On the WTO legal system and the securities regulatory interaction

[Paper Keywords] wto financial liberalization of financial services trade agreement Legal System of Securities
[Abstract] wto agreement on trade in financial services trade in financial services multilateral legal framework for financial services has provided a free trade
The fundamental binding principles, rules and systems, and its value orientation is the freedom, efficiency, order and safety. wto agreement on trade in financial services, values and the relevant provisions of the Law on securities regulation will affect the legal system, legal system of securities regulation on the wto agreement on trade in financial services, financial liberalization advocated by the reaction, there is strong interaction between the two.

Wto system of trade agreements on financial services provided for the development of financial liberalization, the fundamental binding principles, rules and institutions for the development of international trade in financial services system constructed with the legal framework for multilateral negotiations, has opened a financial services a prelude to multilateral trade Laws. The liberalization of the securities industry development as an important part of financial liberalization is the wto agreement on trade in financial services, one of the objectives to be achieved. Legal System of Securities in protecting wto agreement on trade in financial services liberalization advocated by the securities industry, while there may be the obstacle, wto agreement on trade in financial services and securities regulatory interaction between the legal system.

One, wto agreement on trade in financial services and its orientation
wto international trade in financial services for the construction of the legal framework include: "General Agreement on Trade in Services) (GATS)," Financial Services Annex, "" on the financial services commitment to understanding, "" global financial services trade agreement. "
GATS and the "Financial Services Annex" is the wto agreement on trade in financial services a core part, GATS, as the role of the aim stated, "to establish a multilateral framework for trade in services, to the conditions of transparency and progressive liberalization Under the expansion of free trade, promote economic development of the parties. " International trade in services on the main principles of the legal framework and regulations focus on the GATS, the GATS constitutes therefore the first Law on multilateral international trade in services of the Basic Law.

View of the financial services sector in trade in services position of special importance, while the countries are on the financial sector to strict controls, liberalization of financial sector development trends, such controls constitute the main barriers to trade. wto members of the reach of the "Annex on Financial Services" as a supplement and further GATS provisions. The scope of the annex to the GATS and prudent measures to be clear and that financial services trade dispute settlement, the definition of financial services made a requirement. "Financial Services Annex II" are mainly related to the exemption of financial services to the MFN clause, and members of its specific commitments on financial services part of the improvement, modification and revocation and so forth.

"Commitment to the understanding on financial services" identified a number of countries members of the drafting of the basis of their commitment to financial services, presented by Uruguay Round participants to the General Agreement on Trade in Services is different from the way the third part of the financial services under the Agreement to assume specific commitments, but shall not conflict with the provisions of the General Agreement, and shall ensure that the specific commitments reached in the implementation of an MFN basis.

"Global financial services trade agreement," the content is important for all members of the party's specific commitments on financial services, and Schedule 2 list of exemptions, in full on the basis of the MFN principle, the global bank , securities and financial information included in trade more than 95% of the management and wto dispute settlement mechanism within.

Wto agreement on trade in financial services as a financial liberalization, the multilateral legal framework for the development, through market access and non-discrimination principle and the principle of transparency and the members of the party's specific commitments to enable countries to open their financial markets, prompting countries in financial services Trade gradually reduce the government's administrative intervention, deregulation, protection of allocation of financial resources to market-based resources in the world to achieve the rational, optimal allocation.

Wto agreement on trade in financial services as an adjustment of the rules of international trade in services, substantial financial liberalization is to promote the development of multilateral legal system, have their specific values, their value is bound to penetrate the essence and spirit of its members to relevant Law. This paper argues that wto agreement on trade in financial services is the legal values: freedom, efficiency, order and security. Freedom is the modern rule of law values. wto agreement on trade in financial services the freedom to focus on promoting economic freedom, economic freedom in the realization of the necessary factors, play an important role in the economic system, an economic system can not be achieved if the degree of economic freedom, is an imperfect , defective system, and have proven practical and theoretical economic freedom only in the market economy to become a reality, the market economy requires a wide range of economic freedom, and only in the full realization of the production, exchange, competition, income and so on the basis of freedom the market economic system to function properly, so as to more effectively play the role of resource allocation, on the other hand, only the market economy system to be effective in preventing excessive expansion of state power, the destruction of economic freedom in order to protect the rule of law through the promotion of effective freedom of competition, freedom of contract and business freedom, wto agreement on trade in financial services trade liberalization advocated by the substance of financial services is to ask a government in the domestic and external trade in financial services and gradually reduce the government's administrative intervention, deregulation, market the basis for the allocation of resources to achieve rational resource, optimal allocation, access to the best economic interests, the process to a market economy in the world to form the premise, we can say, wto members on the impact of the largest party in its domestic the establishment of market economy and improvement, through the protection of all members to freedom of the domestic financial sector so as to promote the liberalization of world trade in financial services, wto trade through the establishment of the financial services market access, non-discrimination, transparency, promote the principles of free trade , the realization of freedom of competition reflects the dignity and concern for freedom.

