European Union (EU) has notified the WTO Secretariat of a request for consultations with China over duties and other measures concerning the exportation of certain raw materials.
The EU alleges that the duties, quotas and other restrictions are inconsistent with China’s Protocol of Accession and other WTO provisions.
The EU request follows a similar one filed by the United States on 13th July. That by the USA referred to raw materials such as various forms of antimony, cobalt, copper, graphite, lead, magnesia, talc, tantalum, and tin.
The request for consultations is the procedure to initiate a dispute in the WTO. Consultations give the parties an opportunity discussing the matter and finding a satisfactory solution avoiding further litigation.
After 60 days, If consultations have failed to resolve the dispute after 60 days fron the start off of the procedure, the complainant may request adjudication by a panel.
The EU started off the request procedure after the EU Council on foreign affaris had agreed one day earlier on the new EU Strategy on China. Among other conclussions, the EU Council agreed: ” The Council expects the EU’s relationship with China to be one of reciprocal benefit in all respects. The EU’s engagement with China is principled, practical, and pragmatic, staying true to our values and interests. The EU also expects China to assume responsibilities in line with its global impact and to support the rules-based international order from which it, too, benefits.”
China is undergoing its trade policy review this week on 20th and 21st July. According to the WTO Secretariat review report, ther have been two major advances on export taxes and quotas in 2015. The first one, in May 2015, when interim export duties were removed on items included in 91 tariff lines at the HS 8-digit level, such as chemical elements, certain iron and steel articles, tungsten, and molybdenum; however, statutory export rates remained in place for all these items.
The second one, the special export duty rate of 75%, which applied mainly to fertilizers, was eliminated.
Despite the advances ther remains still much to do by PRC in this field.
Image over the headline.- undergoes its Trade Policy Review this week. © WTO.
Related external links:
Trade policy review on China (report by the Secretariat of the WTO)
Trade policy review on China (report by PRC’s Government)
