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US, EU file WTO case over Chinese raw materials

(Xinhua/Agencies)
Updated: 2009-06-24 09:40

GENEVA - The United States and the European Union on Tuesday filed complaints to the World Trade Organization (WTO) over so-called Chinese restrictions on the export of key industrial raw materials.

The materials at issue include coke, bauxite, fluorspar, magnesium, silicon metal, yellow phosphorus and zinc, according to the complaints sent to the Geneva-based world body.

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The United States and the EU claim that China failed to reduce its export tariffs and raise quotas on these materials. 

They also allege that China's export restrictions create unfair advantages for Chinese industries and distort world competition, thus violating WTO regulations.

The United States and the European Commission - which oversees trade for the 27-nation EU bloc - are formally seeking consultations with China at the global trade watchdog.

According to the WTO's dispute settlement procedures, should these talks fail, the next step would be to request a WTO panel to hear the complaint after 60 days .

Taking action at the WTO is expected to further affect US-China trade relations. This is the first case brought by President Barack Obama's administration against China at the WTO.