territory. It is a way to discriminate against another countrys goods in order to protect a domestic industry from foreign competition .(2)An export license grants permission to conduct a certain type of export transaction (3)An import quota is a
7、type of protectionist trade restriction that sets a physical limit on the quantity of a good that can be imported into a country in a given period of time. 1 Quotas, like other trade restrictions, are used to benefit the producers of a good in a domestic economy at the expense of all consumers of th
8、e good in that economy A subsidy is an assistance paid to a business or economic sector. Most subsidies are made by the government to producers or distributed as subventions in an industry to prevent the decline of that industry or an increase in the prices of its products or simply to encourage it
9、to hire more labor.A voluntary export restraint (VER) or voluntary export restriction is a government imposed limit on the quantity of goods that can be exported out of a country during a specified period of time .Typically VERs arise when the import-competing industries seek protection from a surge
10、 of imports from particular exporting countries. VERs are then offered by the exporter to appease the importing country and to deter the other party from imposing even more explicit (and less flexible) trade barriers Local Content RequirementsThe product you produce must contain the local content.Fe
11、bruary 09 2004New Local Content RequirementsOn November ,25, 2003 the Ministry of Petroleum issued Order 127/03, which sets out requirements on the procurement of goods and hiring of services by oil companies operating in Angola. Although these companies were already subject to certain restrictions
12、under the terms of their agreements, the Ministry of Petroleum seems committed to tightening up the hiring of foreign contractors by the oil industry.embargoAn embargo is the partial or complete prohibition of commerce and trade with a particular country, in order to isolate it. Embargoes are consid
13、ered strong diplomatic measures imposed in an effort, by the imposing country, to elicit a given national-interest result from the country on which it is imposed. In 1950s, when the PRC was founded ,it got the embargo from the western countries.New trade protectionismNew trade protectionism is deriv
14、ed from the traditional trade protectionism( tariff quota and licensing etc.) As the world prefer a free trade environment ,the traditional protectionism are not as powerful as they used to be.Since 1970s, western countries have come up with various trade protection theories and corresponding polici
15、es which are regarded as New trade protectionism .It takes non-tariff barriers such as anti-dumping ,anti-subsidies safe guard , green barriers and IPR( intellectual property protection) ,protecting domestic trade and employment )Forms of new trade protectionismAnti-dumpingAnti-subsidyGreen trade ba
16、rriersTechnical trade barriersintellectual property barriers.Anti-dumpingAnti-dumping is a tool for protecting domestic industries from surges of cheap foreign imports. Although the WTO strives to eliminate all trade barriers, it recognizes that nations require flexibility to adjust to economic shoc
17、ks as multilateral agreements increasingly liberalize trade. Thus, these measures allow nations to temporarily protect their economies against fluctuations in trading patterns Antidumping duties have become the most frequently used instrument of trade protection. Antidumping protection can be “abuse
18、d” to shelter uncompetitive domestic industries from more efficient rather than “unfair” foreign importers. This column shows that antidumping duties protect inefficient domestic firms and impede efficiency gains Source: Global Antidumping Database.Figure 1. Newly-Initiated Trade Remedy Investigatio
19、ns, 1Q 2007 - 4Q 2009 As Figure 1 illustrates, developing countries initiated 76.9% of these new investigations compared to 23.1% initiated by developed economies. China continued to be the exporting country most frequently targeted by new investigations, as it was named in 71.4% (15 of the 21) of t
20、he investigations under laws that require the investigating country to identify at least one exporting country inin 4Q 2009 When an EU industry considers that imports of a product from a non-EU country are subsidised and injuring the EU industry producing the same product, it can lodge a complaint w
21、ith the EU Commission. The EU has confirmed anti-subsidy and anti-dumping duties on imports of coated paper from China. This is the first time the EU has imposed anti-subsidy duties on imports of products from China. The Council of Ministers agreed on Thursday (5 May) to impose duties of up to 39.1%
22、 on imports of the paper, which is used for high-quality printing such as brochures and magazines. Source: Global Anti-subsidy Database Green trade barriersGreen trade barriers refers to government of importing countries erecting trade barriers against importing products by enacting complex environm
23、ental protection laws ,establishing environmental technology standard and testing ,examining proceduresIn 2011,the Mid-autumn festival ,the Chinese moon cake had been resist by many countries Green trade barrier. The USA, Canada and Spanish resist the moon cakes which contain yolk(蛋黄）。Australia resi
24、st the moon cakes contain meat . Various reasons prevent the Chinese moon cakes step into the world market.Technical trade barriersTechnical trade barriers refers to some technical measures taken by a country on the grounds of safeguarding national security ,guaranteeing human health ,preserving the
25、 environment etc.Technical trade barriers include safety standards sanitary standards packaging and labeling standards and information standards.intellectual property rightThe developed countries that hold advantages in intellectual property and advanced technologies take advantage of the intellectu
26、al property system. They implement import restrictions on the products.Intellectual property right could be acted as “amulet” to take over opponents market. At the same time ,the IPR could also be used as weapons to threat competitors infringementsstrategic response China should take1 .prevent new trade barriers2. Promote trade liberalization3.Avoid trade war4. stabilize exchange rate5.Establish diversified market structure6.Establish sound intellectual property system Thank you! Thank you!Susan
