INTERVIEW: WTO Chief Voices Concern about Tensions over Raw Materials

Yokohama, Nov. 11 (Jiji Press)--The World Trade Organization is
concerned about moves to strengthen restrictions on exports of raw
materials, including rare earths, WTO Director-General Pascal Lamy suggested
in a recent interview with Jiji Press.
While refraining from naming any specific country, he apparently
expressed concerns about growing tensions over raw materials trade between
China and other countries, including Japan and the United States.
"There is already litigation triggered by the U.S., the European
Union and Mexico against China's export restrictions of raw materials," Lamy
said.
"I have to remain silent" on the ongoing case because "I cannot
take sides," he said.
But he added, "There is already a case, not specifically on rare
earths, but on raw materials in general."
In June last year, the United States, along with other economies,
filed a suit against China with the WTO over rare metal trade.
Commenting on proposed guidelines for addressing current account
imbalances among the Group of 20 developed and emerging economies, he said
"it would be good for the G-20 to adopt a common framework of how these
imbalances can be reduced."
He said "anything that reduces the risk of tit-for-tat
protectionism is good."
As for currency frictions, including Japan's yen-selling
intervention conducted in September for the first time in over six years,
Lamy said "uncoordinated monetary interventions create a risk of
protectionism, which is a reality."
He said "whether these interventions are trade purposes or domestic
purpose, it doesn't really matter, as long as it can be interpreted by some
as trying to gain competitive advantage."
The interview was conducted when ministers from the Asia-Pacific
Economic Cooperation forum got together in this eastern Japan city for a
two-day meeting through Thursday.
Referring to the meeting where APEC members shared the need for
concluding the WTO-sponsored Doha Round global trade liberalization talks in
2011, he said he felt "a collective sense of urgency" in the matter.
Lamy took part in the first-day meeting Wednesday.