Schubert, Brutschin, Pollak published for EU Parliament

A study authored by Dr. Schubert, Dr. Brutschin (Webster IR Dept.) and Univ.-Prof. Dr. Pollak (Institute for Advanced Studies and Webster IR Dept.) was published by the European Parliament's Policy Department of the DG for External Policies.

The paper requested by the European Parliament's Committee on International Trade focuses on obstacles for critical raw materials to be traded freely, particularly in relation to restrictive measures on rare earth elements (REE) introduced by China.


Free trade in raw materials is of great importance for the EU. China remains the EU's main supplier of critical raw materials and thus concentrates on the most recent evidence on its export restrictions. Despite recent WTO rulings, China is still implementing a wide range of trade distorting measures in the form of export licensing or through the introduction of a resource tax. While we can trace certain welfare benefits for the Chinese domestic market following the introduction of export restrictions, we can clearly relate increasing illegal trade outflow from China to its restrictive trade policies. While the use of WTO provides one of the most straightforward mediums to offset trade distortions, more effective measures include the addition of explicit clauses on critical raw materials in bilateral trade agreements and a strong regulatory framework in the member states prohibiting imports of conflict or illegal raw materials.

To access the full paper, follow the link here