Chile will no longer host APEC meeting, raising questions about the status of phase one of the U.S.-China trade agreement, which was expected to be signed during the November summit of the Asia-Pacific Economic Cooperation forum. The country will not be hosting the trade summit due to recent violent protests and social unrest, Chile's President Sebastian Pinera announced Oct. 30, according to Reuters. The summit was expected to feature a meeting between President Donald Trump and Chinese President Xi Jinping after Trump said the two sides were “ahead of schedule” on the agreement’s first phase (see 1910280026). China said the deal’s first phase was “basically completed.”

The World Trade Organization will convene a dispute settlement panel to judge whether India had the right to impose tariffs on apples, almonds, motorcycles and other products (see 1906170053). The panel was approved for formation in Geneva Oct. 29. Under the additional tariffs, American apples are taxed at 70 percent, compared with 50 percent for other countries' apple exports; the tariff on almonds and walnuts increased by 20 percentage points; and chickpeas and lentils have an additional 10 percentage points of duties. Most of these products are imported at low volumes, but India projected that it would collect more than $100 million in tariffs on almonds in the shell, and more than $20 million on apples. India says it is justified because the Section 232 tariffs on steel and aluminum are really safeguards to protect American mills and foundries, not national security measures. India is one of many countries involved in litigation at the WTO over the steel and aluminum tariffs -- others include Norway, Russia, the 28 countries of the European Union and China.

South Korea will continue to be classified as a developing country at the World Trade Organization in some respects, but not in negotiations, Reuters reported. "The government decided not to seek special treatment as a developing country from future negotiations at WTO,” Finance Minister Hong Nam-ki said Oct. 25. Developing countries are allowed looser standards on agriculture subsidies in the WTO, and the finance minister emphasized that Korea will continue to protect its agriculture.

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.