The World Trade Organization has agreed to investigate whether China’s export duties on nine commodities that are used as raw materials for various basic industries ( including aluminum and steel) provide a trade-distorting competitive advantage to Chinese producers.
The investigation was prompted by complaints from the US, the EU, and Mexico that Chinese export restrictions were discriminatory and violated WTO rules. The Chinese government defended the tariffs saying they are intended to inhibit overproduction and emissions as well as conserve scarce natural resources.
Read Steel Industry Analyst Michelle Applebaum’s update on this hoarding dispute here.
Our original post from November 4, 2009, explaining this dispute can be found here.