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Statement by Minister Motegi, Minister of Economy, Trade and Industry on
Circulation of the Final Report of the WTO Panel Regarding Export Restrictions by China on Rare Earths, Tungsten and Molybdenum

March 26, 2014

  1. On March 26, 2014 (Geneva time), the WTO released a Final Panel Report ruling that the export restrictions (export duty, export quota and restrictions on the trading right) put in place by China on rare earths, tungsten and molybdenum are inconsistent with relevant provisions of the WTO Agreements. This case was commenced pursuant to the request from Japan, the United States and the European Union.
  2. The Report supported all the claims of Japan. In particular, it indicated that imposing export restrictions which in effect give preferential treatment to domestic industries, under the stated purpose of environmental protection or natural resources conservation, is inconsistent with the WTO Agreements. I welcome the Panel’s ruling as a groundbreaking victory achieved through close cooperation between Japan, the United States and the European Union.
  3. This finding is significant in enhancing a stable supply of natural resources, such as rare earths. In addition, it will restrain the proliferation of protectionism observed in some resource-endowed countries.
  4. Japan strongly requests China to accept the Panel’s rulings and the recommendations that follow, and accordingly, to rectify the WTO-inconsistent measures immediately.

Division in Charge

Office for WTO Compliance and Dispute Settlement, Multilateral Trade System Department, Trade Policy Bureau

Related Information

WTO

Regional Affairs / China

 
Last updated:2014-03-26
Ministry of Economy, Trade and Industry
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