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<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">REUTERS/Edgar SuIndia's trade minister Anand Sharma speaks about food security during a news conference at the ninth World Trade Organization (WTO) Ministerial Conference in Nusa Dua, on the Indonesian resort island of Bali December 5, 2013. </div></div></div>GENEVA/NUSA DUA, Indonesia (Reuters) - The first global trade reform since the creation of the World Trade Organization is ready for agreement by ministers from the body's 159 member countries later on Friday, sources involved in the talks said.
WTO Director-General Roberto Azevedo has drafted a text that he will submit to the full membership, signaling that he believes he has found terms that are acceptable to all members, including India which had raised vocal objections over agriculture.
Barring any last-minute veto, the deal aims to slash red tape at customs around the world, give improved terms of trade to the poorest countries, and allow developing countries to skirt the normal rules on farm subsidies if they are trying to feed the poor.
It would also revive confidence in the WTO's ability to negotiate global trade deals, after a string of failures that left the body at risk of sliding into irrelevance.
"We are very close," WTO spokesman Keith Rockwell told reporters at the meeting on the Indonesian resort island of Bali. "As things stand now, the prospects are promising."
Just a day earlier, a deal that would add hundreds of billions of dollars to the world economy by some estimates teetered on the brink of collapse.
In an organization based on consensus among all of its members, attention focused squarely on India as the main stumbling block to the WTO's first global trade deal in two decades.
India has insisted it would not compromise on a policy of subsidizing food for hundreds of millions of poor, putting it at odds with the United States and other developed countries.
Azevedo, a former Brazilian trade negotiator, told delegates at the start of the last day of talks that there was more work to be done, but sounded upbeat on prospects for success.
"He told members they were now very close to something that has eluded us for many years and that the decisions over the next few hours would have great significance beyond this day," the spokesman said.
It is 12 years since the WTO launched the Doha Round, which failed to yield concrete results, and many experts had warned that failure in Bali would leave regional and bilateral trade arrangements as the only avenue for trade reform, dividing the world and reversing the globalizing goal of the WTO.
A Bali trade deal, which is far less ambitious than the Doha Round had aimed for up until two years ago, would open the way to much wider trade reforms and enable the body to modernize its rules for the internet era.
The "all or nothing" agreement covers several areas, the largest of which is trade facilitation - a global standardization and simplification of customs procedures that would tear down barriers to cross-border movement of goods.
The deal also includes limited reforms in agriculture, including reducing export subsidies, opening borders to least developed countries, and the food subsidy policy championed by India, which proved the biggest obstacle.
<h3>SEEKING JUSTICE FOR THE POOR</h3>
India, whose government faces the risk of losing elections next year, has said its tough stance drew support from developing countries in Asia, Africa and South America, though the meeting's host, Indonesia, pressed for it to soften its stand.
"We are trying to get justice for the poor people," Indian Trade Minister Anand Sharma told reporters as he entered the final day of the meeting.
India will next year fully implement a welfare program to provide cheap food to 800 million people that it fears will contravene WTO rules curbing farm subsidies to 10 percent of production.
The program, which relies on large-scale stockpiling and purchases at minimum prices, is a central plank of the government's bid to win a third term in office next year.
A proposal led by the United States offered to waive the 10 percent rule until 2017. But India has rejected it, demanding the exemptions continue indefinitely until a solution is found.
If talks were to fail, the WTO may see its role eroded by regional trade pacts now being negotiated, such as the U.S.-led 12-nation Trans-Pacific Partnership and a U.S.-EU tie-up known as the TTP.
Ministers in the TPP are expected to meet in Singapore shortly after the WTO meeting in the hopes of reaching a free trade pact by the end of this year.
(Editing by Jonathan Thatcher and Simon Cameron-Moore)

First Trade Reform In History Of The World Trade Organization Is Ready For Approval

<div class="KonaFilter image-container display-table float_right"><div><div class="image on-image">REUTERS/Edgar SuIndia's <keyword id="44844" type="ORGANIZATION" weightage="60" keywordseo="Trade">trade</keyword> minister Anand Sharma speaks about food security during a news conference at the ninth World Trade Organization (WTO) Ministerial Conference in Nusa Dua, on the Indonesian resort island of Bali December 5, 2013. </div></div></div>The World Trade Organization (WTO) reached a <a href="http://www.wto.org/english/news_e/news13_e/mc9sum_07dec13_e.htm">major trade reform agreement</a> on Saturday, the first in its history.
The deal required unanimous approval from the 159 countries involved and took until the final hour to complete.
This round of talks, known as the Doha Round, began back in 2001 and has seen little success. Member countries had already given up finding a compromise that would reduce tariffs and quotas and instead were looking to strike any deal. Since the WTO needs a consensus to pass anything, one country can blow up the talks.
Cuba almost did that in this round when it attempted to insert language that would undermine the U.S.'s long-standing embargo against the state. Eventually, Cuba relented on that demand.
Despite the historic nature of the agreement, the actual <keyword id="28351" type="ORGANIZATION" weightage="60" keywordseo="policy">policy</keyword> implications of it are small. Here's a run-down of them:
<ul>
<li>Goods can pass quicker through customs. This could add hundreds of billions of dollars to the global economy - <a href="http://www.piie.com/publications/papers/icc-wta20130614.pdf">the Peterson Institute for International Economics estimates that it could add nearly a trillion dollars</a> - especially in developing nations. Developing and least developed countries will receive assistance to help upgrade their infrastructure and train customs officials. This is known as "trade facilitation" and helps reduce the bureaucratic red tape that slows down world commerce. </li>
<li>India can continue its food subsidies. This was the biggest roadblock to a deal. India wanted to keep its food subsidies so that it can feed its people, but these subsidies are illegal under WTO rules. Other countries, including the United States, worried that the subsidies would affect global food prices and wanted New Delhi to end them before any agreement was reached. In the end, the two sides compromised, allowing India and other developing countries to continue their subsidies as long they don't distort international prices, but they must also come up with an alternative solution. There is no deadline for that though.</li>
<li>Member countries reaffirm their commitment to the least developed ones. Member countries give least developed nations duty-free, quota-free access to their markets and to help foster greater economic growth in those nations. Most developed countries have adopted this standard and this deal encourages developing ones to do so as well. Member countries also agree to help least developed ones integrate into world commerce</li>
<li>The deal didn't fall apart. The WTO has never come to an agreement before in its almost 20 year history. The fact that all 159 countries finally made a deal, no matter its limited scope, is an accomplishment in and of itself. The WTO's hopes that this deal will lead to a larger, more comprehensive one in the future. </li>
</ul>
Each member government still must approve the deal so nothing is official, but all trade representatives have given their approval.

