(Europolitics – Chiade O’Shea)
The European Union has expressed concerns that its trading partners are using too many restrictive commercial measures, posing a threat to a speedy recovery from the financial and economic crisis. Trade Commissioner Karel De Gucht on 25 October called for an end to the practice.
“With the economic recovery still fragile, the world’s major economies must remove the trade restrictive measures that put a break on growth,” De Gucht said as he published a new report detailing the extent of these tariff and non-tariff barriers. The report, which De Gucht says is an important tool to monitor rises in protectionism, lays out over 300 restrictive trade measures taken by the European Union’s 30 top trade partners in the two years since the crisis began in 2008. They included so-called ‘classical trade barriers’ like import bans and tariff increases, but also the now infamous ‘non-tariff barriers’ such internal incentives to “buy national”. Read the complete report here.
Showing posts with label Trade Protection. Show all posts
Showing posts with label Trade Protection. Show all posts
Tuesday, October 26, 2010
Thursday, September 30, 2010
Despite G20 Pledge, Global Trade Friction Heating Up
(Globe and Mail – Kevin Carmichael)
The resolve of the Group of 20 countries to stare down trade barriers is wavering.
The G20 declared early in its fight against the financial crisis it would resist the impulse to placate domestic interests, vowing to resist protectionism. Officials recognized the self-defeating effect that tariff walls had during the Great Depression.
For the most part, the leaders of world’s major economies have remained true to their word. Global trade will increase 13.5% this year, according to the World Trade Organization, a feat that suggests shipping lanes have been left wide open.
Still, trade friction between some nations is building.
Lawmakers in the United States are scheduled to vote on legislation Wednesday that would allow companies to seek retribution for sales lost to international competitors that benefit from government manipulation of exchange rates. The bill is aimed squarely at China, which many unions and some companies blame for lost jobs, even though the country is the U.S.’s fastest-growing export market.
“We’ve had a trend towards more disputes, as compared to the sort of businesslike flow which we had for the two to three years preceding the crisis,” WTO director-general Pascal Lamy conceded last week, according to a report on Forbes.com. Read more here.
The resolve of the Group of 20 countries to stare down trade barriers is wavering.
The G20 declared early in its fight against the financial crisis it would resist the impulse to placate domestic interests, vowing to resist protectionism. Officials recognized the self-defeating effect that tariff walls had during the Great Depression.
For the most part, the leaders of world’s major economies have remained true to their word. Global trade will increase 13.5% this year, according to the World Trade Organization, a feat that suggests shipping lanes have been left wide open.
Still, trade friction between some nations is building.
Lawmakers in the United States are scheduled to vote on legislation Wednesday that would allow companies to seek retribution for sales lost to international competitors that benefit from government manipulation of exchange rates. The bill is aimed squarely at China, which many unions and some companies blame for lost jobs, even though the country is the U.S.’s fastest-growing export market.
“We’ve had a trend towards more disputes, as compared to the sort of businesslike flow which we had for the two to three years preceding the crisis,” WTO director-general Pascal Lamy conceded last week, according to a report on Forbes.com. Read more here.
House Approves Two ‘Make it in America’ Provisions
(Sidley Austin LLP)
On September 15, the House of Representatives approved two bills aimed at bolstering U.S. manufacturing by requiring parts of the U.S. government to buy only U.S.-made products. Both bills would need to be approved by the Senate and signed by President Obama before they become law, but nonetheless signal a possible spate of “Buy American” legislation in the coming weeks.
The bills are:
1. The “Berry Amendment Extension Act,” which would require two agencies within the Department of Homeland Security to buy U.S.-made textiles, clothing, cotton and other related goods; and
2. The “Congressional Made in America Promise Act,” which requires goods and supplies used by Congress to be sourced in America, with limited exceptions.
The bills are part of the broader “Make it in America” legislative initiative launched by the Democratic leadership in Congress, which has been under increasing pressure to stimulate U.S. job creation and manufacturing. The initiative is still under development but could also include the consideration of a China currency bill and other pro-U.S. manufacturing legislation (the Foreign Manufacturers Legal Accountability Act, H.R. 4678/S.1606, has been mentioned as a possibility) in the few weeks – perhaps only days – left before Congress adjourns for the mid-term elections. Read more here.
