EU disappointed by China rare earth quotas -spokesman

Thu Jul 14, 2011 2:42pm GMT
 

BRUSSELS, July 14 (Reuters) - The European Union was disappointed at Beijing's new rare earth quota announced on Thursday, which did not change amounts allowed for export to Europe, the EU's trade spokesman said.

"A first analysis of China's rare earth quota announced today shows that there is no noticeable change in the annual amount of rare earth China will allow to be exported to the EU," EU trade spokesman John Clancy said in a statement.

In fact China had added ferro-alloys to the quota, he said, which in practical terms results in a tightening of the limits.

"This is highly disappointing and the EU continues to encourage the Chinese authorities to revisit their export restrictions policy to ensure there is full, fair, predictable and non-discriminatory access to rare earth supplies as well as other raw materials for EU industries," Clancy said.

China issued a batch of quotas on Thursday for exports of rare earths this year -- during a visit to Beijing by the EU's trade negotiator, and just a week after the World Trade Organization ruled against its curbs on a different mix of raw materials.

The WTO's ruling that China had breached trade law by limiting foreign sales of eight raw materials led Europe and the United States to say that meant Beijing should also be forced to increase exports of 17 rare earths.

China accounts for some 97 percent of global output of rare earth minerals crucial to global electronics, defence and renewable energy industries, and its export quotas have choked off global supplies, boosted prices and angered China's trading partners.

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