The WTO Just Came To A Historic Trade Deal -&#160;Here's What You Need To Know

<ul><li>The World <keyword id="44844" type="ORGANIZATION" weightage="20" keywordseo="Trade">Trade</keyword> Organisation (WTO) has predicted that trade volumes for January-March 2019 will grow by their lowest level in nine years. </li><li>India is aiming for a growth in <keyword id="35090" type="COMPANY" weightage="20" keywordseo="exports">exports</keyword> to minimise fluctuations in its currency and trim its <keyword id="113688" type="PERSON" weightage="20" keywordseo="trade-deficit">trade deficit</keyword>. </li><li>Export growth will have to be significantly higher if India wants to prevent a rise in its trade deficit, which widened to $14.7 billion last month. </li></ul>The first quarter of 2019 was never going to be an easy period for global trade. Amid a slowdown in China and the EU, a potential no-deal Brexit and a trade dispute between the US and China - the two engines of global trade, the World Trade Organisation (WTO) has <a href="https://www.wto.org/english/news_e/news19_e/wtoi_19feb19_e.htm">predicted </a>that trade volumes for January-March 2019 will grow by their lowest level in nine years. The forecast is based on WTO’s quarterly outlook trade indicator - a reading of seven factors such as merchandise trade volume, export orders, international air freight and automobile production and sales - which has fallen to a 96.3, falling to their lowest level since the financial crisis. A value of below 100 on the index indicates a reduction in trade growth. India is aiming for a growth in exports to minimise fluctuations in its currency and trim its trade deficit. However, its exports grew by a <a href="https://auto.economictimes.indiatimes.com/news/industry/indias-jan-trade-deficit-widens-to-14-73-billion-trade-ministry/68011931">mere 3.7%</a> to $26.4 in January 2019. Export growth will have to be significantly higher if India wants to prevent a rise in its trade deficit, which widened to $14.7 billion as imports stayed flat at $41.1 billion. Although India had intended to capitalise on the US-China trade war to boost its exports to both these countries, a slowing global trade scenario means demand could take a hit, triggering the possibility of oversupply. In a situation of oversupply, cheap imports from east Asian countries like China tend to flood the market, <a href="https://www.business-standard.com/article/reuters/exclusive-indian-steel-firms-seek-higher-duties-on-steel-imports-as-prices-drop-119020501040_1.html">hurting domestic producers</a> like steel companies. That could be exacerbated by <a href="https://www.businessinsider.in/heres-what-the-slowdown-in-european-economy-means-for-indias-exports/articleshow/67687183.cms">a slowdown in the EU</a> as well, which India is currently negotiating a <a href="https://www.financialexpress.com/economy/india-hopes-to-sign-fta-with-eu-in-foreseeable-future/1481629/">free trade agreement </a>with. However, there may be a positive side effect from the reduction in trade growth. Lower trade growth could partly drive a slowdown in global economic growth. This in turn will likely keep a lid on oil prices, which have a direct relationship with global growth cues. Oil prices rise with higher demand, which is an outcome of high global growth, and vice versa. India needs oil prices to remain within a manageable range of $60-$65/barrel to prevent finances from deteriorating further, so this could offset a decline in exports. The WTO ended its forecast on a sobering note. “This sustained loss of momentum highlights the urgency of reducing trade tensions, which together with continued political risks and financial volatility could foreshadow a broader economic downturn,” the WTO said in a statement. SEE ALSO: <a href="https://www.businessinsider.in/heres-what-the-slowdown-in-european-economy-means-for-indias-exports/articleshow/67687183.cms">A slowdown in the Eurozone points to doom for India's ailing exports</a> <a href="https://www.businessinsider.in/india-to-make-a-renewed-push-for-an-important-regional-trade-treaty-that-will-create-the-worlds-largest-trading-bloc/articleshow/66602874.cms">India to make a renewed push for an important regional trade treaty that will create the world’s largest trading bloc</a>

India should be worried as this may be the worst quarter for global trade in ten years

<ul class="summary-list"><li>The <keyword id="6357761" type="UNKNOWN" weightage="60" keywordseo="WTO">WTO</keyword> Goods <keyword id="44844" type="ORGANIZATION" weightage="60" keywordseo="Trade">Trade</keyword> Barometer slumped to a record low of 84.5 as of Wednesday, <a href="https://www.wto.org/english/news_e/news20_e/wtoi_19aug20_e.htm">according to a report from the organization</a>.</li><li>The reading is down down 15.5 points from the index baseline of 100, suggesting below-trend growth, and nearly 19 points lower on the year. </li><li>"The heavy economic toll of the COVID-19 pandemic suggests that the projections for a strong, V-shaped trade rebound in 2021 may prove overly optimistic," the WTO wrote <a href="https://www.wto.org/english/news_e/news20_e/wtoi_19aug20_e.htm">in the report</a>.</li></ul>A <keyword id="126374" type="ORGANIZATION" weightage="60" keywordseo="world-trade">World Trade</keyword> Organization index tracking merchandise slumped to a record low in the second quarter, signaling that a V-shaped recovery is unlikely for <keyword id="176734" type="ORGANIZATION" weightage="60" keywordseo="global-trade">global trade</keyword>. The WTO Goods Trade Barometer hit 84.5, the lowest on record since 2007, according to a Wednesday reading from the organization. The record low print is down 15.5 points from the index baseline of 100, suggesting below-trend growth. It is also nearly 19 points lower on the year. "The heavy economic toll of the COVID-19 pandemic suggests that the projections for a strong, V-shaped trade rebound in 2021 may prove overly optimistic," the WTO wrote <a href="https://www.wto.org/english/news_e/news20_e/wtoi_19aug20_e.htm">in the report</a>. "As uncertainty remains elevated, in terms of economic and trade policy as well as how the medical crisis will evolve, an L-shaped recovery is a real prospect." Read more: <a href="https://www.businessinsider.com/joel-greenblatt-book-interview-common-sense-education-immigration-social-security-2020-8">Warren Buffett disciple Joel Greenblatt averaged 50% annual returns over 10 years. He shares an investor's approach to solving some of America's most glaring problems right now — from education and immigration to social security.</a>The full extent of the decline in global trade will be confirmed later this year when the WTO releases official data from April to June. Still, the latest reading is consistent with with WTO numbers released in June that forecast an 18.5% drop in merchandise trade in the second quarter of 2020. Global trade began to decline in 2018 and fell into negative territory in 2019 amid the <keyword id="182860" type="PERSON" weightage="60" keywordseo="trade-war">trade war</keyword> between the US and China. When the <keyword id="1754604" type="PERSON" weightage="60" keywordseo="coronavirus">coronavirus</keyword> pandemic hit this year, it had a severe effect on global trade. In April, WTO had forecast that global trade in <a href="https://www.bloomberg.com/news/articles/2020-04-08/wto-says-2020-global-trade-collapse-may-be-worst-in-a-generation?sref=Zwwm81xn">goods could fall 13% to 32%</a> in 2020 before rebounding between 21% and 24% in 2021. In June, the organization updated its forecast, saying that swift government responses made the gloomy outlook less likely.

