Export Restrictions Comply with WTO Rules- Ministry

飞雪寒冰

The Ministry of Commerce said on June 24 that China's restrictions on raw materials exports are in line with World Trade Organization rules.

The United States and European Union on June 23 lodged a compliant with the WTO over China's use of quotas, tariffs and other price controls to restrict the export of nine materials including coke, bauxite, magnesium, silicon metal and zinc.

The official Xinhua news agency cited an unidentified ministry official as saying that the export policies are in compliance with WTO rules and were set up to protect the environment and natural resources.

Wang Shuai, chief analyst at Orient Securities Co., told Caijing that it is common for countries to limit exports of highly polluting and energy intensive products.

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U.S. Trade Representative Ron Kirk said the export restrictions have limited other countries' access to the materials, driving up prices on the international market while reducing costs to Chinese firms.

According to Cheng Dawei, an associate professor at Renmin University who studies trade issues, there is no evidence that the restrictions have directly damaged industries in the United States and European Union.

The U.S. and EU complaints stressed that the export restrictions have breached fair play in international trade, and that unfair competition will impact their economic recovery and employment.

According to WTO procedures, the U.S., EU and China have 60 days to resolve their disputes through consultation, after which they can ask for a WTO panel to investigate and make a ruling.

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Cheng told Caijing that resolving the dispute in the consultation stage would be the best outcome.

China can bargain with the U.S. and EU to reach an agreement, since both also have restrictions on exports of many products, Cheng said.

The U.S. has filed 7 cases against China, since China joined the WTO 10 years ago. Most were solved in the consultation stage. Meanwhile, China has filed four such cases against the U.S.

Heng Kun, chief nonferrous metal analyst at Essence Securities, told Caijing the dispute is likely to be settled in the consultation stage.