China Reaches “End of the Line” in Appeal of WTO REE Ruling

Reuters reported that China has lost its appeal of a World Trade Organization (WTO) ruling that its rare earth element (REE) export restrictions are in violation of global rules.

As quoted in the market news:

‘China has not demonstrated that the export quotas that China applies to various forms of rare earths, tungsten and molybdenum by virtue of the series of measures at issue are justified,’ the document’s conclusion said.

China’s defeat at the WTO was widely expected after it lost a similar case over exports of other commodities. It will now be obliged to cancel its export quotas to abide by the WTO ruling.

U.S. Trade Representative Michael Froman said the ruling marked the ‘end of the line’ for the dispute.

EU Trade Commissioner Karel de Gucht said he looked forward to China’s swift compliance. ‘This ruling sends a clear signal that export restrictions cannot be used to protect or promote domestic industries at the expense of foreign competitors,’ he said in a statement.

Click here to read the full Reuters report.