WTO to settle China dispute
The World Trade Organisation (WTO) will review a trade dispute brought against China by the European Union, Mexico and the USA on restrictions regarding raw materials.
The three parties have accused China of restricting the export of raw materials required to make steel, aluminium and chemical products, which in turn has forced prices up for their manufacturers and has therefore given China a price advantage.
In a statement, EU trade commissioner Catherine Ashton said: “China’s restrictions on raw materials continue to distort competition and increase global prices, making conditions for our companies even more difficult in this economic climate.”
WTO rules allow export taxes, duties and charges but in general, prohibit other restrictions, including those related to supply.
Consultations with China have failed to resolve the issue, prompting the three to call for a WTO dispute settlement panel to preside over it.
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