China – Measures related to the Exportation
of
Rare earths, Tungsten, and Molybdenum
Communication from the United States and China
concerning
Article 21.3(c) of the DSU
The following communication, dated 20 October
2014, from the delegation of the United States and the delegation of China to
the Chairperson of the Dispute Settlement Body, is circulated at the request of
these delegations.
______________
At its meeting on 29 August
2014, the Dispute Settlement Body ("DSB") adopted its
recommendations and rulings in the dispute China — Measures Related to the
Exportation of Rare Earths, Tungsten and Molybdenum (DS431). At the meeting of
the DSB held on 26 September 2014, China announced its intention to implement
the DSB’s recommendations and rulings in this dispute and stated that it would
need a reasonable period of time in which to do so.
Article 21.3(c) of the Understanding
on Rules and Procedures Governing the Settlement of Disputes ("DSU")
provides that, in the absence of an agreement between the parties on a period
of time, the reasonable period of time shall be determined "through
binding arbitration within 90 days after the date of adoption of the
recommendations and rulings."
In order to allow sufficient time for the
parties to discuss a mutually agreed period, China and the United States (i)
agree that, in the event an arbitration under Article 21.3(c) of the DSU is
requested, it shall be completed no later than 60 days after the date of the
appointment of an arbitrator, unless the arbitrator, following consultation
with the parties, considers that additional time is required; and (ii) hereby
confirm that any award of the arbitrator (including an award not made within 90
days after the date of adoption of the DSB recommendations and rulings) shall
be deemed to be an award of the arbitrator for the purposes of Article 21.3(c)
of the DSU in determining the reasonable period of time for China to implement
the recommendations and rulings of the DSB.
We respectfully request that you circulate
this notification to the Members of the DSB.
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