WT/DS431/AB/R • WT/DS432/AB/R • WT/DS433/AB/R
- 153 -
China – measures related to the exportation
of rare earths, tungsten, and molybdenum
AB-2014-3
AB-2014-5
AB-2014-6
Reports of the Appellate Body
Note:
The Appellate Body is issuing these Reports in the form of a single document constituting three separate Appellate Body Reports: WT/DS431/ABR; WT/DS432/AB/R; and WT/DS433/AB/R. The cover page, preliminary pages, sections 1 through 5, and the annexes are common to all three Reports. The page header throughout the document bears the three document symbols WT/DS431/ABR; WT/DS432/AB/R; and WT/DS433/AB/R, with the following exceptions: section 6 on pages US-154 to US-155, which bears the document symbol for and contains the Appellate Body's conclusions and recommendations in the Appellate Body Report WT/DS431/AB/R; section 6 on pages EU-156 to EU-157, which bears the document symbol for and contains the Appellate Body's conclusions and recommendations in the Appellate Body Report WT/DS432/AB/R; and section 6 on pages JPN-158 to JPN-159, which bears the document symbol for and contains the Appellate Body's conclusions and recommendations in the Appellate Body Report WT/DS433/AB/R.
Table of Contents
1 Introduction 16
1.1 Panel proceedings 17
1.2 Appellate proceedings 22
1.3 Procedural issues raised in these appeals 24
1.3.1 Allocation of appeal numbers 24
1.3.2 China's challenge to the United States' Notice of Appeal and request for an extension of the time periods for filing submissions 24
1.3.3 Consolidation of the appellate proceedings and Japan's request for an extension of the time period for filing third participants' submissions 25
1.3.4 Requests by the complainants for separate reports 26
2 arguments of the participants and third participants 26
2.1 Claims of error by the United States – Appellant (DS431) 26
2.2 Arguments of China – Appellee (DS431) 28
2.3 Claims of error by China – Appellant (DS432 and DS433) and other appellant (DS431) 29
2.3.1 Article XII:1 of the Marrakesh Agreement and Paragraph 1.2 of China's Accession Protocol 29
2.3.1.1 Paragraph 1.2 of China's Accession Protocol 29
2.3.1.2 Article XII:1 of the Marrakesh Agreement 31
2.3.1.3 The relationship between China's Accession Protocol, on the one hand, and the Marrakesh Agreement and the Multilateral Trade Agreements annexed thereto, on the other hand 32
2.3.2 Article XX(g) of the GATT 1994 33
2.3.2.1 Article XX(g) – "Relating to" the conservation of exhaustible natural resources 33
2.3.2.2 Article XX(g) – "Made effective in conjunction with" restrictions on domestic production or consumption 38
2.4 Arguments of the United States – Appellee (DS431) and third participant (DS432 and DS433) 44
2.4.1 Article XII:1 of the Marrakesh Agreement and Paragraph 1.2 of China's Accession Protocol 44
2.4.1.1 Paragraph 1.2 of China's Accession Protocol 45
2.4.1.2 Article XII:1 of the Marrakesh Agreement 46
2.4.1.3 The relationship of accession protocol provisions with the Marrakesh Agreement and the Multilateral Trade Agreements annexed thereto 47
2.4.2 Article XX(g) of the GATT 1994 48
2.4.2.1 ArticleXX(g) – "Relating to" the conservation of exhaustible natural resources 48
2.4.2.2 Article XX(g) – "Made effective in conjunction with" restrictions on domestic production or consumption 51
2.5 Arguments of the European Union – Appellee (DS432) and third participant (DS431 and DS433) 54
2.5.1 Article XII:1 of the Marrakesh Agreement and Paragraph 1.2 of China's Accession Protocol 54
2.5.1.1 Paragraph 1.2 of China's Accession Protocol 54
2.5.1.2 Article XII:1 of the Marrakesh Agreement 56
2.5.1.3 The relationship of accession protocol provisions with the Marrakesh Agreement and the Multilateral Trade Agreements annexed thereto 56
