The Application Of GATT1994 XX To China’s Export Restrictions

The purpose of the World Trade Organization(WTO)is to promote free trade,with the development of free trade,the requirement of environmental protection is becoming more and more important in recent years,the conflicts between free trade and environmental protection have arisen.WTO has an important clause to coordinate the free trade and environmental protection,the key matter of which is Article XX.WTO panel has made interpretations of the meaning of words and the applicable conditions of the clause.But the Article XX is a general clause,which lack of clear and specific regulations.Therefore,the members of the WTO have difficulties in the interpretation and application of this clause in practice.The explanation of the terms,scope of application and the application of the program of WTO panel and Appellate Body are conducive to understand the terms of this article.WTO Panel and Appellate Body had ruled that China’s export restriction measures breached the rules of the WTO in China’s rare earth case,and caused a wide range of discussion.WTO Panel has taken strict expressive interpretation method in these case,ruling that China cannot invoke Article XX as a defense to the export tax.Although China can invoke this article as a defense to the export quota,China can not prove that our measures to meet the application of it.The Appellate Body basically maintained the judgment.WTO Panel has taken strict expressive interpretation method in this case which has defects,it should take integrative interpretation method.WTO Panel should integrate the expressive of text,context,the object and purpose of the treaty,the balance and fairness between rights and obligations.This article will analysis the application of Article XX to explore the reasons for violation of WTO rules,then I will propose suggestions to improve the protection measures of rare earth in the end of article.