China’s Rare Earths Export Quotas: Out of the China-Raw Materials Gate, but Past the WTO’s Finish Line?

15 (4) Journal of International Economic Law (2012)

35 Pages Posted: 2 Jan 2013

See all articles by Han-Wei Liu

Han-Wei Liu

Monash University

John Maughan

Graduate Institute of International and Development Studies

Date Written: November 21, 2012

Abstract

Several recent studies have discussed the ramifications of the China-Raw Materials case for China's rare earths. However, none of these studies has conducted a thorough investigation of China's current export quota regime for rare earths or how it might stand up under WTO rules, assuming that it would be treated the same. This article makes no such assumption, investigating China's export quota regime for rare earths as it stands in early June 2012. The regime is somewhat improved over that applied during the Raw Materials case and could allow a more favorable WTO ruling. However, if General Agreement on Tariffs and Trade (GATT) disciplines are interpreted narrowly, as in China-Raw Materials, this article finds that the current regime still falls short of certain GATT exceptions. This article informs future analyses of China’s export quota regime for rare earths. Beyond the case of China, it also invites discussion on the appropriate amount of 'policy space' WTO Members should enjoy for imposing export quotas under the relevant GATT disciplines for resource conservation and environmental protection.

Keywords: Rare earths, WTO, China, raw materials, export restrictions

JEL Classification: K33

Suggested Citation

Liu, Han-Wei and Maughan, John, China’s Rare Earths Export Quotas: Out of the China-Raw Materials Gate, but Past the WTO’s Finish Line? (November 21, 2012). 15 (4) Journal of International Economic Law (2012), Available at SSRN: https://ssrn.com/abstract=2179189

Han-Wei Liu (Contact Author)

Monash University ( email )

900 Dandenong Road
Caulfield, Victoria 3145
Australia

HOME PAGE: http://scholar.google.com/citations?user=37GMiZcAAAAJ&hl=en

John Maughan

Graduate Institute of International and Development Studies ( email )

Geneva, 1202
Switzerland

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