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China s export restrictions on tungsten

China s export restrictions on tungsten

Write: Campbell [2011-05-20]

China s export restrictions on tungsten


Last Friday (February 18, 2011) the World Trade Organization (WTO) issued an interim panel report concluding that China acted improperly in imposing restrictions on the exportation of certain raw materials.1 Although the report will remain confidential until late spring or early summer,2 its reasoning will have direct implications for how the WTO might view similar Chinese measures including export tariffs, export licenses, and export quotas to restrict exports of products containing rare earths, tungsten, and antimony. These measures appear to constitute a prima facie violation of China s commitments as a member of the WTO. If challenged in a formal trade dispute, China would likely attempt to defend its policies under WTO exceptions for environmental or conservation measures, as it did in the raw materials case. The outcome would depend heavily upon the specific evidence presented by China and whether the facts suggest a protectionist or discriminatory intent or effect, but today s interim panel report in the raw materials case indicates that China may find it difficult to defend its export restrictions on rare earths,

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