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☆ China brings WTO case against U.S. and its sweeping chip export curbs as tech tensions escalate
▼ + stars: | 2022-12-13 | by ( Arjun Kharpal | ) www.cnbc.com time to read: +1 min

The U.S. has brought in sweeping measures to cut China off from high-tech semiconductors, hobbling the chip industry in the world's second-largest economy. China has hit back against the measures, beginning an official complaints procedure against the U.S. through the World Trade Organization. China initiated a dispute against the U.S. at the World Trade Organization over Washington's sweeping semiconductor export curbs that look to cut the world's second-largest economy off from high-tech components. It said that the WTO dispute is a way to address China's concerns through legal means. China was among the countries that brought action against the U.S.Trade disputes via the WTO can take years to resolve.

☆ China launches suit at WTO against U.S. chip export curbs - Global Times
▼ + stars: | 2022-12-12 | by ( ) www.reuters.com time to read: +1 min

Dec 13 (Reuters) - China on Monday launched a suit at the World Trade Organization over against the United States over its chip export control measures, the state-backed Global Times said in a tweet on Tuesday, citing China's commerce ministry. The Chinese mission to the WTO in Geneva and the U.S. Trade Representative did not immediately respond to Reuters requests for comment. The United States has blocked appointments to the WTO's top ruling body on trade disputes, meaning some rows never get settled. The alleged complaint by China on U.S. chip export curbs comes days after a WTO ruling against Washington in a separate suit about metal tariffs that had been brought by China among others. The United States, a regular critic of the WTO's arbitration proceedings, rejected the WTO's findings.

☆ Taiwan mulls WTO case after latest Chinese import bans
▼ + stars: | 2022-12-10 | by ( ) www.reuters.com time to read: +2 min

Taiwan, which China claims as its own territory, has complained for the past two years of Chinese import bans on various agricultural and aquatic goods, including pineapples and grouper fish, saying it is part of a Chinese pressure campaign. Speaking to reporters, Su said China was using administrative means to "interfere" in normal trade which is not in line with WTO norms. The government will do its best to communicate with relevant Chinese departments on the issue, he added. "If there is any non-compliance with the relevant WTO norms, we will also follow the relevant channels to file a complaint." It said it hoped that Taiwanese companies will provide the information that meets government requirements as soon as possible.

☆ WTO Rules Against U.S. Tariffs on Imported Steel, Aluminum
▼ + stars: | 2022-12-09 | by ( Yuka Hayashi | ) www.wsj.com time to read: 1 min

U.S. tariffs on imported steel and aluminum were imposed during the administration of former President Donald Trump. WASHINGTON—The World Trade Organization said Friday its dispute-settlement panels found the U.S. violated international trade rules with its tariffs on imported steel and aluminum, in a case that pit Washington against China as well as several friendly nations. The ruling covers the import duties that former President Donald Trump imposed in 2018 on national security grounds, citing the need to protect domestic manufacturers from global overproduction of the metals.

In one of the most high-profile and potentially explosive cases to come to the WTO, the three-person adjudicating panel said the U.S. measures were inconsistent with WTO rules and recommended the United States bring them into conformity. The United States said it strongly rejected the "flawed" interpretation and conclusions of the panel. Trump imposed 25% tariffs on steel imports and 10% on aluminium in 2018, using Section 232 of a 1962 act that allows the president to restrict imports if they are threatening national security. The case hinged on the exemption from global trade rules the WTO allows in cases of national security. The central U.S. argument was that national security is for countries themselves to judge and certainly not something to be assessed by three WTO adjudicators sitting in Geneva.

☆ German economy ministry calls for joint EU response to U.S. inflation act
▼ + stars: | 2022-12-09 | by ( ) www.reuters.com time to read: +2 min

BERLIN, Dec 9 (Reuters) - Germany wants a joint European response to the U.S. Inflation Reduction Act that would involve simplifying rules on state support and expanding funding opportunities, according to a German economy ministry document seen by Reuters on Friday. The ministry document also suggests member states could anchor sustainability criteria more firmly in public tenders at the national level as well as extend or increase traditional subsidy programmes, but warned against local content requirements which favour domestic industry. These would not only likely contradict World Trade Organization (WTO) law, according to the document, but also contribute to "a further erosion of the world trade order". The EU and Washington have established a joint task force in hope of resolving the dispute over the $430 billion act. (This story has been corrected to specify that the document is from the economy ministry, not finance ministry; and to clarify in the headline that the ministry calls for, not lays out, a joint response.)

