CHINA – MEASURES RELATED TO THE EXPORTATION OF RARE EARTHS, TUNGSTEN AND MOLYBDENUM UNDERSTANDING BETWEEN CHINA AND THE EUROPEAN UNION REGARDING PROCEDURES UNDER ARTICLES 21 AND 22 OF THE DSU
Document: UNDERSTANDING BETWEEN
Date: 26 May 2015
Document codes: WT/DS432/15
Complainant: EU
Respondent: China
Third parties: Brazil, Canada, Colombia, India, Japan, South Korea, Norway, Oman, Saudi Arabia, Taiwan, U.S., 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 EUROPEAN UNION
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 European Union to the Chairperson of th e Dispute Settlement Body, is circulated at the
request of these delegations.

The European Union and the People's Republic of China would like to inform the Dispute
Settlement Body of the attached "Agreed Proced ures under Articles 21 and 22 of the Dispute
Settlement Understanding" between the European Un ion and the People's Republic of China with
respect to the dispute China – Measures Related to the Exportation of Rare Earths, Tungsten and
Molybdenum (WT/DS432).

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/DS432)

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/DS432) 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 People's Republic of China ("China") and the European Union
("EU") agreed that the reasonable period of time to implement the DSB recommendations and
rulings would be 8 months and 3 days, expiring on 2 May 2015 ().

China and the EU (collectively, "the Parties") have agreed on the following procedures for the
exclusive purposes of this dispute. They are design ed to facilitate the resolution of the dispute and
reduce the scope for procedural disputes and are without prejudice to either party’s views on the
correct interpretation of the DSU:

1. Should the EU consider that the situation de scribed in Article 21.5 of the DSU exists, the EU
will request that China enter into consultations with the EU. 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 EU 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 EU’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 its recommendations and rulings at a DSB meeting held within 30 days of the
circulation of the Appellate Body report to the Members.

6. The EU may request authorization to suspend concessions or other obligations pursuant to
Article 22.2 of the DSU in the event that the DSB rules as a result of a proceeding under
Article 21.5 of the DSU that a measure taken to comply does not exist or is inconsistent with
a covered agreement. China shall not assert that the EU is precluded from obtaining such
DSB authorization because its request was made outside the time period specified in the
first sentence of 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 EU 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. In the event of
such objection, 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 panellists is not availa ble for either the Article 21.5 compliance panel or
the Article 22.6 arbitration (or both), or any person serving in such proceeding becomes
unavailable to serve, 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 panellist is unavailable to serve in either of the proceedings, or a
person serving in such proceeding becomes unavailable to serve, the parties will further
request that, in making this appointment, th e 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 endeavour to find a solution within the
shortest time possible that will not affect the other aspects and steps agreed herein.

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 European Union

(signed)
H.E. Mr Angelos Pangratis
Ambassador
Permanent Representative to the WTO