World Trade Organization (WTO) dispute settlement panel has preliminary support for Japan, the United States and the European Union on Chinese control of rare earth export tariffs violate WTO rules opinions.

Reporters from all confirmed , WTO panel has been submitted to China a preliminary decision that China 's rare earth export tariffs contrary to the 2001 accession to the World Trade Organization commitments. Insiders said the next step may be to fight China 's exports first release of some varieties , such as light rare earth export management to some extent liberalized, but the heavy rare earth is still the implementation of conservation policies .

Subject: RE export tariff dispute

Up to now , WTO has been no official news came out . However, some other channels are confirmed the news. Press the " China Accession Protocol " agreement , China should be canceled for the entire export taxes , unless expressly provided . Annex to the Agreement lists 84 kinds of products explicitly specified rate . Wherein the rate of about 10% of rare earth . As a rule, this should be the duty of the highest standards for collecting rare , but exceptions .

And in 2012 , China's rare earth export tariffs of 25%. Informed sources said , according to regulations , Chinese exports of rare earths should follow WTO commitments . Which in addition to export tariffs, quotas of rare earth next will face canceled.

Outside WTO panel is expected to consult the views of interested parties in mid-November at the earliest after issue its final report . Rare earth industry an authoritative source , the decision against China , but the results expected. Next, China will further complaint .

The source said that China's rare earth resources, especially in the heavy rare earth supply, and serious environmental pollution , and then to the 2000 level , to impose export tariffs on unfair ; another horizontal contrast rest of the world for copper , nickel and other scarce resources the export tax is also far more than the 10% level . To this end, China rare earth export tariffs increase is reasonable .

It is said , 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 no later than early 2015 RE tariffs, quotas fully liberalized .

Solution: build a large group

Authorities are very worried that once the WTO lawsuit against China rare earth industry, no tariffs and export quotas , the manufacturer will be the same as before into a price scrimmage , rare earth return "cabbage price " era.

26, the chief of staff at the State Department , China Nonferrous Metals Industry Association's 2013 China Rare Earth Forum, the Ministry of Rare Earth Office Jia Yinsong revealed small scattered rare earth industry, the situation has improved , but the need to further promote the formation of large enterprise groups .

At present, China has formed Baotou Rare Earth , China Aluminum , Minmetals Rare Earth , Ganzhou Mining , Xiamen Tungsten , JCC , several leading enterprise resource the far side of the situation .

Insiders , WTO rules do not support the number of Member States to restrict exports and setting high tariffs behavior , but allows member states to manage exports through export qualification . Of formation of large rare earth enterprise groups can contain rare earth Luancailuanwa , effective management of rare earth exports .

China Nonferrous Metals Association Vice President Wang Qin suggestions, LREE classification management ; production of mandatory plans to play a role of the market ; establish Rare purchasing and storage system .

Some analysts have said that by communicating with the WTO after the release of some varieties may be exported , namely light and heavy rare earth export of differentiated management , such as the light rare earth export management to some extent liberalized, but the heavy rare are still implementing conservation policies.

Challenge: light rare earth or bear the brunt

From LREE or differentiated management point of view , WTO litigation exports of rare earths after the New Deal , once implemented , the biggest variable is the light rare earths . Last two years, China's rare earth exports decreased significantly in 2011 , 2012 rare earth export quotas were only half , for two main reasons : one is the 2011 rare earth prices have rocketed ; Another is rare earth export tariffs raise the cost .

Exports of rare earths after the opening , along with cost reduction , China Overseas orders may increase. In addition, only 10% of the low tariff levy will squeeze smuggling enterprise or living space , the formal large enterprises more profitable .

However, the global light rare earth rich in natural resources , light rare earth market is fiercely competitive . Face more downward pressure on rare earth prices .


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According to reports , the World Trade Organization (WTO) dispute settlement panel has been initially supported by Japan, the United States and the European Union on Chinese control of rare earth export tariffs violate WTO rules opinions. WTO panel has been submitted to China a preliminary decision that China 's rare earth export tariffs violated in 2001 to join the World Trade Organization commitments. The report quoted industry sources, the next step may be to fight China 's exports first release of some varieties , such as light rare earth export management to some extent liberalized, but the heavy rare earth is still the implementation of conservation policies .

As of now , according to " China's accession to the Protocol " agreement , China exported products should be abolished for all taxes , unless expressly provided .


