China—Measures Related to the Exportation of Various Raw Materials

WT/DS394, 395, 398/AB/R (February 22, 2012)

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China—Measures Related to the Exportation of Various Raw Materials

World Trade Organization, Appellate Body
WT/DS394, 395, 398/AB/R (February 22, 2012)

JL

Facts

China (defendant) maintained export restraints on a variety of natural resources, including magnesium, silicon carbide, silicon metal, zinc, and others. These natural resources were required in the production of high-technology products. The export restraints were in the form of export duties, export quotas, export licensing, and minimum-export-price requirements. The United States, the European Union, and Mexico (plaintiffs) challenged these export restrictions under the Chinese Protocol of Accession to the World Trade Organization (WTO) and the General Agreement on Tariffs and Trade (GATT). China argued that its export quotas were permitted under both GATT Article XI, as an exception to the prohibition on export quotas for restrictions on essential foodstuffs or other products necessary to temporarily relieve a critical shortage, and GATT Article XX(g), as the general exception for exhaustible natural resources if the restriction is put in place in conjunction with restrictions on domestic production or consumption. The GATT Panel rejected these arguments and ruled against China on the export quotas. China appealed to the WTO Appellate Body.

Rule of Law

Issue

Holding and Reasoning ()

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