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

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