EU files WTO panel request against Chinese export restrictions on raw materials

Posted on: 26/09/2016

The European Union has requested that the World Trade Organization (WTO) establish a dispute settlement panel to examine China’s unfair export duties and export quotas on 12 raw materials – antimony, chromium, cobalt, copper, ferronickel, graphite, indium, lead, magnesia, talc, tantalum, and tin. 

The export duties and export quotas on the raw materials appear to be part of a continuing troubling industrial policy aimed at providing substantial competitive advantages for Chinese producers at the expense of producers and consumers in the EU and across the world.

China’s position as a leading global producer of these raw materials means its export restraint measures give it the ability to affect global supply and pricing. These measures can provide important advantages to Chinese firms that use the raw materials, to the detriment of the EU and other foreign counterparts. These measures also can create substantial pressure on foreign producers to move their operations, jobs, and technologies to China.

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