Abstract

IN JUNE 2009, the U.S. asked the World Trade Organization (WTO) to help settle a dispute over Chinese export restraints on industrially important raw materials. One of those was fluorspar, a mineral that is an essential raw material in the production of a wide variety of fluorine-containing products including refrigerants, coatings, foam-blowing agents, and pharmaceutical intermediates. The grievance charged that China imposed export restrictions such as quotas, duties, and other administrative measures and costs. “The U.S. is very concerned that China appears to be restricting the exports of these materials for the benefit of their domestic industries, despite strong WTO rules designed to discipline export restraints,” complained Ron Kirk, the U.S. trade representative. China claims the restrictions are aimed at curbing the environmental impact of fluorspar mining. “Friendly discussions” ended more than a year ago without resolving the dispute. Since then, the European Union, Mexico, Canada, and a host o...

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