Most regular readers here are probably aware that I’m pretty contrary to the idea of free market global trading. Well, not so much the idea but, rather, the idea that this can be achieved. It can’t. It isn’t that I’m against trade with foreign nations, to the contrary, I’m all for it. But, for this nation to advance economically, it must be done on our terms, not someone else’ and not by some organization’s arbitrary definition of fair or free. There is no such thing and there cannot be. It creates a silly perspective and causes nations and individuals to think in manners which make absolutely no sense. Today we have an example of this inanity and a very good argument for withdrawing from some of the various agreements and organizations we’ve entered.
China loses WTO appeal on export restrictions
China lost an appeal at the World Trade Organization on Monday in a case about its export restrictions on raw materials, a ruling that could make it harder for major commodity exporters to withhold supplies on the global market. …..
The United States, European Union and Mexico had all launched WTO legal cases in 2009, challenging China’s right to restrict exports of materials including bauxite, coke, magnesium, manganese and zinc.
Many countries also later accused China of choking off global supplies of rare earth metals, causing prices to rocket for crucial ingredients in many high-tech products.
“Today’s report is a tremendous victory for the United States – particularly its manufacturers and workers,” U.S. Trade Representative Ron Kirk said in a statement.
“The Obama administration will continue to ensure that China and every other country play by the rules so that U.S. workers and companies can compete and succeed on a level playing field.”
EU Trade Commissioner Karel De Gucht said the decision would force China to drop export restrictions for the materials mentioned in the case and for rare earths.
“This final ruling is a great success in our efforts to ensure fair access to the much needed raw materials for EU industry,” he said in a statement.
The Mexican Economy Ministry called the decision a “triumph over the restrictive measures imposed by China.“
Hurray!!! 2011 will have a U.S. annual trade imbalance of right at $300 billion with China. (Dec. numbers are yet in, but as of Nov, it stands at $272 bill. Today, the U.S., the EU and Mexico won a hard fought battle to increase our trade deficits with China! Hurray!
For Europe, this may actually be beneficial. It depends on how much resources they have available. For the U.S., this makes no sense. And it doesn’t for Mexico, either. Here’s an idea…….. why don’t we just mine the crap that we have in the ground. Then we wouldn’t have to worry about what China is or isn’t doing.
As to the REE concern, REE is well distributed. All we have to do is go get it.
There are a couple of more things which need mentioning. One, anyone believing China won’t get around this ruling in some manner is delusional. China doesn’t play fair and there’s really very little anyone can do about it until nations decide to start mining the materials they need for themselves. It is this simple. Secondly, if the WTO would rule against China in this matter, they wouldn’t think twice about doing it to the U.S. This isn’t about trade, this is about sovereignty.
I know what I would do….
Well gosh darn, we just don’t have any extra to export
No doubt…… I mean what the hell? Is the WTO now mandating production?