US Requests WTO Dispute Settlement in China Raw Materials Case

The Obama administration requested the World Trade Organization establish a dispute settlement panel to review a case filed jointly with the EU alleging China unfairly leveled export constraints on 11 raw materials, U.S. Trade Representative Michael Froman announced (here). Those raw materials include antimony, chromium, cobalt, copper, graphite, indium, lead, magnesia, talc, tantalum and tin (see 1607190039). The U.S. and China held unsuccessful consultations on the matter Sept. 8-9, and the WTO Dispute Settlement Body will consider the U.S.’s request for a panel at its Oct. 26 meeting, USTR said. U.S. producers use the challenged materials in sectors including steel, automobiles, aerospace, construction and electronics, the USTR said. Some 90 percent of indium consumed in the U.S. is used in thin-film coating on flat-panel displays, it said. “China specifically committed to abide by fair, non-discriminatory access to raw materials when it joined the WTO,” Froman said. “We intend to hold them to that commitment to ensure that our workers and businesses get all the economic opportunities they’re entitled to under our trade agreements.” Because China is a leading global producer of those raw materials, export duties and quotas give the nation the ability to significantly affect global supply and pricing, USTR said. China committed as part of its 2001 WTO accession agreement to erase export duties for all products except those listed in a specific annex, which doesn’t contain the challenged materials, USTR said.