The United States, European Union and Mexico launched the case
in 2009, complaining that Chinese export restrictions on minerals such as
bauxite and magnesium discriminated against foreign manufacturers and gave an
unfair advantage to domestic producers.
Beijing has argued it needed to restrict exports of the raw
materials for environmental reasons. "Under WTO rules, this interim report is confidential
and we cannot comment on its contents at this time," said Nefeterius
McPherson, a spokeswoman for the US Trade Representative's Office.
"The report will be made public when it is circulated
to WTO members. We currently expect the final report to be circulated sometime
in late spring or early summer of 2011," McPherson said.
The United States, EU and Mexico argue that China's export
curbs violated both general WTO rules and specific commitments that Beijing
made when it joined the world trade body in 2001.
The case does not cover China's export restrictions on rare
earth minerals used in smart phones, electric car motors and high-tech
industrial equipment which have also raised concern in the United States, EU
and Japan.
McPherson said there was still a possibility of the United
States filing a WTO challenge on that front.
"We have been and remain very concerned about China's
systemic use of export restraints," she said.
A former WTO appellate body judge said the ruling will be
precedent-setting.
"If the United States prevails in this dispute it would
be a very significant ruling related to increasingly widespread phenomenon of
export restrictions in world trade," said James Bacchus, now at Greenberg
Traurig in Washington.
If China wins, then "other kinds of export restrictions
imposed by China and other countries may be protected by environmental defenses
as well," Bacchus said.
China argues that it must restrict the production and export
of the raw materials in the WTO dispute and rare earths to protect the
environment and conserve its own resources.
