商务英语之贸易壁垒

The Impact of Trade Barriers on China’s Export

Abstract: After China’s accession to the WTO, the international trade has become more and more popular. At the same time, the competition between China and other countries has become much more acute, as Chinese goods are more popular in the world market. In order to protecting domestic market, barriers to trade has been taken by other countries against China, this paper will tell different ways of trade barriers.

Keywords: international trade, trade barriers, world market

摘要：随着中国加入世界贸易组织，国际贸易变得越来越流行，但随之国际贸易的竞争也就变得越来越激烈了，随着中国产品在世界市场上倍受青睐，各国为了保护本国产品，纷纷对中国进行贸易壁垒，这篇文章将从各国采取的各种各样的壁垒方式入手，探讨中国国内企业应该如何应对贸易壁垒，政府应该采取何种措施来保护本国企业减少贸易壁垒给我国企业造成的损失。

关键字：国际贸易，贸易壁垒，世界市场

Introduction

Due to rapid development of China’s foreign trade during the last decades, especially the increase of our export, in order to restrict our export and protect their own market, many developed countries take various restrictive measures. The most popular way is trade barriers, this paper mainly discuss how they restrict China’s export through the trade barriers and how Chinese government and enterprises face such barriers to maintain their own benefit.

1. Tariff barrier

1.1 The definition of tariff barrier

It means there is large sum of impost. Through levying many kinds of large impost, making a barrier against foreign goods into domestic market, that would step up the costs of the imports so as to cut down the competition ability, thereby protect domestic production and market. It is also an important manner to force peer compromising through the trade negotiations. The World Trade Organization objects this manner very much, and cut down such behavior by a large margin through the negotiations. (Li, 2007:203)

1.2 Forms of tariff barrier

(2)tariff escalation

(3)tariff quota

(4)specific tariff

(5)ad valorem tariff

2. Non-tariff Barriers

2.1 The definition of nontariff barriers

It means a government takes all kinds of ways excepting tariff, the summation of policy and ways to regulating domestic foreign trade activities, management and domination. The purpose is to restricting import in a degree, so as to protect domestic market and the development of domestic industry. Direct and indirect are the two kinds of the non-tariff barrier: “direct” means the customs restrict the quantities and species of the import goods directly, the main ways are restricting the quantities of the import goods, import license, “auto export” restriction,export license. “indirect”means making strict customs formalities to the import goods or managing the foreign exchange, restrict importing goods indirectly, the main measures are managing the foreign exchange, levying the internal taxes to the import goods, making items about purchasing domestic goods and restrict foreign goods, complex customs procedure, cockamamie health and safety quality standard and packing decoration standard.(ibid:218)

2.2 Forms of non-tariff barrier

(1)clearance section barrier

(2)levying domestic taxes to the import goods

(3)import injunction

(4)import permission

(5)TBT(technical barriers to trade)

(6)health and plant health measures

(7)trade relief measures

(8)government purchasing against the import goods

(9)export restriction

(10)subsidy

(11)barriers to service trade

(12)intellectual property measures relate to trade

In the forms of non-tariff barriers, green trade barriers are the most popular in the modern world especially the developed countries to the developing countries for example of our nation.

Green trade barriers, also known as environmental barriers, green barriers, is in international trade, a country to protect the environment, safeguard human health grounds, through legislation and mandatory technical regulations, restrictions on access to foreign trade in commodities measures. It is mainly through technical standards, sanitary and quarantine standards, packaging and labeling requirements for mandatory implementation, involving product development, development, production, packaging, transport, use, recycling and so the whole process of whether to adopt effective environmental protection measures. Green Trade began in the 20th century 80s, a great popular trend in recent years.

2.3 The basic characteristics of the green trade barriers

2.3.1 Name of rationality

Green trade barriers are to protect the world's resources, environment and human health in the name, line of trade restrictions and sanctions in reality. Modern society people right quality living environment and increasingly demanding high quality life, will be very naturally concerned about the environment for these possible on the environment and health hazards of the goods and services reflect high sensitivity. Green trade barriers took advantage of the common psychological make trade protection in the name and the wording had the ingenious nature of rationality.

2.3.2 Forms of legitimacy

Although non-tariff trade barriers are green areas, but the difference is that the vast majority of non-tariff barriers is not to be provided through public legislation and implementation, and green trade barrier measures are based on a series of international and domestic legislation as a public the basis and foundation. 70 years, the international community, through the relevant international organizations and international conferences has developed a number of multilateral environmental agreements, rules. Their customary law in shaping the international environment and the impact on international trade and impacts, play an important role cannot be ignored.