WTO trade index hits a record low, signals that a global V-shaped recovery is unlikely

<ul><li>Earlier this week, the US government’s 10% duty on $200 billion worth of Chinese <keyword id="35091" type="CITY" weightage="20" keywordseo="imports">imports</keyword> came into effect. </li><li>As a result of the increased tensions, the World <keyword id="44844" type="ORGANIZATION" weightage="20" keywordseo="Trade">Trade</keyword> Organisation (WTO) reduced its estimate for the growth in global trade in 2018 to 3.9% from 4.4%. </li><li>However, amid this climate of apprehension, the Finance Minister of <keyword id="3658" type="COUNTRY" weightage="20" keywordseo="India">India</keyword>, Arun Jaitley, thinks that despite the initial instability, the <keyword id="106030" type="PERSON" weightage="20" keywordseo="US-China">US-China</keyword> <keyword id="182860" type="PERSON" weightage="20" keywordseo="trade-war">trade war</keyword> could allow India to be a more competitive trading and manufacturing base. </li></ul>Earlier this week, the US government’s 10% duty on $200 billion worth of Chinese imports came into effect. This was on top of tariffs that the Trump administration imposed on $50 billion worth of Chinese goods in August. The move has sparked legitimate fears of a trade war between the two countries as China is expected to retaliate in kind. As a result of the increased tensions, the World Trade Organisation (WTO) reduced its estimate for the growth in global trade in 2018 to 3.9% from 4.4%. It also predicted a further decline in trade growth to 3.7% in 2019. A reduction in trade will not only hurt the global economy, but could be harmful for developing countries, which rely on export-led growth. However, amid this climate of apprehension, the Finance Minister of India, Arun Jaitley, thinks that despite the initial instability, the US-China trade war could herald a lot of benefits for the country. In an address to the PHD Chamber of Commerce today, Jaitley said that the conflict could allow India to be a more competitive trading and manufacturing base. Jaitley echoes the claims of trade experts, who feel that India could step in and increase its <keyword id="35090" type="COMPANY" weightage="20" keywordseo="exports">exports</keyword> of products like chemicals, auto parts, rubber and machinery to the US as Chinese imports become too expensive for American consumers. However, the government will keep tabs on its trade surplus with the US, which the Trump administration has expressed its dissatisfaction with. Interestingly, the possibility also exists for India to go full-opportunist by using the trade war to increase exports to China. The US and India export a number of similar products to China such as fruits, lubricants and chemicals. India’s ministry for commerce and industry is also reported to be assessing a plan to boost its exports to the US following the imposition of tariffs on Chinese goods. It is currently said to be in talks with business groups in the chemicals, pharmaceuticals and electrical equipment space to identify items that can receive a greater trade push. The move aligns with the Indian government’s plan to reduce its current account deficit and stem the fall in the rupee by cutting imports of non-essential goods and increasing exports. Yesterday, the government decided to <a href="https://www.businessinsider.in/india-continues-its-defense-of-the-rupee-by-hiking-import-duties-on-19-products/articleshow/65976347.cms">raise the import duty</a> on 19 product categories such as household appliances, footwear and jewelry.

India’s finance minister sees a host of opportunities from the US-China trade war

The <keyword id="126959" type="ORGANIZATION" weightage="100" keywordseo="World-Trade-Organization">World Trade Organization</keyword> (<keyword id="6357761" type="ORGANIZATION" weightage="100" keywordseo="wto">WTO</keyword>) has overturned the ban imposed by India on importing poultry from the US. The WTO ruled that India’s stand was “inconsistent with international norms.” 
 
India now has 60 days to appeal against the WTO's dispute settlement panel decision. An Indian official said, "The decision to move to the Appellate Body will be taken after consulting the Animal Husbandry Department." 
 In 2007, India had banned imports of various agricultural products from the US as in order to prevent outbreak of <keyword id="109029" type="UNKNOWN" weightage="60" keywordseo="avian-influenza">Avian Influenza</keyword> in the country. 
 "India's Avian Influenza (AI) measures are inconsistent with (several articles)....of the <keyword id="6548444" type="ORGANIZATION" weightage="60" keywordseo="SPS">SPS</keyword> (sanitary and phyto-sanitary) Agreement because they are not based on the relevant international standard," the ruling said. 
 
“India’s measures are arbitrarily and unjustifiably discriminate between Members where identical or similar conditions prevail and are applied in a manner which constitutes a disguised restriction on international trade," it added. It also said that the measures were "significantly more trade-restrictive."

WTO
Sets Aside India’s Ban On US Poultry Products

In 2016, <keyword id="13486" type="COUNTRY" weightage="20" keywordseo="Vietnam">Vietnam</keyword> will mark the 30th anniversary of the launch of the Đổi Mới reforms, which marked the beginning of Vietnam’s efforts to reform and transform its economy. At the time, the country was still recovering from decades of conflict, was insular, and overly dependent on long-time allies such as the Soviet Union. In just one generation, Vietnam has become one of the fastest growing economies in the world, and trade has played a starring role in that transformation. 
 
In a few short years, Vietnam has become a manufacturing hub, particularly for the electronics industry and the apparel and footwear industry, with most of the products exported to markets around the world. Foreign direct investment in Vietnam continues to be robust, with billions of dollars being invested by companies from Korea, Japan, Thailand, the United States and other countries, with the majority going towards manufacturing. Vietnam’s agricultural products are also in demand around the world, and the country is one of the world’s top exporters of rice, coffee, fish and shrimp, and a range of other agricultural products. 
 
 
 
Trends in Vietnam’s GDP per capita and exports, 1986 – 2016 
 
It was just about a year ago that negotiations around the landmark TPP were successfully concluded, and there was great fanfare about the benefits it is expected to bring to Vietnam. Since then, the political situation in the US has evolved in a way that makes passage unlikely this year – if ever. Likewise, Vietnam’s free trade agreement with the EU is a far-reaching pact that is expected to go into effect in 2018, but Brexit has called into question the whole concept of the EU; will other nations follow the UK’s example? 
 
Another multilateral pact, the Regional Comprehensive Economic Partnership (RCEP), encompasses ASEAN’s ten members plus six other countries including India and China, and remains under negotiation nearly five years since it was first proposed; Singapore Prime Minister Lee recently said that talks were progressing rather slowly. None of this would be happening had Vietnam’s government not made a concerted effort to open up the country and build relationships with countries around the world. 
 In 2007, Vietnam joined the <keyword id="126959" type="ORGANIZATION" weightage="20" keywordseo="World-Trade-Organization">World Trade Organization</keyword>, marking the start of its integration into the global economy. Since then, the country has negotiated and/or entered into 16 free trade agreements, on both a bi- and multilateral basis. Recent agreements include those with Korea, the Russian Federation, the <keyword id="3145781" type="ORGANIZATION" weightage="20" keywordseo="ASEAN-Economic-Community">ASEAN Economic Community</keyword> (AEC), the EU, and of course the Trans-Pacific Partnership (TPP). 
 
