WTO- China Raw Material Exports Broke Trade Rules

Today the WTO upheld its decision finding that Chinese restrictions on key raw material exports broke trade rules.

We have been following this particular issue since November 2009:

https://pmpaspeakingofprecision.com/2009/11/04/chinese-resource-hoarding-dispute-before-wto/

We followed up :

https://pmpaspeakingofprecision.com/2009/12/30/china-resource-hoarding-wto-panel-convened/

Beijing's appeal denied.

And today we are reporting that the WTO upheld its decision that Chinese restrictions on key raw material exports broke trade rules following the appeal by Beijing. As a result, China must bring its duty and export quota measures on elements including bauxite, coke, manganese and others in line with their WTO Obligations.

WTO Decision

The WTO found in favor of the United States, European Union and Mexico in July following a complaint that China had failed to meet the promises it made when joining the body.

At issue were important raw materials for those of us involved in advanced manufacturing- bauxite (aluminum ore), coking coal (steel making), fluorspar (steelmaking) manganese (steelmaking), silicon metal (steel making), silicon carbide, yellow phosphorus and zinc (Brass).

Both the United States and the European Union claimed victory after the publication of the appeal body’s report. according to Industry Week online:

“Today’s report is a tremendous victory for the United States — particularly its manufacturers and workers,” U.S. trade ambassador Ron Kirk said. “Today’s decision ensures that core manufacturing industries in this country can get the materials they need to produce and compete on a level playing field.”

EU trade commissioner Karel De Gucht said the ruling represented a success in efforts to ensure fair access to “much needed” raw materials for EU industry.”

Congratulations to Ron Kirk and his team for winning one for U.S. Manufacturing.

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