2.3.3 Extensive protected content

Green barrier protection is very broad, it not only with resources related to

environmental protection and human health-related goods in the production and sale of many requirements and restrictions. But also for those who must reach a certain degree of safety, health, pollution, and other standards for industrial products is also a huge pressure, therefore developed countries of Foreign Trade will have a great challenge to developing countries.

2.3.4 Hidden nature of the protection methods

Non-tariff barriers and the traditional measures such as imports, compared with the quotas, green protective barriers with more subtle. First, it measures like quotas and license management, as the allocation of significant areas are unreasonable and discriminatory, is not easily lead to trade friction. Secondly, based on modern science and technology based on a variety of test is not only extremely strict and cumbersome and complex, so difficult to cope and adapt to the exporting country. For example, in April, 1995, to carry out the implementation of the International Standards Organization “standards of international environmental monitoring system”, many countries use this standard limits and refused to imports

2.3.5 Strong technical

Namely, the production, use, consumption, and the identification process include more technical elements.

With the development of the economy, especially the developing countries, their level of development has threatened the developed countries, so these countries apply a lot of crafty ways to restrict the export of the developing countries, and non-tariff barriers has become their major way to limit the export of developing countries and made bad influence to these countries.

2.4 The influence of nontariff barrier

There are different kinds of non-tariff barriers, and have a wider outreach, so it is very hard to estimate the influence to the international trade and relevant import and export countries.

2.5 The influence to the international trade

Non-tariff barrier has a strong baffle to the development of international trade. In the case of other unchangeable conditions, it has been inverse ratio between the strengthen degree of nontariff barrier and the development speed of international trade. For example, at the beginning from the fifties to the seventies after World WarⅡ, the tariff has been decimated, at the same time, the developed countries soften and call off substantially the restriction of import tariff such non-tariff measures, thereby it

promoted the development of the international trade in some degree, from the year 1950 to 1973, the average growth rate of international trade reached to 7.2%. On the contrary, at the middle period of twenty century 70s, many countries took different kinds of non-tariff barriers, they affected the development of international trade, from the year 1973 to 1979, the average growth rate per year of the international trade was to 4.5%, and from the year 1980 to 1985, it decreased for 3%.

2.5.1 The influence to the structure of commodities and the direction of foreign trade

Nontariff barrier has influenced the structure of commodities and the direction of foreign trade in some degree. After the WARⅡ, the tendency of the products which influenced by the non-tariff barrier are: the degree of agricultural products are more than the industrial goods which they are influenced by the international trade, and the degree of labor-intensive products are more than the technology intensive which they are influenced by the international trade, among the influenced countries, the quantity of developing countries and the Socialist State are more than developed countries. These phenomenon, have strongly influenced the changing of international trade structure of commodities and the direction of foreign trade, it made bad barriers to the development of developing countries and Socialist State countries.

2.5.2 The influence to the import countries

To the import countries of the tariff barriers, it may restrict the import, and protect the domestic market and produce, and it also made influence to the import countries the price increase of domestic market. For example, if the import countries take measures to restrict the quantities of import goods directly, so whatever whether the price increase or not in the foreign countries, and how necessary the demanding of the domestic, and never increase the import, and it may cause the different prices between the domestic and foreign countries, and the gap may be a large different, and made the price increased of the import goods, so as to protect the produce of the same goods in the domestic, and it may promote the relevant products in the home country.

But the strengthen of the non-tariff barrier may make the consumers from the import countries pay a lot of money to purchase the necessary goods, the price and the costs which would be exported could also be increased, and weaken the competition ability of the exported goods. In order to increase export, the government has to take measures such as export refunds, so it increased the budget of the country and the adversity of people’s tax.

2.5.3 The influence to the export countries

The import countries enhance the measures of nontariff barriers, especially restrict the quantity of the import goods directly, regular the quantity of import goods will make bad influence to the export quantity and price of the export countries, and decrease the export quantity and price of the export goods. In general, if the supplement of the export goods have more elastic, then the price which to be influenced by the non-tariff barriers of the import countries will be slight; on the contrary, if the supplement of the export goods have little elastic, then the price which to be influenced by the non-tariff barriers of the import countries will be serious. For most developing countries have little elastic of the export supplement, so the enhancement of the worldwide non-tariff barriers will make bad influence to the developing countries.

3. Trade barriers cases

Here are some examples about nontariff barriers which the developed countries against China.