☆ WTO rules against U.S. import duties on steel, aluminium, Norway says
▼ + stars: | 2022-12-08 | by ( ) www.reuters.com time to read: +1 min

OSLO, Dec 8 (Reuters) - The Norwegian foreign ministry said on Thursday a World Trade Organization panel had ruled in Norway's favour against the United States in a case the Nordic country had brought over U.S. import duties imposed in 2018 on steel and aluminium. "The WTO panel's report, which was released today, concludes that the U.S. tariff on steel and aluminium was in breach of the WTO rules," the Norwegian ministry said in a statement. In March 2018, then-U.S. President Donald Trump signed a memorandum to impose the tariffs, later exempting some allies, while Norway, a major aluminium producer, was among those that were hit. Several WTO members have filed similar challenges with the trade body, including the European Union, China, India, Russia, Switzerland and Turkey. Reporting by Terje Solsvik in Oslo and Phil Blenkinsop in Brussels, editing by Mark Heinrich, Kirsten DonovanOur Standards: The Thomson Reuters Trust Principles.

☆ EU Files Complaint in WTO Over China’s Trade Retaliation on Lithuania
▼ + stars: | 2022-12-07 | by ( Daniel Michaels | ) www.wsj.com time to read: 1 min

China-Lithuania trade fell 80% this year through October as a result of Beijing’s restrictions, the European Union said. BRUSSELS—The European Union filed a complaint against China in the World Trade Organization over punitive trade restrictions that Beijing imposed on Lithuania last year, harming the small Baltic state and the 27-country bloc. China’s near-total curtailment of exports from Lithuania last December followed moves by leaders in Vilnius to support Taiwan, which Beijing considers a breakaway province.

☆ European Union seeks two WTO panels on China disputes
▼ + stars: | 2022-12-07 | by ( ) www.reuters.com time to read: 1 min

BRUSSELS, Dec 7 (Reuters) - The European Union has requested the setting up of World Trade Organization panels for two of its trade disputes with China, the European Commission said on Wednesday. By seeking such panels, the bloc aims to protect member nations against discriminatory measures by China that the EU considers to be in breach of WTO rules, it added. Reporting by Sudip Kar-Gupta;Editing by Clarence FernandezOur Standards: The Thomson Reuters Trust Principles.

☆ EU escalates WTO case against China over patents, Lithuania
▼ + stars: | 2022-12-07 | by ( Philip Blenkinsop | ) www.reuters.com time to read: +3 min

[1/2] Flags of European Union and China are pictured during the China-EU summit at the Great Hall of the People in Beijing, China, July 12, 2016. The disputes, both brought to the WTO at the beginning of the year, concern alleged Chinese restrictions on EU companies' rights to use foreign courts to protect their high-tech patents and on trade with EU member Lithuania. The Commission formally requested consultations with China at the WTO, the first step in a WTO challenge. The panel requests come as the European Union reviews its stance towards China, seeing it increasingly as a competitor and system rival than a partner. In the Lithuania case, many of China's actions were not published measures, which are typically the focus for WTO litigation.

South Africa, Pakistan and India were among countries that made formal requests, during an initial three days of talks that ended on Wednesday, to ensure the process is inclusive. "The advanced countries have the requisite resources and can afford to have it covered and we cannot," he said. In parallel, country teams are discussing setting up a G20 pandemic fund and revamping the WHO's existing health emergency rules. Many poorer countries lack technical specialists to advise on WHO matters within the Geneva diplomatic mission, where the U.N. agency is based. South Africa's Precious Matsoso, co-chair of the pandemic treaty talks, told Reuters countries could hire experts to help, or band together for regional representation.

☆ Biden's climate plan strains trade ties with Europe
▼ + stars: | 2022-12-06 | by ( Anna Cooban | ) edition.cnn.com time to read: +7 min

The European Union and United States — together responsible for one third of global trade — have been at loggerheads in recent weeks over US President Joe Biden’s landmark $370 billion climate plan. While a trade war is unlikely, the plan is testing the transatlantic alliance and pushing Europe to consider mobilizing its own package of subsidies. The IRA is now law, and there is little appetite to bring it back to Congress to make substantive changes, he told CNN Business. The European Union has a couple of options at its disposal, analysts told CNN Business. On Monday, Italian Economy Minister Giancarlo Giorgetti said that the bloc should create its own “European IRA plan,” according to a Reuters report.

☆ Friendshoring makes sense if done in the right way
▼ + stars: | 2022-12-05 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

These examples explain the enthusiasm for “friendshoring”, an idea U.S. Treasury Secretary Janet Yellen is pushing. First, it could provoke an all-out trade war – causing the kinds of disruptions that friendshoring is intended to prevent. Things would be different if China was the West’s implacable enemy in the way that Putin’s Russia is. Using friendshoring in a defensive rather than aggressive way means focusing on strategic products. While it makes sense to cut its dependency on China, that doesn’t mean going all the way to zero.

