ABSTRACT

Should the environmental exceptions under Article XX become available with respect to ‘export duties plus’, an important follow-up question concerning China’s policy space is whether Article XX requires ‘export duties plus’ to always treat domestic and foreign consumers in an identical manner. Chapter 8 suggests that the first condition of the chapeau generally requires China to impose equivalent charges on products destined for domestic consumption. One exception, however, might be found in the climate change regime where the parties listed in Annex I of the UNFCCC have explicitly committed to take a greater mitigation role than non-Annex I countries like China. Differential ‘export duties plus’ thus might be justified for the purpose of fighting climate change. That being said, however, it is equally important to address the concern that China might deliberately use differential ‘export duties plus’ to provide Chinese downstream producers with favourable access to industrial inputs. This chapter proposes additional limits on the use of differential ‘export duties plus’ as part of climate policy under the second condition of the chapeau prohibiting ‘disguised restriction on international trade’. These limits would prevent China from cherry-picking the carbon-intensive products that could potentially benefit its downstream producers.