EU, Mexico & U.S. Request WTO Dispute Panel with China Regarding Export Constraints on Raw Materials

Novembe 7, 2009

Recently, the Office of the U.S. Trade Representative (USTR) requested the World Trade Organization (WTO) establish a dispute settlement panel regarding China’s export constraints on numerous raw materials. The materials at issue are: bauxite, coke, fluorspar, magnesium, manganese, silicon metal, silicon carbide, yellow phosphorus, and zinc, key inputs for numerous downstream steel, aluminum and chemical products.

The U.S. and the European Union requested consultations with China at WTO on this issue on June 23, 2009. Mexico filed a separate request for consultations on August 23, 2009. On November 4, 2009 all three countries requested that the WTO establish a dispute settlement panel over the matter.

The U.S. alleges that China imposes export quotas on the materials identified above. In addition to the export quotas, the U.S. further alleges that China is imposing export duties on several of the products and imposes other procedural barriers on the products.