b. China-EU dispute on interpretation of trade agreement
　　This is a case where the dispute ended in an agreed solution based on China’s concession.
　　The Agreement on Trade and Economic Co-operation between the European Economic Community and the People’s Republic of China (1985) is the guiding agreement on trade relationship between China and the EU. However, the Agreement does not contain a provision for resolution of disputes and therefore, no reference can be made to this Agreement to solve the trade disputes between the two parties.
　　Administrative production is a system that China introduced in mid 1980s to grant market exclusivity in China for phamaceuticals and agrochemical product patented in other countries. In 1994, China and the EU reached the agreement on administrative production for phamaceuticals and agrochemical product inventions. At the concluding of the agreement, the EU consisted of 12 Member States. When later other three states, i.e. Austria, Finland and Sweden, acceded to the EU, the Chinese authorities have always previously given a restrictive interpretation and application of the Agreement, and have denied administrative protection to applicants from these new EU Member States. Since then EU raised the issue of equal treatment to these Member States on several occasions. In June 2000, EU Commission Pascal Larmy requested urgent action for equal treatment for all EU Member States from China’s Trade Minister Shi Guangsheng. At the subsequent EU-China Joint Committee in October 2000, Minister Shi agreed in principle to an extension. The EU Delegation in Beijing and the Chinese Ministry of Foreign Trade and Economic Co-operation in February 2001 finally reached a new agreement. The new agreement confirms that administrative protection for phamaceuticals and agrochemical products in China will extent to applicants from Austria, Finland and Sweden.
　　c. China-Korea dispute of garlic export
　　This is another case where China and the other disputant agreed on a solution, with the other disputant making more concessions.

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