PARIS - The heads of three global agencies warned Wednesday of the risk of a worldwide "food shortage" if authorities fail to manage the ongoing coronavirus crisis properly.
Many governments around the world have put their populations on lockdown causing severe slow-downs in international trade and food supply chains.
Panic buying by people going into confinement has already demonstrated the fragility of supply chains as supermarket shelves emptied in many countries.
"Uncertainty about food availability can spark a wave of export restrictions, creating a shortage on the global market," said the joint text signed by Qu Dongyu, head of the UN’s Food and Agriculture Organization (FAO), Tedros Adhanom Ghebreyesus, director-general of the World Health Organization (WHO) and Roberto Azevedo, director of the World Trade Organization (WTO).
"In the midst of the COVID-19 lockdowns, every effort must be made to ensure that trade flows as freely as possible, especially to avoid food shortage(s)" from developing, they said in their statement.
"When acting to protect the health and well-being of their citizens, countries should ensure that any trade-related measures do not disrupt the food supply chain," they added.
Over the longer-term confinement orders and travel restrictions risk causing disruptions in agricultural production due to the unavailability of agricultural labor and the inability to get food to markets.
"Such disruptions including hampering the movement of agricultural and food industry workers and extending border delays for food containers, result in the spoilage of perishables and increasing food waste," said the three leaders.
They also stressed the need to protect employees engaged in food production, processing and distribution, both for their own health and that of others, as well as to maintain food supply chains.
"It is at times like these that more, not less, international cooperation is essential," they said.
"We must ensure that our response to COVID-19 does not unintentionally create unwarranted shortages of essential items and exacerbate hunger and malnutrition."
Agence France-Presse
BRUSSELS - The EU will keep engaging with the UK through the WTO and the UN as both sides work out a deal on their future ties once Britain leaves the bloc, according to the top Brexit negotiator in Brussels.
Agreeing and ratifying a post-Brexit relationship by the end of 2020 "will be immensely challenging, but we will give it our all, even if we won't be able to achieve everything," the official, Michel Barnier, wrote in a weekend online commentary for the Project Syndicate magazine website.
The two sides will have just 11 months to settle that agreement following Britain's formal departure from the EU on January 31.
British Prime Minister Boris Johnson insists he will not seek an extension beyond 2020 to fine-tune a deal.
He has also made it clear his country will drop EU labor, environmental, financial, health and safety standards, spurring Brussels' concerns about British trade "dumping" and making prospects of a quick and comprehensive deal appear remote.
Barnier, who was unfailingly courteous when he negotiated the terms of Britain's withdrawal in a way to protect the EU's single market and citizens, said he had three goals -- framed as "New Year's resolutions" -- for the upcoming talks on the future relationship.
To work together on global issues, "the EU will continue to engage positively with the UK, both bilaterally and in global fora such as the United Nations, the World Trade Organization, and the G20," he said.
In terms of security issues, while it is "simply not possible" for Britain to have the same access to data as EU members, "tackling terrorism, cyberattacks, and other attempts to undermine our democracies will require a joint effort".
Barnier said there should be "unconditional commitment from both sides" to building a security alliance.
And for economic ties, "any free-trade agreement must provide for a level playing field on standards, state aid, and tax matters," Barnier emphasized.
That last point is seen as being a big stumbling block in the talks.
Johnson told the British parliament last Friday that an "ambitious" trade agreement would be struck "with no alignment on EU rules, but instead with control of our own laws, and close and friendly relations".
EU officials and lawmakers have voiced concern that Johnson might be seeking to build Britain as a deregulated "Singapore-on-Thames" that would try to sell goods into the EU made cheaper by cutting rules meant to protect workers, consumers and the environment.
There is also wariness over whether Johnson wants to keep Britain positioned for easy trade with the EU, or reshape its laws to deal more with the United States.
Barnier suggested in his piece only a bare-bones trade deal was possible in the 11-month time frame "which, most likely, will have to be expanded in the years to come" to cover many areas left unaddressed.
source: news.abs-cbn.com
GENEVA - The World Trade Organization's capacity to settle international disputes, a core function throughout the body's 25-year history, is on the brink of collapse following relentless US opposition.
The appellate branch of the WTO's Dispute Settlement Body (DSB), sometimes dubbed the supreme court of world trade, was a target of US criticism before President Donald Trump took office.
His predecessor Barack Obama's administration began a policy of blocking the appointment of appeals judges over concerns that their rulings violated American interests.
