3/13. The United States filed a complaint (nominally a request for consultations) with the World Trade Organization (WTO) against the People's Republic of China (PRC) alleging that it is imposing export restraints, export duties, and export quotas on rare earth materials (REM) in violation of its WTO commitments.

The Office of the U.S. Trade Representative (OUSTR) announced back in December of 2010 that it might take this action. See, story titled "OUSTR Is Considering Filing WTO Complaint Against PRC For Its Rare Earths Export Restraints" in TLJ Daily E-Mail Alert No. 2,189, December 29, 2010.

Japan and the European Union took parallel actions. The three complaints also encompass tungsten and molybdenum. See also, the WTO web page titled "US, EU and Japan file disputes against China", with hyperlinks for downloading pleadings.

Karel De Gucht, the European Trade Commissioner, stated in a release that "China's restrictions on rare earths and other products violate international trade rules and must be removed. These measures hurt our producers and consumers in the EU and across the world, including manufacturers of pioneering hi-tech and 'green' business applications".

De Gucht (at left) added that "Despite the clear ruling of the WTO in our first dispute on raw materials, China has made no attempt to remove the other export restrictions. This leaves us no choice but to challenge China's export regime again to ensure fair access for our businesses to these materials."

The Computer and Communications Industry Association (CCIA) stated in a release that these export quotas and export duties "artificially increase prices for high-tech manufacturers outside China to the advantage of domestic Chinese manufacturers in violation of their international commitments. In addition, these policies seek to coerce foreign manufacturers to locate their production in China, leading to technology transfers."

The CCIA added that "China's export restrictions are part of a continuing pattern of flouting trade rules to achieve commercial advantage over foreign competitors. China uses social morals to attempt to justify its Internet censorship of foreign sites while domestic sites carry the same banned content. Similarly, China uses environmental protection as a pretext for its rare earth minerals policy yet insists on an approach discriminating against foreign entities."

REMs have a wide range of uses. Among other things, they are used in such ICT products as fiber optic cable and smart phone screens. However, one of their keys uses in is making permanent magnets, which have the properties of compactness, high strength, and very strong magnetic fields. These magnets are used in computer hard drives, cell phones, loudspeakers, headphones, magnetic resonance imaging, cordless electric tools, and other products.

The rare earth elements from which REMs are made are Scandium, Yttrium, Lanthanum, Cerium, Praseodymium, Neodymium, Promethium, Samarium, Europium, Gadolinium, Terbium, Dysprosium, Holmium, Erbium, Thulium, Ytterbium, and Lutetium. See also, periodic table.

Almost all of the world's supply of REMs now comes from the PRC. However, the rare earth elements are also located in many other nations, including the US. They must be mined and extracted. The US has more stringent environmental protection regulation, as well as more tedious permitting processes, than the PRC.

There are companies in the US, such as Molycorp Minerals, that could produce REMs. See, story titled "Molycorp and Hitachi Plan Joint Ventures for Production of Rare Earth Magnets" in TLJ Daily E-Mail Alert No. 2,189, December 29, 2010. Molycorp lobbyists have been active on Capitol Hill for several years.

See also, more related TLJ stories:

• "PRC Further Curtails Exports of Rare Earths" and "Outgoing Senators Bayh and Bond Introduce Rare Earths Bill" in TLJ Daily E-Mail Alert No. 2,189, December 29, 2010.
• "House Passes Rare Earths Bill" in TLJ Daily E-Mail Alert No. 2,136, September 30, 2010.
• "House Science Committee Approves Rare Earths Bill" in TLJ Daily E-Mail Alert No. 2,134, September 28, 2010.

3/13. The Office of the U.S. Trade Representative (OUSTR) issued a release that summarizes the US allegations that that the People's Republic of China is violating its World Trade Organization (WTO) with its export restraints, duties and quotas on rare earth materials.

Ron Kirk, the USTR, stated in this release that "China continues to make its export restraints more restrictive, resulting in massive distortions and harmful disruptions in supply chains for these materials throughout the global marketplace".

