The EU confirmed it would consider stockpiling critical raw materials, but stopped short of threatening retaliation against countries that restrict supplies, a strategy document from the bloc's executive showed. In earlier drafts of the paper, the European Commission said any country that applied unjustified restrictions to raw material exports would be removed from the EU's list of preferred trading partners.

But in the final version the Commission said it would: "carry out further studies to provide a better understanding of the impact of export restrictions on raw materials markets, and foster a dialogue about their use as a policy tool".

Export restrictions on raw materials -- such as those placed on rare earth minerals by China last year -- have left import- dependent countries questioning how to ensure supplies of materials essential for high-tech and defence manufacturing.

Despite pulling back from the threat of unilateral retaliation against export controls, the EU executive promised to tackle supply barriers, preferably through dialogue, but if necessary with legal action in the World Trade Organization.

"The aim is to try to solve problems which relate directly to the future of European firms, industries and their ability to innovate and compete," EU industry commissioner Antonio Tajani told a news conference.

The paper also called on the 27-nation EU to improve its recycling technologies and stop millions of tonnes of raw materials from leaving Europe each year in the form of scrap electronics and cars. (Reuters)