Monday, September 20, 2010
U.S. Can’t Kick the Protectionist Habit
(The Montreal Gazette)
Economists keep on showing that “protectionism” does the opposite of protecting a whole economy, but powerful interests in the United States keep turning to protective measures of narrow benefit every time they think they can get away with it.
Campaigns to “Make it in America” and “Buy America” cropped up swiftly after the economic meltdown of 2008. Exporters to the U.S. – including Canada, the U.S.’s main trading partner – protested furiously, pointing out that for the economy overall, proliferating protective barriers only exacerbate a downturn, and could even push the world into a full-blown and protracted recession. Cooler heads finally prevailed and a government procurement agreement went a long way to resolving the Buy American problem.
But the U.S. economy is still struggling, especially in the Rust Belt of the Midwest and northeast. And Americans have not given up on protectionism. The latest scheme is the Foreign Manufacturers Legal Accountability Act. It comes as no surprise that the bill is sponsored by a Democrat from Ohio who’s fearful about November’s congressional elections. Read more here.
Wednesday, September 15, 2010
Buy American, The Sequel? New Canada-U.S. Trade Battle Looms Ahead
(Lee-Anne Goodman — The Canadian Press)
Seven months after the Buy American resolution, Canadian manufacturers are poised to become ensnared in yet another protectionist piece of U.S. legislation even though the Chinese are the intended target.
Gary Doer, Canada’s ambassador to the United States, is sending a letter this week to congressional leaders, urging them to consider the impact on the Canada-U.S. trade relationship if the Foreign Manufacturers Legal Accountability Act passes Congress in the weeks to come. “As we are each other’s largest trading partner, Canada is concerned this legislation seeks to solve a problem that does not exist,” Doer wrote. “It could instead result in unintended consequences of unduly burdening our bilateral trade.”
The act, currently before the U.S. House of Representatives, is aimed at ensuring that the foreign manufacturers of defective protects can be served with legal papers. It was the result of the Chinese drywall fiasco that has damaged some U.S. homes and made homeowners sick; consequently, it isn’t expected to face many hurdles in Congress.
The act is part of a “Make It In America” initiative by nervous Democrats who are hoping it will score them points in what’s known as the Rust Belt, a manufacturing-heavy region of the Midwest and northeastern United States where exasperation about the widening trade deficit is off the charts. Rust Belt Democrats are vulnerable to defeat in the November mid-term elections less than eight weeks away. Read more here.
Thursday, September 2, 2010
‘Buy American’ Final Rule Issued by DHS
(Specialty Fabrics Review)
The U.S. Department of Homeland Security (DHS) rejected concerns about whether the buy American requirements for textile and apparel products in the American Recovery and Reinvestment Act sufficiently assists textile manufacturing in the U.S. The agency adopted, without change, the interim rule issued in August 2009, ignoring commenters’ call to have the new rules mirror the Berry Amendment that governs textile and apparel purchases by the Department of Defense. Objections to the new rules include concerns about de minimis exceptions to the rule, allowing use of non-domestically made parts, definition of the term ‘national security interests’ and refusing to make exceptions for preferred trading partners, such as Mexico, Canada and Chile.
The U.S. Department of Homeland Security (DHS) rejected concerns about whether the buy American requirements for textile and apparel products in the American Recovery and Reinvestment Act sufficiently assists textile manufacturing in the U.S. The agency adopted, without change, the interim rule issued in August 2009, ignoring commenters’ call to have the new rules mirror the Berry Amendment that governs textile and apparel purchases by the Department of Defense. Objections to the new rules include concerns about de minimis exceptions to the rule, allowing use of non-domestically made parts, definition of the term ‘national security interests’ and refusing to make exceptions for preferred trading partners, such as Mexico, Canada and Chile.
Wednesday, June 30, 2010
Protectionist Policies Continue Despite G-20 Promises – Report
(NASDAQ/Dow Jones Newswires)
Protectionist trade policies continue to be implemented among Group of 20 countries, despite national commitments to the contrary, according to a report.
With unemployment hovering near 10% among the advanced G-20 members, many governments have and continue to adopt protectionist measures with the hope of securing domestic jobs and industry, attempting to shield themselves from global competition. However, a new report by the International Chamber of Commerce with research by the Peterson Institute for International Economics, finds that the effect of such actions is just the opposite. “Protectionist trade measures meant to protect jobs have the opposite effect, because of emulation and retaliation,” said the report.