2.5.2 Article XX(g) of the GATT 1994 57
2.5.2.1 ArticleXX(g) – "Relating to" the conservation of exhaustible natural resources 57
2.5.2.2 Article XX(g) – "Made effective in conjunction with" restrictions on domestic production or consumption 61
2.6 Arguments of Japan – Appellee (DS433) and third participant (DS431 and DS432) 65
2.6.1 Article XII:1 of the Marrakesh Agreement and Paragraph 1.2 of China's Accession Protocol 65
2.6.1.1 Paragraph 1.2 of China's Accession Protocol 65
2.6.1.2 Article XII:1 of the Marrakesh Agreement 66
2.6.1.3 The relationship of accession protocol provisions with the Marrakesh Agreement and the Multilateral Trade Agreements annexed thereto 67
2.6.2 Article XX(g) of the GATT 1994 68
2.6.2.1 ArticleXX(g) – "Relating to" the conservation of exhaustible natural resources 68
2.6.2.2 Article XX(g) – "Made effective in conjunction with" restrictions on domestic production or consumption 71
2.7 Arguments of the third participants 74
2.7.1 Argentina 74
2.7.2 Australia 75
2.7.3 Brazil 75
2.7.4 Canada 77
2.7.5 Colombia 79
2.7.6 European Union 79
2.7.7 Korea 79
2.7.8 Norway 80
2.7.9 Russia 80
2.7.10 Saudi Arabia 80
2.7.11 Turkey 81
3 issues raised in these appeals 82
4 BACKGROUND AND OVERVIEW OF THE MEASURES AT ISSUE 83
5 analysis of the appellate body 87
5.1 Article XII:1 of the Marrakesh Agreement and Paragraph 1.2 of China's Accession Protocol 87
5.1.1 Introduction 87
5.1.2 The Panel's findings 88
5.1.2.1 The context in which the Panel findings subject to appeal were made 88
5.1.2.2 The Panel findings appealed by China 89
5.1.2.3 Overview of the claims and arguments by the participants 91
5.1.3 Interpretation of Article XII:1 of the Marrakesh Agreement and Paragraph 1.2 of China's Accession Protocol 92
5.1.3.1 Introduction 92
5.1.3.2 Article XII:1 of the Marrakesh Agreement 93
5.1.3.3 Paragraph 1.2 of China's Accession Protocol 97
5.1.3.4 The relationship between China's Accession Protocol, on the one hand, and the Marrakesh Agreement and the Multilateral Trade Agreements annexed thereto, on the other hand 102
5.1.3.5 Conclusion 108
5.2 ArticleXX(g) of the GATT1994 109
5.2.1 China's claims under ArticleXX(g) of the GATT 1994 109
5.2.2 The Panel's findings 110
5.2.3 The Panel findings appealed by China 111
5.2.4 ArticleXX(g) of the GATT1994 as a whole 112
5.2.5 China's claim that the Panel erred in its interpretation of the term "relating to" 116
5.2.6 China's claims that the Panel erred in its interpretation of the phrase "made effective in conjunction with" restrictions on domestic production or consumption 121
5.2.7 Application of ArticleXX(g) of the GATT1994 126
5.2.7.1 Introduction 126
5.2.7.2 China's claim that the Panel erred in its application of the "relating to" requirement 126
5.2.7.3 China's claims that the Panel erred in its application of the "made effective in conjunction with" requirement 132
5.2.8 China's claims under Article11 of the DSU 135
5.2.8.1 Claims that the Panel failed to comply with Article11 of the DSU in its analysis of whether China's export quotas "relate to" conservation 136
5.2.8.2 Claims that the Panel failed to comply with Article 11 of the DSU in its analysis of whether China's export quotas were "made effective in conjunction with" restrictions on domestic production or consumption 144
5.2.9 Overall summary and conclusion on ArticleXX(g) of the GATT1994 150
5.3 Exclusion of Panel Exhibits JE-188 through JE-197 in DS431 (Appeal by the UnitedStates) 152
6 findings and conclusions in the appellate body report in ds431 US-154
6 findings and conclusions in the appellate body report in ds432 EU-156
6 findings and conclusions in the appellate body report in ds433 JPN-158