Efficiency is the input of economic organization established to obtain the maximum output of economic resources, the use of state. In terms of value to the law, freedom and efficiency with homogeneity. As mentioned earlier, the main function of free market is to promote efficiency, the full economic freedom is to improve the efficiency of resource allocation of the necessary means, wto agreement on trade in financial services achieved through the establishment of the purpose of financial liberalization in order to improve the efficiency of the financial industry, the most achieve the objective of promoting the liberalization of the provisions are aimed at enhancing the efficiency of the international financial sector, liberalization of trade in financial services makes financial sector competition. Market access and national treatment, MFN, principle of transparency makes the world's financial service providers can actively participate in trade worldwide financial resources to improve efficiency, we can see, efficiency is also the wto agreement on trade in financial services of great value orientation.

However, wto agreement on trade in financial services, freedom and efficiency concerns does not mean there is no constraint headstrong, high-risk financial instability and a huge and devastating all contributed to the wto is also concerned about the financial sector order and security, should respect the members to put forward domestic policies, to recognize members of the party entitled to the services provided within the management and application of the new law provides for "exceptional caution" principle, clear the wto deal with the financial sector liberalization to the efficiency of the safety and security of the financial industry regulatory relationship between the attitude of the legal system, namely, the protection of security and stability of the financial industry under the premise of order to ensure the efficiency of financial sector liberalization, which is the main line, is supporting the former means. Therefore, the security and order is also the wto agreement on trade in financial services, important legal values.

Second, wto agreement on trade in financial services, legal system of securities regulation
wto agreement on financial services liberalization of the securities industry has established the principles and legal framework, legal system of securities regulation does not make a direct requirement, but wto Zuowei Quanqiu economic operation of the multilateral trade rules, but also because the legal system of securities regulation on the special significance of the liberalization of the securities industry, promote financial liberalization wto agreement on trade in financial services, value orientation and the specific provisions of securities regulation will be the law of nations Wang a profound impact on the system.