All G-20 countries have implemented protectionist trade measures over the past two years, and there are hundreds more coming, according to the authors.
Protectionist trade policies continue to be implemented among Group of 20 countries, despite national commitments to the contrary, according to a report.
With unemployment hovering near 10% among the advanced G-20 members, many governments have and continue to adopt protectionist measures with the hope of securing domestic jobs and industry, attempting to shield themselves from global competition. However, a new report by the International Chamber of Commerce with research by the Peterson Institute for International Economics, finds that the effect of such actions is just the opposite. “Protectionist trade measures meant to protect jobs have the opposite effect, because of emulation and retaliation,” said the report.
All G-20 countries have implemented protectionist trade measures over the past two years, and there are hundreds more coming, according to the authors.
Thursday, June 24, 2010
Protectionism During the Crisis Had Minimal Impact on the Global Trade Collapse
(World Bank)
Since the global financial crisis began, many countries have raised tariffs on selected products. But there hasn’t been a widespread increase in protectionism via tariff policies, according to a new working paper by Hiau Looi Kee, Cristina Neagu, and Alessandro Nicita. In fact, using new World Bank estimates that summarize trade policies in a wide range of countries from 2008 to 2009, the authors show that only a handful of countries, including Malawi, Russia, Argentina, Turkey, and China, raised tariffs on frequently-traded products. Some economies, such as the U.S. and the EU, have not used tariffs but instead mainly relied on anti-dumping duties. In the worst-case scenario, the rise in tariffs and anti-dumping duties may have driven down trade by about US$43 billion, or less than 2% of the global trade collapse between 2008 and 2009.
Download the World Bank Policy Research Working Paper 5274.
Since the global financial crisis began, many countries have raised tariffs on selected products. But there hasn’t been a widespread increase in protectionism via tariff policies, according to a new working paper by Hiau Looi Kee, Cristina Neagu, and Alessandro Nicita. In fact, using new World Bank estimates that summarize trade policies in a wide range of countries from 2008 to 2009, the authors show that only a handful of countries, including Malawi, Russia, Argentina, Turkey, and China, raised tariffs on frequently-traded products. Some economies, such as the U.S. and the EU, have not used tariffs but instead mainly relied on anti-dumping duties. In the worst-case scenario, the rise in tariffs and anti-dumping duties may have driven down trade by about US$43 billion, or less than 2% of the global trade collapse between 2008 and 2009.
Download the World Bank Policy Research Working Paper 5274.
Global Trade to Help Economies Rebound, Report Says
(QMI Agency/Toronto Sun)
Global trade dragged Canada and other economies more deeply into recession than they would have otherwise gone, but is also likely to drive a faster rebound, a report by an independent think-tank found.
While governments have increased protectionist measures in response to the crisis, the increasingly interlinked nature of the global economy has limited their ability to impose trade barriers, the Conference Board of Canada said.
Economists blame the clampdown on trade following the Great Depression of the 1930s for making that economic crisis longer and more severe than it otherwise would have been. Policymakers have largely avoided that mistake this time around, the report says.
“The highly integrated nature of global production makes it unattractive for governments to impose new trade barriers that affect not only the flow of final goods, but also has a domino effect on all of the related intermediate inputs and components,” said Danielle Goldfarb, associate director of the board's International Trade and Investment Centre. “In short, tight global linkages may have blunted the protectionist response.”
The board urges G20 leaders to commit not just to free trade in goods, but also in services and to liberalize investment rules.
The report is the seventh in a series called Lessons from the Recession and Financial Crisis (available from the Conference Board for $85).
Global trade dragged Canada and other economies more deeply into recession than they would have otherwise gone, but is also likely to drive a faster rebound, a report by an independent think-tank found.
While governments have increased protectionist measures in response to the crisis, the increasingly interlinked nature of the global economy has limited their ability to impose trade barriers, the Conference Board of Canada said.
Economists blame the clampdown on trade following the Great Depression of the 1930s for making that economic crisis longer and more severe than it otherwise would have been. Policymakers have largely avoided that mistake this time around, the report says.
“The highly integrated nature of global production makes it unattractive for governments to impose new trade barriers that affect not only the flow of final goods, but also has a domino effect on all of the related intermediate inputs and components,” said Danielle Goldfarb, associate director of the board's International Trade and Investment Centre. “In short, tight global linkages may have blunted the protectionist response.”