ANNEX 1Notification of an Appeal by the United States, WT/DS431/9 160
ANNEX 2Notification of an Other Appeal by China, WT/DS431/10 161
ANNEX 3Notification of an Appeal by China, WT/DS432/9, WT/DS433/9 164
ANNEX 4Appellate Body Procedural Ruling of 13 April 2014 167
ANNEX 5Appellate Body Procedural Ruling of 1 May 2014 173
CASES CITED IN THese REPORTs
Argentina – Footwear (EC) / Appellate Body Report, Argentina – Safeguard Measures on Imports of Footwear, WT/DS121/AB/R, adopted 12 January 2000, DSR2000:I, p.515
Argentina – Footwear (EC) / Panel Report, Argentina – Safeguard Measures on Imports of Footwear, WT/DS121/R, adopted 12January 2000, as modified by Appellate Body Report WT/DS121/AB/R, DSR2000:II, p.575
Argentina – Textiles and Apparel / Appellate Body Report, Argentina – Measures Affecting Imports of Footwear, Textiles, Apparel and Other Items, WT/DS56/AB/R and Corr.1, adopted 22 April 1998, DSR1998:III, p.1003
Australia – Salmon / Appellate Body Report, Australia – Measures Affecting Importation of Salmon, WT/DS18/AB/R, adopted 6 November 1998, DSR1998:VIII, p.3327
Brazil – Retreaded Tyres / Appellate Body Report, Brazil – Measures Affecting Imports of Retreaded Tyres, WT/DS332/AB/R, adopted 17 December 2007, DSR2007:IV, p.1527
Canada – Continued Suspension / Appellate Body Report, Canada – Continued Suspension of Obligations in the EC – Hormones Dispute, WT/DS321/AB/R, adopted 14November 2008, DSR2008:XIV, p.5373
Canada – Herring and Salmon / GATT Panel Report, Canada – Measures Affecting Exports of Unprocessed Herring and Salmon, L/6268, adopted 22 March 1988, BISD 35S, p.98
Chile – Price Band System / Appellate Body Report, Chile – Price Band System and Safeguard Measures Relating to Certain Agricultural Products, WT/DS207/AB/R, adopted 23October 2002, DSR2002:VIII, p.3045 (Corr.1, DSR2006:XII, p.5473)
Chile – Price Band System (Article21.5 – Argentina) / Appellate Body Report, Chile – Price Band System and Safeguard Measures Relating to Certain Agricultural Products – Recourse to Article21.5 of the DSU by Argentina, WT/DS207/AB/RW, adopted 22 May 2007, DSR2007:II, p.513
China – GOES / Appellate Body Report, China – Countervailing and Anti-Dumping Duties on Grain Oriented Flat-Rolled Electrical Steel from the UnitedStates, WT/DS414/AB/R, adopted 16 November 2012
China – Publications and Audiovisual Products / Appellate Body Report, China – Measures Affecting Trading Rights and Distribution Services for Certain Publications and Audiovisual Entertainment Products, WT/DS363/AB/R, adopted 19 January 2010, DSR2010:I, p.3
China – Publications and Audiovisual Products / Panel Report, China – Measures Affecting Trading Rights and Distribution Services for Certain Publications and Audiovisual Entertainment Products, WT/DS363/R and Corr.1, adopted 19January 2010, as modified by Appellate Body Report WT/DS363/AB/R, DSR2010:II, p.261
China – Rare Earths / Panel Reports, China – Measures Related to the Exportation of Rare Earths, Tungsten, and Molybdenum, WT/DS431/R / WT/DS432/R / WT/DS433/R, circulated to WTO Members 26 March 2014
China – Raw Materials / Appellate Body Reports, China – Measures Related to the Exportation of Various Raw Materials, WT/DS394/AB/R / WT/DS395/AB/R / WT/DS398/AB/R, adopted 22 February 2012
China – Raw Materials / Panel Reports, China – Measures Related to the Exportation of Various Raw Materials, WT/DS394/R / WT/DS395/R / WT/DS398/R / Add.1 and Corr.1, adopted 22 February 2012, as modified by Appellate Body Reports WT/DS394/AB/R / WT/DS395/AB/R / WT/DS398/AB/R
EC – Asbestos / Appellate Body Report, European Communities – Measures Affecting Asbestos and AsbestosContaining Products, WT/DS135/AB/R, adopted 5 April 2001, DSR2001:VII, p.3243
