On November 6, our reporter learned from the China Iron and Steel Association that on November 19th, the WTO Dispute Settlement Body will hear the requirements of the United States, the European Union, and Mexico to "set up a dispute settlement group on China's raw material export restrictions."
Debbie Mesloh, spokesperson for the US Trade Representative Office, said, "We still hope to work with China to find a satisfactory solution." The United States has tried to resolve this issue through consultations with the EU and Mexico. Failed to succeed. "Therefore, the United States, the European Union and Mexico have taken the second step towards resorting to the WTO dispute settlement mechanism."
On June 23, the United States and the European Union formally submitted a trade dispute consultation request to China within the framework of the WTO, stating that China has nine raw materials for bauxite, coke, fluorite, magnesium, manganese, silicon metal, silicon carbide, yellow phosphorus and zinc. The adoption of export quotas, export tariffs and other price and quantity controls violated China’s commitments when it joined the WTO in 2001, causing other countries in the world to be in a disadvantaged position in the production and export of steel, aluminum and other chemicals. On August 21, Mexico also filed a trade dispute consultation for similar reasons.
The US has publicly stated that China is unfairly restricting the export of raw materials. Such behavior is hurting US steel, aluminum and chemical manufacturers and other industries that need these raw materials to produce products. This behavior also harms American workers in these sectors. Employment opportunities.
“China’s restrictions on the export of raw materials continue to distort market competition and increase global prices, making our business operating in the current economic climate more difficult.†EU Trade Executive Committee Catherine Ashton Said in the public statement.
Aston also said that China's restrictions on raw material exports have given Chinese companies an unfair competitive advantage, as Chinese downstream companies can get cheaper raw materials than competitors outside China.
In response, the Ministry of Commerce of the People's Republic of China has repeatedly stated that it is levying export tariffs on some export products, especially high-energy-consumption and high-pollution products, both to improve China's export product structure and to further improve environmental protection measures. The global common interests and demands. The Chinese side believes that the relevant policies are in line with WTO rules.
Zhang Junsheng, director of the China WTO Research and Information Center at the University of International Business and Economics, said that China’s restrictions on the export of these products do not violate the WTO rules. He pointed out that according to the 1994 General Agreement on Tariffs and Trade, there are six major categories of commodity exporting countries that can regulate exports through quantitative restrictions, including depleted mineral resources.
The fact is that the United States and European countries have imposed restrictions on exports on the grounds of protecting the domestic environment and resources.
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