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Policy

WTO Rules Against China’s Curbs On Rare-Earth Exports

by Andrea Widener
August 18, 2014 | A version of this story appeared in Volume 92, Issue 33

China’s restrictions on rare-earth mineral exports violate fair-trade rules, the World Trade Organization’s appellate body ruled in a final decision on the long-running dispute. The case started in 2012 when the U.S., the European Union, and Japan filed a complaint alleging that China’s restrictions on rare earths, tungsten, and molybdenum exports helped Chinese companies. WTO arbiters agreed. China appealed, saying its export curbs were adopted to address pollution and other environmental concerns. U.S. Trade Representative Michael B. Froman says the final ruling, issued earlier this month, upholds international rules on fair access to raw materials. China’s Ministry of Commerce says it will evaluate the ruling and work to strengthen its efforts on environmental quality while staying within WTO rules.

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