A series of measures were taken by the Government to address weaknesses in the economic structure, with a particular emphasis on restructuring the financial sector and supporting business development. The Malaysian Government continued to develop manufacturing industries, increase the contribution of agriculture to GDP and develop the service sector.
Like Thailand, Malaysia has promoted regional trade liberalization as well as implemented its WTO commitments. In terms of approach, Malaysia has also implemented an export-oriented strategy. Malaysia has also chosen not to become an official member of the Agreement on Government Procurement.
Malaysia became an official member of the WTO on January 1, 1995. Malaysia has perfected its international trade policy in accordance with the principles and regulations of the WTO agreements. In compliance with the WTO regulations, Malaysia focuses on regulating international trade activities through tariff instruments. Malaysia has significantly reduced unit taxes. This move is considered to increase the transparency of Malaysia's international trade policy. However, the number of tax lines in Malaysia's import tariff is large and relatively complicated.
To develop domestic industries, Malaysia has taken different measures than Thailand. Malaysia has increased the number of tariff lines and even granted import licenses for some products even though it is a member of the WTO.
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Both Malaysia and Thailand have chosen the electronics and automotive sectors for development. Thailand has emphasized the role of foreign investment in both sectors. Malaysia has emphasized foreign investment in the electronics sector but has implemented a domestic automotive strategy with the ambition of becoming the “car designer of ASEAN”. Malaysia’s electronics sector is highly competitive in the world. Automotive sector
Malaysia's industries are protected by high tariffs and a variety of other incentives. Malaysia abolished mandatory local content requirements in 2000. However, Malaysia's current policy of maintaining local content incentives is also considered to be in violation of WTO rules.
The state sector plays an important role in the Malaysian economy. It controls the petroleum, electricity, transport, postal and telecommunications industries. The Malaysian government is privatizing by selling shares to the private sector. In addition, the government also makes state capital contributions to private enterprises.
Malaysia's experience shows that: (i) it is necessary to perfect international trade policies in accordance with international commitments; (ii) it is necessary to take measures in accordance with WTO regulations when becoming an official member of this organization, such as adjusting tariff instruments, reducing unit taxes, and temporarily not participating in the Agreement on Government Procurement.
1.3.3 . China 's experience
China became a full member of the WTO on January 11, 2001. China committed to eliminating export licensing and quota systems, but proactively proposed a five-year implementation roadmap. Initially, when negotiating its accession to the WTO, China proposed a 10-year transition period, but was unsuccessful and was only accepted for five years. China also implemented strong protectionism with a long-term liberalization roadmap for essential and most challenged sectors such as agriculture, machinery, automobiles, electronics, textiles, and services (especially banking and telecommunications).
China is the country most sued for anti-dumping since May 2011.
In 1994, China had regulations on anti-dumping in the Chinese market [53].
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Figure 1.5. Number of Chinese anti - dumping lawsuits 1995-2006
Source: Author's calculations based on data from WTO website (2007) Note: 2006 figures as of June 30.
Article 30 of the Foreign Trade Law of China clearly states:
Where a product is imported at less than its normal value and causes or threatens to cause material injury to a domestic industry, or retards the establishment of an industry, the State may take measures to alleviate or stop the injury and threatened injury or retardation [53].
China's anti-dumping regulations have 42 provisions in 6 chapters. Chapter 1 provides general provisions. Chapter 2 defines dumping and dumping injury. Chapter 3 provides anti-dumping investigation procedures. Chapter 4 clarifies anti-dumping measures. Chapter 5 provides special provisions on anti-subsidy and chapter 6 discusses implementation issues.
The four agencies involved in anti-dumping investigations in China include the Ministry of Commerce (formerly the Ministry of Foreign Trade and Economic Cooperation - MOFTEC), the State Economic and Trade Commission (SETC), the Taxation Commission of the State Council (TCSC), and the General Administration of Customs (CGA).
During its WTO accession negotiations, China ranked stricter antidumping regulations as a second priority . China is the country that has suffered the most antidumping judgments from the US Chamber of Commerce. Cheap Chinese goods are also subject to the “non- market economy ” clause, so when assessing the cost structure of production, these goods are subjected to the same cost comparison assessment methods that the US applies to Vietnamese tra and basa fish.
Number of lawsuits Number of lawsuits
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Figure 1.6. Comparison of China 's anti - dumping measures
Source: Author's calculations based on data from WTO website (2007) Note: 2006 figures as of June 30.
Since China became a full member of the WTO in 2001, the number of anti-dumping cases has decreased (Figure 1.6).
China is considered the country that uses the WTO dispute settlement mechanism the most and most effectively to bring about a freer and more equal global trade. China is very flexible and proactive in negotiating with other countries on the use of anti-dumping policies on Chinese exports. China's policy is to prevent , not retaliate , against countries that have or may sue China for dumping. China has established a warning mechanism through the Ministry of Commerce. Accordingly, Chinese business organizations abroad, importers, and law offices can quickly respond to protectionist and anti-dumping actions. Since 2000, China has begun to sue other members for dumping. However, the number of lawsuits filed by China is much less than the number of cases in which China is sued (Figure 1.6).