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Recently, the Japanese media reported that the World Trade Organization (WTO) dispute settlement panel has preliminary support for Japan, the United States and the European Union on Chinese control of rare earth export tariffs violate WTO rules opinions.

Press the " China Accession Protocol " 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 .

And in 2012 , China's rare earth export tariffs of 25%. Europe and Japan and China on the issue of differences in the rare earth have been carried out for several years. China has always insisted that the excessive production of rare earth will cause damage to the environment , hinder the sustainable development of rare earth industry .

In certain cases, WTO rules allow member states export controls , one of which is out of non-renewable natural resources protection. But Europe and the United States suggested that if indeed out of this consideration , both inside and outside China 's restrictive measures should be treated equally, also applied to China 's domestic production.

In this regard, Xiamen University, China Energy Economic Research Center Lin Boqiang said that , not so exaggerated . On the one hand , the Japanese media reports have not been officially confirmed , even if true , it would not cause much impact on China's rare earth industry , particularly strategic resources in their own hands , is not wrong ; hand , the status quo, for their own protection and so on, not short-term quota system should be abolished .

Outside WTO panel is expected to consult the views of interested parties in mid-November at the earliest after issue its final report . If the parties are not satisfied with the report to the WTO 's highest court appeal.

Rare earth industry an authoritative source , the decision against China , but the results expected. Next, China will further complaint .


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"The Middle East has oil , China has rare earth ." Petroleum Exporting Countries (OPEC) on oil exports to take a quota system in Europe and America without objection , Japan honestly follow ; to protect the environment, combating smuggling and to ensure sustainable development of industry , China's rare earth export quota system to take the same , but the Western and Japanese protest appeal WTO (WTO). Recently there have been news that , WTO considered that the appeal reasonable -

October 26 , Japan's " Industry News" 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 " and advised " Chinese rectify misconduct . "

" will be introduced in late November, the final report is not expected to overturn the judgment, United States and Europe may favor on this issue . " the report said , " In the WTO trade disputes the idea prevailed against the United States and Europe , which means that China 20 years to date resources diplomatic strategy to stall. "

"I did not so exaggerated . " Xiamen University, China Energy Economic Research Center Lin Boqiang ," International Finance , "told reporters , " On one hand , the Japanese media reports have not been officially confirmed , even if true , it would not cause much impact on China's rare earth industry , in particular, the strategic resources in their own hands , is not wrong ; the other hand, status quo, for their own protection and so on, not short-term quota system should be abolished . "As of " International Finance "reporter writing, including the Ministry of Commerce , Ministry of Industry and other ministries has not released information about the rare earth litigation , WTO also did not release information.

WTO preliminary ruling against China

For China 's export of raw materials . 2009 trade war " rampage " of the occasion , the U.S. and the EU in the WTO trade disputes within the framework of China made ​​the request , 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 quantity control , in violation of China 's 2001 accession to the WTO commitments , resulting in other countries in the steel, aluminum and other chemical products production and exports at a disadvantage.

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 .

This allows European countries caper , leaving the industry worried about China's rare earth policy , because in this area China also adopted a quota system . Sure enough , last seen in March "spreading rumors " after that year on June 27 , the United States , the EU , Japan v. China rare earth, tungsten, molybdenum, three kinds of raw materials, the WTO Dispute export management measures , formally filed to the WTO Dispute Settlement Body establishment of a panel request .

In this regard, Japan's " Sankei Shimbun" said that in Japan, the U.S. and the EU joint prosecution Chinese undue restrictions on exports of rare earths issues , WTO Dispute Settlement Body 's interim report summarizes the general finds reasonable demands of United States and Europe .

Japan's Kyodo News said , WTO presented to the interim report of the countries concerned , and to listen to China and other countries in the comments on the report , summary of the final report , plans announced during the year . Kyodo news agency said , in general, the contents of the interim report will be basically reflected in the final report.

