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For specific information on non-ferrous metals, see the dedicated page of the website.
Update: 30 January 2012
Release of the Appellate Body report in the WTO Dispute Settlement case against Chinese Measures Related to the Exportation of Various Raw Materials.
The Appellate Body of the WTO confirmed the findings made by a Panel in July 2011 that China's export restrictions on certain industrial raw materials (including bauxite, coke, fluorspar, magnesium, manganese, silicon carbide, silicon metal, yellow phosphorus and zinc) are in breach of WTO rules, backing a case jointly brought by the EU, US and Mexico in 2009. The WTO found that China's export restrictions are not justified for reasons of environmental protection or conservation policy.
Export restrictions can create serious disadvantages for foreign producers by artificially increasing China’s export prices and driving up world prices. At the same time, such restrictions artificially lower China’s domestic prices for the raw materials due to significant increases in domestic supply. This gives China’s domestic downstream industry significant competitive advantages and puts pressure on foreign producers to move their operations and technologies to China.
The EU (and the co-complainants, namely US and Mexico) will request the adoption of the reports by the WTO Dispute Settlement Body within 30 days. China will then have to bring its measures in compliance with the rulings within a reasonable period of time.
For further details, see the Commission's press release on the issue of China's export restrictions.
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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