Rare case of preliminary or China China is still the opportunity to appeal adverse

Just earlier this week , the World Trade Organization (WTO) dispute settlement mechanism panel ( hereinafter referred to as Group ) v. United States and Japan will have Chinese rare earth export controls dispute interim report circulated made ​​parties to the dispute . Although the final report in 6-8 weeks may be released only after the world, but the media pointed out that the basic group of experts to support the U.S. , Japan and the EU against Chinese rare earth export restrictions policy violations aspirations. Japanese media have even publicly reported that the panel had found the United States , Japan and Europe for Chinese rare earth export controls to make a preliminary ruling proceedings , the plaintiff 's argument basically agree .

"In fact, the news had spread . China's accession to the WTO has been related to the time commitment is indeed a preliminary ruling against China . But right now , China can only continue to appeal. " Xiamen University, China Energy Economic Research Center Lin Boqiang told reporters that , " From the Chinese point of view, this matter not be anxious . "

Chinese respondent reason not being taken seriously

In fact, the United States and Japan and China on the issue of differences in the rare earth has been going on for several years, rare cases have also been consuming half a year - in March 2012 , the United States , Japan, Europe has three trade disputes brought to the WTO litigation request that the Chinese for 17 kinds of rare earths and tungsten and molybdenum export quotas and export duties and other restrictive measures imposed . After bilateral consultations failed to elicit solutions. September 2012 , established by the WTO Director-General panel to adjudicate .

But China is not willing to remain silent . But, one indisputable fact is: excessive production of rare earth will cause environmental destruction and hinder the industry 's sustainable development.

A survey shows that in the rare earth mine , the ore is mined around the end of the earth is no longer the growth of vegetation , and some even whole mountain has been hollowed out into a bald mountain . Jiangxi Provincial Industry and Information Commission had released the relevant data show that in 2011 , the entire Jiangxi Rare Earth Industry profits are only 64 billion yuan, 38 billion yuan of the huge "green arrears" is the year in Jiangxi Rare Earth Industry profits throughout 6 times.

Ministry of Commerce has repeatedly said that on the rare earth issue, China policy objective is to protect resources and the environment and achieve sustainable development, has no intention of trade-distorting way to protect domestic industries . China has always respected the rules of the WTO , and actively fulfill WTO commitments.

But the attitude is still strong in Europe and America . In fact, for resource exports , China is not the first nor the only one to take a quota system . According to Lin Bo , a lot of countries and regions on the export quota , the most typical example is the Organization of Petroleum Exporting (OPEC) oil-exporting countries .

America, Europe and well prepared

Outsiders expected , WTO Panel will , in consultation with the views of the parties concerned , the fastest in the final report released in mid-November . According to the process , the group of hearing the equivalent of " first instance ." If dissatisfied with the Panel 's report , China could appeal to the WTO High Commission for final decision .

However, the domestic industry is still on the case of the final result is not good, and let them generally pessimistic mood because, previously , there have been similar cases - the end of 2011 , the United States , Mexico and the European Union within the framework proposed by China in the WTO Trade dispute request , accusing China 's bauxite and other 9 kinds of raw materials to export quotas and export tariffs, price and quantity control , in violation of WTO rules . The outcome is - China 's appeal is dismissed.

In this regard, Shanghai Han Lu Lawyer Wang Huaitao analysis pointed out , WTO 's final report actually overturned a preliminary ruling concerning Chinese export license , the minimum export price requirements , export quotas and expense management constraints, but maintains a preliminary export taxes and quotas ruling core content rejected the Chinese environmental protection or supply shortages based on the preliminary ruling request an appeal .

" China has always stressed setting export quotas and export tariffs are designed to protect resources and the environment, and protection of natural resources, the WTO allowed, but only if such measures with restrictions on domestic production or consumption with implementation . At present , China has not yet done export quotas and the number of domestic consumption to maintain consistency . " Wang Huaitao that as usual, the decision that is likely to become rare cases the WTO ruling paradigm.

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

" Therefore, once the results are unfavorable to China , China should actively appeal. " Wanghuai Tao said that China should adhere to the" China 's rare earth policy measures taken for the protection of resources, environment and sustainable development needs of the country 's rare earth production and consumption necessary to limit , in line with WTO rules and exemptions . " Meanwhile, the Chinese supply of rare earth resources , environmental pollution, horizontal comparison on the rest of the world related to scarce resources export tax is also far more than the 10% level . To this end, China should be cited as the implementation of these two provisions justification of rare earth export restrictions and conduct horizontal comparison to illustrate the increase of rare earth export tariffs are reasonable.

Losing does not mean no way out

If the final ruling against China , China will likely open in the rare earth policy controls. Wangguan Tao said China's rare earth industry is no tariffs and export quotas , the price is likely to fall into the melee stage and lead to vicious competition is extremely conducive to environmental protection .

But Lin Bo pointed out that , even if unsuccessful , China is not helpless. " China's rare earth export quota system is in fact only in the industry consolidation is not completed in the case to take a policy response . Solely on the rare earth industry , the integration of related industries in China if carried out smoothly, sooner or later, the quota system is to be canceled . "

It is noteworthy that in the integration process, the Chinese rare earth industry is still faced with two problems , one is the environmental cost, the other is in the domestic and foreign markets are rare problems existed uncontrollability . " Originally , from a market development point of view , the more the more competitive enterprises , industrial development as possible. But it comes to exports of resource products is not so different , but is easier to enterprises bigger and stronger on the export price and size constrain . "In Lin Boqiang opinion, as long as the resource costs increase , rare earth prices will naturally will correspondingly. Meanwhile, if the taxes levied on domestic enterprises , rare earth prices will be increased. However , the most fundamental strategy or " from the inside ", that is the first domestic rare earth governance chaos , and then consider its foreign policy . Moment , the integration of rare earth industry's most important to get the full cooperation of the local government , so that the relevant national regulatory policies issued to really uplink .

It is reported that , WTO litigation fastest at the end of the outcome. However , according to regulations , adjust the new export tariff and quota policies can have a grace period of six months to one year , which may be later than the beginning of 2015, full liberalization of rare earth tariffs, quotas.


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