Brussels, 19/07/2016 (Agence Europe) - Following the successful legal actions in 2012 and 2014 on similar measures, on Tuesday 19 July, the EU introduced a third complaint against restrictions concerning graphite, cobalt, copper, lead, chromium, magnesia, talcum, tantalum, tin, antimony and indium, which are all essential for EU industry.
China is currently imposing a set of export restrictions on raw materials, including export duties (antimony, chromium, cobalt, copper, graphite, lead, magnesite, magnesia, talc, tantalum, and tin) and export quotas (antimony, indium, magnesia, talc, and tin) that limit access to these products for companies outside China. The Commission says that these measures have distorted the market and favoured Chinese industry at the expense of companies and consumers in the EU, in violation of general WTO rules and also of China's specific commitments from the time of its accession to the WTO in 2001.
Also, China's alleged aim to support an environmentally friendly and sustainable production of raw materials could be achieved more effectively with other measures, without negative impact on trade, explained the Commission
"We cannot sit on our hands seeing our producers and consumers being hit by unfair trading practices. The past two WTO rulings on Chinese export restrictions have been crystal clear (EUROPE 11135) - these measures are against international trade rules. As we do not see China advancing to remove them all, we must take legal action." said EU Trade Commissioner Cecilia Malmström.
The formal consultations between the EU and China - the first step in the WTO dispute settlement - will be conducted in parallel to a similar procedure initiated by the US. In the absence of a satisfactory solution within 60 days, the EU may request the WTO to set up a panel to rule on the compatibility of China's measures with WTO rules. (Original version in French by Emmanuel Hagry)