The board urges G20 leaders to commit not just to free trade in goods, but also in services and to liberalize investment rules.
The report is the seventh in a series called Lessons from the Recession and Financial Crisis (available from the Conference Board for $85).
Wednesday, June 23, 2010
Resisting Protectionism, Promoting Free Trade on Eve of G-8 and G-20 Summits
(Minister of International Trade)
International Trade Minister Peter Van Loan tells American Chamber of Commerce in Canada focus on economy is key to recovery
The Honourable Peter Van Loan, Minister of International Trade, today [Tuesday] called for increased focus on free and open trade, pointing to the Canada-United States relationship as an example of a free trade success story. The Minister delivered this message to the American Chamber of Commerce in Canada in advance of the G-8 and G-20 summits about to take place in Muskoka and Toronto.
“Canada believes that lasting economic recovery – not just in North America, but around the world – depends on free trade, not protectionism,” said Minister Van Loan. “This is the message we will be delivering to our existing and future trade partners at the upcoming G-20 meeting.”
In his remarks, Minister Van Loan highlighted Canada’s leadership in driving the free trade agenda and opening markets to Canadian businesses and Canadian workers, pointing to the continuing economic recovery as proof that the plan is working.
“Our government’s aggressive free trade agenda, coupled with decisive implementation of the Economic Action Plan, has generated results for Canada’s economic recovery,” said Minister Van Loan. “Our commitment to free trade, to fighting protectionism and to opening doors to new opportunities continues to fuel our economy and create jobs for Canadians at home and abroad. The Canada-United States trade relationship is an example of how partners can benefit from opening their borders to trade.”
The North American Free Trade Agreement has contributed to significant growth in trade and foreign direct investment in North America. Merchandise trade among Canada, Mexico and the United States has doubled since the agreement came into force, reaching $798.5 billion in 2009. It is now one of the largest free trade areas in the world, with some 448 million consumers.
While the Canada-United States trade relationship remains by far Canada’s most significant, Canada is moving to secure access to key markets around the world. In less than four years, the Government of Canada has built on the success of NAFTA by concluding new free trade agreements with Colombia, Peru, Jordan, Panama and the European Free Trade Association: Iceland, Liechtenstein, Norway and Switzerland.
International Trade Minister Peter Van Loan tells American Chamber of Commerce in Canada focus on economy is key to recovery
The Honourable Peter Van Loan, Minister of International Trade, today [Tuesday] called for increased focus on free and open trade, pointing to the Canada-United States relationship as an example of a free trade success story. The Minister delivered this message to the American Chamber of Commerce in Canada in advance of the G-8 and G-20 summits about to take place in Muskoka and Toronto.
“Canada believes that lasting economic recovery – not just in North America, but around the world – depends on free trade, not protectionism,” said Minister Van Loan. “This is the message we will be delivering to our existing and future trade partners at the upcoming G-20 meeting.”
In his remarks, Minister Van Loan highlighted Canada’s leadership in driving the free trade agenda and opening markets to Canadian businesses and Canadian workers, pointing to the continuing economic recovery as proof that the plan is working.
“Our government’s aggressive free trade agenda, coupled with decisive implementation of the Economic Action Plan, has generated results for Canada’s economic recovery,” said Minister Van Loan. “Our commitment to free trade, to fighting protectionism and to opening doors to new opportunities continues to fuel our economy and create jobs for Canadians at home and abroad. The Canada-United States trade relationship is an example of how partners can benefit from opening their borders to trade.”
The North American Free Trade Agreement has contributed to significant growth in trade and foreign direct investment in North America. Merchandise trade among Canada, Mexico and the United States has doubled since the agreement came into force, reaching $798.5 billion in 2009. It is now one of the largest free trade areas in the world, with some 448 million consumers.
While the Canada-United States trade relationship remains by far Canada’s most significant, Canada is moving to secure access to key markets around the world. In less than four years, the Government of Canada has built on the success of NAFTA by concluding new free trade agreements with Colombia, Peru, Jordan, Panama and the European Free Trade Association: Iceland, Liechtenstein, Norway and Switzerland.
Trade Experts Give G-20 Poor Grades On Resisting Protectionism
(Tom Barkley — Dow Jones/Wall Street Journal)
Group of 20 leaders don’t deserve to pat themselves on the back for avoiding protectionism this weekend, trade experts said Wednesday.
