Trade

Environment

In a case brought by US, EU and Mexico, a WTO panel found that China violated WTO rules by imposing quotas, export duties and license requirements on certain industrial raw materials. Although the case does not involve rare earth minerals, the panel ruling could strengthen the hand of EU and US in their negotiation with China. China's WTO mission reacted by repeating its argument that the measures were for the purpose of protecting the environment and exhaustible natural resources (without explaining why, if the Chinese Government cares so much about the environment, the same restrictions do not apply to domestic production or consumption). China is expected to appeal against the panel report, and the Ministry of Commerce promulgated new export controls on raw materials in defiance of the panel decision.