03 March 2011 - While Europe tries to ensure undistorted access to raw materials for its industries, commercial conflicts over export restrictions are a growing area of tension in international trade, with developing countries defending their right to curtail global access to their resources in support of domestic economic development.
"World history has been influenced by hostile resource wars and much of the European expansion and colonisation of Africa was to control raw materials," said Mogens Peter Carl, former director-general of the European Commission's trade department.
Speaking in Brussels on Tuesday (1 March), Carl, who is now senior advisor at communications consultancy Kreab Gavin Anderson, warned that "there is a danger of a resource war even today – but from the commercial aspect only".
The EU is already highly dependent on imports of raw materials for its industry. The dependency rate for minerals ranges from 48% for copper ore and 78% for nickel to 100% for materials such as cobalt, platinum and titanium.
Due to this import dependency, the EU's raw materials strategy, updated in February this year, places particular attention on fighting export restrictions, including export taxes, bans and regulated exports.
The world is already witnessing a resource war today, Carl said, referring to a series of ongoing commercial conflicts caused by Chinese export restrictions on rare earths.
"China restricts its exports but allows local companies to use and transform them into finished products – that's what the conflict is about," Carl explained.
The export restrictions allow China's domestic processing industry to develop and become more competitive on world markets – eventually undermining EU business competitiveness.
Last October, German companies complained that they were being pressured by Beijing to boost their investment in China if they wanted to secure access to rare earth minerals.
For the complete article, please see EurActiv.
