The Appellate Body of the WTO announced that China's export measures on various raw materials are in breach with WTO rules. Industries affected by the outcome include the chemical, steel and non-ferrous metal industries.
China is the dominant producer and supplier of strategic raw materials. The outcome means that the tariffs and quotas used by China on nine commodities, including magnesium, zinc and silicon carbide, is contrary to WTO rules. For five of the nine commodities, China is the leading producing country with a production share of more than half of global production. EU importers of raw materials from China worth around one billion Euros per year.
On February 22 the WTO adopted the Appellate Body report. The next step is that China, within a month, have to bring its measures in complicance the WTO rules.
Trade Commissioner Karel de Gucht has said in a statement that the EU Commission expects China to bring its overall export regime, including for rare earths, in line with WTO rules.
For more information, read about the judgment on the WTO website.
Contact: Olle Grünewald, the Board of Trade
Tel: 08-690 48 73
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