EU, US to take 'unfair' Chinese export restrictions to WTO

23 June 2009 14:56  [Source: ICIS news]

BRUSSELS (ICIS news)--The EU and the US have requested World Trade Organization (WTO) consultations with China over the country's export restrictions on a number of raw materials that give its chemical industry an unfair advantage, the European Commission said on Tuesday.

The restrictions on various raw materials are in clear breach of international trade rules, said the Commission.

European industries have raised concerns for a number of years on export restrictions - through quotas, export duties and minimum export prices - which China applies on key raw materials.

These include yellow phosphorous, bauxite, coke, fluorspar, magnesium, manganese, silicon metal, silicon carbide and zinc. Some of these resources cannot be found elsewhere. 

"Restrictions on raw materials give Chinese companies an unfair advantage, as downstream industries in China have access to cheaper materials than their competitors outside China," said the Commission.

The chemical, steel and non-ferrous metal industries, as well as their downstream clients, are the main sectors concerned.

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By: Philippa Jones
+44 20 8652 3214

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