Study On The Retaliation Mechanism In The CAFTA Dispute Settlement System

With the economical globalization nowadays speeding up the steps of regionaleconomic integration, most of the countries’ level of economic openness are beingraised. Thought at the moment there are still many adversary conditions posed tothe economic globalization due to the wide difference of political and economicalbackground among different states, regional arrangement, which is considered as aneffective alternative, has vigorously developed, in order to solve the problem of thelikelihood of failure of economic globalization. Against the backdrop thereof, CAFTAwas established. Despite the fact that CAFTA will play an important role in fuelingthe whole East Asian region’s economic development, the member states’s regionaltrade activities are still unavoidable to friction, which necessarily leads to the CAFTADispute Settle Framework Agreement,in order to solve this question The CAFTADispute Settlement Agreement is established. What really carries the weight is theretaliation mechanism which is the subject of this thesis and is vitally important interms of supervising, executing the implementation of DSM under CAFTA.This article start with domestic and international background of the traderetaliation system in the dispute settlement system of CAFTA, and then proceed infour parts to introduce the background of CAFTA trade retaliation system,,operational procedure of the system and, lastly, defect and improving suggestion.The first part sets out the definition of retaliation in traditional culture and itsroots firstly, and then introduces the domestic law background thereof, n the end, thebackground of public international law, the background of international economiclaw,which directly affects the CAFTA trade retaliation system.The second part contains the basic system and implementation of the CAFTAretaliation system.It introduces the CAFTA trade retaliation system’s applied subject,application scope, the compensation consultation process, applied level, theapplication of the form and principle, and the application of the period, and retaliation authorized and termination and the deep meaning of the agreement and the relevantprovisions of the matters that should be paid attention to.The third part contains the characteristics of CAFTA compared with WTO andNAFTA arrangements in retaliation system.Through comparative study in retaliationsystem of WTO and NAFTA, found that CAFTA retaliation system’s designcharacteristics and the existing gap,and analyzed the deep reasons of the differencesand the development trend of the future.The fourth part contains the defect and improving suggestion of the CAFTA tradretaliation system.It mainly analysis the system defects that affect the CAFTA traderetaliation system effective operation,and introduces the possibility factors to produceunilateral retaliation system in the CAFTA in the absence of the CAFTA multilateraltrade retaliation system.Finally, put forward feasible suggestions to how to perfect theCAFTA trade retaliation system and also put forward coping strategies to China howto deal with trade retaliation system of CAFTA.