Rare WTO Dispute suffered adverse ruling

At 14:00 on March 26th, 2014 ( Geneva time ) , the WTO disseminated to the public in the United States , European Union and Japan appeal the panel report my rare earth, tungsten and molybdenum export restrictions WTO dispute case , ruled me about rare earths , tungsten and molybdenum the export taxes , export quotas and export quota management measures violate WTO rules . The Panel also ruled that export taxes I belong to the " Protocol of " the obligation can not invoke " GATT " exception clause ; I export quotas and management measures to protect the environment and natural resources are not related , can not be " GATT "Exceptions to the exemption provisions of the Agreement . But the Chinese expert group recognized the right to take stringent environmental measures to protect the environment and natural resources. According to WTO rules, parties may appeal within 60 days after the report circulated . This declaration of the United States , Japan , the European Union co-sponsored lawsuit lasted two years and finally had the preliminary conclusions from the implementation of China's 1998 rare earth export quota system , or will be forced to end.

In 2009 , the United States , European Union, Mexico, on the Chinese raw material export restrictions appeal to the World Trade Organization WTO. 2011 , WTO ruled that China's export restrictions of raw materials violations . Yesterday , WTO officially ruled China 's restrictions on exports of rare earths violation.

World Trade Organization (WTO) declared the United States , Japan, the European Union co-sponsored lawsuit lasted two years and finally had the preliminary conclusions of 1998 rare earth export quota system implemented or will be forced to end.

Chinese rare earth export quota controversy , began in 2008 , in the middle experienced a " Chinese raw materials WTO dispute " , and finally a comprehensive upgrade to the level of trade disputes in the WTO in 2012 . And this case from the outset , there were already signs of an adverse verdict .

There are people close to the negotiations told this newspaper revealed that the rare earth , from the outset , the U.S. and Europe mainly in China and abroad fire sale prices vary , gaining an unfair trade advantage.

Expert Group report noted that China's rare earth export restrictions adopted failed to demonstrate protection of natural resources , but not with restrictions on domestic production or consumption, with the implementation of the measures . Think of export tariffs on rare earths , tungsten, molybdenum related products taken export quota management measures and export performance and the registered capital of the rare earths , molybdenum export enterprises do not meet the requirements imposed by the relevant WTO provisions .

According to the WTO dispute settlement practice, the panel report issued within 60 days of our country can appeal . After 3-4 months , WTO will issue a final ruling. If the final ruling is still considered China's rare earth export restrictions violation, then our country will be implementing the WTO ruling, amend the related export restrictions . Russia, as a third party to join the negotiations also provided evidence to support this position. And in WTO member countries , there are also a number of developing country Members to support China's position .

China Rare Earth Association Deputy Secretary-General Chen Zhanheng an interview with reporters , said the association has prepared to present specific content of the report ruled study and evaluate the ruling influence the outcome of China 's rare earth industry and member companies , the next step would be to take some measures based on the assessment results .

In China WTO Research Institute of Foreign Economic and Trade University Tu Xinquan opinion, this export quota management system in China since the 1980s began undoubtedly a challenge. One of the most critical is that even rare cases settled, there will be a game behind the other strategic resources. Therefore, China must be prepared at the strategic level , and the current domestic likely " invited heavy criticism " of the relevant measures for reflection.

China WTO Research Association , said He Weiwen of the rules significance than practical significance of rare cases . In fact the last two years because of the international market supply and demand pattern of rare earth changes, China 's quota is not enough, but used up . So even cancel future of rare earth quotas, market and industry will not happen much impact. Management of critical rare earth industry lies in the consolidation of the country .


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