WTD Trade Alert – WTO Appellate Body Favors US on Chinese Raw Materials Exports

The World Trade Organization Appellate Body today affirmed a dispute settlement panel decision from July 2011 finding in favor of the United States and rejecting China’s attempts to portray its export restraints on various raw materials as conservation or environmental protection measures or measures taken to manage critical shortages of supply.

The export restraints challenged include export quotas and export duties, as well as related minimum export price, export licensing and export quota administration requirements. The raw materials at issue include various forms of bauxite, coke, fluorspar, magnesium, manganese, silicon carbide, silicon metal, yellow phosphorus, and zinc.

Export restraints can artificially increase world prices for these raw materials while artificially lowering prices for Chinese producers, the United States argued.


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