Asia

Introduction

 

In recent testimonies before the US Congress, scholars and representatives of the small business community have argued that China deliberately undervalues its currency, the Yuan, in order to gain a competitive advantage towards its major trading partners. [1] China is being accused of manipulating the exchange rate by buying and selling Yuan on the international capital markets for a fixed price. Thereby it effectively discourages a free market value for the Yuan.

 

           On September 24, 2003, members of the Congressional-Executive Commission on China urged a U.S. trade official to consider challenging China's fixed currency exchange rate at the World Trade Organization (WTO). Rep. James A. Leach (R-Iowa), chairman of the Commission, put forward the idea that China's currency could be "a subsidies issue under the WTO, so it's not exactly a non-WTO issue." [1]

 

President Bush, on April 25, announced that he would not grant safeguard relief from imports of Chinese wire garment hangers requested by the US industry under Section 421 of the Trade Act of 1974.1 In doing so the President rejected a unanimous recommendation from the US International Trade Commission that duties be raised for a three-year period.2 This is the second time relief has been sought under Section 421, and the second time relief has been denied by the Bush Administration.3

 

Background

           On January 10, 2003, North Korea announced (a) that it was withdrawing from the Nuclear Nonproliferation Treaty (NPT), effective immediately, and (b) that its withdrawal from the NPT left it free from the binding force of its Safeguards Agreement with the International Atomic Energy Agency (IAEA).

 

It is well known that overfishing has led to the collapse of several commercially valuable fish species and the decline of others. [1] In this context, WTO Members agreed during the WTO Ministerial Conference held in Doha (Qatar) in November 2000, to launch negotiations with the aim to "clarify and improve WTO disciplines on fisheries subsidies, taking into account the importance of this sector to developing countries." [2]