China urged to lift rare earth sales after WTO ruling

The Appellate Body of the World Trade Organisation (WTO) confirmed on the 30 January 2012 the findings made by a Panel in July 2011 that China's export restrictions on several industrial raw materials are in breach of WTO rules. The WTO found that China's export restrictions are not justified for reasons of environmental protection or conservation policy.

The EU demanded that China loosen its policy on sales of rare earth materials after the World Trade Organisation ruling.

The case, brought in 2009 by the EU, US and Mexico, touches on one of the biggest sources of tension in the world trading system: the use of export restrictions to hoard raw materials for the use of domestic manufacturers.

European Commission: RAPID: Press Release: IP/12/87: WTO rules in favour of EU against China's export restraints on raw materials http://europa.eu/rapid/pressReleasesAction.do?reference=IP/12/87&format=PDF&aged=0&language=EN&guiLanguage=en

WTO: Press Release, 5.7.11: Panel reports out on China’s export measures on various raw materials http://www.wto.org/english/news_e/news11_e/394_395_398r_e.htm

WTO: Press Release, 30.1.12: Appellate Body issues reports on raw materials disputes http://www.wto.org/english/news_e/news12_e/394_395_398abr_e.htm

ESO: Background information: China holds firm on rare earth quotas http://www.europeansources.info/record/china-holds-firm-on-rare-earth-quotas/

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