Discriminatory measures hurting trade are on the rise and affecting over 10% of global flows, while the prospects for a deal on the Doha round of trade talks are dimming, said participants at an event hosted by the Washington International Trade Association. […]
Earlier this month, the World Trade Organization, the Organization for Economic Cooperation and Development and the United Nations all applauded G-20 leaders for upholding the pledge they made at the first summit in November 2008.
However, those views are disputed by the latest Global Trade Alert… The report published Wednesday found that governments around the world have imposed more than 350 discriminatory measures since the last leaders’ summit in September 2009, bringing the total number that haven’t been reversed to nearly 650 since the first G-20 meeting. Sixteen of the most damaging provisions cover a combined $1.6 trillion in trade flows, or more than 10% of world imports in 2008. Read more here.
Group of 20 leaders don’t deserve to pat themselves on the back for avoiding protectionism this weekend, trade experts said Wednesday.
Discriminatory measures hurting trade are on the rise and affecting over 10% of global flows, while the prospects for a deal on the Doha round of trade talks are dimming, said participants at an event hosted by the Washington International Trade Association. […]
Earlier this month, the World Trade Organization, the Organization for Economic Cooperation and Development and the United Nations all applauded G-20 leaders for upholding the pledge they made at the first summit in November 2008.
However, those views are disputed by the latest Global Trade Alert… The report published Wednesday found that governments around the world have imposed more than 350 discriminatory measures since the last leaders’ summit in September 2009, bringing the total number that haven’t been reversed to nearly 650 since the first G-20 meeting. Sixteen of the most damaging provisions cover a combined $1.6 trillion in trade flows, or more than 10% of world imports in 2008. Read more here.
Tuesday, June 22, 2010
‘Silly Rules’ Cost Canadian Economy $8B Each Year
(Brian Lilley — Toronto Sun)
It’s illegal for a Canadian to take a bottle of wine across a provincial border or for a hairdresser to set up shop in another province without undergoing testing.
A new report says these and other goofy rules cost the Canadian economy $8 billion each year.
While the Harper government pursues free trade agreements overseas and has put stopping protectionist measures at the heart of the G8 and G20 meetings, a paper issued Monday by the Macdonald-Laurier Institute says it is time for the federal government to put an end to what one author describes as silly rules. […]
International Trade Minister Peter Van Loan met with his provincial and territorial counterparts in Ottawa on Monday; the issue of trade within Canada was not on the agenda.
“Canada is a free trade leader. Our economic success depends on free trade, not protectionism,” Van Loan said in a press release.
“He’s right,” said Robson. “Now let’s do it at home.”
Read more here. Find out more about the report “Citizen of One, Citizen of the Whole: How Ottawa can strengthen our nation by eliminating provincial trade barriers with a charter of economic rights” by Brian Lee Crowley, Robert Knox and John Robson” here.
Related: Report urges more power for Ottawa (Toronto Star)
It’s illegal for a Canadian to take a bottle of wine across a provincial border or for a hairdresser to set up shop in another province without undergoing testing.
A new report says these and other goofy rules cost the Canadian economy $8 billion each year.
While the Harper government pursues free trade agreements overseas and has put stopping protectionist measures at the heart of the G8 and G20 meetings, a paper issued Monday by the Macdonald-Laurier Institute says it is time for the federal government to put an end to what one author describes as silly rules. […]
International Trade Minister Peter Van Loan met with his provincial and territorial counterparts in Ottawa on Monday; the issue of trade within Canada was not on the agenda.
“Canada is a free trade leader. Our economic success depends on free trade, not protectionism,” Van Loan said in a press release.
“He’s right,” said Robson. “Now let’s do it at home.”
Read more here. Find out more about the report “Citizen of One, Citizen of the Whole: How Ottawa can strengthen our nation by eliminating provincial trade barriers with a charter of economic rights” by Brian Lee Crowley, Robert Knox and John Robson” here.
Related: Report urges more power for Ottawa (Toronto Star)
Monday, June 7, 2010
Green Rule Draws Flak
(Financial Post)
As investment in Ontario’s alternative-energy sector continues apace, legal experts are warning the provincial government may be violating international trade agreements with its local-content requirements. At the same time, energy producers are finding it difficult to meet the “made-in-Ontario” rules, which require a certain percentage of a project’s cost be sourced within the province.