This USTR release alleges that "China unfairly imposes export restraints on rare earths, tungsten, and molybdenum, as well as many intermediate products processed from these raw materials. In all, China’s export restraints on the materials at issue in this dispute cover more than 100 tariff codes."

The OUSTR release also alleges that the PRC "imposes harmful export duties on rare earths, tungsten, and molybdenum. China committed as part of the terms of its WTO accession to eliminate export duties for all products other than those listed in a specific annex. The export duties the United States is challenging are imposed on products not listed in that annex."

It adds that "The WTO recently confirmed in the China -- Measures Related to the Exportation of Various Raw Materials dispute that China cannot justify its imposition of such export duties pursuant to the exceptions provided in Article XX of the GATT 1994."

See, the WTO's web page titled "Appellate Body issues reports on raw materials disputes", which contains hyperlinks to the relevant WTO panel and appellate body findings and conclusions.

The OUSTR release also states that the PRC "imposes distorting export quotas on rare earths, tungsten, and molybdenum. China also imposes other export restrictions through its export procedures and requirements. Article XI:1 of the General Agreement on Tariffs and Trade 1994 (GATT 1994) generally prohibits restrictions on exports other than taxes, duties, and charges. In addition, China's WTO Accession Protocol contains broad commitments not to restrict the right to export goods."

3/13. Sen. Lisa Murkowski (R-AK), the ranking Republican on the Senate Energy and Natural Resources Committee (SENRC), stated in a release that "The president wants to sue the Chinese for something that we could -- and should -- be producing for ourselves."

"Instead of settling for Chinese imports, the president should be taking steps to jumpstart development of our own supplies of rare earth elements and other critical minerals. All he has to do is look north to Alaska, which has already identified roughly 70 rare earth elements sites."

Sen. Murkowski (at right) added that "We have some of the strictest environmental standards in the world, but the president prefers to import minerals critical to our competitiveness and security from a country that has some of the lowest. If the president wants to address China's dominance in critical minerals production, he should support changes to U.S. federal minerals policy to allow domestic mining."

Sen. Murkowski has introduced legislation that would not lessen environmental standards, but would be directed at the length and complexity of obtaining federal permits to extract rare earth elements.

She introduced S 1113 [LOC | WW], the "Critical Minerals Policy Act of 2011", on May 26, 2011. It has bipartisan support, and 19 cosponsors.

The SENRC has not yet marked up this bill. See also, story titled "Update on Rare Earth Materials Legislation" in TLJ Daily E-Mail Alert No. 2,261, July 17, 2011.

Sen. Murkowski also gave a speech in Washington DC on March 13 in which she addressed the "federal government's share of the blame for our rare earth supply problems".

She argued that her bills "offers us an opportunity, not just to update our mineral policies, but to ensure that our country produces its fair share of the rare earths and raw materials that make so much of our modern world possible. This is about strengthening our economy, creating jobs, attracting investment, and competing with other nations around the world."

She also states that "The U.S. has some of the strongest environmental standards in the world. Mining operations are subject to no less than 30 federal, state and local regulatory programs." And, "we should be proud of and maintain the commitment we have displayed -- over generations -- to being good stewards of our natural environment."

But, she continued, "What we should not do, however -- and particularly in the case of minerals critical to our global competitiveness and national security -- is subject mining projects to an unnecessarily long permitting process. Delaying projects, stranding capital, and allowing bureaucratic intransigence is not a strategy for environmental protection. To the contrary, it is a disingenuous and dangerous thing to do as the U.S. struggles to create private-sector jobs and attract long-term investment."

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The House will not meet.

12:00 NOON - 2:00 PM. The Federalist Society will host a panel discussion titled "Antitrust Enforcement as Regulation". The speakers will be Ronald Cass, James Miller (Husch Blackwell), Rick Rule (Cadwalader Wickersham & Taft), and Robert Skitol (Drinker Biddle & Reath). See, notice and registration page. Lunch will be served. Free. The Federalist Society will telecast this event. The dial in number is 800-616-4021; there is no pass code. For more information, contact Hannah De Guzman at 202-822-8138 or hannah dot deguzman at fed-soc dot org. Location: National Press Club, Holeman Lounge, 13th Floor, 529 14th St. NW.

