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U.S., E.U. launch WTO case against China on raw material exports

Published: 24 Jun 2009 17:02:10 PST

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Jun. 25, 2009 (China Knowledge) - The U.S. on Tuesday filed a complaint with the World Trade Organization (WTO) regarding China's restrictions on the export of key industrial raw materials, said U.S. Trade Representative Ron Kirk yesterday, the Standard reported.

The E.U. joined the U.S. in the complaint because China refused to cut export tariffs or raise quotas.

The U.S. and the E.U. said that China's export restrictions provide Chinese companies an unfair advantage and distort world competition, thus breaking WTO rules.

According to the WTO's dispute settlement procedures, the three parties will have 60 days to settle their dispute through talks. If talks fail, the U.S. and the E.U. can request a WTO panel to investigate and make a decision.

Zhou Shijian, managing director of China WTO Research Society, said that it was unreasonable for the U.S. and the E.U. to take the WTO action since every country around the world is trying to protect its resources and environment.

Zhou added that the complaints made by the U.S. and the E.U. went against WTO regulations, which largely relate to imports and not exports.

The raw materials relevant to the dispute include coke, bauxite, fluorspar, magnesium, silicon metal and zinc, showed the complaints sent to the WTO.

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