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EU Seeks WTO Ruling On China Raw Material Export Limits

BRUSSELS -(Dow Jones)- The European Commission Wednesday asked for a ruling from the World Trade Organization against limits China places on raw materials exports, calling them a "clear breach" of international trade rules.

The commission, the European Union's executive arm, in June sought negotiations through the WTO with China over the issue, which is the first step in the WTO complaint process. Those negotiations haven't been successful, the commission said.

"China's restrictions on raw materials continue to distort competition and increase global prices, making conditions for our companies even more difficult in this economic climate," said E.U. trade commissioner Catherine Ashton.

The commission says China puts limits on these exports to secure raw material supplies for its domestic industries. The complaint covers limits placed on yellow phosphorous, bauxite, coke, fluorspar, magnesium, manganese, silicon metal, silicon carbide and zinc.

Now a panel of trade experts convened by the WTO will examine the complaint and eventually produce a ruling over whether the export limits violate trade rules, a process that could take years.

The U.S. and Mexico Wednesday also said they plan to file similar complaints at the commission.

-By Matthew Dalton, Dow Jones Newswires; +32 2 741 1487; matthew.dalton@ dowjones.com

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  11-04-091201ET
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