Rare deal with the dispute should return to the original intention of protecting natural resources and the environment

In contrast, the price adjustment method is more preferable , as long as the resource tax and environmental taxes can be high enough to compensate for the cost of resources and the environment , there are naturally competitive enterprises can obtain the corresponding market share, but this approach can also resource and environmental costs transfer to the international market prices to suppress international market demand for Chinese rare earth.

March 26 , World Trade Organization (WTO) panel report released ruled export tariffs on Chinese rare earths, tungsten, molybdenum related products taken quota management measures violate WTO regulations. Since March 13, 2012 the United States , European Union, Japan will export tariffs Chinese rare earth, tungsten, molybdenum related products , export quotas and export quota management and allocation measures to resort to WTO dispute settlement mechanism to date, has lasted more than two years , which a first trade dispute involves four global economy temporarily come to an end . In accordance with WTO procedures , China still has the right to appeal , and delayed several months , but the results may not change the General Assembly .

The rare earth export dispute sparked widespread concern at home and abroad , but the trade point of view is somewhat surprising. In 2012, China 's rare earth export less than $ 1 billion , and exports the same year, China socks over 4 billion U.S. dollars . Obviously , only from the point of view of trade , rare earth almost not worth mentioning. However , due to the particularity of Chinese dominance in the rare use of rare earth reserves , which from the outset, since the dispute was given a lot of significance beyond trade .

In fact , our country is not as outsiders imagine that the supply of rare earth have absolute control . On the one hand , the rare earth is irreplaceable been overestimated or overstated , after China began from rare earth export restrictions , some countries have developed a number of alternative materials or reduce the use of rare earth. Meanwhile, other countries have enormous reserves of rare earth , while there are many undiscovered rare earth reserves. In other words , the reason for the past 20 years , 90% of the world's supply of rare earths from China , just as China 's rare enough to cheap and abundant.

So, faced with this trade dispute , we should return to its trade interests friction origin , return to us repeatedly stated intention to protect resources and the environment .

From the point of view of trade , China's rare earth export controls does the use of rare earth enterprises in importing countries adversely affected. On the one hand , the export tax to make use of foreign importers and domestic rare earth enterprises are facing different prices. On the other hand , the export quota of rare earth lead to insufficient supply in the international market , increasing the cost of importing enterprises.

Indeed, from the maintenance of free trade principles of the WTO , the export duties and export quotas are not worth promoting measures, but the current WTO does not prohibit the use of export taxes , export quotas on the use is not allowed in principle , only to meet specific exception conditions before using . Country cited " GATT 1994 " exception to item 20 g as a defense that the export restriction measures taken to protect our exhaustible natural resources, but also to take measures related to domestic production or consumption.

China has a group of experts recognized the sustainable use of natural resources and China has the right to fully proved the existence of a comprehensive policy to protect rare earth resources , but is not considered necessary export quotas or illegal smuggling measures to prevent the exploitation of rare earth , can not prevent the illegal exploitation or production of rare earth domestic consumption , nothing to do with the protection of rare earth resources, it is difficult to identify Chinese exports and domestic consumption took the same restrictions .

Purely from the perspective of international law, it is difficult to deny the rationality of WTO panel analysis. In fact , such a case of deja vu . In 2009 , the United States , European Union, Mexico, the Chinese bauxite , coke, fluorspar and other nine kinds of raw materials export control measures taken to WTO. January 31, 2012 , WTO issued a report dismissing the appeal request China based on environmental or supply shortages preliminary ruling raised the export of nine raw materials, the final ruling I restriction violation . Based on the current situation, the reasonable expectation is that rare earth final decision probably will not be changed.

If so , WTO ruling will allow us inevitable , no choice , we can return to the source of production to achieve the resources and environment protection.

On China's rare earth control , the beginning of 2000 introduced a variety of measures , including enterprise integration , but the implementation of the results are poor, rare earth prices are way down . After 2009 , a substantial tightening of export quotas, export restrictions qualifications and the fight against smuggling of rare earth exports dropped significantly , prices rapidly increased, and peaked in mid-2011 . However , after the price increases , a substantial increase in production enthusiasm , stealing , smuggling is serious, the number of foreign customs statistics of rare earth imports from China is much larger than the export volume of Chinese customs statistics . Subsequently , despite declining exports of rare earth in the name , but also the corresponding rare earth prices fell sharply two-thirds.

In fact , in 2006 , China began to implement total control and management of rare earth mining , this constraint does not belong to the scope of WTO rules , entirely within our autonomy. Therefore, the future for legitimate mining companies , you can use the total control ( mining quotas ) or price adjustment ( resource tax and environmental taxes ) way . In contrast, the national trend in reducing the administrative examination and approval , the price adjustment method is more preferable , as long as the resource tax and environmental taxes can be high enough to compensate for the cost of resources and the environment , there are naturally competitive enterprises can obtain appropriate market share, and in this way can also be transmitted to the resource and environmental costs in the international market prices to suppress international market demand for Chinese rare earth.

Must see , another problem is that China's rare earth industry , there are many illegal miners , this price adjustment method is powerless, forced to rely on government , depending on our determination and ability to perform , the test of the government's wisdom.


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