Socialist states and GATT.

Abstract

The purpose of the socialist states' participation in world trade systems was to expand trade with Western countries by elimination of discriminatory treatment imposed by the West. Although China is an original member of GATT, the new government had not been able to participate in GATT activities and had been kept away from the multilateral trade system ever since its inception. It had been subject to the constraints of a special Western trade control policy, which facilitated the formation of the highly centralized economic system in China. There are six socialist member states in GATT. They are Czechoslovakia, Yugoslavia, Poland, Romania, Hungary and Cuba. Since 1980 China has been considering the pros and cons of GATT membership. Although China is an original member of GATT, the new government of the PRC has not participated in GATT activities for thirty years. By seeking GATT membership, China hopes to eliminate various kinds of discriminatory quantitative restrictions, to enjoy the MFN treatment of GATT to play a major role in world trade, to learn how to do business in multilateral trade system and to protect its interest through GATT systems. China's position towards GATT membership is resumption, not accession. It wants to become a member on the basis of tariff concession and to enjoy GSP treatment. (Abstract shortened by UMI.)