On 23 July 2012, the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) established a single panel to examine the complaints brought by the United States, the European Union and Japan against the Chinese export restrictions on rare earth elements (REEs), tungsten and molybdenum. The controversy is very sensitive for at least three series of reasons: a) the economic and strategic relevance of the materials involved in the dispute (rare earths being essential, in particular, for high-tech information, military and green industry); b) the difficult balance to find between mining and trading REEs while protecting the environment and thus respecting the principle of sustainable development enshrined in the Preamble of the Agreement establishing the WTO; c) the challenging task of defining the relation of the WTO-plus obligation to eliminate export duties, characterizing China’s accession to the Marrakech system, with the multilateral public policy exceptions clause enshrined in GATT Article XX. In this brief essay, we intend to offer a short presentation of the above listed salient aspects of the China – Rare Earths controversy also in the light of the recent China – Raw Materials case, underlining the fact that the mineral trade dispute may be positively –and durably- settled only if the under regulated area of WTO law on export restrictions is adequately addressed at political level, a target which can be fostered, inspired and supported by a well-balanced interpretative activity of the Geneva jurisdictional pillar.
The WTO Dispute on Chinese Export Restrictions on Rare Earths: Some First Remarks
BARONCINI, ELISA
2013
Abstract
On 23 July 2012, the Dispute Settlement Body (DSB) of the World Trade Organization (WTO) established a single panel to examine the complaints brought by the United States, the European Union and Japan against the Chinese export restrictions on rare earth elements (REEs), tungsten and molybdenum. The controversy is very sensitive for at least three series of reasons: a) the economic and strategic relevance of the materials involved in the dispute (rare earths being essential, in particular, for high-tech information, military and green industry); b) the difficult balance to find between mining and trading REEs while protecting the environment and thus respecting the principle of sustainable development enshrined in the Preamble of the Agreement establishing the WTO; c) the challenging task of defining the relation of the WTO-plus obligation to eliminate export duties, characterizing China’s accession to the Marrakech system, with the multilateral public policy exceptions clause enshrined in GATT Article XX. In this brief essay, we intend to offer a short presentation of the above listed salient aspects of the China – Rare Earths controversy also in the light of the recent China – Raw Materials case, underlining the fact that the mineral trade dispute may be positively –and durably- settled only if the under regulated area of WTO law on export restrictions is adequately addressed at political level, a target which can be fostered, inspired and supported by a well-balanced interpretative activity of the Geneva jurisdictional pillar.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
