EU wants amicable solution to raw materials exports row
Post Date: 08 Jul 2011 Viewed: 970
STRASBOURG, The European Union will use a World Trade Organization ruling to try to coax China into ending export curbs on rare earth minerals crucial for EU high-tech production and jobs, the EU's trade chief said on Tuesday.
The WTO on Tuesday ruled China broke trade rules by restricting exports of certain raw materials, dismissing China's claim its export policies are steered by environmental concerns, and dealing a victory to the EU, United States and Mexico.
“I hope that as a result of this decision by the panel that the Chinese will be ready to discuss thoroughly with us how to proceed,” De Gucht told Reuters before addressing EU lawmakers.
“What is important about this judgment is that it sets the rules for the future and that it will become an important element in discussions with every country” that restricts raw material exports, he said.
The ruling coincides with growing concerns among markets and policymakers about a rising trend among resource-rich countries to restrict exports as demand outstrips supplies.
The EU is particularly concerned about Chinese export curbs on rare earth minerals used to make high-tech goods such as TV screens, wind turbines and fiberoptic cables.
But with a Chinese appeal to Tuesday's ruling likely, Europe will postpone any decision on whether to lodge further challenges at the WTO against Chinese export restrictions, De Gucht said.
“China are going to appeal at the Appellate Body,” he said.
“I'm not going to pronounce a timeline (on when the EU will decide on further challenges). What I hope is that we can come to a solution through discussions so we don't have to litigate anymore,” he said.