Bangkok Shipowners and Agent Association

Bangkok Shipowners and Agents Association
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Home News World Shipping News WTO declares Chinese export restraints on raw materials violate trade rules
WTO declares Chinese export restraints on raw materials violate trade rules PDF Print E-mail
Friday, 03 February 2012 08:33
Shpg Gazette 3/2/12

THE World Trade Organisation (WTO) has rejected China's claims that its
export restraints for several industrial raw materials cover conservation
or environmental protection measures following dispute from the US, and
latterly the European Union and Mexico.

The decision was considered "a tremendous victory for the United States"
said US Trade Representative Ron Kirk and reinforces a rule where the US
can compete on a level playing field in the use of raw materials used in
steel, aluminium and chemicals industries.

"They can artificially increase world prices for these raw materials while
artificially lowering prices for Chinese producers," said the Office of the
US Trade Representative which puts pressure on foreign producers to move
operations and with it their technologies to China, it added.

The National Foreign Trade Council said the restriction of these materials
in everyday products hurts many US technology-based companies and is a
"form of protectionism" which creates artificial shortages, raising world
prices and undermining the integrity of the trading system.

Once adopted by the WTO dispute body, the Appellate Body will uphold its
findings for China to comply with WTO obligations within 30 days.