WTO declares Chinese export restraints on raw materials violate trade rules Friday, 03.Feb.2012, 02:46 (GMT+3) THE World Trade Organisation (WTO) has rejected China's claims that its
export restraints for several industrial raw materials cover
conservation or environmental protection measures following dispute from
the US, and latterly the European Union and Mexico.
THE World Trade Organisation (WTO) has rejected China's claims that its
export restraints for several industrial raw materials cover
conservation or environmental protection measures following dispute from
the US, and latterly the European Union and Mexico.
The decision was considered "a tremendous victory for the United States"
said US Trade Representative Ron Kirk and reinforces a rule where the
US can compete on a level playing field in the use of raw materials used
in steel, aluminium and chemicals industries.
"They can artificially increase world prices for these raw materials
while artificially lowering prices for Chinese producers," said the
Office of the US Trade Representative which puts pressure on foreign
producers to move operations and with it their technologies to China, it
added.
The National Foreign Trade Council said the restriction of these
materials in everyday products hurts many US technology-based companies
and is a "form of protectionism" which creates artificial shortages,
raising world prices and undermining the integrity of the trading
system.
Once adopted by the WTO dispute body, the Appellate Body will uphold its
findings for China to comply with WTO obligations within 30 days.
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