The World Trade Organization ruled Tuesday that China was unfairly protecting its domestic manufacturers by limiting the export of nine raw materials that are used widely in the steel, aluminum and chemical industries.
We wrote about this http://pmpaspeakingofprecision.com/2009/12/30/china-resource-hoarding-wto-panel-convened/
and originally here: http://pmpaspeakingofprecision.com/2009/11/04/chinese-resource-hoarding-dispute-before-wto/
Today, the WTO panel ruled for the United States, European Union and Mexico, all of whom had filed complaints against China using export duties and quotas to drive up the prices they pay for raw materials such as coke, bauxite and zinc.
The panel rejected China’s argument that its export limits were needed to “protect its environment,” and said those export restrictions should be removed.
The WTO panel concluded that “China’s export duties were inconsistent with the commitments that China had agreed to” when it joined the trade organization in 2001.
This is an important development for our industry which uses vast quantities of raw materials such as steel aluminum, and brass.
But it is also an important bellwether for the Chinese export restrictions of rare earth metals.
Round 2 coming up…
(compiled from press reports and Michelle Applebaum Commentary.)