Our frozen chicken meat doesn’t conform to the standard of the EU health quarantine, so our frozen chicken meat was prohibited to get in the EU market by EU from the August 1st, 1996.

There is a textile import/export company in Beijing who sells more than 10tons cotton yarns to the European in 1995 which was tested by the Germany that had forbidden AZO dyes in it and all the goods were prohibited to export, our company lost more than four hundred thousand RMB.

The same thing comes to a Shanghai knitwear import/export company, who exported children’s garments to the European countries, and all the goods were forbidden also because of the AZO dyes and over HCHO, and lost more than five millions dollars.

Here is a typical case about tariff barriers against China:

On February17th, 2004, the U.S. department of commerce received an antidumping duty petition on imports of certain tissue paper products from China filed by seven paper manufacturers and a national union (“petitioners”).

Petitioners claimed that the imports of certain tissue paper from China are being, or are likely to be, sold in the United States at less than fair value and that such imports are materially injuring, or threatening material injury to ,the relevant U.S.

industries.

The department always considers China to be a NME which does not operate on market principles of cost or pricing structures, so that sales of product do not reflect the fair value of the product. The determination that a foreign country is a NME shall remain in effect until it is revoked. Unfortunately, in all previous cases China has been consistently deemed at the NME status.

According to the U.S. Antidumping Law, if a product is imported from a NME country, the department shall determine normal value based on the total value of the factors of production priced in a surrogate market economy country. Specifically, the two selection criteria for the surrogate country as required by law, are economic comparability and significant production of comparable product.

In this case, the department selected India as the appropriate surrogate country to compare in the investigation for three reasons: (1) India is at similar level of economic development to that of the PRC; (2) India manufacturers produce comparable products and are significant producers of certain tissue paper products; (3) India provides the best opportunity to use appropriate, publicly available data to value the factors of production.

The surrogate values were derived from public published U.S. domestic prices, import prices, and quoted prices obtained from India manufacturers and reprinted in industry publications. Factory overhead, general and administrative expenses, profit, the cost of packing, and other expenses were added to the cost of manufacturing associated with the production of each product.

Based on the calculation of the normal value, on February 3rd, 2005, the department made its final determination that China was selling certain tissue paper at less than fair value and the dumping margin is 112.64%, which is amazingly high.

The United States International Trade Commission examined U.S. domestic economic indicators before and during period of investigation, such as increase in volume and market share of imports, decline in domestic prices, decrease in U.S. shipments, decline in operating income, decrease of domestic market share, drop in domestic capacity utilization rates, lost sales and lost revenue. In March it notified the department of its final determination that the industry in the United States is materially injured as the result of less-than-fair-value imports from China.

On March23th, 2005, the department issued an antidumping duty order directing the U.S. Customs and Border Protection to assess and impose antidumping duties on

all imports of the product from China. (Zhu and Sang, 2009:84)

In order to protect our nation enterprises and maintain the benefit of our import and export, our government as well as the enterprises should take manners to deal with such problems.

4. The measures of the government to deal with the nontariff barriers

1. The govern ment should take part into the “environmental diplomacy” actively, undertaking the conference about the environment between the other countries. For the differences of the economy development, the environment standards and demands of the developed countries are much more higher than the economy of the developing countries, we should fully utilize the multilateral trading system, play the important role of trade power, make close to the developing countries in coordination and corporation, make international standards that acceptable to both developed countries and developing countries, or add some items in the international standards that protect the developing countries in the international trade.

2. The government agencies and relevant industry agencies should enhance the corporation with the international organizations and the agencies which approved by the other countries, and promote our legislation about environment and integrity environmental protection standards. We should pay attention to the transformation of the international environmental protection standards and grasp the information timely, and make feasibility research, making the international standards as national standards through the legislation. Thus, on the one hand it can improve the environment standards of our home appliance, on the other hand it can stop the foreign products which do harm to the environment into our country.

3. The government should make industrial policy for green products. The government should give some encourages and assistants in investment, credit preferential, tax preferential, export rebate etc to the green environmental technology, the innovation, exploitation, production and usage of the products

4. The government should enhance foundation science research, enlarge the investment of the detecting techniques equipment and the quality inspector construction, and establish our own green trade barriers technical indicators system. At the same time, enhance the environmental standards formulation and corporation with the surrounding countries, and make our environmental technical indicators system adapt for the national conditions as well as getting close to the international

standards.

