WTO Blames China for Unfair Export Restrictions

The World Trade Organization (WTO) ruled Tuesday unfair restrictions on the export of certain raw materials used by China.

A WTO panel agreed with the opinion of the United States, the European Union and Mexico, all of whom had filed complaints alleging that China is inflating the prices of raw materials such as bauxite and zinc by setting taxes and export quotas.

The committee rejected the arguments by China that export restrictions were necessary to protect its environment, and argued that these measures should be withdrawn.

Judges of the WTO concluded that “export taxes in China are contrary to the commitments of the country” when it enters the organization in 2001.

The Chinese export restrictions have resulted in the depletion of stocks of certain raw materials worldwide, making up prices and an emphasis on the use of manufacturing facilities in China.

The WTO ruling could help the United States and the Europeans to support another trade complaint against attempts to restrict Chinese exports of rare earths used in several high-tech products, argued the EU Trade Commissioner, Karel De Gucht.