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Article
WTO Law and the Right to Regulate: China – Rare Earths
ASIL Insight (2014)
  • Markus Wagner, University of Miami
Abstract
On March 26, 2014, a World Trade Organization (WTO) panel issued its report on a dispute between the European Union, Japan and the United States as complainants and China as respondent over access to so-called “rare earths,” as well as tungsten and molybdenum. The Panel found that China violated its obligations under the General Agreement on Tariffs and Trade 1994 (GATT) and the Accession Protocol by restricting exports of rare earths to manufacturers in other countries, while favoring Chinese competitors. Moreover, the Panel found that China could not invoke justifications under GATT Article XX to justify violation of the relevant provisions of its Accession Protocol and, in any case, China had not satisfied the requirements of Article XX. The Panel decision has implications for China’s right to regulate under the terms of its Accession Protocol as well as the nature of precedent in WTO dispute settlement. These issues will likely be further addressed by the Appellate Body following the United States’ and China’s appeal of the Panel Report.
Keywords
  • international trade law,
  • WTO,
  • World Trade Organization,
  • regulation,
  • rare earths
Publication Date
2014
Citation Information
Markus Wagner. "WTO Law and the Right to Regulate: China – Rare Earths" ASIL Insight Vol. 18 Iss. 26 (2014)
Available at: http://works.bepress.com/markus_wagner/15/