WTO preliminary ruling bar to drink Chinese rare earth industry in United States and Europe, or in favor of

Recently, some media reported that in the U.S., EU and Japan jointly sued China " undue restrictions on exports of rare earths " issue , WTO dispute mechanism summary of the " Interim Report of the United States and Europe generally considered reasonable demands ." Report and pointed out: " In late November will introduce the final report is not expected to overturn the judgment, United States and Europe may favor on this issue . "

If the United States and Europe on this issue in favor of the Chinese export quotas will have to make concessions on the issue , and thus the earth tariffs, quotas fully liberalized , rare earth prices is likely to return to this "cabbage price ." Insiders told the South are reporters said , the results with China 's rare earth industry is currently undergoing consolidation, as well as China 's resource strategy is contrary . Therefore, the Chinese government is bound to appeal on this issue , the game is likely to be the result of both sides to compromise .

United States and Europe to support the preliminary WTO

"The Middle East has oil , China has rare earths " , China was once rare to meet 90% of global market demand. Therefore, the Chinese government restrictions on the export of rare earth quotas , United States and Europe will naturally developed economies uneasy. Last June 27 , Japan, the U.S., the EU tripartite prosecution to the WTO dispute settlement body , said China's rare earth exists " undue restrictions on exports of rare earths " issue, contrary to the original Chinese WTO accession commitments. According to WTO accession agreement , China exported products should be abolished for all taxes , unless expressly provided . Annex lists 84 kinds of products specified rate . Wherein the rate of about 10% of rare earth . This should be the duty of the highest standards for collecting rare , but exceptions .

After more than a year of investigation proceedings , WTO upcoming processing results . Last weekend, Japan's " Sankei Shimbun" said , WTO Dispute Settlement Body 's interim report summarizes the general finds reasonable demands of United States and Europe . Plans to publish the final report of the year .

Prior to 2009 , the U.S. and the EU to the WTO , accusing China 's bauxite , coke, fluorspar , magnesium, manganese , silicon metal , silicon carbide, yellow phosphorus and zinc and other 9 kinds of raw materials to export quotas and export tariffs, price and a number of control . January 30, 2012 , WTO ruling : China implemented a variety of industrial raw materials export taxes and quotas violated WTO rules and dismissed the Chinese environmental protection or supply shortages based on the preliminary ruling request an appeal .

The rare earth trade disputes with previous years is exactly the same raw material trade dispute , therefore , widespread fear in the rare earth industry issues , WTO 's final results will remain unfavorable to China .

LREE or bear the brunt

If the final result of the WTO's final ruling , as expected , then the accelerating integration of China Rare Earth industry, will undoubtedly be a negative. And because the light rare earth reserves in the world are rich , they are likely to bear the brunt ushered in a wave of price cuts , and even back when the " cabbage price ."

China's rare earth export quota policy was adopted , rare earth prices briefly soared. But by the impact of weak demand side , since 2012 , and from the high rare earth prices fell sharply . Until this year, in July , because the Chinese rare earth industry consolidation efforts to further increase the price of rare earth before bottoming out , there signs of warming . If China loses in this litigation , China will likely open in the rare earth policy control , which means that the price war is likely to once again dominate the market. "heavy rare earths is China's advantage, and LREE are widely distributed in the world . Therefore, once the market liberalization , light rare earth prices are likely to be hit . " Saddle Ridge Information rare earth industry researcher Hu Bing told reporters the South .

However, there are people in the industry do not agree with this view . Jiangxi Ganzhou a large rare earth company General Manager's Office official told reporters the South, mainly in northern light rare earths , Baotou Steel Rare Earth almost form monopolies , the market order is relatively good ; heavy rare earths are mainly distributed in the south , a number of companies to form separatist trend, and there are a large number of small and medium enterprises . "If the South of rare earth industry consolidation ineffective , fragmented situation will make the price confusion , therefore , once the market liberalization variable heavy rare earth prices are likely to be greater. "

The game will continue

WTO preliminary ruling unfavorable to China , at the end of the final ruling is also likely with the preliminary similar. In this regard, China is naturally not sit idly by . Xiamen University, China Energy Economic Research Center Lin Boqiang told reporters the South , if the result is negative, the Chinese government and relevant industry organizations will certainly appeal .

According to WTO rules , WTO principle, requires the elimination of export restrictions, but provides for two exemptions : "To protect people , animal or plant life or health measures necessary " and " protection of exhaustible natural resources measures if such measures with restrictions on domestic production or consumption with the implementation . "

Since 2011 , the Ministry of Commerce and the Ministry stressed on many occasions , after China 's rare earth mining is extensive , not only caused a great waste of rare earth resources , but also to the enormous destruction of environmental resources . Adopt quotas for rare earths , and make industry consolidation , the purpose is to protect resources and the environment and achieve sustainable development , in line with WTO rules . The Chinese government has no intention of trade-distorting way to protect domestic industries .

Lin Boqiang said the two sides of the game will certainly continue , but in the long run, certainly rare earth quotas will still continue to suffer criticism. Therefore , this event is expected to generate Forced mechanism , promote the domestic rare earth industry consolidation , the gradual formation of large rare earth group , and then let these industry giants to compete globally .


Tungsten Manufacturer & Supplier: Chinatungsten Online - http://www.chinatungsten.com
Tel.: 86 592 5129696; Fax: 86 592 5129797
Email: sales@chinatungsten.com
Tungsten & Molybdenum Information Bank: http://i.chinatungsten.com
Tungsten News & Tungsten Prices, 3G Version: http://3g.chinatungsten.com
Molybdenum News & Molybdenum Price: http://news.molybdenum.com.cn

• < Prev
• Next >