5. The government should enhance propaganda, improve the sense of urgency of the whole society to the green trade barriers, bring the challenge and opportunity of the green trade barriers to the power of the whole society, make all the members aware that face the challenge of green trade barriers is not only the requirement of our economy existing and developing but also the requirement of entering the world economy extended family and undertaking for competition, response the challenge consciously action-oriented.

5. The measures of the enterprises to deal with the non-tariff barriers

5.1Establish the modern corporations system which adapt for the WTO

regulations

First of all, the system of the environmental management should change the traditional environmental into the self-awareness environmental management by law. Change the traditional government administration management system, advance the environmental economy market actively, carry out the environment cost internalization, the core concept is put the resources produce, transportation, usage, recycle and the cost of the pollution-discharge right into the cost price, make the enterprises accept the environment management under the law.

Second, change the extensive economy of high consumption and low volume, depend on the technology, enhancing the management, into the intensive economy. Change the economy development that are high speed with low effectiveness, high input with low products, high pollution with low quality, to be the intensive economy.

Third, the current intensive management should be to a breakthrough in environmental pollution control, change “those who created pollution” as a “polluter pays”, the establishment of a number of large-scale pollution treatment facilities to run the professional company. With the market to operate, the company transformed into self-pollution treatment market players, rely on markets to promote investment and technology enterprise to adjust the scale of change swept the traditional practice of government.

5.2Vigorously promote cleaner production system

“China’s 21 century agenda”to the definition of cleaner production are: Clean produc tion is not only to meet people’s needs, but also the rational use of natural resources and energy, and production methods and environmental protection measures,

its essence is a material and energy consumption of the smallest human activities in the planning and management, waste reduction quantitative, resource-based and harmless, or destroy the production process. Cleaner production, including cleaner production processes and clean products both for the contents of the production process, the clean production, including conservation of raw materials, and all the emissions from the production process to reduce their numbers before, to achieve the production process of polluting or less pollution; On products, cleaner production is the life-cycle analysis, making products from raw materials until final disposal was a series of process, all with minimal environmental impact as possible. Thus, the concept of cleaner production includes not only the technical feasibility, but also economically profitable nature, reflects the economic, environmental and social benefits of unification. According to the requirements of clean production, simply summarized as: clean energy, clean production, the circumstances of product. To meet these requirements, companies must do the following:

1. To better material selection and product design related, not to adopt environmentally harmful materials, does not produce products harmful to the environment.

2. Production process, new equipment to maximize production efficiency to reduce emissions.

3. To strengthen production management, to reduce and eliminate run, run, drip, drain.

4. In the product life cycle assessment or clean production audits, targeted to make cleaner production program and feasibility analysis.

In addition, a region in the implementation of cleaner products, can be established in Industrial Park. Including the use right of land use within the region to conduct scientific planning, combine production chain, establish an optimized industrial structure, unified organization in the region of energy production and supply of integrated planning and wastewater reuse systems, organizations in the region cross-plant material of a cycle of strong measures to implement the comprehensive utilization of waste.

5.3 Positive for environmental standards and enforcement of environmental labeling products certification system

Join the WTO, the face of trading nations to set “green barrier”, China’s export enterprises need to fully carry out the green certification. Implementing the

environmental labeling system. China’s export products are now mainly textiles, agricultural products and some raw materials, technological content and added value is very low. In order to reduce other countries restricted by the name of environmental protection of China’s exports of fact, China should be as soon as possible with international environmental standards prevailing management systems converge: the first is to implement the ISO14000 international standards, strengthen the export products from design to production until process recovery in the use of the green program implementation. Although costly ISO14000 standard certification, the burden to the enterprise to a certain extent, but it proved through the establishment, implementation of environmental management certification system, to control pollution from the source of production, energy saving, reduce pollution treatment costs, but will enterprises bring comprehensive social and economic benefits. Second, we must actively implement the system for environmental labeling products to allow more exports in the implementation of environmental standards for certification based on environmental standards to further expand the range of products to export more than “green barriers”, access to international export pass.

5.4 Depth study of WTO dispute cases related to environmental protection and trade in the country's environmental legislation and environmental trade measures.

As the WTO case law relevant laws and regulations with the characteristics of their study, on the one hand will help companies on environmental policy and environmental protection provisions of understanding, increase employee awareness of environmental protection. At the same time, familiar with and use of environmental agreements, dispute settlement mechanism, in the event of a dispute with other countries, to ensure against violations of their legal rights and interests. As a result of foreign “green barrier”of implementation of disputes with foreign companies, we must respond actively, dare to foreign products and quarantine, customs and other administrative authorities in litigation, make full use of WTO rules and systems, argue to protect their legitimate rights and interests.

