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Energy Systems and Technologies for the Coming Century ...

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China successfully builds it wind energy industry within a decade. The Chinesepolicies play an important role in <strong>the</strong> process. China’s experiences have been muchstudied by experts 1415 , international agencies 16 , <strong>and</strong> o<strong>the</strong>r countries.V. The WTO, Its dispute settlement procedures, <strong>and</strong> rules on domesticpolicies <strong>and</strong> measuresThis5.1 The World Trade OrganisationThe World Trade Organization (WTO) was created on 1 January 1995. It is <strong>the</strong> onlyglobal international organization dealing with <strong>the</strong> rules of trade between nations. Itsmain function is to ensure that trade flows as smoothly, predictably <strong>and</strong> freely aspossible. Its processor is <strong>the</strong> General Agreement on Tariffs <strong>and</strong> Trade (GATT) GATTfounded in 1947. The WTO agreements are agreed by consensus by <strong>the</strong> membercountries <strong>and</strong> ratified by <strong>the</strong> parliaments of <strong>the</strong> member countries. As of 2008, 153countries are <strong>the</strong> members of <strong>the</strong> WTO, covering 97% of <strong>the</strong> world trade (see Figure6). The WTO oversees about 60 different agreements which have <strong>the</strong> status ofinternational legal texts. Member countries must sign <strong>and</strong> ratify all WTO agreementson accession.Figure 6. Member countries of <strong>the</strong> WTONote: countries in green are WTO members, countries in yellow are observersSource: WTO websiteThe main activities of WTO includes agreement negotiations, implementing <strong>and</strong>monitoring of <strong>the</strong> agreements, trade dispute settlement, trade capacity building <strong>for</strong>developing country members, as well as outreach about <strong>the</strong> WTO <strong>and</strong> ongoingnegotiations.The WTO follows five key principles: Non-Discrimination. It has two major components: <strong>the</strong> most favourednation (MFN) rule, <strong>and</strong> <strong>the</strong> national treatment policy. Both are embeddedin <strong>the</strong> main WTO rules on goods, services, <strong>and</strong> intellectual property, but14 A Review of <strong>the</strong> Potential International Trade Implications of Key Wind Power Industry Policies inChina, Joanna I. Lewis, Prepared <strong>for</strong> <strong>the</strong> <strong>Energy</strong> Foundation China Sustainable <strong>Energy</strong> Program, 2007.15 Bloomberg New <strong>Energy</strong> Finance 2010 Joined at <strong>the</strong> hip: <strong>the</strong> US-China clean energy relationship-White Paper. 17 May 201016 World Bank, 2010, China’s Envisaged Renewable <strong>Energy</strong> Target: The Green Leap Forward, <strong>Energy</strong>Sector Management Assistance Program (ESMAP), <strong>the</strong> World Bank Group.Risø International <strong>Energy</strong> Conference 2011 Proceedings Page 102

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