China's Export Restrictions on Raw Materials Illegal

July 5, 2011
WTO says China must bring policies into conformity with obligations.

The World Trade Organization ruled on July 5 that China's export restrictions on raw materials are illegal, upholding arguments brought by the United States, the European Union and Mexico against the Asian giant.

"The panel, therefore, recommends that the Dispute Settlement Body requests China to bring its measures into conformity with its WTO obligations," the ruling said.

The complainants had taken issue with export quotas and duties imposed by Beijing on raw materials including bauxite, coking coal, fluorspar, magnesium, manganese, silicon metal, silicon carbide, yellow phosphorus and zinc.

All are key inputs for numerous products in the steel, aluminium and chemical sectors.

Copyright Agence France-Presse, 2011

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