Cefic Supports WTO Ruling on Rare Earths
China’s rare earths export restrictions have led to unfair price developments worldwide, Cefic said in a statement released March 26.
Cefic, the European Chemical Industry Council, issued a statement supporting a World Trade Organization ruling confirming that China’s export restrictions on rare earths, molybdenum and tungsten are incompatible with WTO rules.
“We object to countries subsidizing their industries by artificially increasing the price on world markets for their competitors, Hubert Mandery, Cefic’s director general said.
The distortions caused by export restrictions and taxes on raw materials are not limited only to China’s practices. The European chemical industry is also being impacted by other markets that apply double pricing, export restrictions and export taxes, according to Cefic. The chemicals sector is especially concerned by the negative effects of limiting competitive access to ethylene feedstock, gas, palm oil and other important minerals, Cefic said.
“We expect all WTO members to abide by their commitments and remove export restrictions on raw materials,” Mandery said.
For more information, visit www.cefic.org.