Presentation on theme: "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."— Presentation transcript:
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?
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
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
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