AISI Supports WTO Finding on China’s Raw Materials Export Restrictions
07/07/2011 - The American Iron and Steel Institute supports a World Trade Organization dispute resolution panel that publicly released its report in the China – Raw Materials case, finding that China’s restrictions on the exports of nine raw materials violate its international obligations.
The American Iron and Steel Institute (AISI) supports a World Trade Organization (WTO) dispute resolution panel that publicly released its report in the China – Raw Materials case, finding that China’s restrictions on the exports of nine raw materials violate its international obligations. AISI commended the U.S. Trade Representative (USTR) for its strong advocacy over several years of involvement in the dispute resolution proceeding.
In response to challenges by the United States, the European Union, and Mexico, the WTO panel examined China’s use of export quotas, export taxes, and other measures to limit exports of coke, bauxite, fluorspar, zinc, silicon carbide, and other materials. The panel’s favorable ruling found that China’s imposition of these measures violated WTO rules, including various provisions of the General Agreement on Tariffs and Trade (GATT) and specific commitments China undertook when it joined the WTO.
“This is a strong and decisive ruling by the WTO, confirming that China cannot impose export quotas, export taxes, and other restrictions on these raw materials,” said Thomas J. Gibson, President and Chief Executive Officer of AISI. “We call on China to immediately remove these export restrictions.” In the event that China decides to appeal the panel’s decision to the WTO Appellate Body, AISI also urged the Appellate Body to affirm the panel’s ruling and reasoning.
Removal of these export barriers by China is expected to result in improved availability and lower prices for the affected raw materials in global markets. AISI says it will closely monitor the situation in hopes that China will quickly implement the WTO ruling.
AISI also called on China to terminate all such export restrictions on rare earth elements and other raw materials.
AISI serves as the voice of the North American steel industry in the public policy arena and advances the case for steel in the marketplace as the preferred material of choice. The Institute, which plays a lead role in the development and application of new steels and steelmaking technology, comprises 25 member companies, including integrated and electric furnace steelmakers, and 118 associate and affiliate members who are suppliers to or customers of the steel industry. AISI's member companies represent approximately 80% of both U.S. and North American steel capacity.
