Date
17 October 2017
A WTO appeals panel has ruled that China's curbs on exports of rare-earths are not justified. Photo: Bloomberg
A WTO appeals panel has ruled that China's curbs on exports of rare-earths are not justified. Photo: Bloomberg

China loses WTO rare-earths ruling appeal

The World Trade Organization (WTO) has upheld a ruling that China violated international trade rules with its export restrictions on rare-earth minerals, Reuters reported Thursday.

“… China has not demonstrated that the export quotas that China applies to various forms of rare earths, tungsten and molybdenum by virtue of the series of measures at issue are justified,” a WTO Appellate Body was quoted as saying, upholding a previous ruling.

China had lodged an appeal after a WTO panel ruled in March that Beijing’s export restrictions breach WTO rules. The case against China came after complaints by the US, the European Union and Japan.  

China, which produces more than 90 percent of the world’s rare earths, imposed strict export quotas in 2010, saying it was trying to curtail pollution and preserve resources. Prices soared, prompting the WTO complaint. 

The latest ruling may put pressure on China to cancel its export quotas.

“China will carefully assess this ruling, continue to improve its management on resource-consuming products in a WTO-consistent manner, facilitate the protection of natural resources, and maintain fair competition..” the Chinese commerce ministry was quoted as saying in a statement. 

– Contact us at [email protected]

RC

EJI Weekly Newsletter

Please click here to unsubscribe