Europe’s case against Chinese export curbs on rare earths has been boosted due to confidential findings by the World Trade Organization (WTO). A preliminary report by the WTO regarding export restrictions on raw materials such as bauxite and magnesium found flaws in the reasoning China has used in its ongoing legal fight. “China has export restrictions on raw materials that are questionable, according to the WTO,” a source familiar with the case said. “So that will be taken seriously when the EU considers China’s restrictions on rare earths too.” China claims that export reductions aim to protect the environment and scarce resources, an argument that would comply with world trade rules enforced by the WTO. The WTO has, however, publicly questioned whether Chinese curbs on exports of some raw materials to conserve resources meet the stated goals or merely favor Chinese manufacturers. The United States has also said that it may challenge Chinese rare earth exports at the WTO. The article can be viewed online at the link below.
http://www.euractiv.com/en/specialreport-rawmaterials/wto-opens-china-rare-earth-challenge-news-502713