【Unit5】2.TextITheComingTradeWars分析.docVIP

Warm-up The following news has made headlines in a number of major newspapers recently. 13 March, 2012--The US, Japan and the European Union have filed a case against China at the World Trade Organization, challenging its restrictions on rare earth exports. US President Barack Obama accused China of breaking agreed trade rules. They argue that by limiting exports, China, which produces more than 95% of the worlds rare earth metals, has pushed up prices. Beijing has set quotas for exports of rare earths, which are critical to the manufacture of high-tech products from hybrid cars to flat-screen TVs. Beijing has denied the allegations in the WTO case, saying that it enforced the quotas to ensure there was no environmental damage caused due to excessive mining. Chinas Industry Minister, Miao Wei, told state media agency Xinhua that the country was actively preparing to defend ourselves against the WTO complaints and denied the quotas were trade protectionism. Chinese foreign ministry spokesman Liu Weimin said: We think the policy is in line with WTO rules. Exports have been stable. China will continue to export, and will manage rare earths based on WTO rules. What kind of organization is WTO? What kind of role does it play in settling disputes in international trade? The World Trade Organization is an international organization designed to supervise and liberalize international trade. The organization officially commenced on January 1, 1995 under the Marrakech Agreement, replacing the General Agreement on Tariffs and Trade (GATT), which commenced in 1947. The WTO’s procedure for resolving trade quarrels under the Dispute Settlement Understanding is vital for enforcing the rules and therefore for ensuring that trade flows smoothly. Name the recent cases of trade conflicts that you know, and find out the major complaints. In 2009, Washington expanded sanctions against European food products in retaliation for Europes boycott against hormone-treated American beef. After