Tuesday, 5 July 2011

Illegal restrictions on the export of China's WTO matters: (AFP)

GENEVA (AFP)-World Trade Organisation ruled Tuesday that China's export restrictions on material are illegal, support the complaints lodged by the European Union, the United States and Mexico against the Asian giant.
"The Panel, therefore, recommends that the dispute settlement body requires China to bring its measures into conformity with its WTO obligations," said the ruling.
The complainants had taken issue with quotas and duties imposed by Beijing on matters including bauxite, coal, coal, Fluorite, magnesium, manganese, Silicon metal, silicon carbide, yellow phosphorus and zinc.
Are all key factors for many products in steel, aluminium and chemical sectors. China is a major producer of these raw materials and restrictions quickly brought to the protests.
The complainants also pointed out that in its accession to the WTO, China had decided to remove all export duties, except for some products, but also for these products limited, Beijing had committed not to apply any export quotas.
Umpires backed these points, saying that China failed to keep its commitments on accession in imposing quotas and duties.
The WTO ruling comes amid an international uproar over China's moves to tighten its grip on rare earths, highly sought after minerals used in high-tech products.
China has cited environmental concerns and internal demand by reducing exports, leading to high prices.

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