12:30 - 2:00 PM. The American Enterprise Institute (AEI) will host a panel discussion titled "Inventing the Future: What’s Next for Patent Reform?". The speakers will be Michael Abramowicz (George Washington University School of Law), James Delong (Convergence Law Institute), Paul Michel (former Judge of the U.S. Court of Appeals for the Federal Circuit), Alex Tararrok (George Mason University), and Nick Schultz (AEI). Lunch will be served. See, notice. The AEI will webcast this event. Location: AEI, 12th floor, 1150 17th St., NW.

12:30 - 2:00 PM. The DC Bar Association's Media Law Committee will host a closed brown bag lunch meeting to discuss media and communications law developments. Free. No CLE credits. Reporters are barred from covering this event. For more information, contact the DC Bar at 202-626-3463 or Kurt Wimmer (Covington & Burling) at kwimmer at cov dot com or Jim McLaughlin at mclaughlinj at washpost dot com. See, notice. Location: Covington & Burling, 1201 Pennsylvania Ave., NW.

2:30 - 4:30 PM. The Senate Banking Committee's (SBC) Subcommittee on Financial Institutions and Consumer Protection will hold a hearing titled "Examining Issues in the Prepaid Card Market". The witnesses will be Lauren Saunders (National Consumer Law Center) and David Rothstein (Policy Matters Ohio). See, notice. Location: Room 538, Dirksen Building.

2:45 PM. The Senate Judiciary Committee (SJC) will hold a hearing on judicial nominations: William Kayatta (to be a Judge of the U.S. Court of Appeals for the 1st Circuit), John Fowlkes (USDC/WDTenn), Kevin McNulty (USDC/DNJ), Michael Shipp (USDC/DNJ), and Stephanie Rose (USDC/SDIowa). See, notice. The SJC will webcast this event. Location: Room 226, Dirksen Building.

The House will not meet.

9:00 - 10:30 AM. The Information Technology and Innovation Foundation (ITIF) will host a panel discussion titled "Boosting Exports, Jobs, and Economic Growth by Expanding the Information Technology Agreement". The Ministerial Declaration on Trade in Information Technology Products (ITA) was concluded at the World Trade Organization (WTO) Singapore Ministerial Conference in December of 1996. This 15 year old ITA does not cover GPS devices, e-readers, flat panel TVs, and other tech products. The speakers at this event will be Miriam Sapiro (Deputy US Trade Representative), Charlene Barshefsky (Wilmer Hale), Susan Schwab (University of Maryland), Greg Slater (Intel), Stephen Ezell (ITIF), and Robert Atkinson (ITIF). See, ITIF notice. See also, the WTO's ITA web page. Location: ITIF/ITIC: Suite 610, 1101 K St., NW.

10:00 AM. The Senate Finance Committee (SFC) will hold a hearing titled "Russia's WTO Accession -- Implications for the United States". The witnesses will be Samuel Allen (Ch/CEO of Deere & Company), Ronald Pollett (P/CEO of GE Russia/CIS), Watty Taylor (Montana Stockgrowers Association), Paul Williams (ASCAP), Alan Larson (Transparency International USA). See, notice. Location: Room 215, Dirksen Building.

10:00 AM. The Senate Appropriations Committee (SAC) will hold a hearing on the FY 2013 budget for the Federal Bureau of Investigations (FBI). The witness will be FBI Director Robert Mueller. Location: Room 192, Dirksen Building.

10:00 AM. The Senate Judiciary Committee (SJC) will hold an executive business meeting. It will consider the nomination of Richard Taranto to be a Judge of the U.S. Court of Appeals (FedCir), and Robin Rosenbaum to be a Judge of the U.S. District Court for the Southern District of Florida. See, notice. Location: Room 226, Dirksen Building.

1:00 - 2:30 PM. The American Bar Association (ABA) will host a webcast event titled "Social Media, Data Privacy, Online Gambling, and Other Hot Topics in Advertising & Promotions". The speakers will be Scott Dailard (Dow Lohnes), Steven Baron (Mandell Menkes), Brendan Healey (Tribune Company), Jill Meyer (Frost Brown Todd), and Andrea Shandell (Gannett Co.). CLE credits. Prices vary. See, notice.

