RISK MANAGEMENT and CONTRACTUAL ISSUES IN SINO-AUSTRALIAN WOOL TRADE IN THE WTO ERA1

China’s WTO accession is not a commitment to guarantee contractual obligations – it is not a guarantee to pay! (White, 2001) Much has been made of the impact of the WTO on trade with China as it further integrates into global economy and as it interacts with foreign markets. Using an industry case study, this paper seeks to investigate whether these institutions can really affect everyday transactions as intended. Many observers, inside and outside China, subscribe to the sentiment that WTO accession will act as further stimulant to economic reforms and growth. China is widely acknowledged as the dominant force in the world textile sector. Australia has been supplying China’s wool textile sector with raw material fo