| <
Tariffs
- China will reduce its
tariffs from a current average of 25.3% to a final average of 10.6%
by January 1, 2005.
Trading
Rights and Distribution
- Currently, U.S.
companies' ability to do business in China is strictly limited
because the right to engage in trade (importing and exporting) is
restricted to a small number of companies that receive specific
authorization or who import goods to be used in production. This
limits U.S. exports. China has agreed that any entity will be able
to import most products, including fish, into any part of China.
This commitment is phased-in over the three-year period with all
entities being permitted to import and export at the end of the
period.
- China -- which
generally prohibits companies from distributing imported products or
providing related distribution services -- will permit foreign
enterprises to engage in the full range of distribution services.
These rights will be phased in over a three-year period for almost
all products, including fish. (See separate papers on distribution
services and related services.)
Safeguards
- China has committed
to a strong product-specific safeguard that allows the United States
to address import surges. Specifically, the safeguard allows the
United States to restrain increasing imports from China that cause
or threaten to cause market disruption for 12 years after accession.
After that, current U.S. safeguard provisions -- Section 201 --
remain available to address increasing imports.
Antidumping
- The Agreement
explicitly permits the United States to continue to use its current
non-market economy methodology for 15 years after China's accession
to the WTO.
Other
Commitments
- China has agreed not
to apply or enforce export performance, local content, and similar
requirements as a condition on importation or investment approval.
- To alleviate the
uncertainty associated with China's inconsistent application,
refund, and waivers of its 17% VAT tax, China has agreed to apply
all taxes and tariffs uniformly to both domestic and foreign
businesses.
Back
to Top |