For the Japanese media say, China has not been the official stance . "With previous experience in favor of nine kinds of raw materials , China 's exports of rare earth loses, or is not unexpected . " Lin Boqiang that , " but in general, the global trade environment, Europe is still standing better than the Chinese wind in public opinion . In fact, the adoption of a quota system , China is not the first , but not the only one . The most typical example is , OPEC country's oil exports , that is, according to a quota system . So far, Europe and the United States did not take it that matter . "

Some media said , according to " China 's WTO accession protocol " agreement, China exported products should be abolished for all taxes , unless expressly provided . Media, annex lists 84 kinds of products specified rate , which , rare earth tax rate of approximately 10%. According to the 2010 public reports, " metal neodymium ( a rare earth element ) may range from 15% to 25% , with exports of neodymium iron boron rejection rate may be increased to 20% from zero . "

Government and industry should strongly appeal

It is said that the first instance verdict WTO panel report will be released in mid-November . According to the process , the panel hearing the equivalent of " first instance ", if dissatisfied with the Panel report , China could appeal to the WTO High Commission for final decision .

"Once the results are unfavorable to China , China will certainly be carried out within the framework of the WTO complaint . " International litigator Hao Junbo ," International Finance , "told reporters , " After all, the earth is related to an important resource for national interests , rather than give up , not as fight for the greater good , to avoid greater losses. "

According to China's nine kinds of raw materials prior to the experience of an appeal , when the final results published in the WTO , WTO panel to correct the previous part of the award : quota allocation management, export licenses , export minimum price , the overall quota bidding decision invalid and so on. This avoids the Chinese experience in the field of raw materials in greater losses .

"Crown will certainly be a complaint . " a rare earth industry also ," International Finance , "told reporters , after all , China has always stressed that before the protection of the environment and the fight against smuggling, reasonable, fair and reasonable .

In fact, the Commerce Department 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. Commerce Department had also said, " China will carefully study the prosecution panel filed a request , and according to WTO dispute settlement procedures to be properly addressed. "

Last year, the Ministry of the person concerned has publicly said that China will actively responding to, and stressed that " China 's rare earth policy measures taken entirely for the protection of resources, environment and sustainable development, in line with WTO rules ."

"However, the complainant should pay attention to skills . " Hao Junbo suggested," on the one hand , if the result is true , the Chinese government departments still have reasoned to express China 's rare earth interests ; the other hand, China 's industry associations and enterprises, but also helps improve the relevant official complaint report , show their attitude. In short, is to the greatest extent possible to avoid China's exports of rare earths on the loss. "

Efforts to accelerate industry mergers and acquisitions

" Finance News" reporter who interviewed last year, too many business people and analysts bit rare , they were of the view that , once lost, China will likely open in the rare earth policy control , which means that the quota system disappeared ( without limiting exports ) , the huge interest in front of Chinese rare earth excessive and indiscriminate digging , smuggling and illegal export of such issues , or re- emerge in the market , while the rare return to the " cabbage price " possibilities are also increasing.

"This is also not conducive to China 's rare earth industry virtuous cycle of development . " the source said.

According to media reports , 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 resource-related measures if such measures with restrictions on domestic production or consumption with the implementation . "

In this regard, Foreign Trade University China WTO Research Institute Tu Xinquan that most of China's rare earth industry meet the above requirements, but did not do the export quota and the number of domestic consumption to maintain consistency , "So China under the framework of the WTO may request to retain the rare earth export quota , while the quota extended to domestic consumption and consistent level . "

But Lin Boqiang that the long term, Chinese rare earth quotas certainly still will continue to suffer criticism. Therefore , the most fundamental strategy or " from the inside ", that govern domestic rare earth first chaos , then consider external policy .

In Boqiang view, which is very important initiative is to gradually form a large Rare Earth Group , allowing small or workshop-type rare earth enterprises has been completely eliminated or integrate completely avoid smuggling and excessive and indiscriminate digging situations.

In fact, in 2011 the State Council issued the " State Council on promoting the sustained and healthy development of rare earth industry, a number of opinions" , proposed a period of two years , " the basic form to large enterprises as the leading rare earth industry pattern ." Also this year, August 7 , the Ministry of raw materials Industry Division also issued a document , said: eight departments will organize illegal acts against the rare earth industry special action "requirement for local governments in the region overall responsibility for management of the rare earth industry , since 2013 August 15 to November 15 in the fight against rare earth mining , production, circulation of illegal special action . "

A brokerage said in a research report , led by the Ministry of earth large group program has been submitted to the State , once the program is approved , the formation of a large group of rare earth is expected to officially start .

"But the difficulty lies in the integration of local government . Related small and medium enterprises are often rare local government tax ' bulk ' . Therefore, how to coordinate the relationship with the local government , is the key to integration of rare earth . " Lin Boqiang said.


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