U.S., EU go to WTO over China raw material exports

U.S., EU go to WTO over China raw material exports    The United States and European Union have individually requested formal World Trade Organization dispute consultations Tuesday regarding China's alleged export restraints on numerous raw materials.
   China imposes quantitative restrictions in the form of export quotas on bauxite, coke, fluorspar, silicon carbide and zinc ores, and concentrates, as well as certain intermediate products incorporating some of these inputs. China also imposes other export restrictions through its export procedures, according to the Office of the U.S. Trade Representative.
   China is the largest producer of these raw materials.
   'The United States is very concerned that China appears to be restricting the exports of these materials for the benefit of their domestic industries, despite strong WTO rules designed to discipline export restraints,' said U.S. Trade Representative Ron Kirk in a statement.
   The USTR said China's export restraints could seriously disadvantage foreign downstream producers, including:
   ' Limiting exporters' access to these raw materials, especially those involved in steel, aluminum and chemical production.
   ' Significantly raising the world market prices for these materials, while lowering the prices that domestic Chinese producers have to pay.
   Lower-priced downstream Chinese products derived from the materials can then enjoy an anticompetitive price advantage vis-'-vis the same products produced outside China, the USTR warned.
   'Dialogue is our preferred course of action, but despite raising this issue with China repeatedly, China has not changed its policies,' Kirk said. 'We are committed to enforcing our rights using all of the resources at our disposal, including the WTO.'
   Consultations are the first step in a WTO dispute. Under WTO rules, parties that do not resolve a matter through consultations within 60 days may request the establishment of a WTO dispute settlement panel.