Assessment of China’s FTAs: Focusing on Trade Remedies, SPS and TBT Provisions

After examining key features of China’s FTAs, we analyze whether or not trade remedies, SPS and TBT provisions of China’s FTAs are consistent with the relevant WTO Agreements. While most of the provisions are consistent with the relevant WTO Agreements, some provisions are deemed to be WTO-plus, which go beyond the WTO Agreements. WTO-plus rules include the explicit prohibition of zeroing methodology, the application of de minimis dumping margin rule to the new shipper review, and the stricter examination of anti-dumping duty application on the goods originating in other FTA Party. In addition, China and some FTA Parties agree to give positive consideration to accepting the sanitary or phytosanitary measures of the exporting Party as equivalent. Concerning the TBT, China and certain Parties agree that, in the event of not accepting the results of a conformity assessment procedures performed in the other Party’s territory, they are, upon request by the other Party, required to explain the reasons for the rejection. Finally, we recommend that at the future FTA negotiations, China will consider the introduction of mandatory lesser duty rule and public interest rule, and guidance of adaptation to regional sanitary or phytosanitary conditions.