Brussels, 19/08/2014 (Agence Europe) - The World Trade Organisation (WTO) Appellate Body ruled in the EU's favour on 7 August that there was no justification for China's restrictions on the export of rare earths.
The WTO Appellate Body confirmed the findings made by a panel of experts in March of this year following complaints lodged by Japan and the United States that China's export restrictions on rare earths, as well as tungsten and molybdenum (18 metals in total that are crucial for the manufacture of high-tech products), are in breach of WTO rules. China argued that the restrictions were necessary on the grounds of environmental protection, but the WTO ruled that export restrictions cannot be imposed to conserve exhaustible natural resources if the domestic production or consumption of the same raw materials is not restricted at the same time for the same purpose.
EU Trade Commissioner Karel de Gucht qualified the ruling as “another milestone in the EU's efforts to ensure fair access to much-needed raw materials for its industries,” adding “I now look forward to China swiftly bringing its export regime in line with international rules.”
In 2012, China lost another WTO case, brought jointly by the EU, the US and Mexico, on export restrictions on raw materials. It subsequently lifted those restrictions, but did not lift similar measures, export quotas and duties applying to other raw materials, such as tungsten, molybdenum and rare earths. (MD)