China regrets WTO ruling against export curbs

Xinhua, July 6, 2011

China's reinforced administration of certain resources products is in line with the objective of the World Trade Organization (WTO), the Chinese Preferment Mission to the WTO said Tuesday.

For the purpose of protecting the environment and exhaustible natural resources, the Chinese government in the recent years has reinforced its administration on certain resource products, especially "high-pollution, high-energy-consuming and resource-dependent" products, the Chinese Mission said in a statement

It said that China takes the view that although these measures have certain impact on domestic and international users, they are in line with the objective of sustainable development promoted by the WTO and they help to induce the resource industry towards healthy development.

The statement came after the WTO Dispute Settlement Body issued a panel report, making its preliminary judgment of the dispute around China's measures related to the exportation of various raw materials.

"The panel makes findings in favor of China in many aspects, such as the terms of reference, export quota allocation and administration, issuance of export license, etc," the statement said.

In addition, the panel also identifies that China has withdrawn its minimum export price requirement and sympathizes with China's comprehensive administrative measures on bauxite and fluorspar.

"China appreciates these findings," the Chinese Mission said.

"However, China feels regret that the panel finds that China's relevant measures regarding export duties and export quotas are inconsistent with China's obligations under its Accession Protocol and the WTO covered agreements," the statement said.

The Chinese Mission also said the country is evaluating the panel report, and will properly follow up the procedure in accordance with the Dispute Settlement Understanding.

In recent years, some countries have questioned China's restrictions measures on raw material export, citing the increase in prices and harms done to their industries, whereas China maintained that the measures are for the protection of exhaustible natural resources and human life and health.

According to the WTO dispute settlement rules, both sides of the dispute have the right to appeal to the Appellate Body within 60 days from the distribution of the panel report.

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