WTO sets up panel for U.S. in China raw materials trade dispute

The World Trade Organization has agreed with the United States to establish a dispute settlement panel to examine China’s export duties and quotas on 11 raw materials.    The World Trade Organization (WTO) has agreed with the United States to establish a dispute settlement panel to examine China’s export duties and quotas on 11 raw materials.
   These raw materials include antimony, chromium, cobalt, copper, graphite, indium, lead, magnesia, talc, tantalum and tin, which are key inputs for a range of U.S. products, such as steel, automobiles, aerospace components, construction equipment and electronics.
   The Office of the United States Trade Representative (USTR) said it called for a special meeting at the WTO to have the panel set up after China objected to and blocked the first U.S. request for the panel’s establishment.
   “China specifically committed to abide by fair, non-discriminatory access to raw materials when it joined the WTO,” said U.S. Trade Representative Michael Froman in a statement. “We intend to hold them to that commitment to ensure that our workers and businesses get all the economic opportunities they’re entitled to under our trade agreements.”
   “Because of China’s position as a leading global producer of these raw materials, its export restraint measures give China the ability to affect global supply and pricing significantly,” the USTR explained. “These measures can provide important advantages to China’s downstream producers, to the detriment of U.S. and other foreign counterparts. These measures also can create substantial pressure on foreign producers to move their operations, jobs and technologies to China.”