Trump's trade team has both extended that policy and escalated the fight.
Barring a shock breakthrough in the coming days, the court will cease functioning on Wednesday.
The WTO appellate branch normally counts seven judges but has just three left -- the minimum required to hear an appeal. Two more judges are due to retire on Tuesday.
WTO Director General Roberto Azevedo warned on Friday that the organization was facing a stark choice.
"You could restore the impartial, effective, efficient two-step review that most members say they want," he said.
"Alternatively, your choices could open the door to more uncertainty, unconstrained unilateral retaliation -– and less investment, less growth, and less job creation."
Various reform proposals have secured broad support.
But according to EU trade commissioner Cecilia Malmstrom, there can no solution without US buy-in because the WTO works on consensus.
"This is a dispute between the 163 members of the WTO and the US," she told the European parliament last month.
US WTO envoy Dennis Shea argued on Friday that Washington had "engaged constructively over the past year" to resolve the crisis, but would not relent until its concerns were fixed.
"This is not an academic question; we will not be able to move forward until we are confident we have addressed the underlying problems and have found real solutions to prevent their recurrence," he told a WTO meeting.
TRUMP 'KILLED' IT
US concerns regarding the WTO appeals court include allegations of judicial overreach, delays in rendering decisions and bloated judges' salaries.
But top American trade officials have also insisted that the US Constitution does not permit a foreign court to supersede an American one -- and that WTO appellate judges assert such superiority in international trade law.
Washington reportedly threatened to block the WTO's 2020 budget over the dispute, raising the prospect of a January 1 shutdown.
The US ultimately backed a provisional budget compromise on Thursday but it included substantial appellate body cuts.
"There is no question the Trump administration has killed the appellate body," said Edward Alden, a trade expert at the Council of Foreign Relations think-tank.
"That was its intention, and it has succeeded."
WHAT NEXT?
The appellate body's demise will place international trade disputes in legal limbo.
Countries will still be able to file grievances and dispute panels can issue rulings, but nations unhappy with those rulings can simply delay enforcement by filing an appeal to a non-functioning court.
The European Union, Canada and others have reaffirmed their commitment to a two-step dispute process, arguing that the right of appeal is essential in any legal system.
Brussels and Ottawa have agreed to set up a temporary appellate process, which mirrors the WTO court, and would handle any bilateral disputes that arise during the impasse. Norway has joined that accord.
Leading WTO members also say they are open to wider reform.
"We have made clear that we are fully committed to tackling the root causes of the discontent around the existing system," the EU ambassador to the WTO Aguiar Machado told AFP.
Another Western diplomat who requested anonymity told AFP the European Union was willing to tackle concerns about the court's "excesses" but said the US must first agree to begin recruiting new judges -- a non-starter for Washington.
Some have suggested that a solution might have to wait until after next year's presidential election in the United States.
In the meantime, the WTO has been left diminished.
Since its founding in 1995, the organization has been tasked with promoting liberal international trade through a rules-based system backed by a dispute settlement process.
Trade promotion has faltered as the body has struggled to agree any major new deals and Alden of the Council on Foreign Relations predicted: "There will never be another big, liberalising trade round."
Certainly, court-backed rule enforcement appears certain to suffer a heavy blow next week.
"The WTO needs both its legs, litigation and negotiation" said Elvire Fabry of Jacques Delors Institute.
source: news.abs-cbn.com
NEW YORK - Global stocks tumbled Wednesday after lackluster US jobs data exacerbated recession fears, while a World Trade Organization ruling cleared the way for new US tariffs on European goods.
Payrolls firm ADP estimated the US added 135,000 private-sector jobs in September. The figures were below expectations and bolster anxieties following data released Tuesday that showed the weakest US manufacturing conditions since the Great Recession.
"What you're seeing is a rethink of growth in the US and a rethink of valuations," said Briefing.com analyst Patrick O'Hare.
"The concern is that ultimately the slowdown in manufacturing could lead to a slowdown in services," ultimately hitting US consumer spending, O'Hare added.
Major US indices fell more than one percent for the second day in a row.
Earlier, European stock markets also suffered a bruising session, sinking around three percent due in part to fresh Brexit uncertainty.
Prime Minister Boris Johnson published his "final" Brexit proposals, warning EU leaders that Britain will walk out without a deal on October 31 if they do not accept his terms.
