A former top U.S. trade official and a New Zealand ambassador were optimistic the World Trade Organization can work through issues over its dispute settlement body but warned about damaging consequences for world trade if it doesn’t.
China is going to ask the World Trade Organization to authorize retaliatory tariffs on $2.4 billion worth of goods at the WTO's dispute settlement body meeting Oct. 28. If the U.S. disagrees with either the argument that it's not complying with the ruling on countervailing duties, or the amount of retaliation permitted, an arbitrator will decide how much China may retaliate.
Trade experts identified many weaknesses of the World Trade Organization -- the evidentiary standard for countervailing duties: the fact that CVD in one market doesn't help the industry's economics when surplus flows to other countries; the length of time it takes to show adverse effects to domestic firms; the fact that 164 countries can't agree on trade liberalization.
The World Trade Organization will collaborate with the International Trade Centre and the World Customs Organization on the rules of origin database tool that the ITC and the WCO announced last year, the ITC said in a news release. The Rules of Origin Facilitator is a free online tool meant to help companies figure out the rules of origin that are part of trade agreements around the world. "With the WTO on board we will be able to make this invaluable digital tool available to more enterprises in developing countries and ensure greater transparency in trade," ITC Deputy Executive Director Dorothy Tembo said.
The U.S. will impose tariffs on $7.5 billion worth of European goods on Oct. 18, after the World Trade Organization formally cleared the way for the retaliation for illegal subsidies to Airbus. The U.S. ambassador to the WTO said that the U.S. still wants to find a negotiated solution with the European Union, but said that could only happen if it stops subsidies to Airbus and ensures they can't be revived under another name. The EU, during an Oct. 14 meeting at the WTO, said the WTO arbitrator's decision is not commensurate with the damage to Boeing, and that the arbitrator should have considered that Airbus is ending production of the A380, which was one of the models at issue in the case.
India blocked a first request from the U.S. for the World Trade Organization to form a panel to judge whether the hike in tariffs that India instituted because of the U.S. tariffs on Indian steel and aluminum breaks the rules. The panel is automatically convened after a second request. India delayed retaliating for the Section 232 tariffs for many months, but put them in place after the U.S. removed India from the Generalized System of Preferences benefits program.
World Customs Organization Secretary General Kunio Mikuriya met with Acting CBP Commissioner Mark Morgan and other officials while in Washington Sept. 12 and 13, the WCO said in a news release. Mikuriya "had separate meetings with the Department of State, the Office of the United States Trade Representative, the Department of the Treasury, and the White House National Security Council and National Economic Council" and "they all expressed their appreciation for the work undertaken by the WCO." He also "interacted" with U.S. Council for International Business CEO Peter Robinson.
China denies President Donald Trump's allegations their regime is dragging its feet in the U.S. trade talks in hopes of winning a more favorable deal with a new Democratic administration in 2021. “China's position, attitude and practice on the trade issue with the U.S. is consistent,” a Foreign Affairs Ministry spokesperson said Sept. 11, according to a transcript in English of a press conference in China, released by the department. “We never wanted a trade war. We always hope to reach a mutually acceptable win-win solution through equal-footed and respectful consultation.” There’s “a lot of rational" voices within the U.S. “hoping for the early conclusion of an agreement to prevent further escalation of the trade friction,” and the Trump administration “should heed the call,” she said. Trump is sure the Chinese “would love to be dealing with a new administration so they could continue their practice of ‘ripoff USA’” to the tune of $600 billion a year, he tweeted Sept. 3.
Vietnam continues efforts to crack down on the country of origin fraud and transshipment schemes that have become especially more frequent since the ramping up of U.S.-China trade tensions, according to reports in CustomsNews, the self-described “mouthpiece” of Vietnam Customs.
Reuters interviewed the U.S. ambassador to the European Union, who said the U.S. hoped to hear from a World Trade Organization arbitrator in the next week or two about the authorized level of balancing tariffs in response to EU launch aid for Airbus planes. Ambassador Gordon Sondland told Reuters informal conversations with the EU about settling the Airbus-Boeing dispute before imposing tariffs had "really gone nowhere," but he left open the possibility of an eventual settlement. The U.S. argues the damage done by illegal EU subsidies adds up to $11 billion (see 1904090057), and it has prepared a list of products worth more than twice that much (see 1907020010).