Barriers to International Trade

Class ：商管 1201Group members: 周妮璇 Eva 黄晓婷 Cindy 张家仪 Karrie 周逸云 Ian 康钰然 Nikki

Outline

• Brief Introduction----------------------Nikki

• Causes & Types-----------------------Cindy

• Trade Barriers against Chinese export trade ---------------------------------Ian

• Suggestions-----------------------------Eva

• Case Study------------------------------Karrie

• Conclusion-------------------------------Nikki

Brief Introduction

Barriers to International Trade

• Restrictions against free trade between nations

• Some are natural, most are made by the government

• Most trade barriers work on the same principle

• Worse consequence: trade war

Barriers to International Trade

• All businesses encounter social and cultural, economic, legal and political barriers to both local and domestic trade

Causes & Types

Causes

Barriersof

InternationalTrade

Social and Cultural Differences

Economic Differences

Political and Legal Differences

• Social and Cultural Differences substainable development

awareness of protecting the environment

cultural distinctions

• Economic Differences technology

living conditions

• Political and Legal Differences trade protectionism

new laws

Different Types

Barriers of

International Trade

Tariff Barrier关税壁垒

Non-tariff Barrier非关税壁垒

Tariff reduction

Tariff classification

Tariff peaks

Tariff quotas

Direct restriction

Indirect restriction

Different Forms

Barriersof

InternationalTrade

legislation

administration decisions

policy or consencus

practice

Barriers against Chinese Export Trade

Trade Restrictions

Political & Legal Differences

Technical Barriers

Economic Barriers

Economic Barriers

• Currency Conversion & Shifts

Appreciation of RMB

The restriction of export

Trade Restrictions

• Trade Remedy ( 贸易救济 )--- Anti-subsidy( 反补贴 ) & Anti-dumping( 反倾销 )

China --- the top anti-dumping target country

Political & Legal Differences

• Legal Environment

The CR Bill (The European Standardization Committee)

E.g. lighters

• International Regulations

Technical Barriers

• Mainly from U.S.A, Japan, EU

Turkey, India, Egypt

Fields: --- commodity( 日常用品 ), manufacture, mineral products, farming

• Main Barriers

• Reasons

Trade protectionism of developed countries (technical standards)

The relative weaknesses of domestic products

Ignorance of TBT (cheap labor forces & low cost)

Technical Barriers

Suggestions

Government Functions

Guild(行业协会)Functions

Enterprise Behaviours

How to Reduce Barriers to

International Trade

Government Functions

Active Diplomacy Regional Economic Group WTO

Laws and Regulations Normalize the producing process

Warning System Provide guidance

Make Criteria Expand the influence

Strengthen Contacts with Foreign Guilds Know about the variation of international criteria

Be active in Trade Issues Offer Legal Aids Enhance negotiation abilities

Guild ( 行业协会 )Functions

Competitiveness Brands Quality of Products

Direct Investment Invest directly Produce and sell locally

International Criteria

Enterprise Strategic Alliances Advocate unified criteria

Enterprise Behaviours

Case Study

Trade war of tire tariffs轮胎特保案

• United states International Trade Commission in June 29th, 2009 suggested

• tire tariffs 55% ,45%, 35% three years

• President Obama in September 11th, 2009 announced

• 35% 30% 25%

Background

• Financial crisis

• America mainly produce high-end tires

China export spare tires

• the amount of exporting tires valued 22 million dollars in 2008

Why?

Consequences

• For China, the rate of exporting tires was decline

• For America, do harm to local people

• Sino-US Joint ventures brought less profit

Reasons

• The imbalance of Chinese and American economy development

• The pressure of domestic employment on America

• The policy of America

• The problem of Chinese industrial structure

• The law of WTO was not perfect

Tactics

• Acquire the rules of trade

• Complaint to the WTO

• Readjust industrial structure

Conclusion

Brief Introduction

Causes & Types of International Trade Barriers

Barriers against Chinese Export Trade

Suggestions to Reduce Trade Barriers

Case Study

References

• http://baike.baidu.com/link?url=SNGXIC-AF6y-4Hh07QnjASNNevOwFovvAlcfrWIR2S6R4BOmovgLY2UAV27qZegK

• http://wenwen.soso.com/z/q167341262.html

Thank you for listening!