Brussels, 27/06/2012 (Agence Europe) - Given that no agreement with China is forthcoming on the latter's exports of rare earths, the EU wants to set up a special dispute settlement group within the WTO to examine its dispute with Beijing.
After its 60-day consultations with the Chinese authorities stalled, the European Commission called, on Wednesday 27 June, for a special group to be set in place to examine its dispute with China on the latter's export restrictions on rare earths, tungsten and molybdenum. The EU, the United States and Japan denounce these restrictions in a joint complaint filed with the WTO on 13 March. Despite the efforts made to reach a solution with China, the EU and its partners in this matter - the United States and Japan - have decided to “proceed to the next step in the WTO litigation”, the Commission states in a press release. Commissioner Karel De Gucht comments: “China's restrictions on rare earths and other products are a violation of China's WTO commitments and continue to significantly distort global markets, creating a disadvantage for our companies. Despite the very clear ruling earlier this year of the WTO in the first raw materials case, Beijing has not taken steps to remove these export restrictions. We regret that we are left with no other choice but to solve this through litigation.”
In 2009, the EU brought a first dispute with China before the WTO on the subject of export restrictions imposed on raw materials - bauxite, coking coal, fluorite, magnesium, manganese, metallurgical grade silicon, silicon carbide, yellow phosphorous and zinc. Joined in its grievances by the United States and Mexico, the WTO ruling was in the EU's favour in summer 2011. The WTO confirmed at the end of January its verdict condemning the restrictions imposed by China on exports of these nine raw materials. (EH/transl.jl)