☆ Lawmaker says EU should complain to WTO over U.S. Inflation Reduction Act
▼ + stars: | 2022-12-04 | by ( ) www.reuters.com time to read: +1 min

Dec 4 (Reuters) - The European Union should file a complaint with the World Trade Organization (WTO) in the next few months regarding the United States' green energy subsidy package, the head of the European Parliament's trade committee was reported as saying on Sunday. The U.S. and the EU have so far sought to be conciliatory about the bill, saying last week they would seek to tackle the bloc's concerns about the package, known as the U.S. Inflation Reduction Act. EU members worry the $430 billion bill, with generous tax breaks for U.S. companies, may disadvantage European companies from car manufacturers to makers of green technology. read moreOfficials from both sides are due to address the issue at a meeting next week, but Bernd Lange, the chair of EU parliament's trade committee, said he no longer expects a negotiated solution as only small changes could still be agreed through talks. Reporting by Riham Alkousaa; Editing by Frank Jack DanielOur Standards: The Thomson Reuters Trust Principles.

☆ Explainer: Why the U.S. Inflation Reduction Act has Europe up in arms
▼ + stars: | 2022-11-30 | by ( Leigh Thomas | ) www.reuters.com time to read: +4 min

While EU countries welcome the new commitment to energy transition, they fear the $430 billion Inflation Reduction Act will put their companies at an unfair disadvantage. EU countries are worried their companies will suffer because of U.S. tax breaks for components used in renewable energy technologies like electric cars on condition they are made in North America. EU countries consider that 200 billion euros ($207 billion) out of the total is tied to locally produced content provisions that potentially violate World Trade Organization (WTO) rules. However, a riposte from Europe would likely face resistance from more traditionally free trade friendly nations such as the Netherlands and Sweden. France has led calls for Europe to respond with state support of its own for European companies, including through a "buy European act" and large-scale subsidies.

☆ Jiang Zemin made China richer and more unequal
▼ + stars: | 2022-11-30 | by ( John Foley | ) www.reuters.com time to read: +5 min

NEW YORK, Nov 30 (Reuters Breakingviews) - Jiang Zemin, who died on Wednesday, catapulted China into the modern world. And his death comes at an inconvenient time for the current president, Xi Jinping. Chosen as party chief weeks before the violent 1989 suppression of Tiananmen Square protesters who demanded economic and political reforms, Jiang inherited a system riven by infighting. While numbers can deceive in a state-led economy like China’s, Jiang still notched up some encouraging stats. Follow @johnsfoley on TwitterCONTEXT NEWSJiang Zemin, the former president of China, died on Nov. 30.

☆ IMF and WTO leaders warn don't 'pull the plug' on global trade
▼ + stars: | 2022-11-29 | by ( Andreas Rinke | ) www.reuters.com time to read: +2 min

Nov 29 (Reuters) - The leaders of the International Monetary Fund and the World Trade Organization on Tuesday warned against the negative impact of deglobalization for the global economy, arguing instead for smart moves to diversify supply chains. "Don't pull the plug on trade that makes us all better." WTO Director-General Ngozi Okonjo-Iweala, speaking at the same news conference, echoed that view, noting a WTO estimate that breaking the global economy into two trading blocs would reduce global gross domestic product by 5% in the longer term. "Retreating from trade, being protectionist will make it harder - not easier - to solve the problems we have now," Okonjo-Iweala said. She said data pointed to even lower global growth next year than the 2.7% rate the IMF had projected in mid-October.

☆ IMF's Georgieva, WTO leader: Don't 'pull the plug' on global trade
▼ + stars: | 2022-11-29 | by ( ) www.reuters.com time to read: +1 min

Nov 29 (Reuters) - The leaders of the International Monetary Fund and the World Trade Organization on Tuesday warned against the negative impact of deglobalization for the global economy, arguing instead for smart moves to diversify supply chains. IMF Managing Director Kristalina Georgieva told reporters after a meeting with German Chancellor Olaf Scholz that globalization was facing its biggest challenge since World War Two in the wake of the COVID-19 pandemic and Russia's war in Ukraine. "Don't pull the plug on trade that makes us all better." WTO Director-General Ngozi Okonjo-Iweala said the WTO estimated that breaking the global economy into two trading blocs would reduce global gross domestic product by 5% in the longer term. Reporting by Andreas Rinke and Andrea Shalal Editing by Chris ReeseOur Standards: The Thomson Reuters Trust Principles.

