WT/DS431/17  
 
26 May 2015  
(15-2710)  Page: 1/3  
  Original: English  
 
 CHINA – MEASURES RELATED TO THE EXPORTATION OF 
RARE EARTHS, TUNGSTEN AND MOLYBDENUM 
UNDERSTANDING BETWEEN CHINA AND THE UNITED STATES 
REGARDING PROCEDURES UNDER AR TICLES 21 AND 22 OF THE DSU 
The following communication, dated 21 May 2015, from the delegation of China and the delegation 
of the United States to the Chairperson of the Dispute Settlement Body, is circulated at the 
request of these delegations. 
 
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China and the United States would like to info rm the Dispute Settlement Body of the attached 
"Agreed Procedures under Articles 21 and 22 of the Dispute Settlement Understanding" between 
the United States and China with respect to the dispute China – Measures Related to the 
Exportation of Rare Earths, Tungsten and Molybdenum  (WT/DS431). 
 
We request that you please circulate the atta ched agreement to the Members of the Dispute 
Settlement Body.   WT/DS431/17 
 
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  Agreed Procedures under Articles 21 and 22 
of the Dispute Settlement Understanding 
 
China – Measures Related to the Exportation of Rare Earths,  
Tungsten and Molybdenum (WT/DS431) 
  
The Dispute Settlement Body ("DSB") adopted it s recommendations and rulings in the dispute 
China – Measures Related to the Exportation of Rare Earths, Tungsten and Molybdenum (WT/DS431) on 29 August 2014.  
Pursuant to Article 21.3(b) of the Understa nding on Rules and Procedures Governing the 
Settlement of Disputes ("DSU"), the United States  of America ("United States") and the People's 
Republic of China ("China") agreed that the reasonable period of time in which China would have 
to implement the recommendations and rulings of the DSB in this dispute would be eight months 
and three days, expiring on 2 May 2015 (WT/DS431/16).   
The United States and China (collectively, "the Parties") have agreed on the following procedures 
for the exclusive purposes of this dispute.  They are designed to facilitate the resolution of the 
dispute and reduce the scope for procedural disput es and are without prejudice to either Party's 
views on the correct interpretation of the DSU: 
 
1. Should the United States consider that th e situation described in Article 21.5 of the DSU 
exists, the United States will request that China enter into consultations with the United 
States.  The Parties agree to hold such consultations within 15 days from the date of receipt 
of the request.  After this 15-day period has elapsed, the United States may request the establishment of a panel pursuant to Article 21.5 of the DSU at any time. 
 
2. At the first DSB meeting at which the U.S. request for the establishment of an Article 21.5 
panel appears on the agenda, China shall accept the establishment of that panel. 
 
3. The Parties shall cooperate to enable the Article 21.5 panel to circulate its report within 
90 days of the panel's establishment, excluding such time during which the panel's work may be suspended pursuant to Article 12.12 of the DSU. 
 
4. Either Party may request the DSB to adopt the report of the Article 21.5 panel at a DSB 
meeting held at least 20 days after the circulat ion of the report to the Members unless either 
Party appeals the report.  
 5. In the event of an appeal of the Article 21.5 panel report, the Parties shall cooperate to 
enable the Appellate Body to circulate its report to the Members within 90 days from the 
date of notification of the appeal to the DSB.   Further, either Party may request the DSB to 
adopt the reports of the Appellate Body and of  the Article 21.5 panel (as modified by the 
Appellate Body report) at a DSB meeting held  within 30 days of the circulation of the 
Appellate Body report to the Members.  
 6. In the event that the DSB following a proceeding under Article 21.5 of the DSU rules that a 
measure taken to comply does not exist or is inconsistent with a covered agreement, the 
United States may request authorization to suspend concessions or other obligations pursuant to Article 22.2 of the DSU.  China shall not assert that the United States is precluded from obtaining such DSB authorizatio n on the grounds that the request was made 
outside the 30-day time-period specified in Article 22.6 of the DSU.  This is without 
prejudice to China's right to have the matter referred to arbitration in accordance with Article 22.6 of the DSU. 
 
7. If the United States requests authorization to suspend concessions or other obligations 
pursuant to Article 22.2 of the DSU, China shall have the right to object under Article 22.6 of 
the DSU to the level of suspension of concessions or other obligations and/or claim that the 
principles and procedures set forth in Article 22.3 of the DSU have not been followed, and the matter will be referred to arbitration pursuant to Article 22.6 of the DSU.   
 WT/DS431/17 
 
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  8. The Parties will cooperate to enable the arbitrator under Article 22.6 of the DSU to circulate 
its decision within 60 days of the referral to arbitration.  
 9. If any of the original panelists is not availa ble for either the Article 21.5 compliance panel or 
the Article 22.6 arbitration (or both), the Parties will promptly consult on a replacement, and 
either Party may request the Director-General of the WTO to appoint, within ten days of being so requested, a replacement for the proceeding or proceedings in which a replacement 
is required.  If an original panelist is unavailable to serve in either of the proceedings, the 
Parties will further request that, in making this appointment, the Director-General seek a person who will be available to act in both proceedings. 
 
10. The Parties will continue to cooperate in all matters related to these agreed procedures  and 
agree not to raise any procedural objection to an y of the steps set out herein.  If, during the 
application of these procedures, the Parties consider that a procedural aspect has not been 
properly addressed in these procedures, they will endeavor to find a solution within the 
shortest time possible that will not affect the other aspects and steps agreed herein.  
 
11. These agreed procedures in no way prejudice other rights of either Party to take any action 
or procedural step to protect its rights and interests, including recourse to the DSU.  
  
Signed in Geneva, 21 May 2015. 
  
For the People's Republic of China 
  
 
 
(signed) 
Mr CHEN Runyun 
Chargé d'affaires, a.i. 
Permanent Mission of 
the People's Republic of China For the United States of America 
  
 
 
(signed) 
Mr Christopher S. Wilson 
Chargé d'affaires, a.i. 
Permanent Mission of  
the United States of America 
 
 
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