Industry News

WTO Appellate Body Rules Against China's Export Restraints

January 30, 2012

On January 30, 2012, the World Trade Organization (WTO) Appellate Body ruled that China’s export restraints on several raw materials used as key components in the steel, aluminum, and chemicals industries are inconsistent with China’s WTO obligations. These raw materials include various forms of bauxite, coke, fluorspar, magnesium, manganese, silicon carbide, silicon metal, yellow phosphorus, and zinc. The United States, the European Union and Mexico lodged complaints in 2009 challenging China’s export restraints on this list of materials, including China’s export quotas, export duties, related minimum export prices, export licensing, and export quota administration requirements. Ambassador Ron Kirk, the United States Trade Representative, released a statement calling the WTO report “a tremendous victory for the United States – particularly its manufacturers and workers”.

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