China—Measures Affecting Trading Rights and Distribution Services for Certain Publication and Audiovisual Entertainment Products

WT/DS363/AB/R (January 19, 2010)

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China—Measures Affecting Trading Rights and Distribution Services for Certain Publication and Audiovisual Entertainment Products

World Trade Organization, Appellate Body
WT/DS363/AB/R (January 19, 2010)

JL

Facts

China (defendant) used a state system that exerted strict control over the importation of reading materials, audiovisual materials, sound recordings, and movies. Under this system, only state-owned enterprises were permitted to import such materials. The continuation of this system was a violation of China’s commitments in its Protocol of Accession, which was an agreement with other World Trade Organization (WTO) member countries permitting China to join the WTO. The United States (plaintiff) challenged the system and alleged that it was a violation of the General Agreement on Tariffs and Trade (GATT). China argued that the system was justified under GATT Article XX(a) as a measure necessary to protect public morals. China asserted that the burden would be too great on private companies to have them review materials prior to importation. China also argued that simply having the Chinese government conduct all the import reviews was not a reasonable alternative because of additional staffing and cost. The GATT Panel determined that the system violated the GATT, and China appealed to the WTO Appellate Body.

Rule of Law

Issue

Holding and Reasoning ()

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