在 wto drive the wave of financial liberalization, the national legal system of securities regulation for the securities industry is facing the liberalization of the securities market development and protect the stability of the dual mandate, to respond to Zheyi selection dilemma, we must wto the financial leisure services trade under the guidance of the basic principles, the freedom, efficiency, order, security penetration cut securities regulatory spirit of the legal system, so that the domestic legal system of securities regulation in the wto the value of trade in financial services related to the objectives and principles under the guidance of improvement and change. wto the pursuit of freedom and efficiency to relax the strict administrative control, so as the domestic legal system reform securities regulation provides the opportunity and power, from this perspective, financial liberalization in developing countries with economies in transition is essentially Fenwei two levels, first of all to eliminate the state of the domestic financial repression, namely, the achievement of domestic financial liberalization, domestic financial repression mainly refers to the government's direct administrative intervention in the financial sector and the closed state of the domestic financial markets, domestic financial liberalization is to deregulation open trade in financial services; second level of the foreign financial industry open up the domestic market. The liberalization of the securities industry to protect the right direction to prevent the spread of stock market risk, the objective requirements of its members to the domestic legal system of securities regulation reform. The main direction of reform is to relax administrative control and unnecessary government intervention in the market as the basis for allocation of financial resources. Thereby eliminating excessive government intervention, because the domestic financial repression caused by the state. Too much government intervention in the stock market, limiting the market allocation of resources in the role of capital, will inhibit the development of securities markets, leading to inefficiencies in the securities industry, competition is weak, the stock market as a place of financial resources can not play its role in breeding a large number of rent-seeking phenomena. Too many to participate in the government securities market and the specific operation of the business, ignoring the risk of the stock market to prevent and resolve. Once integrated into the wave of financial liberalization, easily exposed its shortcomings, is under attack, induced financial risk. Therefore, to integrate into the development of financial liberalization, the domestic legal system of securities regulation is necessary to move the market, the rule of law in the direction of change, relaxation of government administrative control, and gradually open the capital account, and let the market play a leading role, and improve the securities regulatory legal system, more use of economic and legal means for control. In addition, the government should focus on prevention and mitigate risks, while enhancing international cooperation in securities regulation, jointly prevent the risk of a threat to countries to strengthen the securities market and securities violations against the risk of attack to protect the security and order in the securities market and promoting the healthy development of the liberalization of the securities industry. Links to Research Papers Download http://www.hi138.com
wto agreement on trade in financial services, although not on the national securities regulatory provisions of the legal system to do directly, but the securities regulatory liberalization of legal system and the close relationship between the securities industry, wto agreement on trade in financial services are still made of the securities regulatory the relevant provisions of the legal system. From the GATS and its annexes can be seen W'lO the relevant provisions of multilateral agreements on financial services guaranteed by the wave of financial liberalization and the domestic legal system, the relationship between the securities regulatory attitude. GAPS in the preamble that is expressly provided that "in due respect to domestic policy objectives while" on the basis of mutual benefit to promote bilateral negotiations in order to achieve progressively higher levels of service trade liberalization. Preface by recognizing the right of its members to provide the services within the management and application of the new law, and ensure its members to achieve domestic policy objectives, based on considerations of the special circumstances of domestic law applicable to the autonomy of the terms of the securities industry If the members of the party in the performance of GATS provisions on trade in financial services or commitments to the domestic securities industry is facing serious difficulties, the right to adopt and adapt to the financial difficulties of the securities regulatory measures to avoid the risk of stock market continued to expand. The provisions of the service trade liberalization are defined as "progressive." Members regardless of their party rather than domestic realities "across the board", so that countries, especially developing countries face the wto agreement to eliminate the psychological concerns, and expanded the scope of the agreement wto.

GATS Financial Services Annex II stipulates that Member country can be based on relevant measures taken with caution because, without the need to consider whether the breach of commitments or obligations. As financial services under GATS Annex, which provides for the adoption of national domestic securities regulators to provide a direct basis for the protection of the dominant direction of financial liberalization, the adoption of prudent regulatory measures have been limited, first of all, the adoption of regulatory measures should be For the purpose of prudential supervision to ensure that, as to whether the substance would GATS commitments and obligations related to damage, not considered to be only from the limited purposes, adequate protection of the members of the party which provides for the use of the rights and possibilities for "prudent reasons." Including for the protection of investors, depositors, policy holders or financial service providers bear the faithful of their obligation to the measures taken by the person, or to ensure the unity and stability of the financial system and the other for the purpose of care measures , a State of a regulatory measures for prudential purposes should normally be based on the specific circumstances of the country to judge, member parties can not otherwise easily lead to the use of regulatory measures to maintain financial stability, financial liberalization or impede the development of the consequences. Second, the members of the party to take appropriate regulatory measures should not be used with caution to avoid the Member under this Agreement means the commitments or obligations to determine the relevant members of the side to take regulatory measures to be used with caution to avoid their commitments or obligations of the standards also The members of the party should be based on the specific circumstances of the country to determine whether the direct purpose of the reasons for caution, if the Member State concerned that the care for reasons of non-regulatory measures taken by the right to challenge and be determined through the dispute settlement procedures relevant regulatory measures are beyond the scope of care.

Practice, many non-discriminatory rules and regulatory system itself constitutes a trade barrier, which, wto want members to the possible regulatory measures constitute barriers to services trade commitments to make an exception, with the exception of commitment does not impose obligations on wto But members to make exceptions if a negotiated commitments, it will eliminate its non-discriminatory regulatory measures into the country in the wto obligations under the force will be wto dispute settlement mechanism to ensure their implementation of the commitments. In addition, wto members to put forward the bilateral coordination mechanism should be used to negotiate a mutual recognition agreement on the certificate or qualification, and to allow other members to join such an agreement through negotiation, so as to ask the Member of coordination to gradually reduce the regulatory barriers, promote the liberalization of the securities industry, offers the possibility, there are many countries reached a memorandum of understanding on bilateral cooperation and assistance in monitoring the treaty] wto also initiated the use of multilateral negotiations to establish the form of recognition and harmonization of standards, and through the establishment of and participation in international organizations recognition and coordination of these standards will be promoted, and ultimately established as the international securities regulators into a cultural practice or the rules, regional and international cooperation organizations, securities regulators have been established and the coordination of the national securities regulators made a lot of effort, developed Some documents are recognized securities regulation, securities regulation during the international practice is established.

