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Countries challenge China export restraints

(NITL) The National Industrial Transportation League -- Logistics Management, 11/18/2009

NITL
Editor's Note: The NITL Notice did not run this week. This article is from the November 18 edition of This Week in Logistics.
The U.S. Trade Representative's office said November 4 the United States has requested the World Trade Organization (WTO) establish a dispute settlement panel regarding the restraints China places on numerous raw materials exports critical to U.S. manufacturers.
The materials at issue are bauxite, coke, fluorspar, magnesium, manganese, silicon metal, silicon carbide, yellow phosphorus and zinc. They are key inputs for numerous downstream products in the steel, aluminum and chemical sectors across the globe.

Also on November 4, the European Union and Mexico joined the United States in requesting the establishment of a WTO dispute settlement panel regarding China's practices in regard to raw materials restrictions.

"We are going to the WTO...to enforce America's rights, so we can provide our country's manufacturers with a fair competitive environment. We believe the restraints at issue in this dispute significantly distort the international market and provide preferential conditions for Chinese industries that use these raw materials," said Debbie Mesloh, a USTR spokeswoman.

"Working together with the European Union and Mexico, we tried to resolve this issue through consultations, but did not succeed. At this point, therefore, we need to move forward with the next step in the WTO dispute settlement process. We remain open to working with China to find a mutually agreeable solution to our concerns."

The USTR noted that China's WTO entry agreement contains broad commitments not to restrict the right to export goods. Specifically, China committed to eliminate export duties for all products other than those listed in a specific annex. China also committed to limit any export duties on the listed products to specified levels. The export duties being challenged are on products not listed in the annex or are imposed

at rates that exceed the annex limits.

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