Paragraph 15 of China’s WTO Accession Protocol contains that China accepts Non-Market Economy Status during 15 years since its entry into WTO. According to the expiry of subparagraph (a)(ii), the expiration of subparagraph 15(a)(ii) bestows Market E...
Paragraph 15 of China’s WTO Accession Protocol contains that China accepts Non-Market Economy Status during 15 years since its entry into WTO. According to the expiry of subparagraph (a)(ii), the expiration of subparagraph 15(a)(ii) bestows Market Economy Status on China on December 11 2016. EU parliament, however, has started to argue that the provision does not mean China’s automatic Market Economy Status and needs a legal review.
On the other hand, China argues that paragraph (d) of China’s Accession Protocol provides that the provisions of subparagraph 15(a)(ii) shall expire in 2016. While there is a sharp conflict of opinion between China and EU, it is worth noticing that the Appellate Body of EC-Fasteners case interpreted that extends the termination to the entire paragraph of 15(a).
Therefore, this paper describes requirements and scope of the expiration of Non-Market Economy Status through legal analysis of subparagraph 15(a) and (d). Chapter II of the article, basically, explain discipline of Market Economy Status under GATT/WTO. Chapter III analyzes requirements and scope of the expiration of Non-Market Economy Status of Paragraph 15 of China’s WTO Accession Protocol. Chapter IV shows interpretation regarding subparagraph 15 of the Appellate Body of EC-Fasteners case. And finally Chapter V demonstrates legal effect in 2016, the expiration year of Non-Market Economy Status of China.