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The World Trade Organization’s dispute settlement mechanism has considered and decided several cases involving export restrictions. Among these cases the most important and most recent is the China Rare Earths Case. In this paper the authors analyze and evaluate the panel and Appellate Body opinions in the Rare Earths Case. Three points are especially important. First, the case brings out the fact of the disparity between import and export measures in the law of the WTO. Unlike import measures, WTO discipline with respect to export measures is haphazard, inconsistent and unfair. Second, the case highlights the issue of the relationship between WTO Accession Protocols and the WTO Agreement. The authors dispute the conclusion of the Appellate Body that the rules of the GATT, specifically the general exceptions, do not apply to certain parts of China’s Accession Protocol. Third, the case shows the limitations that apply under WTO law with respect to conservation measures of natural resources that move in international trade.
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Donella H. Meadows et al. ( 1972). The Limits to Growth.
WT/DS431,432,433, Report of the Panel (2014) and Report of the Appellate Body (2014).
John H. Jackson, William Davy & Allan Sykes: The Law of International Economic Relations (West., 3d Ed., 1995), p. 945.
Japan-Trade in Semiconductors, adopted 4 May 1988, BISD 355/116.
Argentina-Measures Affecting the Export of Bovine Hides and Finished Leathehr, WT/DS155/R/DSR 2001, V, 1770.
China-Measures Relating to Exportation of Various Raw Materials, WT/DS394/R: WT/DS395/R; WT/DS398/R, 5 July 2011.
China-Measures relating to the Exportation of Rare Earths, Tungsten and molybdenum, Report of the Panel, 26 March 2014, WT/DS431/R; DS432/R; DSD433/R.
China-Measures Affecting Trading Rights and Distribution Services for Certain Publications and Audiovisual Entertainment Products, WT/DS363/AB/R, adopted 19 January 2010.
Inside U.S. Trade, “U.S. Appeals WTO Rare Earths Ruling; China Appeals GPX Panel Report”, April 9, 2014.
China-Measures Relating to the Exportation of Various Raw Materials, WT/DS395/AB/R; WT/DS395/AB/R; DS398/AB/R (hereafter referred to as China-Rare Earth), Para 5.32.
China- Rare Earths, Paras 5.42, 5.44, 5.45, 5.49.
China- Rare Earths, Para 5.63.
China- Rare Earths, Para 5.108.
China- Rare Earths, Para 5.118.
China- Rare Earths, Para 5.126, 5.127.
China- Rare Earths, Para 5.141.
China- Rare Earths, Para 5.159.
China- Rare Earths, Para 5.194.
China- Rare Earths, Para 5.199.
BNA, WTO Reporter, 2014, 09/08.
Article 5: 2 (a) of the Safeguard Agreement requires that a WTO member applying import quota as a safeguard measure must consult with other members having a substantial interest in supplying the product in question with respect to the shares of such members that will be allotted to them with a view to reaching an agreement with them. However, Article 5: 2 (a) continues that, when this method is not reasonably practicable, “the Member concerned shall allot to Members having a substantial interest in supplying the product shares based upon the proportions supplied by such Members during a previous representative period, of the total quantity or value of imports of the product, due account being taken of any special factors which may have affected or may be affecting the trade in the product”.
Zurück zum Zitat Jackson, J. H., Davy, W. J., & Sykes, A. O. (1995). The law of international economic relations (3rd ed, p. 945). St. Paul: West Pub. Co. Jackson, J. H., Davy, W. J., & Sykes, A. O. (1995). The law of international economic relations (3rd ed, p. 945). St. Paul: West Pub. Co.
Zurück zum Zitat Meadows, D. H., et al. (1972). The limits to growth. New York: Universe Books. Meadows, D. H., et al. (1972). The limits to growth. New York: Universe Books.
- A Note on the China Rare Earths Case
Thomas J. Schoenbaum
- Springer Japan
- Chapter 5
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