Third, the legal system for financial securities regulatory reaction
wto liberalization of financial services trade liberalization as one of the important areas, and because of its role in promoting financial liberalization and the cornerstone of its financial liberalization the status of fundamental wave can be said that 90 years after the financial liberalization in the wto is mainly driven by the development, wto agreement on trade in financial services regulation in the securities of the same legal system, legal system of securities regulation advocated by wto financial liberalization have a certain reaction, thus affecting the wto agreement on trade in financial services implementation. The positive reaction both positive and negative negative impact.

Theory, financial liberalization can improve the efficiency of the financial sector, reduce service costs, optimize the allocation of resources worldwide, and to provide more variety of services, but the wave of financial liberalization allows a high degree of international capital flows and financial the rapid development of derivative instruments. Capital in the international market and highly liquid financial derivatives continue to produce the financial sector initiatives to reduce risk, but in fact, a large number of high-speed flows of international capital and financial derivatives has led to a series of financial crises, outbreaks continue to large-scale financial crisis increased the scale of financial risks, financial risks, financial liberalization makes worldwide communication and the proliferation of illegal cross-border financial crime rampant, the regulatory legal system is still limited within the borders of a country, therefore, financial wave of liberalization requires States to change and improve the domestic legal system of regulation, deregulation, strengthening national regulatory coordination and cooperation in the legal system to safeguard the steady development of financial liberalization and to States to share its benefits. Advantages of financial liberalization depends on whether the wave of financial liberalization, a sound regulatory basis of the legal system, the lack of this foundation, the wave of liberalization will only lead to chaos and disorder in the state. Wto liberalization of the securities industry is an important financial liberalization advocated by the content. High-risk securities industry after the liberalization of the performance of the more prominent, with the integrated development of the securities market, stock market information asymmetry cause failure of a country beyond the limits of the system and law and national jurisdiction, the breeding ground a large number of cross-border insider trading, manipulation and fraud, increasing the potential financial risk factor, the integration of securities markets will lead to financial risk at the regional and international spread rapidly within the international capital markets for hedging the huge hot money or speculative purposes large transfer of funds, it will directly impact on the domestic securities market, serious damage to national stability and prosperity of the stock market, and quickly spread to the international level, so that the outcome of financial liberalization has been great destruction, countries should improve the security the legal system can control the risk to a minimum range, and through the national securities regulatory coordination of the international legal system, increase monitoring and combating common threats to the international securities market securities wrongful act in order to avoid the liberalization of the securities industry occurred during the adverse factors. Can be said that national securities regulatory legal system is healthy and stable development of the wave of financial liberalization objective requirement and an important guarantee for this is the wto agreement on trade in financial services security, order and reflect the value of objective requirements. Legal System of Securities on the one hand to protect the wto promoted the healthy and stable development of financial liberalization, on the other hand, overly stringent regulation and liberalization will have a negative effect, the government securities market and the closure of the direct administrative intervention status of the domestic market will become an insurmountable financial liberalization to promote domestic obstacles, and as such, wto to ask for financial liberalization advocated by national securities regulators to change the legal system, deregulation, market-oriented intervention in enhancing and promoting the coordination of securities regulation and legal systems international securities regulation, and ultimately to establish a unified securities regulatory international legal system to more effectively protect the wto agreement on trade in financial services implementation.

Wto agreement on trade in financial services provisions of the value of goals and a profound impact on the domestic legal system of securities regulation, wto financial liberalization advocated by the legal system for domestic securities regulation provided the impetus for change, indicating the direction of development, and improve domestic legal system of securities regulation and protection of the wto advocated the realization of financial liberalization. Links to Research Papers Download http://www.hi138.com