Yesterday, President Obama announced the United States, in cooperation with the European Union and Japan, will bring a trade case against China’s export restraints on so-called “rare-earth minerals,” which are a vital component in highly advanced products the United States manufactures—or wants to manufacture. The move is a step in the right direction to create more well-paying jobs for America’s workers.

In January, U.S. Trade Representative Ron Kirk announced that the World Trade Organization (WTO) Appellate Body, in a prior case, had found that China’s export restraints on several industrial raw materials violated China’s WTO obligations. While a huge victory for U.S. producers, that case failed to address the rare-earth minerals that are critical components in such high-tech products as computers, LCD screens, fiber optic cable and advanced batteries used in hybrid and electric cars, as well as numerous critical defense applications. This case will close that loop. 

The case, announced yesterday, is part of an overall strategy to reform U.S. trade policy to focus on increasing employment and building a strong domestic economy. In combination with the Obama administration’s commitment to enforcing our trade agreements, it should also re-examine how our free trade agreement model incentivizes offshoring of jobs and fails to effectively compete with the successful trade strategies employed by China and other “mercantilist” nations. 

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