Thus, China's experience shows that shortening the time to implement protection for industries after joining the WTO is a reality that developing countries have to face. China has proactively proposed a roadmap for implementing trade liberalization. China has effectively applied the dispute settlement mechanism within the WTO framework to solve the anti-dumping problem (the problem that Chinese goods encounter the most when entering the world market).
1.3.4 . US experience
The United States is a pioneer in implementing trade liberalization. The US government always promotes the transparency and effectiveness of international trade principles. For Vietnam, the US market is a promising export market. From the perspective of international trade policy, understanding how to improve the US international trade policy will help
useful for businesses and policy makers.
First of all, the US international trade policy is inseparable and is used as an effective tool in the foreign policy, economic policy and competition policy of the United States. Evidence is the signing of free trade agreements with Israel and Jordan in the Middle East. The US Congress has the right to regulate trade relations with trading countries. The President has the responsibility and authority to negotiate with trading countries. The agency that represents the President to conclude the negotiation issues is the United States Trade Representative - USTR. This agency is a part of the Office of the President. This agency is responsible for coordinating activities to build and perfect international trade policy. The USTR's coordination activities are carried out through the Trade Policy Review Group - TPRG and the Council.
Trade Policy Staff Committee – TPSC. These two groups include 17 federal agencies 16 .
One advantage of the US Government is that it does a very good job of communicating the goals and implementation of international trade policies. The US also publishes assessments of the effectiveness of policy implementation.
The private sector plays an important role in shaping U.S. international trade policy. The private sector participates in the policy process through the industrial committees, the agricultural committees, and the customs and intellectual property committees.
After the events of September 11, 2001, the United States Congress enacted the
16 These bodies include those on trade barriers and distortions; trade in services; foreign investment; intellectual property; transparency; anti-corruption; improving the WTO and multilateral trade agreements; regulatory practices; e-commerce; reciprocal agricultural trade; labor and the environment; dispute settlement; WTO expansion negotiations; trade remedies laws; taxation; negotiations
Homeland Security Act of 2002. This act took effect in March 2003. This act tightened customs procedures by requiring information about goods to be sent to U.S. agencies before the goods arrived at ports.
The agricultural sector, especially fisheries, is protected. Foreign investors are not allowed to participate in some fisheries activities. Foreign investors are only allowed to hold small shares in fishing fleets.
Tariff rate quotas apply to agricultural and fishery products. The number of products covered by tariff rate quotas accounts for about 1.9% of the total US tariff lines [162].
Quantitative restrictions are still used by the United States in some industries, primarily textiles and clothing.
The United States also takes a number of measures to promote exports. For example, the Export-Import Bank of the United States is an agency that specializes in supporting export credit. Foreign trade zones provide preferential treatment in customs procedures and taxes.
The United States is a good user of the WTO dispute settlement mechanism. The most common disputes between the United States and its trading partners are anti-dumping and safeguard measures, which are also common barriers to goods from trading countries.
The US antidumping regulations were originally set forth in sections 800-801 of the Revenue Act of 1916. In the United States, these regulations are referred to as the Antidumping Act.
textiles; child labor.
1916 ( Anti-dumping Act of 1916). This law authorized civil and criminal actions against importers who systematically and habitually import and sell foreign products into the United States at prices substantially below the prices of like products in foreign markets , provided that such action is done with the intent to destroy or injure a United States industry, to retard the establishment of an industry in the United States , or to monopolize or monopolize trade in the United States. This law represents the United States' efforts to combat dumping. The basis of this law was to protect newly established U.S. industries from competition from European goods, especially German enterprises. Although the 1916 Act has been on paper for more than 80 years, it has rarely been applied (there have been no criminal cases involving dumping). Before 1975, there was only one civil case. After 1975, there has been only one civil case. The reason is that it is very difficult to require the plaintiff to produce evidence of intentional dumping. The Trade Act of 1974, Title IV, deals with countries considered to be non-market economies and the
V. Regulations on “Communist State” Issues 17. Treaty Act
The Trade Agreement Act of 1979 adjusted US anti-dumping regulations to better conform with the agreements reached in the Tokyo Round of negotiations [115].
The administrative procedures applicable to anti-dumping are provided for in the Anti-Dumping Act 1916; the Anti-Dumping Act 1921; Title VII of the Tariff Act 1930. The main procedure is that: instead of relying on the action of
17 The President of the United States has no authority to grant preferential treatment to a “communist country” unless (i) products from the country are treated under most-favored-nation rules; (ii) the country is a member of the WTO and the IMF; or “the country is not controlled or manipulated by international communist forces.”