Thursday, March 27, 2014

China Rare Earth Panel report out

The China Rare Earth panel report is out and is found here. I had blogged about it in 2012 when the panel was set up here.  
"In respect of findings concerning export duties and export quotas on various forms of rare earths, tungsten, and molybdenum, and restrictions on the trading rights of enterprises exporting rare earths and molybdenum, the Panel has found that the series of measures have operated to impose export duties and export quotas on various forms of rare earths, tungsten, and molybdenum, and restrictions on the trading rights of enterprises exporting rare earths and molybdenum (i.e. the prior export experience requirement, the export performance requirement, and the minimum registered capital requirement), that are inconsistent with China's WTO obligations. The Panel, therefore, recommends that the Dispute Settlement Body requests China to bring its measures into conformity with its WTO obligations such that the series of measures does not operate to bring about a WTO-inconsistent result."
Haven't read the voluminous Panel report of more than 200 pages. Many interesting questions including on the applicability of General Exceptions to obligations under the Accession Protocol of China. WHat impact would this have on other similar measures?

Will this lead to an appeal, compliance or status quo? We will have to wait and see...

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