US files WTO case against China over export curbs

THE US has filed its first unfair trade complaint against China before the World Trade Organisation, alleging that Beijing limits the export of fuel and other materials needed to make steel and aluminum, reported The Associated Press.

"Dialogue is preferred, but despite raising this issue with China repeatedly, China has not changed," said US trade representative Ron Kirk told a news conference.

The European Union also filed its own case. "The Chinese restrictions on raw materials distort competition and increase global prices, making things even more difficult for our companies in this economic downturn," said EU trade commissioner Catherine Ashton.

The US alleges that China unfairly limits exports of coke, bauxite, magnesium and silicon metal, which give Chinese companies an unfair cheaper access to materials over their rivals, which is against WTO rules on exports.

The US cited China's decision to cut exports of coke from 336 million tonnes in 2008 to 12 million tonnes. Before the imposing export controls, China accounted for 60 per cent of coke produced in the world.

(Source: American Shipper)