6:00 - 8:15 PM. The Federal Communications Bar Association (FCBA) an event titled "Developments in the Effort to Improve Broadband Adoption". CLE credits. Prices vary. Registrations and cancellations are due by 5:00 PM on March 13. Location: Arnold & Porter, 555 12th St., NW.

The House will meet in pro forma session at 10:00 AM.

The Senate will not meet.

Supreme Court conference day. See, calendar. Closed.

Deadline to submit comments to the National Institute of Standards and Technology's (NIST) Computer Security Division (CSD) regarding its draft SP 800-61 Rev. 2 [63 pages in PDF], titled "Computer Security Incident Handling Guide".

St. Patrick's Day.

The House will return from its one week recess. It will meet at 2:00 PM. Votes will be postponed until 6:30 PM.

12:15 - 1:30 PM. The Federal Communications Commission (FCC) will host an event titled "Meet the 8th Floor Media Advisors". The speakers will be Sherrese Smith (office of Chairman Julius Genachowski), Erin McGrath (office of Commissioner Robert McDowell), Dave Grimaldi (office of Commissioner Mignon Clyburn). The FCBA states that this is an FCBA event. Location: National Association of Broadcasters, 1771 N St., NW.

3:00 PM. The House Appropriations Committee's (HAC) Financial Services and General Government will hold a hearing on the FY 2012 budget for the Federal Communications Commission (FCC). The witnesses will be FCC Chairman Julius Genachowski and FCC Commissioner Robert McDowell. See, notice. The HAC will webcast this hearing. Location: Room 2359, Rayburn Building.

4:00 PM. The House Intelligence Committee (HIC) will hold a closed hearing titled "Ongoing Intelligence Activities". See, notice. Location: Room HVC-304, Capitol Visitor Center.

8:45 AM - 2:00 PM. The Free State Foundation (FSF) will host an event titled "Fourth Annual Telecom Policy Conference: The Internet World: Will It Remain Free From Public Utility Regulation?" The speakers will include Jeffrey Campbell (Cisco), Jim Cicconi (AT&T), Michelle Connolly (Duke University), Steve Largent (CTIA), Kyle McSlarrow (Comcast/NBC Universal), Marius Schwartz (FCC), Howard Shelanski (Georgetown University Law School), Deborah Tate (FSF), Tom Tauke (Verizon), Steven Teplitz (Time Warner Cable), Rick Whitt (Google), Christopher Yoo (University of Pennsylvania Law School). Free. Open to the public. Lunch will be served. Register to attend by contacting Kathee Baker at kbaker at freestatefoundation dot org. Location: National Press Club, 13th Floor, 529 14th St., NW.

10:00 AM. The Senate Finance Committee's (SFC) Subcommittee on Fiscal Responsibility & Economic Growth  will hold a hearing titled "Tax Fraud by Identity Theft, Part 2: Status, Progress, and Potential Solutions". See, notice. Location: Room 215, Dirksen Building.

2:30 PM. The Senate Intelligence Committee (SIC) will hold a closed hearing. See, notice. Location: Room 219, Hart Building.

11:59 PM EDT. Deadline to submit FY 2012 Form 471 to the Federal Communications Commission's (FCC) Universal Service Administration Company (USAC). This is the e-rate subsidy program's Services Ordered and Certification Form .

10:00 AM. The House Judiciary Committee's (HJC) Subcommittee on Crime, Terrorism, and Homeland Security will hold a hearing titled "Secure Identification: The REAL ID Act's Minimum Standards for Driver's Licenses and Identification Cards". See, notice. The HJC will webcast this event. Location: Room 2141, Rayburn Building.

10:30 AM. The Federal Communications Commission (FCC) will hold an event titled "Open Meeting". See, agenda. Location: FCC, Commission Meeting Room, 445 12th St., SW.

