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Raw materials

For specific information on non-ferrous metals, see the dedicated page of the website.

Update: 13 March 2012

The European Union launched a second challenge of China’s export restrictions on raw materials including 17 rare earths, as well as tungsten and molybdenum.

Together with the US and Japan, the EU formally requested dispute settlement consultations with China in the World Trade Organisation (WTO). This follows a successful EU challenge at the WTO on similar restrictions for other raw materials earlier this year.

China imposes a set of export restrictions, including export quotas, export duties and additional requirements that limit access to these products for companies outside China. These measures significantly distort the market and favour Chinese industry at the expense of companies and consumers in the EU.

A request for consultations is the first step in the WTO dispute settlement process.

The EU has raised the issue with China repeatedly over the past years without success, and now hopes to use the WTO consultation process to arrive at a mutually satisfactory solution with China. If no satisfactory solution is being found, the dispute can be transmitted to a WTO Panel for its ruling.

This consultation in the WTO is part of a broader European Trade strategy for a fair and sustainable supply of raw materials that has become one of the EU priorities and is a high topic on the Europe 2020 agenda. The trade action has focused on three strands, notably actions geared to integrate rules in trade negotiations, to enforce the rules and tackle barriers, and to reach out to third countries. An overview of the implementation of the EU Trade policy for raw materials can be found in DG Trade's first annual report on DG Trade's website.

For further details on this case, see the Commission's press release on the issue of China's export restrictions. For information on the first case against China’s export restraints on raw materials and WTO ruling of January 2012, please consult DG Trade WTO webpage.

Raw materials stand at the basis of a large number of industrial value chains in the EU. Specific raw materials are needed to make a wide range of industrial goods such as car engines, mobile phones or wind turbines.

A large number of industries implanted in the EU use raw materials as inputs. Such sectors, including inter alia aerospace, automotive, chemicals, construction, equipment and machinery provide today a total added value of EUR 1300 billion and employment for 30 million people. Moreover, the industrial development in the EU of some critical future technologies (such as green technologies) also depends on ensuring a sustainable supply of particular raw materials.

Raw materials imports (including energy) represent approximately one third of EU imports. For 2010, EU-27 trade in raw materials (including energy products) amounted to:

Sustainable and non-discriminative raw materials supply is vital for the competitiveness of the EU

  • Total EU imports 2010: EUR 528 billion
  • Total EU exports 2010: EUR 181 billion

Non-energy industrial materials weighed about 10% of EU imports on average over the last few years. For 2010, EU-27 trade in non-energy raw materials amounted to:

  • Total EU imports 2010: EUR 142 billion
  • Total EU exports 2010: EUR 100 billion

The European Commission has developed a comprehensive European strategy for raw materials, bringing together all relevant policy tools - including trade policy. This integrated strategy was described in 2008 in a first Communication entitled The Raw Materials Initiative and further refined in February 2011 in a Communication entitled Tackling the challenges in commodity markets and on raw materials.

DG Trade contributes to the international trade dimension of the EU strategy with the aim to ensure a sustainable supply of raw materials from global markets. DG Trade follows three paths, including (i) defining the rules of the game through bilateral and multilateral negotiations, (ii) when required, enforcing the rules and tackling market barriers, and (iii) promoting the debate on raw materials, both in bilateral and multilateral settings.

DG Trade has paid close attention to the rise of export restrictions worldwide, which affects most countries, developing or developed, considering the high interdependence displayed by various trade partners in the field of raw materials.

Further details regarding DG Trade's activities and achievements in this field can be found in the Raw materials annual report 2009.

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