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EXCLUSIVE-EU, US taking China to WTO on raw materials-sources

Published 06/11/2009, 05:20 AM
Updated 06/11/2009, 05:24 AM

* To seek consultations on June 22, may lead to WTO panel

* EU, U.S. say China duties/quotas distort market-sources

* Materials used in steel, aircraft, autos, chemicals

By Darren Ennis

BRUSSELS, June 11 (Reuters) - The European Union and the United States will take action against China at the World Trade Organisation this month over export restrictions on around 20 industrial raw materials, EU and industry sources said.

The sources told Reuters that Brussels and Washington would formally request consultations with Beijing on the issue on June 22. If these talks fail, the next step would be to request a WTO panel to hear the complaint. The EU and United States say China has continued to restrict exports of raw materials used in steel, semiconductors, aircraft and other products despite Beijing's pledge to eliminate taxes and charges on exports when it joined the WTO in 2001. Some of the materials expected to be covered by the case include yellow phosphorous, antimony, bauxite, coke, fluorspar, indium, magnesium carbonate, molybdenum, rare earths, silicon, talc, tin, tungsten and zinc.

"China has been placing unfair export quotas and taxes on these raw materials which are distorting the global market and hindering European and U.S. companies," an EU source said.

The sources said the final list of materials had yet to be finalised by Brussels and Washington. The final number "will be in the region of 20", one source said. (Reporting by Darren Ennis; Editing by Dale Hudson)

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