EC – BananasIII
(Article21.5 – EcuadorII) /
EC – BananasIII
(Article21.5 – US) / Appellate Body Reports, European Communities – Regime for the Importation, Sale and Distribution of Bananas – Second Recourse to Article21.5 of the DSU by Ecuador, WT/DS27/AB/RW2/ECU, adopted 11December 2008, and Corr.1 / European Communities – Regime for the Importation, Sale and Distribution of Bananas – Recourse to Article21.5 of the DSU by the United States, WT/DS27/AB/RW/USA and Corr.1, adopted 22December 2008, DSR2008:XVIII, p.7165
EC – Bed Linen
(Article21.5 – India) / Appellate Body Report, European Communities – AntiDumping Duties on Imports of CottonType Bed Linen from India – Recourse to Article21.5 of the DSU by India, WT/DS141/AB/RW, adopted 24April 2003, DSR2003:III, p.965
EC – Fasteners (China) / Appellate Body Report, European Communities – Definitive Anti-Dumping Measures on Certain Iron or Steel Fasteners from China, WT/DS397/AB/R, adopted 28July 2011, DSR 2011:VII, p.3995
EC – Hormones / Appellate Body Report, EC Measures Concerning Meat and Meat Products (Hormones), WT/DS26/AB/R, WT/DS48/AB/R, adopted 13February 1998, DSR1998:I, p.135
EC – Poultry / Appellate Body Report, European Communities – Measures Affecting the Importation of Certain Poultry Products, WT/DS69/AB/R, adopted 23July 1998, DSR1998:V, p.2031
EC – Sardines / Appellate Body Report, European Communities – Trade Description of Sardines, WT/DS231/AB/R, adopted 23October 2002, DSR2002:VIII, p.3359
EC – Seal Products / Appellate Body Reports, European Communities – Measures Prohibiting the Importation and Marketing of Seal Products, WT/DS400/AB/R / WT/DS401/AB/R, adopted 18 June 2014
EC – Selected Customs Matters / Appellate Body Report, European Communities – Selected Customs Matters, WT/DS315/AB/R, adopted 11December 2006, DSR2006:IX, p.3791
EC – Tube or Pipe Fittings / Appellate Body Report, European Communities – AntiDumping Duties on Malleable Cast Iron Tube or Pipe Fittings from Brazil, WT/DS219/AB/R, adopted 18August 2003, DSR2003:VI, p.2613
EC and certain member States – Large Civil Aircraft / Appellate Body Report, European Communities and Certain Member States – Measures Affecting Trade in Large Civil Aircraft, WT/DS316/AB/R, adopted 1 June 2011, DSR 2011:I, p.7
India – Patents (US) / Appellate Body Report, India – Patent Protection for Pharmaceutical and Agricultural Chemical Products, WT/DS50/AB/R, adopted 16January 1998, DSR1998:I, p.9
Japan – Agricultural ProductsII / Appellate Body Report, Japan – Measures Affecting Agricultural Products, WT/DS76/AB/R, adopted 19March 1999, DSR1999:I, p.277
Japan – Alcoholic BeveragesII / Appellate Body Report, Japan – Taxes on Alcoholic Beverages, WT/DS8/AB/R, WT/DS10/AB/R, WT/DS11/AB/R, adopted 1 November 1996, DSR1996:I, p.97
Japan – Apples / Appellate Body Report, Japan – Measures Affecting the Importation of Apples, WT/DS245/AB/R, adopted 10December 2003, DSR2003:IX, p.4391
Korea – Alcoholic Beverages / Appellate Body Report, Korea – Taxes on Alcoholic Beverages, WT/DS75/AB/R, WT/DS84/AB/R, adopted 17 February 1999, DSR1999:I, p.3
Korea – Dairy / Appellate Body Report, Korea – Definitive Safeguard Measure on Imports of Certain Dairy Products, WT/DS98/AB/R, adopted 12January 2000, DSR2000:I, p.3
Korea – Various Measures on Beef / Appellate Body Report, Korea – Measures Affecting Imports of Fresh, Chilled and Frozen Beef, WT/DS161/AB/R, WT/DS169/AB/R, adopted 10January 2001, DSR2001:I, p.5
Thailand – Cigarettes (Philippines) / Appellate Body Report, Thailand – Customs and Fiscal Measures on Cigarettes from the Philippines, WT/DS371/AB/R, adopted 15 July 2011, DSR 2011:IV, p.2203
