Analyze de following dispute settleman, give a summary, and stablish: Positions

Question

Analyze de following dispute settleman, give a summary, and stablish:
Positions of the parties
Issue before the court
Outcome Please
see the link for full setlement: https://www.wto.org/english/tratop_e/dispu_e/cases_e/ds394_e.htm

On 23 June 2009, the United States requested consultations with China with respect to China's restraints on the export from China of various forms of raw materials. The United States cites 32 measures through which China allegedly imposes restraints on the exports in question and note that there appear to be additional unpublished restrictive measures.

The United States considers that China, through these measures as well as any amendments, replacements, related measures, and implementing measures, is in violation of:

·       Articles VIII, X, and XI of the GATT 1994; and
  

·       Paragraphs 5.1, 5.2, 8.2, and 11.3 of Part I of the Protocol on the Accession of the People's Republic of China (“Accession Protocol”), as well as China's obligations under the provisions of paragraph 1.2 of Part I of the Accession Protocol (which incorporates commitments in paragraphs 83, 84, 162, and 165 of the Report of the Working Party on the Accession of China).

Explanation / Answer

Position of the parties

China: China imposes duties on export of nearly 40 raw materials. There are more than 32 measures through which China imposed restraint on exports in question. Export of raw material is being stopped through export quotas, duties, licensing requirements, minimum export price requirements. Some of the raw materials are magnesium, bauxite, Flourspar, coke, silicon carbide, yellow phosphorus, and, zinc.

United States and other countries against export quotas and restrictions; Under China's Article of Accession anti-export duties were not justified. Quotas and restrictions for conservation of natural resources is also not allowed for under WTO consistent export duties, and, Article XX of GATT 1994.

Issue before the court

These export duties and quotas are not justified as the conservation of natural resources was not being done in the country. The imposition of duty was only impacting exports but was not keeping prices high in the country. The resource's conservation was not being done in the country.

Outcome

As per Dispute Settlement Body's recommendations, from January 1, 2013, export quotas and export duties on raw materials will be removed. China got 10 months to implement recommendations. Elimination of export taxes and charges, and, prohibition on quantitative restrictions will go.

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