Research On The Application Of GATT1994Natural Resources Protection Exception Clause

With the further development of economic globalization, trade disputes among WTO members on the export restrictions of natural resources are gradually increasing. As the exporter and importer of natural resources, developing countries and developed countries refuse to make a concession on the issues of export restrictions on natural resources. The essence of these issues is the conflict of interest on rare resources among countries under the economic globalization. As a vital article within the WTO system to protect natural resources, the Article XX(g) of the GATT1994provides great legal support for WTO members to take measures to protect their exhaustible natural resources. In the case China-Measures Related to the Exportation of Various Raw Materials, China invoked the Article XX(g) of the GATT1994to defend the legitimacy of its restrictive measures. Although most of the China’s allegations are not approved by WTO Dispute Settlement Body, this issue provides a good opportunity for China to transform the mode of economic development and to further promote the strategy of sustainable development. It is of great value for China to appropriately employ the Article XX (g) of the GATT1994to settle trade disputes with other WTO members and safeguard economic sovereignty and state interest.There are many legal issues involved in China-Raw Materials. For the limitation of length, entire interpretation to the case as a tradition tends to scratch the surface only. This article strives to break away from the traditional way and focus the research on the central issue, that is, the application of XX(g) of GATT1994in China-Raw Materials; thus go deeper into the applicable rules of natural resources protection exception clause in rare resources trade disputes, and finally educe the legal measures in dealing with such cases. This article starts with China-Measures Related to the Exportation of Various Raw Materials by introduction of the key issue whether the export restrictions are justified pursuant to Article XX(g) of the GATT1994, and further makes clear the demonstration object, that is, natural resources protection exception clause. The following part talks about the contents and applicable rules of Article XX(g) of the GATT1994. After a detailed analysis of the previous DSB reports, some key terms are well explained, such as "Relating to the conservation of exhaustible natural resources","made effective in conjunction with restrictions on domestic production or consumption","a means of arbitrary or unjustifiable discrimination" and "disguised restriction on international trade". The next part discusses some key legal issues by expounding Panel’s ruling in terms of Article XX(g), trying to analyze the conformity between export restrictions and Article XX(g) of the GATT1994. Based on this, some constructive suggestions are given to settle trade disputes of rare resources, safeguard economic sovereignty and state interest and achieve the sustainable development of resources and environment.