What does all of this mean to Vietnam? Clearly the possible failure of TPP would be disappointing. Meanwhile the effects of Brexit remain to be seen. Regardless of what happens, there is no chance that Vietnam’s growth will be stopped – trade has become the cornerstone for its economy, and I would expect the government to enter into bilateral agreements with those TPP members with which it does not currently have agreements, and will negotiate a separate agreement with the UK at the appropriate time. But all of these developments point to the extreme difficulty of negotiating, let alone eventually ratifying multinational agreements, and the future of large economic communities could be called into question. 
 
The progress made by ASEAN nations over the past two decades has been nothing short of breathtaking, and trade has been and will continue to be a critical part of the region’s ongoing development. Trade encompasses so much more than simply producing and selling goods – it is a catalyst for progress, for greater exposure to and integration with the world, and ultimately for improving peoples’ lives. It is a multi-faceted topic, and that is why I am excited to be a part of the panel discussion at this year’s Insights ASEAN Summit. 
 (The article is authored by By <keyword id="3791307" type="UNKNOWN" weightage="20" keywordseo="don-lam">Don Lam</keyword>, CEO and Founding Partner for VinaCapital, who is also a Member of <keyword id="852310" type="ORGANIZATION" weightage="20" keywordseo="YPO">YPO</keyword> since 2010) 
 
(YPO is a global community of chief executives dedicated to becoming Better Leaders through Lifelong Learning and Idea ExchangeTM. The YPO platform provides more than 24,000 members in more than 130 countries. For more information, visit www.ypo.org.)

The future of trade and growth in Southeast Asia

<ul><li>WTO dispute panel found <keyword id="3658" type="LOCATION" weightage="20" keywordseo="India">India</keyword> guilty of implementing an ‘inconsistent’ import duty hike on <keyword id="4727501" type="PERSON" weightage="20" keywordseo="Imported-steel">imported steel</keyword>. </li><li>Now India has the option to either appeal or follow the corrective measures suggested by the panel. </li><li>The panel was set up after <keyword id="6355311" type="LOCATION" weightage="20" keywordseo="japan">Japan</keyword> and India failed to resolve the issues through bilateral talks. </li><li>Japan had earlier argued that the safeguard measures by India during 2015 to 2018 have breached the global trade agreement. </li></ul>The World Trade Organisation (WTO) has <a href="https://in.reuters.com/article/japan-india-wto/wto-upholds-japans-complaint-over-indias-safeguard-on-steel-imports-idINKCN1NB21L?utm_campaign=fullarticle&amp;utm_medium=referral&amp;utm_source=inshorts">discovered</a> that India’s safeguard measure on the import of certain steel products didn’t fall in line in with some provision of General Agreement on Tariffs and Trade (GATT) 1994 and the Agreement in Safeguard. The panel set up by WTO after India-Japan failed to resolve the issue <a href="https://www.livemint.com/Politics/wxSmUG1mYayUVqDIeY2BnK/India-loses-row-over-safeguard-duty-on-hotrolled-steel-at-W.html">suggested</a> that India must take some action to correct the potential tariffs which will be retroactively imposed on imported steel. The dispute arose when Japan lodged a complaint against India for imposing safeguard — which is an emergency tariff that can be used by WTO members when they feel that a surge in import is hampering the industry. With a view to protect domestic steel producers, India imposed the safeguard duty of 20% on the import of some products of steel in September 2015. Apparently, the duty was later brought down to 10% in March 2018. The WTO panel <a href="https://www.moneycontrol.com/news/business/economy/indias-safeguard-duty-move-on-steel-goods-inconsistent-with-certain-global-trade-norms-wto-panel-3138541.html">pointed</a> out that the inconsistency in the import duties levied from September 2015 to March 2018 breaches several core provisions of WTO’s Agreement on Safeguards (SG Agreement) WTO members are given the right to levy safeguard duties to contain the unpredictable increase in imports which in turn is going to weaken the trends of domestic industries. But, the country considering to use the emergency tariff must first present evidence of damages caused by import hike on domestic industries. Secondly, the country must follow the global trade norms. Japan — which is the second largest producer of steel across the world had easy access to Indian steel market because of comprehensive free-trade agreement between Japan and India in 2011. As of now, the bilateral trade between the two countries stood was beneficial to Japan given the trade deficit amounted to $11 billion in fiscal 2017-2018.

India must take corrective measures as it acted ‘inconsistently’ with certain global trade provision: WTO

<ul class="summary-list"><li>The Trump administration plans to call for a "broad reset" of World <keyword id="44844" type="ORGANIZATION" weightage="60" keywordseo="Trade">Trade</keyword> Organization tariffs in its latest conflict with the global authority.</li><li>The US levies a mere 3.4% average rate, while the European Union and China charge 5.1% and 10%, respectively, under <keyword id="6357761" type="UNKNOWN" weightage="60" keywordseo="WTO">WTO</keyword> rule.</li><li>The organization's tariff rates "no longer reflect members' policy choices and economic conditions," <keyword id="9418137" type="UNKNOWN" weightage="60" keywordseo="us-trade-representative-robert-lighthizer">US trade representative Robert Lighthizer</keyword> said in prepared remarks seen by <a href="https://www.bloomberg.com/news/articles/2020-06-17/u-s-plans-a-broader-reset-of-its-wto-tariff-committments?cmpid=BBD061720_MKT&amp;utm_medium=email&amp;utm_source=newsletter&amp;utm_term=200617&amp;utm_campaign=marketscampaign=markets">Bloomberg</a>.</li><li>The WTO's action also prevents "the United States from taking action to address unfair trade practices that hurt US workers," he said.</li></ul>The <keyword id="6356037" type="ORGANIZATION" weightage="60" keywordseo="white-house">White House</keyword> plans to escalate its tensions with the World Trade Organization by calling for a "broad reset" of its global tariff rates, US trade representative <keyword id="3975710" type="PERSON" weightage="60" keywordseo="robert-lighthizer">Robert Lighthizer</keyword> is set to tell House representatives on Wednesday.The Trump administration has long butted heads with the WTO, repeatedly accusing the organization of charging unfair duties to US exporters. The White House plans to argue that a reset is needed to level the playing field and bring other developed economies' rates more in line with the US's."Currently, outdated tariff determinations are locked in place that no longer reflect members' policy choices and economic conditions," Lighthizer said in prepared remarks seen by <a href="https://www.bloomberg.com/news/articles/2020-06-17/u-s-plans-a-broader-reset-of-its-wto-tariff-committments?cmpid=BBD061720_MKT&amp;utm_medium=email&amp;utm_source=newsletter&amp;utm_term=200617&amp;utm_campaign=marketscampaign=markets">Bloomberg</a>. "Many countries with large and developed economies maintain very high bound tariff rates, far above those levied by the United States."The US's average rate sits at 3.4%, among the world's lowest. For comparison, the European Union's is 5.1% and China's is 10%. India holds the highest, at 51%. The WTO and its tariff policies "created new obligations out of thin air, preventing the United States from taking action to address unfair trade practices that hurt US workers," the trade representative said.Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-topranked-investors-dennis-lynch-kristian-heugh-2020-6">Wall Street's best US and international stock-pickers have tripled their clients' money since 2010. The duo break down 5 future-proof companies that will keep investors ahead of the pack through 2030.</a>Lighthizer is expected to deliver his statement to the House Ways and Means Committee Wednesday afternoon. He will highlight that the US is moving forward in trade talks with the EU, Britain, China, Japan, and Kenya, and that the tariff rate disparity sets the country up for failure when seeking fair deals.The WTO and its tariff policies "created new obligations out of thin air, preventing the United States from taking action to address unfair trade practices that hurt US workers," the trade representative said.The proposed tariff overhaul arrives as the coronavirus pandemic tanks US trade activity. The nation's goods and services deficit widened to $49.4 billion in April as manufacturing and global travel froze. US exports tanked 20.5%, its biggest decline in data going back to 1992. Imports posted a record decline of 13.7%.President Donald Trump campaigned heavily on a desire to boost national trade, yet the combination of the US-China trade war and the coronavirus have all but stifled such hopes.Read more: <a href="https://www.businessinsider.com/stock-picks-to-buy-small-companies-with-strong-balance-sheets-2020-6">BANK OF AMERICA: Buy these 13 cheap stocks that have unexpectedly strong finances, making them great bets for the next phase of the rally</a>

