United States
— Tariff Measures on Certain Goods from China
Report of the Panel
TABLE OF CONTENTS
1 Introduction.. 11
1.1
Complaint by China. 11
1.2
Panel establishment and composition. 11
1.3
Panel proceedings. 12
2 Factual aspects and measures at issue. 13
3 Parties' requests for findings and
recommendations. 14
4 Arguments of the parties. 14
5 Arguments of the third parties. 14
6 Interim review.. 15
7 Findings. 16
7.1
Preliminary issues. 16
7.1.1
Whether the parties have reached a solution within the meaning of Article 12.7
of the DSU. 16
7.1.1.1
Parties' arguments. 16
7.1.1.2
Panel's findings. 17
7.1.2
The measures covered by the Panel's terms of reference in this dispute. 20
7.1.2.1
Introduction. 20
7.1.2.2
Overview of applicable principles. 22
7.1.2.3
The measures covered by China's panel request 23
7.1.2.4
Conclusion on the measures covered by the Panel's terms of reference. 27
7.1.3
China's request that the Panel reject Exhibit US-35. 28
7.2
Whether the measures at issue are inconsistent with Articles I:1 and II:1(a)
and (b) of the GATT 1994. 29
7.2.1
Introduction. 29
7.2.2
Whether the measures at issue are inconsistent with Article I:1 of the
GATT 1994. 30
7.2.3
Whether the measures at issue are inconsistent with Article II:1(a) and
(b) of the GATT 1994. 32
7.2.4
Conclusion. 33
7.3
The United States' defence under Article XX of the GATT 1994. 34
7.3.1
Introduction – the nature and purpose of Article XX of the GATT 1994. 34
7.3.2
Whether the measures are provisionally justified under Article XX(a) of
the GATT 1994. 35
7.3.2.1
Introduction. 35
7.3.2.2
Whether the measures concern a public morals objective
within the meaning of Article XX(a) of the GATT 1994. 36
7.3.2.2.1
The concept of "public morals" under Article XX(a) 36
7.3.2.2.2
Whether an explicit reference to public morals in the legal instruments
implementing the measures is required. 38
7.3.2.2.3
The public morals objective invoked by the United States. 39
7.3.2.3
Whether the measures are designed to
protect the public morals objective as invoked by the United States. 42
7.3.2.4
Whether the measures are necessary to
protect the public morals objective as invoked by the United States. 45
7.3.2.4.1
Introduction – the nature and purpose of the necessity
requirement 45
7.3.2.4.2
The Panel's assessment on whether the United States has demonstrated the necessity of the measures at issue. 47
7.3.2.4.2.1
Importance of the pursued policy objective. 48
7.3.2.4.2.2
Restrictive impact of the challenged measures on trade. 49
7.3.2.4.2.3
Contribution of the measures to the pursued public morals objective as invoked
by the United States. 49
Contribution of
the imposition of additional duties on List 1 products to the pursued public
morals objective as invoked by the United States. 52
Products covered
by List 1. 52
The initial
narrowing of the range of products covered by List 1. 55
The exclusion of
particular products from the scope of the additional duties. 57
Contribution of
the imposition of additional duties on List 2 products to the pursued public
morals objective as invoked by the United States. 60
7.3.2.4.2.4
Preliminary conclusion on necessity after
the initial "weighing and balancing" of three factors. 62
7.3.2.4.2.5
Comparison with reasonably available alternative measures. 63
7.3.2.5
Conclusion on whether the measures are provisionally justified under
subparagraph (a) of Article XX of the GATT 1994. 63
7.3.3
Whether the United States has demonstrated that the measures satisfy the
requirements of the chapeau of
Article XX of the GATT 1994. 64
8 Conclusions and Recommendation(s). 65
9 Concluding comments. 65