US – Canadian Tuna / GATT Panel Report, United States – Prohibition of Imports of Tuna and Tuna Products from Canada, L/5198, adopted 22 February 1982, BISD 29S, p.91
US – Carbon Steel / Appellate Body Report, United States – Countervailing Duties on Certain CorrosionResistant Carbon Steel Flat Products from Germany, WT/DS213/AB/R and Corr.1, adopted 19 December 2002, DSR2002:IX, p.3779
US – Clove Cigarettes / Appellate Body Report, United States – Measures Affecting the Production and Sale of Clove Cigarettes, WT/DS406/AB/R, adopted 24April 2012, DSR 2012: XI, p. 5751
US – Continued Suspension / Appellate Body Report, United States – Continued Suspension of Obligations in the EC – Hormones Dispute, WT/DS320/AB/R, adopted 14November 2008, DSR2008:X, p.3507
US – Countervailing and AntiDumping Measures (China) / Appellate Body Report, United States – Countervailing and Anti-Dumping Measures on Certain Products from China, WT/DS449/AB/R, adopted 22 July 2014
US – Gambling / Appellate Body Report, United States – Measures Affecting the CrossBorder Supply of Gambling and Betting Services, WT/DS285/AB/R, adopted 20 April 2005, DSR2005:XII, p.5663 (Corr.1, DSR2006:XII, p.5475)
US – Gasoline / Appellate Body Report, United States – Standards for Reformulated and Conventional Gasoline, WT/DS2/AB/R, adopted 20 May 1996, DSR1996:I, p.3
US – Large Civil Aircraft (2nd complaint) / Appellate Body Report, United States – Measures Affecting Trade in Large Civil Aircraft (Second Complaint), WT/DS353/AB/R, adopted 23 March 2012
US – Oil Country Tubular Goods Sunset Reviews / Appellate Body Report, United States – Sunset Reviews of AntiDumping Measures on Oil Country Tubular Goods from Argentina, WT/DS268/AB/R, adopted 17December 2004, DSR2004:VII, p.3257
US – Section 301 Trade Act / Panel Report, United States – Sections 301310 of the Trade Act of 1974, WT/DS152/R, adopted 27January 2000, DSR2000:II, p.815
US – Shrimp / Appellate Body Report, United States – Import Prohibition of Certain Shrimp and Shrimp Products, WT/DS58/AB/R, adopted 6 November 1998, DSR1998:VII, p.2755
US – Shrimp / Panel Report, United States – Import Prohibition of Certain Shrimp and Shrimp Products, WT/DS58/R and Corr.1, adopted 6 November 1998, as modified by Appellate Body Report WT/DS58/AB/R, DSR1998:VII, p.2821
US – Shrimp (Thailand) /
US – Customs Bond Directive / Appellate Body Report, United States – Measures Relating to Shrimp from Thailand / United States – Customs Bond Directive for Merchandise Subject to AntiDumping/Countervailing Duties, WT/DS343/AB/R / WT/DS345/AB/R, adopted 1August 2008, DSR2008:VII, p.2385 / DSR2008:VIII, p.2773
US – Stainless Steel (Mexico) / Appellate Body Report, United States – Final AntiDumping Measures on Stainless Steel from Mexico, WT/DS344/AB/R, adopted 20 May 2008, DSR2008:II, p.513
US – Steel Safeguards / Appellate Body Report, United States – Definitive Safeguard Measures on Imports of Certain Steel Products, WT/DS248/AB/R, WT/DS249/AB/R, WT/DS251/AB/R, WT/DS252/AB/R, WT/DS253/AB/R, WT/DS254/AB/R, WT/DS258/AB/R, WT/DS259/AB/R, adopted 10December 2003, DSR2003:VII, p.3117
US – Tyres (China) / Appellate Body Report, United States – Measures Affecting Imports of Certain Passenger Vehicle and Light Truck Tyres from China, WT/DS399/AB/R, adopted 5 October 2011, DSR 2011:IX, p.4811
US – Upland Cotton (Article21.5 – Brazil) / Appellate Body Report, United States – Subsidies on Upland Cotton – Recourse to Article21.5 of the DSU by Brazil, WT/DS267/AB/RW, adopted 20June 2008, DSR2008:III, p.809
US – Wheat Gluten / Appellate Body Report, United States – Definitive Safeguard Measures on Imports of Wheat Gluten from the European Communities, WT/DS166/AB/R, adopted 19January 2001, DSR2001:II, p.717
Panel exhibitS CITED IN THese reports