The principle of sovereignty over natural resources and the WTO

State sovereignty is a central principle of international law, with sovereignty over natural resources considered a fundamental expression of such state sovereignty. Sovereignty over natural resources is itself recognised as a principle of customary international law. There is no explicit reference to sovereignty over natural resources within the WTO-covered agreements. Nonetheless, the principle has been used as an aid to interpretation by WTO panels in two disputes; namely China – Raw Materials and China – Rare Earths. This chapter evaluates both disputes with a view to ascertaining more fully the relevance of the principle to WTO law. It further offers insights from the literature on certain of the more troubling aspects of this jurisprudence.