The White House steps up trade aggression, calls for 'broader reset' of global tariffs

<div class="KonaFilter image-container display-table"><div><div class="image on-image">Associated Press/Evan Vucci</div></div></div><ul><li>The Trump administration has reportedly drafted a bill that would abandon the US' commitment to the World Trade Organization's rules.</li><li>Trump has recently been angling to withdraw the US from the WTO altogether - though Congress is unlikely to approve such a measure.</li><li>Administration officials involved in drafting the legislation told Axios it was "insane."</li></ul>The Trump administration has drafted legislation that would empower the president to ignore international trade rules set by the World Trade Organization, according to a leaked draft of the bill <a href="https://www.axios.com/trump-trade-war-leaked-bill-world-trade-organization-united-states-d51278d2-0516-4def-a4d3-ed676f4e0f83.html?utm_source=twitter&amp;utm_medium=twsocialshare&amp;utm_campaign=organic" target="_blank" rel="noopener">obtained by the news website Axios</a>.The draft bill, known as the "United States Fair and Reciprocal Tariff Act," would essentially allow President Donald Trump to unilaterally raise tariffs without Congress' approval.The WTO maintains a rules-based system meant to resolve international trade disputes, end unfair trade practices, and head off potential trade wars. But <a href="http://www.businessinsider.com/trump-leave-world-trade-organization-wto-2018-6" target="_blank" rel="noopener">Trump has reportedly said</a> that foreign countries use the organization to "screw the United States."Should the US walk away from the WTO, it would undermine the entire system of trade rules agreed upon by the international community.One source familiar with the Trump administration's draft bill told Axios it was "insane.""It would be the equivalent of walking away from the WTO and our commitments there without us actually notifying our withdrawal," the source said. "It's not implementable at the border … and it would completely remove us from the set of global trade rules."According to Axios, Trump was briefed on the draft legislation in late May, and most of the officials who wrote it believe the bill is untenable, unlikely to receive any support in Congress, and essentially "dead on arrival."White House spokeswoman Lindsay Waters told Axios that Trump had asked his staff to come up with ways to persuade other countries to lower their tariffs."It is no secret that POTUS has had frustrations with the unfair imbalance or tariffs that put the US at a disadvantage," she said.Trump has been angling for some time to withdraw the US from the WTO completely, though he would be unable to do so without Congress' approval.<h2><a href="https://www.documentcloud.org/documents/4568881-United-States-Fair-and-Reciprocal-Tariff-Act.html#document/p4" target="_blank" rel="noopener">Read the full text of the draft bill here.</a></h2>Bob Bryan contributed reporting. <div class="margin-top"> <h3>NOW WATCH: <a href="http://www.businessinsider.com/what-happened-at-the-trump-north-korea-summit-2018-6">Why the North Korea summit mattered even if it was 'mostly a photo op'</a></h3> <div> </div> </div>

The Trump administration reportedly drafted a bill to abandon key World Trade Organization rules

<ul><li>At the World Trade Organisation’s (WTO) Committee on Agriculture meeting later this month, <keyword id="6355478" type="LOCATION" weightage="20" keywordseo="australia">Australia</keyword> is all set to raise the issue of India’s <keyword id="31653" type="DOMAIN" weightage="20" keywordseo="sugar">sugar</keyword> production subsidies. </li><li>India’s sugarcane farmers are expected to produce 35.5 million tonnes of sugar between October 2018 and September 2019. This is well over domestic demand, and hence as India exports the surplus stocks, global prices will decline. </li><li>India has tried to curb the problem of overproduction by incentivising the production of ethanol, but the initiative is still in the early stages. </li></ul>As the US clashes with India over the latter’s <a href="https://www.businessinsider.in/america-doesnt-like-indias-farmer-subsidies-and-thats-unlikely-to-change-anytime-soon/articleshow/64123715.cms">agricultural subsidies</a>, India is all set to be hit with a fresh challenge over its subsidies to local sugar producers — this time from Australia. At the World Trade Organisation’s (WTO) Committee on Agriculture meeting later this month, Australia is all set to raise the issue of India’s sugar production subsidies, according <a href="https://www.abc.net.au/news/rural/2018-11-16/india-sugar-subsidies-priority-for-industry/10176976">to ABC News</a>, complaining that these distort the global market for sugar by lowering prices and increasing supply significantly. To this effect, it has issued a counter-notification against India -- the first step required to compel a WTO member to cut subsidies, wherein the complainant explains the nature of the subsidy and subsequent market distortion. India’s astonishing rate of sugar production is well-documented. Given that they are assured of a government-set fixed price from sugar mills that helps them exceed their costs, India’s sugarcane farmers are expected to produce <a href="https://www.businessinsider.in/india-could-soon-become-the-worlds-largest-sugar-producer-but-heres-why-thats-a-problem/articleshow/65657844.cms">35.5 million tonnes </a>of sugar between October 2018 and September 2019, according to the <keyword id="124503" type="ORGANIZATION" weightage="20" keywordseo="Indian-Sugar-Mills-Association">Indian Sugar Mills Association</keyword>. As a result, India will overtake <keyword id="6355226" type="LOCATION" weightage="20" keywordseo="brazil">Brazil</keyword> as the world’s largest sugar producer. However, this isn’t something to be celebrated. India needs to do a better job at converting excess stocks of sugarcane to ethanol. Otherwise, it risks flooding the global market with excess sugar, since annual domestic demand is only about 25 million tonnes, depressing prices even further. That is largely where Australia’s complaints emanate from. The low global prices of sugar have hurt its sugarcane farmers falling well below their costs of production. In addition, more sugarcane importers are expected to choose India’s sugarcane over other countries like Australia and Brazil because of the cheaper prices. Meanwhile, India’s sugarcane mills are also struggling with low sugar prices, which has resulted in a huge build-up of <a href="https://economictimes.indiatimes.com/news/economy/agriculture/sugarcane-arrears-to-farmers-down-to-rs-16600-crore-government/articleshow/65214878.cms">arrears to </a>sugarcane farmers. That has led to a <a href="https://www.livemint.com/Industry/tlKss2fM2BcaGMrIyHR4ZJ/Government-approves-Rs8500-crore-sugar-bailout-package.html">bailout package</a> for the sector from the Indian government, as well as the scrapping of export duties and<a href="https://timesofindia.indiatimes.com/business/india-business/government-doubles-import-duty-on-sugar-to-100-hikes-chana-to-40/articleshow/62809086.cms"> levying of import duties </a>to keep domestic produce competitive. For its part, India has tried to curb the problem of overproduction by incentivising ethanol production, but it will be a while before the initiative takes effect. In September, it increased the price of ethanol produced from B-heavy molasses of sugarcane <a href="https://www.businessinsider.in/indias-curbing-its-sugar-surplus-by-incentivising-ethanol-production/articleshow/65807284.cms">by 25%</a> in order to make its production financially viable. As part of a financial rescue plan in June, the country also offered a loan package worth ₹44.4 billion to producers to undertake the production of ethanol. SEE ALSO: <a href="https://www.businessinsider.in/india-could-soon-become-the-worlds-largest-sugar-producer-but-heres-why-thats-a-problem/articleshow/65657844.cms">India could soon become the world’s largest sugar producer but here’s why that’s a problem</a> <a href="https://www.businessinsider.in/indias-curbing-its-sugar-surplus-by-incentivising-ethanol-production/articleshow/65807284.cms">India is curbing its sugar surplus by incentivising ethanol production</a> <a href="https://www.businessinsider.in/america-doesnt-like-indias-farmer-subsidies-and-thats-unlikely-to-change-anytime-soon/articleshow/64123715.cms">America doesn’t like India’s farmer subsidies and that’s unlikely to change anytime soon</a>

