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WTO rules against China on raw materialsâ€Ž

06 July 2011 08:25 (UTC +04:00)

Baku - APA-Economics. China’s Ministry of Commerce (MOC) reiterated on Wednesday that it is evaluating a panel report of the World Trade Organization (WTO) and will "properly follow up" according to WTO procedure, Xinhua reported.

This comes after the WTO Dispute Settlement Panel issued a report Tuesday that supports complaints against China regarding the country’s measures related to the exportation of various raw materials such as zinc, coke and magnesium.

The ruling was issued after an investigation on complaints filed by the United States, European Union and Mexico in 2009.

"The panel makes findings in favor of China in many aspects, such as the terms of reference, export quota allocation and administration, issuance of export license," and China appreciates it, the MOC said in a statement.

However, the ministry said China "feels regret" over the findings that China’s relevant measures were inconsistent with its obligations under its Accession Protocol and the WTO relevant rules, and were not justified pursuant to the general exceptions relating to the conservation of exhaustible natural resources and the protection of human health. The wording of the MOC statement echoed a statement made by the Chinese Preferment Mission to the WTO on Tuesday.

Both statements said China’s enhanced regulation measures on some raw materials aim to protect the environment and exhaustible resources.

"Although these measures have certain impact on domestic and international users, they are in line with the objective of sustainable development promoted by the WTO, and they help to induce the resource industry toward healthy development," the statements declared.

According to the WTO dispute settlement rules, both sides of the dispute have the right to appeal to the appellate body within 60 days from the distribution of the panel report.