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A Rare Ruling on China Might Lead to Minerals Less Rare

  • Thursday, February 2, 2012
  • Source:Ferro-alloys.com

  • Keywords:WTO RE rare earth
[Fellow]The WTO appellate court has ruled against China's export taxes on minerals. The case was brought by the U.S., Mexico and the E.U.
The WTO appellate court has ruled against China's export taxes on minerals. The case was brought by the U.S., Mexico and the E.U.
 
The Appellate Body, reviewing an earlier decision by a W.T.O. dispute settlement panel, said the panel had gone too far in defining why more than three dozen Chinese policies violated free trade rules. But the appeals group said on Monday that the overall effect of China’s export restrictions was harming international trade and the policies would have to be scrapped.
 
China is the largest global producer of bauxite, zinc and yellow phosphorus, fluorspar, magnesium, manganese, silicon carbide and silicon metal, the minerals listed in the WTO case.
 
The United States, European Union and Mexico accused China of using export taxes and quotas to force international chemical companies and other businesses to move their factories to China to tap these resources.
 
While people rejoice and believe this ruling implies China will have to remove export restrictions on rare earth minerals, au contraire, it's not so.
  • [Editor:editor]

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