“The EU is really fuming about this,” said Milos Barutciski, an international trade partner with Bennett Jones LLP, in Toronto.
“While on the one hand they’re negotiating with Canada about access to government procurement, the main province that they’re interested in getting access to comes up with this fairly straightforward discriminatory restriction on government procurement.”
Officials from the European Union have recently joined a call from the government of Japan asking Ontario to drop the domestic-content requirements of its legislation, saying it views Ontario’s rules as protectionist and a violation of international trade agreements. Read more here.
As investment in Ontario’s alternative-energy sector continues apace, legal experts are warning the provincial government may be violating international trade agreements with its local-content requirements. At the same time, energy producers are finding it difficult to meet the “made-in-Ontario” rules, which require a certain percentage of a project’s cost be sourced within the province.
“The EU is really fuming about this,” said Milos Barutciski, an international trade partner with Bennett Jones LLP, in Toronto.
“While on the one hand they’re negotiating with Canada about access to government procurement, the main province that they’re interested in getting access to comes up with this fairly straightforward discriminatory restriction on government procurement.”
Officials from the European Union have recently joined a call from the government of Japan asking Ontario to drop the domestic-content requirements of its legislation, saying it views Ontario’s rules as protectionist and a violation of international trade agreements. Read more here.
Friday, June 4, 2010
China Warns U.S. on Steel Dispute
(The Wall Street Journal)
China lashed out at the U.S. over a final decision to slap duties on imports of Chinese steel gratings, warning that the rising number of U.S.-initiated trade disputes against Beijing hurts economic ties between the two powers.
“The Chinese government and industry cannot accept this,” the Ministry of Commerce said in a statement issued on its website late Wednesday, referring to what it said was an incorrect investigation conducted by the U.S.
It urged the U.S. to practice restraint in resorting to such trade remedies and called on it to oppose protectionism.
The response came after the U.S. Commerce Department announced a final decision Tuesday to impose duties against some steel grating imports from China, setting countervailing duties at 62.46% and antidumping duties ranging between 136.76% and 145.18%. Read more here.
China lashed out at the U.S. over a final decision to slap duties on imports of Chinese steel gratings, warning that the rising number of U.S.-initiated trade disputes against Beijing hurts economic ties between the two powers.
“The Chinese government and industry cannot accept this,” the Ministry of Commerce said in a statement issued on its website late Wednesday, referring to what it said was an incorrect investigation conducted by the U.S.
It urged the U.S. to practice restraint in resorting to such trade remedies and called on it to oppose protectionism.
The response came after the U.S. Commerce Department announced a final decision Tuesday to impose duties against some steel grating imports from China, setting countervailing duties at 62.46% and antidumping duties ranging between 136.76% and 145.18%. Read more here.
Wednesday, June 2, 2010
EU Commissioner Wants U.S. Action on Trade
(The Wall Street Journal)
Karel De Gucht, the European Union’s trade commissioner, challenged the U.S. Wednesday to break an impasse in the current round of global trade talks.
“Americans need to say what they want,” said Mr. De Gucht, who visited Washington last month.
The nine-year-old round of tariff and subsidy-cutting talks—the so-called Doha Round—is stalled mostly because the Obama administration is handcuffed by a strong protectionist movement in the U.S., an assessment shared by international trade officials and U.S. trade representative Ron Kirk. “It’s a deal the Bush administration refused. How can you expect a Democratic administration without [special authority from Congress] to do this deal?” Mr. De Gucht said in an interview with the Wall Street Journal.
Doha “needs a top-up” and it is up the U.S. to come up with new ideas, he said. Mr. De Gucht suggested a tariff exemption on environmental goods, hardly a controversial notion, and language that would make it easier for service companies such as law firms and consultancies to do work in foreign countries. Read more here.
Karel De Gucht, the European Union’s trade commissioner, challenged the U.S. Wednesday to break an impasse in the current round of global trade talks.
“Americans need to say what they want,” said Mr. De Gucht, who visited Washington last month.
The nine-year-old round of tariff and subsidy-cutting talks—the so-called Doha Round—is stalled mostly because the Obama administration is handcuffed by a strong protectionist movement in the U.S., an assessment shared by international trade officials and U.S. trade representative Ron Kirk. “It’s a deal the Bush administration refused. How can you expect a Democratic administration without [special authority from Congress] to do this deal?” Mr. De Gucht said in an interview with the Wall Street Journal.
