China double’s export of rare earths while Europe and U.S. grumble
The World Trade Organization had asked Beijing to remove all limits on exports. Rare earths are essential for high technology, radar systems, wind turbines. The EU insists on liberalization. If there is an agreement, a trade war is looming.
Beijing (AsiaNews / Agencies) - For the second half of 2011, China has doubled the amount of rare earth offered for sale, after the World Trade Organization WTO) ruled as Beijing’s self-imposed limitation on exports illegitimate on July 5th. The Chinese offer increased from 7,976 tons in the second half of 2010 to 15,738 tonnes for the current semester of 2011. But the European Union rejects all limits and insists that they be removed.
Chen Deming, Chinese Minister of Commerce, insists that China needs to reduce the production of rare earth in order to preserve resources for the future and not pollute the environment. Rare earths are a group of 17 minerals and metal essential s in areas such as high technology, wind turbines and radar systems. Until two years ago, Beijing covered over 95% of global demand. Then it drastically reduced exports and has continued to reduce it progressively until now.
The EU, U.S. and Mexico have brought this problem to the WTO, which has described as unjustified any restriction on the export of raw materials, even if based on problems of protection from pollution.
The doubling of availability is not in line with the WTO decision. Therefore Karel de Gucht, EU Trade Commissioner, said there are negotiations with Beijing to reach an agreement. He expects a significant "change in its policy" To meet the needs "of the export and domestic consumption." Strasbourg might otherwise turn back to the WTO.
John Clancy, spokesman for EU Trade, expressed "a high displeasure" at Beijing’s initiative, which does not show a "significant change" of Chinese rare earths politics. But he hopes for a mutually agreed solution.
Chen also expressed hope of finding an agreement with the EU, but pointed out that China is ready to challenge the WTO decision.
Chen Deming, Chinese Minister of Commerce, insists that China needs to reduce the production of rare earth in order to preserve resources for the future and not pollute the environment. Rare earths are a group of 17 minerals and metal essential s in areas such as high technology, wind turbines and radar systems. Until two years ago, Beijing covered over 95% of global demand. Then it drastically reduced exports and has continued to reduce it progressively until now.
The EU, U.S. and Mexico have brought this problem to the WTO, which has described as unjustified any restriction on the export of raw materials, even if based on problems of protection from pollution.
The doubling of availability is not in line with the WTO decision. Therefore Karel de Gucht, EU Trade Commissioner, said there are negotiations with Beijing to reach an agreement. He expects a significant "change in its policy" To meet the needs "of the export and domestic consumption." Strasbourg might otherwise turn back to the WTO.
John Clancy, spokesman for EU Trade, expressed "a high displeasure" at Beijing’s initiative, which does not show a "significant change" of Chinese rare earths politics. But he hopes for a mutually agreed solution.
Chen also expressed hope of finding an agreement with the EU, but pointed out that China is ready to challenge the WTO decision.
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