Conclusion

Trade barriers are mainly used by the developed countries especially non-tariff barriers because the price of goods which produced by the developing countries are less than the developed countries. In order to protect their own market, these

developed countries take such trade barriers to restrict import, China as the biggest export country, has more challenge to deal with these problems, our government must take some manners to help our foreign trade and our enterprises should innovate and face such challenges to survive in the competitive international trade market.

Reference

朱淑英, 桑莉琳. 国际经贸岗位群模块英语[M] . 江苏大学出版社, 2009.

李健. 经济全球化背景下的新贸易壁垒[M]. 东北财经大学出版社, 2007

C. P. Chandrasekhar, Jayati Ghosh and Parthapratim Pal. The Green Barrier to Free

Trade. New York: Knopf, 2006

Wikipedia. “the free encyclopedia”. BaiDu, BaiKe. “贸易壁垒”. https://www.wendangku.net/doc/d93061411.html,/view/77956.htm?fr=ala0_1

国际商务英语课文电子版lesson (10)

Lesson10 International Payment Generally speaking, it is not very difficult for buyers and sellers in domestic trade to get to know each other’s financial status and other information, and payment is likely to be made in a straightforward manner, say（for example）by remittance or by debiting the debtor’s account. In international trade, however, things are far more complicated. Purchase and sale of goods and services are carried out beyond national boundaries, which make it rather

difficult for the parties concerned in the transaction to get adequate information about each other’s financial standing and creditworthiness (资信；信誉). Therefore, mutual trust is hard to build. Both the exporter and importer face risks as there is always the possibility that the other party may not fulfill the contract. For the exporter there is the risk of buyer default（不按期付款）. The importer might fail to pay in full for the goods. He might go bankrupt.

商务英语谈判案例分析[1]1

商务英语谈判课后作业 ——案例分析

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商务英语谈判价格包装等谈判案例

A:为出口公司B:为国外进口公司 场景一：价格谈判 A和B开门走进办公室…… A: please take your seat,--- B:Thank you. A:After anttending our new product launch meeting,you must have a detail idea about our products,---.Now please let me know what kinds of flowers you are interested. (A递给B 一个产品目录册，B迅速地翻阅并作出标记) B:Yes,your flowers are pretty beautiful and leave me a deep impression. (A接过B递回的册子，翻阅) B:And I’d like to get the ball rolling by talking about the price.what prices will you offer for these I’ve marked? A:---,before we quote price please tell me how many flowers you are going to buy. B:for No.10 we’d like to phurchase 1500 units,No.20,1000 units and 1000 units for No.30. A:The usual price for No10 is 25 USD,for No20,35,and No30,50USD.they are all on the trade term of CIF Sydney. B:I t hink it’s unacceptable for us,you know the market has shrinked a lot during the economic ressesion period. A:we understand it,but you know these flowers are good for value.And they are newly cultivated after we tried a lot for genetic transplant.I believe you know the cost we spent. B:yes, I know that,---,it’s because of that ,I hope we can cooperate to open the market.If the price is reasonable, the large volume sales will be easy to reach,and that can remedy your large cost,right? A: (考虑片刻)Considering it’s the first time we do business and long-term cooperation in future, we can cut 1 USD for the price which we usual don’t do . B:1 USD? It makes no difference.we need more.and to be frank,we want the price to be 20,25 and 40 USD for each kind. A:No,no,no,I think you are kidding….---,that’s a big cut ,and it will make us have no returns. B:(表情严肃，犹豫片刻)Then how about 22,30 and 45 USD. A:That’s still leave us a little of margin,but increase 500 hundreds units for each kind,we can make it. B:That’s hard for us,yo u know it is a large size,and we can’t keep them for a long time. A:The season of large demand for flowers is coming,we guarantee the delivery within 1 month, that can be helpful for your quick sale. B:The delivery should be within 1 month, otherwise I cannot place the order. Now let’s reach some middle ground,you allow a 20% discount,I increase the order quantity by 500 hundreds units at that new price. A:20% discount? The policy regulates the maxium discount is within 15% in our company. And if you want to get the discount,the units you ordered have to overpass 2000 for each item. B:2000 units?we can’t take that many.Though you can’t offer us 15% discount,10% is ok.I hope you can accept it.--- A:---,we can grant 8% at most,that’s the best we can do.A nd

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