earticle

영어

Non market economy is the system in which the government determines price and resource allocation. Although NME had not been a major concern under the GATT system, it became a major issues for the WTO regime, especially after China’s entry into the multilateral trading system. The US accused China of not only unfulfilling its commitment of transit to market principle system but also moving toward more mercantilist regime. In attempts to combat such unfair trade practices, the US wants to reform current WTO system. By focusing on the issues related with the US complaints against China through the dispute settlement process, this paper tries to identify areas in the current WTO clauses that were unable to regulate NME issues. While GATS, AG, TRIPS, SCM, and AD are candidates, in a system of consensus based decision, it would be difficult to amend contents of major agreements. However, revising dispute settlement processes or strengthening trade policy mechanism might be achievable alternatives. Abandoning WTO, establishing a new system or, as under Trump regime, unilateral action could also be sought. However, as the conflicts between two major trading nations could lead to dangerous consequences, it may be desirable to devise a new paradigm to achieve compromise and prosperity together in the face of the NME challenges.