12:00 NOON - 1:30 PM. The DC Bar Association will host an event titled "Data Breach Risks and Protections for Health Lawyers: Do You Know Where Your Information is Today?". The speakers will be Alan Goldberg (George Mason University and American University law schools), Jonathan Joseph (Christian & Barton), and Melinda Murray (Holy Cross Hospital, Silver Spring). The price to attend ranges from $15 to $35. No CLE credits. See, notice. For more information, call 202-626-3463. The DC Bar has a history of barring reporters from its events. Location: DC Bar Conference Center, 1101 K St., NW.

1:30 PM. The House Judiciary Committee's (HJC) Subcommittee on Courts, Commercial and Administrative Law will hold a hearing titled "Office of Information and Regulatory Affairs: Federal Regulations and Regulatory Reform under the Obama Administration". See, notice. The HJC will webcast this event. Location: Room 2141, Rayburn Building.

2:00 PM. The Senate Judiciary Committee's (SJC) Subcommittee on Antitrust, Competition Policy and Consumer Rights will hold a hearing titled "The Verizon/Cable Deals: Harmless Collaboration or a Threat to Competition and Consumers?". The witnesses will be Randal Milch (Verizon), David Cohen (Comcast), Rick Rule (Cadwalader Wickersham & Taft, and Microsoft's outside antitrust counsel), Steven Berry (Rural Cellular Association), Joel Kelsey (Free Press), and Timothy Wu (Columbia University law school). See, notice. The SJC will webcast this event. Location: Room 226, Dirksen Building.

2:00 PM. The House Oversight and Government Reform Committee (HOGRC) will hold a hearing titled "FOIA in the 21st Century: Using Technology to Improve Transparency in Government". See, notice. Location: Room 2154, Rayburn Building.

2:00 - 6:00 PM. The Federal Communications Bar Association's (FCBA) Privacy and Data Security Committee and the American Bar Association's (ABA) Communications Law Forum will host an event titled "7th Annual ABA/FCBA Privacy & Data Security Symposium". CLE credits. Prices vary. Registrations and cancellations are due by 5:00 PM on March 16. See, notice. Location: Arnold & Porter, 555 12th St.,  NW.

6:00 - 8:00 PM. The Federal Communications Bar Association's (FCBA) will host an event titled "Happy Hour". Location: __.

Deadline to register to attend the Federal Communications Bar Association's (FCBA) lunch on March 28 at which Jamie Barnett, Chief of the FCC's Public Safety and Homeland Security Bureau, will speak.

9:00 AM. The House Intelligence Committee (HIC) will hold a closed hearing titled "Ongoing Intelligence Activities". See, notice. Location: Room HVC-304, Capitol Visitor Center.

10:00 AM. The House Financial Services Committee's (HFSC) Subcommittee on Financial Institutions and Consumer Credit will hold a hearing titled "The Future of Money: How Mobile Payments Could Change Financial Services". See, notice. Location: Room 2128, Rayburn Building.

10:00 AM. The Senate Judiciary Committee (SJC) will hold an executive business meeting. The agenda again includes consideration of the nomination of Richard Taranto to be a Judge of the U.S. Court of Appeals (FedCir), and Robin Rosenbaum to be a Judge of the U.S. District Court for the Southern District of Florida. The SJC will webcast this event. Location: Room 226, Dirksen Building.

10:00 AM. The Senate Appropriations Committee (SAC) will hold a hearing on the FY 2013 budget for the Department of Commerce (DOC). Location: Room 192, Dirksen Building.

10:00 AM - 12:00 NOON. The American Enterprise Institute (AEI) will host a panel discussion titled "Chinese Telecom Investment in the U.S.: Weighing Economic Benefits and Security Risks". The speakers will be Claude Barfield (AEI), Theodore Moran (Georgetown University), Derek Scissors (Heritage Foundation), and Timothy Keeler (Mayer Brown). See, notice. The AEI will webcast this event. Location: AEI, 12th floor, 1150 17th St., NW.

2:30 PM. The Senate Intelligence Committee (SIC) will hold a closed hearing. See, notice. Location: Room 219, Hart Building.

Supreme Court conference day. See, calendar. Closed.