Doha “needs a top-up” and it is up the U.S. to come up with new ideas, he said. Mr. De Gucht suggested a tariff exemption on environmental goods, hardly a controversial notion, and language that would make it easier for service companies such as law firms and consultancies to do work in foreign countries. Read more here.
Tuesday, June 1, 2010
EU Fears Trade Barriers Enacted During Crisis May Be Permanent
(Matthew Dalton — Dow Jones Deutschland)
Most of the trade barriers erected by the European Union's trading partners during the economic crisis are still in place, posing a long-term risk to the global trading system, the European Commission said in a report released Friday.
Despite widespread fears that governments would broadly resort to such measures due to the global economic downturn, protectionism has been relatively restrained. But the barriers that have been put in place are becoming “permanent features” of the global economic landscape, the commission said.
“There is a risk that trade-restrictive measures introduced by our partners during the crisis will become part of the trade regime even when the economy picks up speed,” said EU trade commissioner Karel De Gucht. “What we need now is an exit strategy from protectionism.” Read more here.
Most of the trade barriers erected by the European Union's trading partners during the economic crisis are still in place, posing a long-term risk to the global trading system, the European Commission said in a report released Friday.
Despite widespread fears that governments would broadly resort to such measures due to the global economic downturn, protectionism has been relatively restrained. But the barriers that have been put in place are becoming “permanent features” of the global economic landscape, the commission said.
“There is a risk that trade-restrictive measures introduced by our partners during the crisis will become part of the trade regime even when the economy picks up speed,” said EU trade commissioner Karel De Gucht. “What we need now is an exit strategy from protectionism.” Read more here.
Tuesday, May 25, 2010
‘Everybody Loses’ in a Trade War: USC Secretary Gary Locke
(Bloomberg)
U.S. Commerce Secretary Gary Locke talked with Bloomberg’s Susan Li about China’s currency policy and trade relationship with the U.S.
Locke arrived in Hong Kong on May 16 for a 10-day trade mission to China and Indonesia aimed at promoting U.S. exports of clean energy, energy efficiency and electric power products.
U.S. Commerce Secretary Gary Locke talked with Bloomberg’s Susan Li about China’s currency policy and trade relationship with the U.S.
Locke arrived in Hong Kong on May 16 for a 10-day trade mission to China and Indonesia aimed at promoting U.S. exports of clean energy, energy efficiency and electric power products.
Japan Questions Local-Content Requirements in [Ontario’s] Energy Programme
(WTO News)
Japan, at the meeting of the Council for Trade in Goods on 21 May 2010, expressed concern over what it said were local-content requirements in a renewable-energy programme in Canada’s province of Ontario. It asked Canada to explain the consistency of the requirements with various WTO agreements, including the GATT 1994 provision on equal treatment for imports, and the Agreement on Trade-Related Investment Measures. The European Union and the United States expressed interest on this matter.
Canada said that its trade officials are reviewing the programme, and that Japan's questions had been forwarded to Ontario.
On another matter, Chinese Taipei expressed concern that Canada imposes higher tariffs on products from Chinese Taipei as compared to products from developing economies with higher levels of per capita GDP. It urged Canada to provide non-discriminatory tariff treatment to products from Chinese Taipei as Canada had done with other members that are at comparable levels of development.
Canada said that it already maintains very low tariffs, and that recently, it had eliminated tariffs on manufacturing inputs and machinery. It added that these measures have benefited its trading partners, including Chinese Taipei.
The Goods Council approved requests by the European Union to extend deadlines on its tariff negotiations with other members on its enlargements in 2004 and in 2007 respectively. It also approved a request by Argentina to extend its waiver related to the introduction of the Harmonized System 1996 changes, and forwarded the decision to the General Council for adoption.
Japan, at the meeting of the Council for Trade in Goods on 21 May 2010, expressed concern over what it said were local-content requirements in a renewable-energy programme in Canada’s province of Ontario. It asked Canada to explain the consistency of the requirements with various WTO agreements, including the GATT 1994 provision on equal treatment for imports, and the Agreement on Trade-Related Investment Measures. The European Union and the United States expressed interest on this matter.
Canada said that its trade officials are reviewing the programme, and that Japan's questions had been forwarded to Ontario.
