US challenges Turkey, China, EU, others at WTO over steel tariffs
- Author: Leroy Wright Jul 17, 2018,
Jul 17, 2018, 14:33
China and the European Union held here today their 20th yearly Summit in which they called for support to alliances and solving differences to face a common enemy: protectionism threatening the multilateral system.
Economists said the months-long threat of tit-for-tat tariffs on tens of billions of dollars of trade goods between the world's two biggest economies - which officially came into force last week - would not have a significant impact until next year, if the row continues.
China criticized the second round of US tariffs but has yet to say whether it would retaliate against those, too.
Not only is China heavily interdependent on the global economy, especially on the U.S. itself, it also has political difficulties with regional states like Vietnam, India and Japan.
The economy expanded by 6.7 per cent in April-June, down from 6.8 per cent in the first quarter and in line with a 6.7 per cent rate tipped in an AFP survey of economists. This is smaller than the US$375 billion deficit the U.S. had with China a year ago.
On this front, Ottawa feels it has more work to do.
Tier 2 is not effective until June 1, 2021.
Investment in factories, housing and other fixed assets decelerated in the latest quarter.
Lighthizer said that the United States' imposition of tariffs was justified, whereas the retaliatory measures by China and others were not.
The domestic job market remained stable in June, with the surveyed unemployment rate in urban areas at 4.8 percent, unchanged from the level in May and down 0.1 percentage point from June a year ago.
China says it doesn't want a trade war but it isn't afraid of having one, according to NPR.
The EU, while sharing Trump's concern over Chinese trade abuses if not his prescription of tariffs, has largely rebuffed efforts by China to pressure it into a strong stance against Trump.
The U.S. Federal Reserve reiterated on Friday in its semi-annual Monetary Policy Report to the U.S. Congress that it expected "further gradual increases" in interest rates due to "solid" economic growth. "Trade disputes with the USA have hurt market sentiment, and investment is also cooling".
Trump has threatened to impose tariffs on more than $500 billion worth of Chinese goods if Beijing does not change what the US president has called its unfair trade policies.
While the numbers point to a modest slowdown in China, the US-led trade war has only just begun. Even before the dispute with Washington erupted, forecasters expected growth to cool after Beijing started tightening controls on bank lending past year to rein in surging debt.
Trade has shrunk as a share of China's economy but the conflict with Washington threatens to dent growth.
Li said China wanted to improve the authority of the WTO, but did not elaborate.
Officials indicated China was on track to meet its 2018 GDP growth target of 6.5% but admitted there was a risk of harm from a deepening trade war with the US.
"These are much more important drivers of growth than exports", he said. "From our domestic perspective, economic development has still been unbalanced and unstable, and is still in the process of structural adjustment and transformation".
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"The real impact will start to show next year". He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.