India is all set to be challenged by Australia at the WTO over its support to sugarcane farmers

<ul class="summary-list"><li>President <keyword id="99719" type="PERSON" weightage="60" keywordseo="Joe-Biden">Joe Biden</keyword> is being urged to suspend patents for <keyword id="1754604" type="PERSON" weightage="60" keywordseo="coronavirus">coronavirus</keyword> <keyword id="79555" type="TECHNOLOGY" weightage="60" keywordseo="Vaccines">vaccines</keyword>.</li><li>The move would allow developing countries to produce the vaccines on their own.</li><li>The request came in a letter signed by over 100 Nobel laureates and 75 former world leaders.</li></ul>US pharmaceutical companies have developed the world's most effective vaccines for the coronavirus, helping Americans get inoculated faster than people in most other countries. Now President Joe Biden is being urged not just to share the vaccines with the less fortunate, but to share the knowledge that would allow developing nations to manufacture the vaccines themselves.In a <a href="https://peoplesvaccinealliance.medium.com/open-letter-former-heads-of-state-and-nobel-laureates-call-on-president-biden-to-waive-e0589edd5704">letter</a> on Wednesday, over 100 Nobel laureates and 75 former world leaders called on Biden to suspend vaccine patents, by way of a waiver at the World Trade Organization, calling it "a vital and necessary step to bringing an end to this pandemic."They added that this would "save lives and advance us towards global herd immunity."The letter, published by the People's Vaccine Alliance, was signed by former UK Prime Minister Gordon Brown, former Soviet Union President Mikhail Gorbachev, and former French President François Hollande.A waiver would allow <keyword id="6357761" type="UNKNOWN" weightage="60" keywordseo="WTO">WTO</keyword> members to <a href="https://www.businessinsider.com/vaccine-patents-ips-monopoly-vaccination-process-us-biden-africa-2021-2">suspend the intellectual property rights</a> currently enjoyed by the likes of Pfizer, Moderna, and Johnson &amp; Johnson, enabling developing countries to produce vaccines and treatments without fear of reprisal. Last fall, South Africa and India <a href="https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=q:/IP/C/W669.pdf&amp;Open=TrueTrue">submitted a proposal</a> to the WTO seeking such a suspension "until widespread vaccination is in place globally."Resistance has been fierce, however. In March, the US, UK, and the European Union all voted to block such a waiver from being granted, arguing that they need to preserve an economic incentive for the development of new medical technologies.Their opposition is shared by the private sector.The US Chamber of Commerce called such proposals "misguided" and a "distraction" from efforts already underway to share vaccines with the developing world. The <keyword id="6356001" type="UNKNOWN" weightage="60" keywordseo="international">International</keyword> Federation of Pharmaceutical Manufacturers &amp; Associations likewise argued that a waiving of IP protections would be "counterproductive," undermine confidence in a for-profit system that helped develop several highly effective vaccines.But the charity group Médecins Sans Frontières (<keyword id="6510987" type="ORGANIZATION" weightage="60" keywordseo="msf">MSF</keyword>), or Doctors Without Borders, has argued that mindset reeks of provincialism."Countries must stop obstructing and show the leadership required to deliver on the 'global solidarity' they have so often declared during the pandemic," Dr. Christos Christous, the group's president, said in a statement. "It's time to champion access to medical tools for everyone, where they live."The World Health Organization (WHO) has already started shipping vaccines through its <a href="https://www.businessinsider.com/covid-vaccine-ghana-drones-covax-who-coronavirus-zipline-rural-communities-2021-3">COVAX initiative</a>, which aims to provide poorer countries with enough doses to cover 20% of their population. But the letter's signatories described its impact as "limited, while welcome."They added that, at the current pace, "many nations will be left waiting until at least 2024 to achieve mass <keyword id="8763838" type="UNKNOWN" weightage="60" keywordseo="covid-19">COVID-19</keyword> immunization."Have a news tip? Email this reporter: <a href="mailto:cdavis@insider.com">cdavis@insider.com</a>

