China – Measures related to the Exportation
of
Rare earths, Tungsten, and Molybdenum
Communication from Japan and China concerning
Article 21.3(c) of the DSU
The following communication, dated 20 October
2014, from the delegation of Japan 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 (DS433). 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 Japan (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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