But a new U.S. law offering hefty subsidies to local manufacturers of green technology has given the company pause for thought. That is roughly four times what the German government is offering, he said, with cheaper energy prices in the United States on top. The act introduces tax credits related to investment in green technology, plus tax breaks for consumers buying an electric vehicle or other green product made in North America. German carmakers and suppliers, for which the United States is a main export market, are among its biggest victims. "If we don't do anything, a lot will emerge in the United States," said Siemens Energy (ENR1n.DE) Chief Executive Christian Bruch.

☆ WTO says trade growth likely to slow as demand weakens
▼ + stars: | 2022-11-28 | by ( ) www.reuters.com time to read: 1 min

GENEVA, Nov 28 (Reuters) - The World Trade Organization said on Monday that its goods barometer had fallen below trend, indicating that trade growth was set to slow in the closing months of 2022 and into 2023. The Geneva-based body said its barometer fell to 96.2 from its previous reading of 100, reflecting "cooling demand for traded goods". Reporting by Emma Farge, Editing by Miranda MurrayOur Standards: The Thomson Reuters Trust Principles.

☆ EU demands quick fix from U.S. of green subsidy law
▼ + stars: | 2022-11-25 | by ( Philip Blenkinsop | ) www.reuters.com time to read: +2 min

The EU argues the $430 billion Inflation Reduction Act, to take effect in January, will make the United States a world leader in the electric vehicle market at its expense. Czech industry and trade minister Josef Sikela said all 27 EU members were concerned. He told reporters before a meeting of national trade ministers that time was running out and expressed hope a solution could be found by Dec. 5 when top U.S. and EU officials will meet. He said ministers would discuss how to persuade the United States to modify its act. The objective would not be to launch into a subsidy race, which would be counter-productive," he said.

☆ Germany must trade with China warily, economy minister says
▼ + stars: | 2022-11-23 | by ( ) www.reuters.com time to read: +2 min

BERLIN, Nov 23 (Reuters) - No one is suggesting Germany should stop trading with China, but Beijing's investments in critical sectors must be examined closely, German Economy Minister Robert Habeck said on Wednesday. "Nothing speaks against continuing to maintain economic relations with China," Habeck said at a conference organised by the Sueddeutsche Zeitung newspaper in Berlin. "That means in the critical sectors of our economy, we have to judge and prohibit the strategic influence of critical investments," Habeck said. Germany is seeking to reduce its dependence on Beijing and is developing a new China strategy, but it could be a tricky task with deep trade ties between Europe's and Asia's biggest economies. From a European point of view, the Act is a violation of the World Trade Organization's rules that cannot be accepted in the long term, the minister said.

☆ The world can harness trade to save the planet
▼ + stars: | 2022-11-21 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

But the right trade policies can also do a lot to save the planet. The first step is to have even-handed carbon tariffs. The World Trade Organization is worried that imposing carbon tariffs in an uncoordinated way could damage global trade and is working on a framework to avoid this. Global trade is struggling following the Covid-19 pandemic, Russia’s invasion of Ukraine and tension between China and America. By COP28, they and other countries should drive forward trade policies to save the planet.

☆ Singapore minister says country won't take sides as there's no win-win scenario in fractured world
▼ + stars: | 2022-11-17 | by ( Su-Lin Tan | ) www.cnbc.com time to read: +4 min

"Global businesses have a voice and need to make their voice heard, that you prefer an integrated world, and not a fragmented world," Singapore's Education Minister Chan Chun Sing (pictured here in 2019) said. Bloomberg | Bloomberg | Getty Images"It's important to remember that a more interdependent world is a safer world. He cited Russia's war in Ukraine and the World Trade Organization dispute settlement crisis as some of the cracks in the system. "Global businesses have a voice and need to make their voice heard, that you prefer an integrated world, and not a fragmented world," Chan said. "World trade as a percent of GDP had in the past been going up very fast, which contributed to the very low rate of inflation.

The move angered foreign governments and foreign-owned carmakers who say the change will disqualify a majority of their EV fleets from North American markets. "But it should not have negative side effects on their European allies and the European economy." South Korean President Yoon Suk-yeol also spoke to Biden about the issue during a bilateral meeting at the G20 summit, according to Yoon’s office. The Treasury is working to define the rules for some $278 billion worth of tax credits on EVs, solar and wind power investments and a range of other technologies. While a number of countries have said the U.S. tax credits likely violate World Trade Organization rules, none have sought to file a formal challenge.

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