WTO delays ruling in China raw materials dispute to April

Published 10/22/2010, 10:19 AM
Updated 10/22/2010, 10:24 AM

(Replaces earlier withdrawn story TRADE/EARTHS "WTO delays ruling in rare earths dispute to April")

* WTO panel to publish ruling by April 2011

* Dispute predates recent row over rare earths

GENEVA, Oct 22 (Reuters) - The World Trade Organization will not publish a ruling in a dispute brought against China over exports of raw materials until next April instead of this year, a WTO document showed on Friday.

A statement by the chairman of the panel examining the case, published on the WTO website, said the panel expected to complete its work by April 2011.

The United States, European Union and Mexico launched a dispute at the WTO last year over their complaint that Chinese export restrictions on minerals such as bauxite and magnesium discriminated against foreign manufacturers that use the inputs and gave an unfair advantage to domestic producers.

China's export policies for raw materials have caused heightened concern in businesses in other countries after reports in recent weeks that China had cut off supplies of rare earths -- used in high-tech goods from car parts to electronics -- to Japan during a territorial dispute between the two powers.

China has about 30 percent of the world's rare earths but is the world's dominant producer, accounting for over 90 percent of global supply of the metals.

Beijing argues that it must restrict the production and export of the raw materials in the WTO dispute and rare earths for environmental reasons and to conserve its own resources.

Germany's industry confederation BDI is holding a congress on Oct. 26 to discuss security of raw material supplies in Germany and Europe, where rare earths are certain to be a major topic.

Under WTO rules, a panel should normally publish its ruling on a dispute within six months of being formed. The WTO agreed to set up the panel in December 2009, and its membership was agreed at the end of March this year.

The panel gave no reason for the delay but said it had been agreed with the parties to the dispute. (Reporting by Jonathan Lynn; Editing by Sonya Hepinstall)

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