Josh Snead

China, the United States, the European Union, and Mexico circulated a communication to all WTO members on May 30 spelling out China’s commitment to comply with an earlier WTO ruling that China’s export duties and quotas on eight raw materials used as inputs in the steel, aluminum, and chemicals industries violate commitments China made when it joined the WTO in 2001. China has committed to complying with the WTO’s decision by the end of 2012. Although this agreement may help resolve the raw materials dispute, a potentially larger dispute remains unresolved in which the United States, the European Union, and Japan have requested consultations with China at the WTO regarding China’s similar export restrictions on a variety of “rare earth” metals that are used in a variety of high tech products manufactured throughout the world.