Make coronavirus vaccines patent-free, former world leaders urge Biden

<div type="image" title="Donald Trump Xi Jinping" height="900" width="1800" msid="75521545" hostid="261"></div><ul class="summary-list"><li><keyword id="1334" type="COUNTRY" weightage="60" keywordseo="China">China</keyword>'s push for global economic and technological dominance has left Europe pulled between China and the continent's long-time partner, the US.</li><li>The coronavirus pandemic makes it clear that Europe, particularly Germany, is running out of time to choose between the US and China.</li><li>The democratic values of the US compared to the authoritarian values of China make the choice clear.</li><li>Mathias Döpfner is CEO of Axel Springer SE, the parent company of Insider Inc.</li><li>This is an <keyword id="6356002" type="UNKNOWN" weightage="100" keywordseo="opinion">opinion</keyword> column. The thoughts expressed are those of the author.</li><li><a href="https://www.businessinsider.com/?hprecirc-bullet">Visit Business Insider's homepage for more stories</a>.</li></ul>Crises always have a habit of clarifying things. The coronavirus crisis is no different.Once a treatment for the virus has been found, the debates about shutdown and easing restrictions have passed, and the recession has reared its ugly head, nothing less than the world order itself must be clarified. Or to be more specific: the matter of alliance. Where does Europe stand? On the side of the US or China? Let us first look at a few assumptions and a few facts. America, the democratic world power, is currently governed by a narcissistic president — a man seen to be vulgar, uneducated, and with a volatile character who lacks any sense whatsoever for institutions. <a href="https://www.businessinsider.com/as-trump-approval-tanks-amid-coronavirus-some-gop-governors-surging-2020-4">Half of Americans</a> and <a href="https://www.pewresearch.org/global/2020/01/08/trump-ratings-remain-low-around-globe-while-views-of-u-s-stay-mostly-favorable/">three quarters of Europeans</a> have no respect for him.And yet, whether by accident, thanks to good advisers or a keen instinct, this president has managed to make some correct decisions. He lowered taxes to stabilize the US <keyword id="34412" type="ORGANIZATION" weightage="60" keywordseo="economy">economy</keyword>, withdrew from the Iran nuclear deal, supported Israel, increased pressure on Europe to show more solidarity in NATO funding, and pressured the dysfunctional WHO. China, on the other hand, the non-democratic world power, is currently controlled by a president with a measured vanity — a man who is supposedly sensitive, highly educated and cultivated, a personality who thinks and acts with a highly consistent and long-term perspective demonstrating great sensibility for the interests of China's unitary state.And because <keyword id="191809" type="PERSON" weightage="60" keywordseo="Xi-Jinping">Xi Jinping</keyword> is said to look <a href="https://www.businessinsider.com/winnie-the-pooh-memes-china-censored-xi-jinping-2018-2">a little like Winnie the Pooh</a>, the bear from the eponymous children's book, Chinese censorship forbids the use of either the name or the image of Winnie Pooh. Anyone who explicitly criticizes <a href="https://www.businessinsider.com/censored-words-in-china-xi-jinping-term-limits-2018-2">the government is punished</a>.<h2>Global supremacy thanks to digital surveillance</h2><a href="https://www.businessinsider.com/xi-jinping-who-is-china-president-2018-2">Xi Jinping has been General Secretary</a> of the Chinese Communist Party and Chairman of the Central Military Commission since 2012, and President of the People's Republic of China since 2013. In 2018, he lifted all limitations on his term of office, meaning he could <a href="https://www.businessinsider.com/xi-jinping-could-rule-china-until-his-death-without-term-limits-2018-2">continue to rule China for life</a>.He is a politician who, more than anything else, has continued and accelerated the economic reforms that were first introduced by Deng Xiaoping in the 1970s and reached new dimensions under Jiang Zemin. And thanks to tightened digital surveillance, he has been able to <a href="https://www.businessinsider.com/china-economic-boost-surveillance-technology-uighurs-xinjiang-2019-12">push China towards a position of global dominance</a> as part of a seemingly friendly and peaceful international expansion. <div type="image" title="Xi Jinping" height="1000" width="2000" msid="75521546" hostid="261"></div>The key date of this strategy is December 11, 2001, when <a href="https://world101.cfr.org/global-era-issues/trade/what-happened-when-china-joined-wto">China was accepted as a full member</a> of the WTO following 15 years of negotiations. A great decision for China. But perhaps the biggest mistake made in recent history by the western market economies.Since then, the US's share in the gross world product (GWP) dropped from 20.18% in 2001 to 15.03% (2019). Europe's share dropped from 23.5% to 16.05%, a drop of 7.45 percentage points in less than two decades. While China's share increased from 7.84% to 19.24% in the same period, with an average annual growth rate of around 9%.The big mistake was to expose democratic market economies to a non-democratic state capitalism that exploits easier trading and competitive conditions without subjecting itself to the same rules. Asymmetry instead of reciprocity was the result.The process of "change through trade" actually did take place. However, not quite in the way expected by the West. China has become even more authoritarian and economically stronger, while the West has become weaker. What is our conclusion from all this? America has clearly decided to pursue a policy of <a href="https://www.businessinsider.com/trump-trade-war-tariffs-china-bijing-political-defense-opportunity-2019-11">'decoupling' from China</a>. If Europe does not want to see its freedom subverted by Beijing, it must decide which of the two countries to ally with, and it must do so soon.We are told time and again that it is not a case of either-or, that it's about having the best of both worlds. The opposite is true. There is no need for finely crafted rhetoric here, we need to make a fundamental political decision. China or the US. It is no longer possible to go with both. The issue has come to a head under Trump. But it is ultimately not about him. The truth is that US policy towards China would likely not change if the Democrats were in power. The issue of China is now a bipartisan one.House Speaker Nancy Pelosi does not cede an inch to the US President. And yet, <a href="https://www.speaker.gov/newsroom/21420-1">responding to my question at the Munich Security Conference</a> whether she agreed in substance to Trump's China policy, she answered they had "agreement in that regard" to the surprise of everyone present.Pelosi described China as a "government that does not share our values" and spoke of an authoritarian "form of aggression." Many in the room that day do business with China. It suddenly seemed a little naïve that they hoped a Democrat in the White House might be more China-friendly.<div type="image" title="Dr Mathias Doepfner" height="803" width="1606" msid="75521548" hostid="261"></div>A Democratic president might distance the US distance even further from China, despite Trump's attempts to discredit the presumptive Democratic presidential candidate Joe Biden by accusing him of being soft on China. "China wants Sleepy Joe soo badly" the president cajoled on Twitter. But there is little evidence to support this.<a href="https://www.bloomberg.com/news/articles/2019-12-20/democrats-aim-strong-words-against-china-over-hong-kong-uighurs">Biden was one of the first</a> and few international politicians to speak out against the Chinese re-education camps holding hundreds of thousands of Uighurs. The rise of China to become a global economic power is increasingly seen as a threat to US interests. A friend of the enemy soon becomes an enemy itself. If Germany decides to expand its 5G infrastructure with Huawei, that will place an enormous strain on transatlantic relations. It would be a turning point, as America could no longer trust Germany.<h2>The transatlantic alliance would be at risk</h2><div type="image" title="Macron, Merkel, Trump" height="900" width="1800" msid="75521550" hostid="261"></div>Washington has made it clear that there will be no cooperation on intelligence matters with the secret service of a country that allows highly sensitive data to end up in the hands of the Chinese Communist Party.If Washington gave up its close intelligence cooperation with Europe, this would have devastating consequences. A decoupling from the US would hit us much harder than a decoupling from China, both in terms of our economy and security.Decoupling Germany and the US would mean relegating to the dustbin of history the alliance that helped rebuild a democratic Germany after World War II, that secured supplies to the city during the Berlin Blockade by organizing the airlift guaranteeing West Berlin's survival, and which directly and indirectly made German reunification possible.Europe has been avoiding the alliance question for a long time, but is the time to make that decision. This does not directly have to do with the coronavirus crisis. And it certainly has nothing to do with the question of <a href="https://www.businessinsider.com/why-coronavirus-did-not-leak-from-wuhan-lab-researcher-2020-4">where the virus originated</a>.The crisis focuses the way we look at long-standing dependencies, even those in so-called vital supply chains, how we see fundamental differences in communication and crisis management, and our regard for what is ultimately a completely different concept of humanity. Employees from the Robert Koch Institute estimate that China kept the <a href="https://www.businessinsider.com/coronavirus-china-hid-pandemic-news-six-days-2020-4">virus secret during very decisive weeks</a>, then played it down and, by doing so, facilitated its spread worldwide.