WTO Rules Against China on Raw Materials Exports Jul 6, 2011

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The World Trade Organization found that China is unfairly restricting exports of steelmaking raw materials, in violation of the commitments to China made when it joined the WTO.

A WTO panel investigated complaints from the United States, the European Union, and Mexico about limits and tariffs imposed by China that unfairly benefitted Chinese manufacturers to the detriment of producers outside of China. The complaints covered exports of bauxite, coke, fluorspar, magnesium, manganese, silicon metal, and zinc.

The WTO panel found no merit to China's environmental-based rationale for the restrictions and recommended China act at once to bring itself into compliance with the commitments it made when joining the WTO. It is likely China will appeal the decision.

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