World Trade Organization (CHINA MEASURES RELATED TO THE EXPORTATION OF Essay

World Trade Organization (CHINA MEASURES RELATED TO THE EXPORTATION OF VARIOUS RAW MATERIALS) - Essay Example This paper provides an in-depth discussion on the compatibility of China’s export strategy at hand, with articles of GATT 1994, examining the exceptions set out in Article XX of GATT 1994 and WTO jurisprudence with regard to Article XX of GATT 1994 (WTO 9). Increased transparency and uniformity with regard to the administration of trade regulations, particularly in terms of export restrictions will effectively counter such disputes in the future. The WTO appellate panel issued its report after examining complaints by the European Union, US and Mexico with regard to China’s exportation of certain raw materials. In essence, the panel’s verdict found China’s export restriction regarding its rare earth metals to be in complete violation of China’s WTO commitments. The WTO dispute centered on four forms of export restrictions that China imposed on the exportation of certain raw materials. The raw materials in question encompassed certain forms of bauxite, magnesium, silicon carbide, yellow phosphorus, zinc, manganese, coke and fluorspar. China is notably the chief producer of all the aforementioned raw materials used in the production of common items, as well as products used in the manufacture of technological appliances. The complaints contended that the imposition of export restrictions create scarcity and cause the prices of raw materials to increase within global markets. This means that Chinaâ₠¬â„¢s export restriction of raw materials primarily produced in the country gave the nation’s domestic industry substantial advantage by means of a sufficient supply, as well as low and highly stable prices for the raw materials in question. This form of restriction is, as a matter of fact, in utter contravention of WTO provisions. After China’s concurrence to the WTO, the country agreed to do away with all export taxes or duties with the exception of several products