On another matter, Chinese Taipei expressed concern that Canada imposes higher tariffs on products from Chinese Taipei as compared to products from developing economies with higher levels of per capita GDP. It urged Canada to provide non-discriminatory tariff treatment to products from Chinese Taipei as Canada had done with other members that are at comparable levels of development.
Canada said that it already maintains very low tariffs, and that recently, it had eliminated tariffs on manufacturing inputs and machinery. It added that these measures have benefited its trading partners, including Chinese Taipei.
The Goods Council approved requests by the European Union to extend deadlines on its tariff negotiations with other members on its enlargements in 2004 and in 2007 respectively. It also approved a request by Argentina to extend its waiver related to the introduction of the Harmonized System 1996 changes, and forwarded the decision to the General Council for adoption.
Thursday, May 20, 2010
U.S. Commerce Secretary ‘Very Concerned’ about China Policy
(Industry Week – Agence France-Presse)
Beijing’s policies in favor of local innovation and technology could give domestic firms a “leg up” over foreign rivals in clean energy market.
Commerce Secretary Gary Locke said on May 17 he was “very concerned” about Chinese policies that could limit foreign firms’ access to the country’s ballooning clean energy market. Kicking off his first trade mission to China, Locke said Beijing’s policies in favor of local innovation and technology could give domestic firms a “leg up” over foreign rivals and pledged to raise the issue with Chinese officials.
“We’re very concerned about that,” Locke said. He also said that the policy was “made without any input from affected businesses and really not subject to any public comment.”
The issue comes ahead of key Sino-U.S. talks scheduled for next week in Beijing, to be attended by U.S. Secretary of State Hillary Clinton, U.S. Treasury Secretary Timothy Geithner, Locke and other key officials. Read more here.
Beijing’s policies in favor of local innovation and technology could give domestic firms a “leg up” over foreign rivals in clean energy market.
Commerce Secretary Gary Locke said on May 17 he was “very concerned” about Chinese policies that could limit foreign firms’ access to the country’s ballooning clean energy market. Kicking off his first trade mission to China, Locke said Beijing’s policies in favor of local innovation and technology could give domestic firms a “leg up” over foreign rivals and pledged to raise the issue with Chinese officials.
“We’re very concerned about that,” Locke said. He also said that the policy was “made without any input from affected businesses and really not subject to any public comment.”
The issue comes ahead of key Sino-U.S. talks scheduled for next week in Beijing, to be attended by U.S. Secretary of State Hillary Clinton, U.S. Treasury Secretary Timothy Geithner, Locke and other key officials. Read more here.
Monday, April 19, 2010
U.S. Rep Rejects Call to Exclude Dairy from Trade Deal
(Radio New Zealand)
U.S. Trade Representative Ron Kirk has rejected calls by American lawmakers for dairy to be excluded from a free trade deal that includes New Zealand. The legislators want Mr Kirk to exclude dairy from the eight-country Trans Pacific Partnership.
The call from the Congressional dairy farmers caucus followed a letter from 30 senators in March opposing dairy’s inclusion. It claims increased imports of New Zealand dairy products will depress already-low prices and devastate the U.S. industry.
But Mr Kirk says it is too early to exclude sectors from a possible deal and improving access to overseas markets as a result of the deal could be a boost for American farmers.
Meanwhile, New Zealand Prime Minister John Key has expressed unease at the inclusion of Canada in the Trans Pacific Partnership. Canada, which has a strong local dairy lobby, is not currently part of the talks but is believed to be pressing to join. Read more here.
U.S. Trade Representative Ron Kirk has rejected calls by American lawmakers for dairy to be excluded from a free trade deal that includes New Zealand. The legislators want Mr Kirk to exclude dairy from the eight-country Trans Pacific Partnership.
The call from the Congressional dairy farmers caucus followed a letter from 30 senators in March opposing dairy’s inclusion. It claims increased imports of New Zealand dairy products will depress already-low prices and devastate the U.S. industry.
But Mr Kirk says it is too early to exclude sectors from a possible deal and improving access to overseas markets as a result of the deal could be a boost for American farmers.
Meanwhile, New Zealand Prime Minister John Key has expressed unease at the inclusion of Canada in the Trans Pacific Partnership. Canada, which has a strong local dairy lobby, is not currently part of the talks but is believed to be pressing to join. Read more here.
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