Anthony Cosimano

  Elements on the lower periodic table found in the earth’s crust  A few of these elements are used heavily in the production of technologically advanced goods  Such as...  Smart phones  Electric and/or energy efficient car batteries  Wind turbines  Military defense systems What are Rare Earth Metals?

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  China controlled between 95-97% of the global market of Rare Earth Metals in 2010  Because of WTO sanctions, their market share is approaching 80% this year  Despite high demand, China can dictate global supply for such valuable resources  Over 90% of China’s exported rare earth metals are received by the United States China’s Market Dominance

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  Yesterday, the WTO ruled that China’s withholding of rare earth metals from the global market was illegal  Controlling supply was artificially increasing both demand for the product and prices of the good  Prices of the metals increased three-fold after China decreased exportation by 30,000 tons last year  “No one country can hoard its raw materials from the global market place at the expense of its other WTO partners.” – Karel De Gucht (EU Trade Commission) WTO’s Recent Decision

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  US companies were paying three to four times as much as their Chinese counterparts for the same supplies to produce finished goods  This makes products from Chinese companies more competitive than those of American and European companies on the global playing field  Perpetuates international belief that China takes part in unfair global economic practices  i.e. Artificially deflating currency, hoarding foreign currency, unreasonably high tariffs on certain companies/goods, etc. The Conflict

  Do foreign investors have ground to stand on when telling China they have to sell their own resources?  China’s decrease in exportation of rare earth metals was quoted as “an effort to stop over-mining and to preserve the environment from the harmful effects of mining for rare earth metals.”  China’s resources vs. Global Use Does the WTO have the right to step in?

  In response to China’s economic practices, Canada has set a goal to meet over 20% of the global demand for rare earth metals by 2018  In anticipation of this, the United States has gotten on board, and capital construction costs for the joint project are estimated at around 2.6 billion dollars  Both countries share the common goal of minimizing dependency on China for these products, as well as promoting environmental preservation throughout the process Filling the Possible Void

 Questions?