<h2>Companies in the crisis at bargain prices</h2>However, it is the global recession unleashed by the pandemic that has brought vital questions to a head. Should we allow the state capitalism of a totalitarian global power to continue to infiltrate or even take over key industries like banking (Deutsche Bank), automotive (Daimler, Volvo), robotics (Kuka) and trading hubs (Port of Piraeus)? That is precisely why the alliance question must be clarified now, and fast! The current crisis is massively weakening the European economy, which could very soon place us before extremely unpleasant decisions: Should we offer our companies to China in the post-corona era for bargain prices driven downwards by economic depression? Our should we finally draw a clear line in the sand?If we do not assert the principle of true reciprocity now — that is, China can only do here what we are allowed to do in China — then we never will. If we do not manage to assert ourselves, then Europe could suffer a similar fate to Africa, on a gradual descent towards becoming a Chinese colony.Or, to put it in <a href="https://www.ft.com/content/926a66b0-8b49-11e8-bf9e-8771d5404543">Henry Kissinger's words</a>: If America and Europe do not manage to become a community of interest again, America will become a giant island. And the European Union will become "an appendage of Eurasia."<div type="image" title="Xi Jinping Angela Merkel 2" height="620" width="1240" msid="75521552" hostid="261"></div>However, Europe has failed so far to clearly state where it stands, preferring to play piggy in the middle, able to tip the scales either way. Even believing its opportunism to be a sign of independence and courage. However, Europe will never be able to hold onto its position as everybody's darling. When it comes to questions of world order, you cannot have your cake and eat it. Europe's economy likes making deals with China and does not want to be interrupted in those pursuits. Politicians are dithering. The Italians have even <a href="https://www.nytimes.com/2019/03/23/world/europe/italy-china-xi-silk-road.html">been willing to subjugate themselves</a> to China's ridiculous euphemism of the "New Silk Road."We increasingly hear words of admiration in Europe about the speed and efficiency of the Chinese market economy, the rigorous nature of its crisis management. All the time gladly ignoring the fact that China's successes rest on a highly perfected system of digital surveillance that translates the perversions of the KGB and Stasi into the 21st century.Europe has two options in terms of an alliance. It can continue to expand on the traditional transatlantic alliance despite Trump, including the explicit and closer involvement of a post-Brexit UK and other allies such as Canada, Australia, Switzerland and the democratic countries of Asia. Or it can decide in favor of closer economic ties to China, bearing in mind the economic ties are always political ties as well.If this latter path is chosen, then we might all wake up one day to find ourselves in a gruesome society, on the side of China and the states loosely associated with it — like Russia, Iran and other autocracies. A shifting world order. Economic relations with China might seem harmless to many Europeans today, but they could soon lead to political dependence and ultimately to the end of a free and liberal Europe. The European Union has the choice. But above all Germany, Europe's economic motor, has the choice.Should we make a pact with an authoritarian regime or should we work to strengthen a community of free, constitutionally governed market economies with liberal societies? It is remarkable that German <keyword id="6358883" type="UNKNOWN" weightage="60" keywordseo="politics">politics</keyword>, with its love of moralizing, seems to throw its values out the window when dealing with China. What is at stake here is nothing less than what kind of society we want to live in and our concept of humanity.Germany and Europe should decide to remain with the US and pursue a strict process of decoupling from China. The exact details of this decoupling will be one of the most interesting questions of the future.It would happen late, but not too late. It would be expensive, but not too expensive. Germany, for example, has an annual trade volume of around 200 billion euros with China. All German trade is valued at 2.4 trillion euros, so the loss of Chinese trade would be massive, but not insupportable. The coroanvirus recession is already bringing Germany to a new and devastating bottom line, but that gives us a unique opportunity to get us back on the right track.The question as to which leader — Trump or Xi Jinping — is presented by the media as a more likeable figure is of little import in this decision. And there is no question that the American president is making it difficult for us.But the transatlantic alliance, our community of interests and values that has grown historically over time, should be more important in the long term than our widespread frustration about the current American administration. We must concentrate on the post-Trump era. For all its weaknesses, America is still the free world's largest and most successful power.Just as misleading are references to the fact that America also violates data protection rights, or the principles of the rule of law, that it disregards human rights and makes many other terrible mistakes. There is a difference: China has no data protection for its citizens at all, no rule of law. China has no opposition in parliament, no freedom of the press, no freedom of opinion. And China has no human rights as we understand them. <h2>Democracy dies in darkness</h2><div type="image" title="trump g7 summit leaders" height="1000" width="2000" msid="75521553" hostid="261"></div>When both sides make mistakes, that does not mean that the truth automatically lies somewhere in the middle. It depends on the context in which these mistakes are made, whether they can be called mistakes at all or recognized as such.States need a suitable constitution as a self-correcting mechanism. Democracy may die in darkness, but dictatorship thrives in it. In America, people laugh at their president. Something that is forbidden in China. And the authoritarian power of the latter even stretches as far as Germany. When the Daimler Group (whose biggest single shareholder is Chinese) <a href="https://www.nytimes.com/2018/02/06/business/mercedes-daimler-dalai-lama-china.html">quoted the Dalai Lama</a> – an enemy of the state in China – in an Instagram post, the company's CEO Dieter Zetsche had to apologize twice to the government in Beijing. Is that Europe's future? If current European and, above all, German policy on China continues, this will lead to a gradual decoupling from America and a step-by-step infiltration and subjugation by China.Economic dependence will only be the first step. Political influence will follow. In the future, whoever dominates the field of artificial intelligence will dominate first economically and then politically.At the present time, this race is between the US and China alone. China's great advantage is that it does not have any regulation as a democratic corrective. Whatever serves to strengthen the unitary Chinese state is allowed. This makes the Chinese state more unscrupulous but, more than anything, it makes it faster.It is no small probability that Beijing will eventually overtake Silicon Valley. This is where European research excellence can become a decisive factor. On what side do we want to use it? In the end, it is quite simple. What kind of future do we want for Europe? An alliance with an imperfect democracy or with a perfect dictatorship? It should be an easy decision for us to make. It is about more than just money. It is about our freedom, about Article 1 of Germany's Basic Law, the greatest legal term that ever existed: human dignity.Read the original article on <a href="https://www.businessinsider.com/coronavirus-pandemic-crisis-clear-europe-must-choose-us-china-2020-5">Business Insider</a>

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You Searched For "World Trade Organization" and got 13 results

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