CHINA – MEASURES RELATED TO THE EXPORTATION OF RARE EARTHS, TUNGSTEN AND MOLYBDENUM UNDERSTANDING BETWEEN CHINA AND THE UNITED STATES REGARDING PROCEDURES UNDER ARTICLES 21 AND 22 OF THE DSU
Document: Agreed Procedures
Date: 26 May 2015
Document codes: WT/DS431/17
Complainant: U.S.
Respondent: China
Third parties: Brazil, Canada, Colombia, EU, India, Japan, South Korea, Norway, Oman, Saudi Arabia, Taiwan, Vietnam, Argentina, Australia, Indonesia, Turkey, Peru, Russia
Dispute stage: Appellate Body
Agreements cited: Art. XI:1, X:3(a)  GATT 1994Part I, para. 1.2, Part I, para. 11.3, Part I, para. 5.1,   Protocol of Accession

CHINA – MEASURES RELATED TO THE EXPORTATION OF
RARE EARTHS, TUNGSTEN AND MOLYBDENUM
UNDERSTANDING BETWEEN CHINA AND THE UNITED STATES
REGARDING PROCEDURES UNDER ARTICLES 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.

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.

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 ().

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 circulation 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 authorization 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.

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 any 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