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USW supports new WTO case filed by U.S., EU against China

The United Steelworkers (USW) today gave strong support for a new World Trade Organization (WTO) dispute filed by the United States and European Union, challenging China's export restrictions on key raw materials and minerals used in manufacturing.

The U.S. and the EU have requested WTO consultations with the Chinese government regarding export restrictions placed on a variety of raw materials and minerals, including bauxite, coke, zinc, silicon metal, silicon carbide, fluorspar, yellow phosphorous, magnesium and manganese.

"China should have removed these trade barriers years ago as violations of WTO commitments that hurt our workers across a number of manufacturing industries," USW President Leo W. Gerard said. He applauded the USTR's action as a commitment to enforcement of trade laws. "China must stop destroying our family-supportive jobs by tilting the playing field in their favor."

He added: "China engages in a wide variety of protectionist, predatory and unfair trade practices. Today's action sends a signal that America is beginning to get serious about enforcing the rules. But it's only the first step in what must be a comprehensive approach to get China to start playing by the rules."

When China joined the WTO in 2001, it committed to removing the export restrictions. The continued existence of the restrictions benefits Chinese manufacturers at the expense of U.S. and EU manufacturers, by prohibiting or significantly increasing the cost of these raw materials.

The U.S. steel industry points to China's barriers on exports of raw materials and minerals as just another way in which that government favors its domestic manufacturing industries at the expense of the rest of the world. The USW joined several steel industry organizations in commending the Obama Administration and the U.S. Trade Representative in particular, for leading the effort to bring the case.

Under WTO procedures, the parties have up to 60 days to engage in consultations on how to resolve the dispute. At that point, the United States would be able to request formation of a dispute settlement panel to hear the dispute. The WTO process, including a panel report and any Appellate Body ruling, takes approximately one year.