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By David Greenaway, Chris Milner, Shujie Yao (eds.)

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Extra resources for China and the World Economy

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2. China’s WTO Accession Commitments Prior to accession to the WTO, China had one of the highest average rates of protection in the world. 1, tariffs averaged over 40% in 1992 and were complemented by a formidable array of non-tariff measures, including quotas, licences and state trading. 2, as well as reductions in non-tariff barriers to trade. 2 compares the estimated levels of protection post-accession with the levels prevailing in 2001, the year of accession, and with 1995. The comparison with 1995 is important because this was the year in which the establishment of the WTO eliminated the possibility of China entering the multilateral trading system by resuming her status as a GATT Contracting Party.

1 Source: Jean et al. 2006. 8 percentage points in the weighted-average agricultural tariff it faces. 4%. The reduction, by approximately a factor of five, in the size of the cuts is consistent with the overall average pattern. What is striking in China’s case is the very large percentage point reduction of the cut in the agricultural tariffs facing China. 8. The first four columns of the table present the welfare results in US$ billion per year, while the remaining four columns present the same results as a share of GDP.

6. The first is that the required cuts in applied rates under Scenario A are quite large in countries like Japan and the Republic of Korea where tariff bindings, and applied rates, are particularly high. The second is that the cuts in applied rates are much smaller in most countries, frequently because the lower in-quota tariffs appear to be determining imports in many countries, and the WTO tariff cuts are focused on the out-of-quota tariff bindings. A third key finding is that the inclusion of sensitive products with only a 15% cut in bindings leads to a dramatic reduction in the tariff-cutting disciplines resulting from the agreement.

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