Trade Impacts of China's World Trade Organization Accession

Elena Ianchovichina and Will Martin

Asian Economic Policy Review, 2006, vol. 1, issue 1, 45-65

Abstract: This study examines China's World Trade Organization (WTO) accession commitments and assesses their implications for China and the world using a model reflecting the importance of duty‐free intermediate inputs in China's exports. The WTO agreement built on earlier reforms that introduced competition into the trade regime, eliminated nontariff barriers and exchange rate overvaluation, and reduced tariffs. The reforms associated with accession were conservatively estimated to increase global real incomes by $74 billion per year, with $29 billion accruing to China and the remainder primarily to those countries trading directly with China. Some lower‐income developing countries faced greater competition from China in third markets.

Date: 2006
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Asian Economic Policy Review is currently edited by Takatoshi Ito, Akira Kojima, Colin McKenzie and Shujiro Urata

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