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

August 8, 2014

  1. On August 7, 2014 (Geneva time), the WTO released an Appellate Body Report examining the export restrictions (export duty, export quota and restrictions on the trading right) put in place by China on rare earths, tungsten and molybdenum, a case which was commenced pursuant to the request from Japan, the United States and the European Union.
  2. The Report fully maintained the conclusions of the WTO Panel Report which supported all the claims of Japan. The Report established the ruling 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.
  3. This finding is significant in facilitating the import and export of natural resources such as rare earths as well as contributing to the stability of their demand-supply situation, and in securing global natural resources and energy trade amid the proliferation of protectionism in some resource-endowed countries. 
  4. Japan strongly requests China to accept the Appellate Body’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:2014-08-08
Ministry of Economy, Trade and Industry
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