. /.   WORLD TRADE  
ORGANIZATION  G/C/W/605 
4 November 2008 
 (08-5352) 
Council for Trade in Goods Original:   English 
  
 
TRANSITIONAL REVIEW MECHANISM PURSUANT TO PARAGRAPH 18  
OF THE PROTOCOL ON THE ACCESSION OF THE  
PEOPLE’S REPUBLIC OF CHINA (“CHINA”)  
 
Questions from the EUROPEAN COMMUNITIES to CHINA
 
 
  The following communication, dated 3 No vember 2008, has been received from the 
delegation of the European Communities.  
_______________ 
 
  The European Communities wishes to pose the following questions to China in connection 
with the upcoming meeting of the Council for Trad e in Goods for the purposes of the transitional 
review mandated by China’s Protocol of Accession.  These questions rela te to matters that were raised 
by the European Communities during the transitional review held before one of the committees that 
reports to the Council for Trade in Goods, the Committee on Market Access, but China did not 
respond to them.    
1. Chinese exports restrictions  
1.1 The EC refers to its 2005 and 2007 co mmunications in which it had recalled China's 
commitments   
• to eliminate all taxes and charges applied to e xports unless specifically provided for in Annex 
6 of its accession Protocol, 
• to eliminate, upon accession, export restrictions unless they could be justified under WTO 
rules (§ 165 of the Working Party Report) and 
• to notify any possible export restrictions to the WTO. 
1.2 Justification requested on several occasions fo r the existing export restrictions and taxes by 
the EC since the TRM exercise of 2002 has not been provided by the Chinese authorities nor was it transmitted to the WTO.  1.3 The EC thus remains very concerned about and is not satisfied with the level of WTO 
compliance on a number of the export restrictions and taxes maintained by China.  China is therefore 
urged to comply with its accession related comm itments and to bring its export regime of raw 
materials into conformity with WTO rules.   G/C/W/605 
Page 2  
 
  1.4 The EC attaches particular importance to a nd refers to earlier bilateral exchanges on coke, 
rare earths, yellow phosphorus and n on-ferrous metals. It urges China: 
 
• to notify in line with Part I-Section 8 (b) of the Protocol of accession the quantities associated 
with the export restrictions imposed on the products listed in the Chinese document of 
17 October 2003 (and on any other product that  may not be included in this list) and  
• to transmit to the WTO the justification for theses export restrictions; or 
• When no such justification exists, correctly notify to the WTO when and how it intends to 
bring its export regime in line with WTO rules. 
1.5 The EC urges China to present a comprehensive table on the export taxes and VAT 
reimbursement schemes and other export restricti ons, in particular on non- ferrous metals and on 
chemical industry raw materials such as fluorsp ar and phosphorous. Attempts to obtain such 
information have met with failure and showed some deficiency to fulfil WTO transparency 
requirements. 
 1.6 As far as the introduction of new export rest rictions is concerned the EC urges China to 
comply with the obligation of consulting countries ha ving a substantial interest in trade of products 
concerned.  
 
1.7 The EC is also concerned that a number of e xport restrictions maintained by China may affect 
the supply of raw hides and skins for European tanners.  1.8 In this context, the EC would like to urge China: 
 
• to clarify and notify the products subject to export restrictions and taxes; 
• to transmit to the WTO the justification for theses export restrictions. 
1.9 EC urges China to ensure conformity with its Accession Protocol and in  particular article 11, 
according to which China shall eliminate all taxes an d charges applied to exports unless specifically 
provided for in Annex 6 of this Protocol or applie d in conformity with the provisions of Article VIII 
of the GATT 1994.   
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