Industry News

USTR Seeks Comments on Chinese Export Restraints on Raw Materials in WTO Case

July 07, 2009


The Office of the U.S. Trade Representative has published a notice in the Federal Register seeking comments on its request for World Trade Organization (WTO) dispute settlement consultations with China regarding its export constraints on raw materials. The request alleges that China’s export restraints disadvantage foreign downstream producers, such as U.S. steel, aluminum, and chemical manufacturers, by significantly raising world prices for raw materials, while lowering the prices that Chinese producers have to pay.

In its complaint, USTR alleges that export restraints on these raw materials are inconsistent with China’s obligations under the General Agreement on Tariffs and Trade and China’s Protocol of Accession to the WTO.    According to USTR, Chinese restraints include:

  • Export duties
  • Quantitative restrictions (export quotas)
  • Export Duties
  • Minimum export price system – requiring the examination and approval of export contracts and export prices.
  • Additional administrative barriers to exports.

USTR is alleging that China imposes these export restraints on the following raw materials:

  • bauxite - including, but not limited to Harmonized Tariff Schedule (HTS) numbers 2508.30.0000/2508.30.00, 2606.00.0000/2606.00.00,   and 2620.40.00;
  • coke - including, but not limited to HTS 2704.00.1000/2704.00.10;
  • fluorspar - including, but not limited to HTS 2529.21.0000/2529.21.00   and 2529.22.0000/2529.22.00;
  • magnesium - including, but not limited to HTS 8104.11.00, 8104.19.00, 8104.20.00,
  • manganese - including, but not limited to HTS 2602.00.00, 8111.00.1010/8111.00.10,   and 8111.00.1090/8111.00.10;
  • silicon carbide - including but not limited to HTS 2849.20.0000 and 3824.90.9910;
  • silicon metal - including but not limited to HTS 2804.69.00;
  • yellow phosphorus - including but not limited to HTS 2804.70.10;
  • zinc - including but not limited to HTS 2608.00.0001/2608.00.00, 2608.00.0090/2608.00.00, 7901.11.9000/7901.11.90, 7901.12.0000/7901.12.00, 7901.20.0000/7901.20.00, 7902.00.00, 2620.11.00, and 2620.19.00.

USTR will consider all comments filed by July 31, 2009, on any aspect of its WTO complaint