China has lost the Rare Earths case before a Panel which, however, split 2:1 on whether the Chinese Accession Protocol's general ban on export duties would allow General Agreement on Tariffs and Trade (GATT) Article XX to be invoked. The question affects whether other Recently Acceded Members' (RAMs') WTO-plus terms of accession should generally be read together with the GATT. Export quotas are unproblematic because Article XI is contained in the GATT. China's quota-based conservation measures were however strictly scrutinized, raising other questions about the room RAMs have to invoke Article XX if they might have to depend upon highly trade-restrictive quotas. This article is about the Panel ruling, China has since appealed.
Global Trade and Customs Journal