Following legal action in 2012 and 2014 on similar export restrictions, the European Commission said China is imposing duties and quotas on certain materials, which it says violates the country’s WTO accession protocols.
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“Obama trade rep confident Pacific deal passes this year MORE and EU Trade Commissioner Cecilia Malmström combined their cases at the World Trade Organization (WTO), arguing that the duties and quotas give Beijing a competitive advantage at the expense EU and USA workers”.
In Washington, the U.S. trade representative’s office said China’s export duties ranged from five to 20 percent, raising prices for overseas buyers while Chinese companies paid much less and had more secure supplies.
Last week, the United States also requested consultation with China at the WTO over its export duties on nine different raw materials including antimony, cobalt, copper, graphite, lead, magnesia, talc, tantalum and tin. If you would like to discuss another topic, look for a relevant article.
Both trade officials said China’s restrictions distorted the market and favored Chinese industry at the expense of European Union companies and consumers, and that Beijing could support the environment more effectively with other measures that would not hurt trade.
“They are part of the comprehensive measures to strengthen the protection of the ecological environment and are in line with WTO rules”, it said. It said removing the export duties might allow supplies of the materials to the European Union to rise by 9 percent, with an even greater increase if other measures were removed.
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The MOC said China will properly handle the case in accordance with WTO dispute settlement procedures.