But officials in Brussels reacted coolly to the proposal. Johnson's latest plan includes several basic provisions -- including a potential four-year time limit -- that EU leaders have categorically rejected in the past.
"Equities are in full retreat," said Chris Beauchamp, chief market analyst at financial spread-betting firm IG.
"European equities have turned firmly lower in early trading on the very reasonable assumption that, if things are that bad for the US, then they must be even worse for Europe."
Adding to the worries over slowing US growth and Brexit was a WTO ruling that cleared the US to impose tariffs on $7.5 billion worth of EU goods in retaliation for the bloc's illegal support of Airbus.
NEW US TARIFFS
Shortly after Wall Street closed on Wednesday, US trade officials announced new punitive tariffs on the European Union starting October 18.
The move escalates a trade row between Washington and Brussels at the same time as the United States is already mired in a grinding trade dispute with China that economists believe has weighed on global growth.
Analyst O'Hare said the latest US tariffs, while affecting a relatively modest set of goods compared with the US tariffs on China, have "symbolic" import and could lead to more selling on Thursday.
"There's a very uncertain backdrop that's going to weigh on business confidence," O'Hare said.
At the same time, markets will be awaiting a report from the Institute for Supply Management on the services sector that could potentially buoy stocks if it is positive, O'Hare said.
KEY FIGURES AROUND 5:15 AM MANILA TIME
New York - Dow: DOWN 1.9 percent at 26,078.62 (close)
New York - S&P 500: DOWN 1.8 percent at 2,887.61 (close)
New York - Nasdaq: DOWN 1.6 percent at 7,785.25 (close)
London - FTSE 100: DOWN 3.2 percent at 7,122.54 (close)
Frankfurt - DAX 30: DOWN 2.8 percent at 11,925.25 (close)
Paris - CAC 40: DOWN 3.1 percent at 5,422.77 (close)
EURO STOXX 50: DOWN 3.0 percent at 3,413.31 (close)
Tokyo - Nikkei 225: DOWN 0.5 percent at 21,778.61 (close)
Hong Kong - Hang Seng: DOWN 0.2 percent at 26,042.69 (close)
Shanghai - Composite: Closed for a public holiday
Euro/dollar: UP at $1.0958 from $1.0933 at 2100 GMT
Pound/dollar: DOWN at $1.2295 from $1.2302
Dollar/yen: DOWN at 107.16 yen from 107.75 yen
Brent North Sea crude: DOWN 2.0 percent at $57.69 per barrel
West Texas Intermediate: DOWN 1.8 percent at $52.64 per barrel
source: news.abs-cbn.com
GENEVA - The World Trade Organization (WTO) said on Thursday that its latest economic barometer showed that the growth in merchandise trade was likely to weaken further in the third quarter.
Its quarterly trade growth indicator showed growth in global goods trade was likely to weaken, with a reading of 95.7. In its previous quarterly report in May, the WTO said that growth was likely to remain weak, with a reading of 96.3.
A score of below 100 in the indicator, a composite measure of seven drivers of trade, signals below-trend growth.
Referring to a mid-year WTO report issued in July, it said that trade flows have been hit by new restrictions at historically high levels.
"Tensions leading to higher trade barriers and greater uncertainty pose significant downside risks to trade growth forecasts," it added.
Sustained weakness in the latest index was driven by below-trend values in all component indices, it said.
International air freight, electronic components indices now show readings well below previous levels, while automobile production and sales, and agricultural raw materials seem to have bottomed out, the WTO said.
(Reporting by Stephanie Nebehay; Editing by Hugh Lawson)
source: news.abs-cbn.com
WASHINGTON -- US and Chinese officials say a historic deal ending their ongoing trade war could be imminent, but a key question is how can Washington be sure Beijing will live up to its end of the bargain?
With up to 100 Chinese officials reportedly expected next week in Washington, with the possibility of unveiling a grand agreement after months of tensions, that question is hanging over the talks.
Beijing may make eye-popping offers to buy American energy and agriculture exports as a means of cutting the soaring US-China trade deficit ($378.7 billion in 2018, including services trade), but all eyes will be on whether the agreement has any teeth.
US Vice President Mike Pence said Friday the enforcement mechanism would be key to the decision on whether to remove the punishing US tariffs which now cover more than $250 billion in Chinese imports.
"The reason enforcement has become central to this negotiation is the long history of China not living up to the spirit of the commitments it has made in the WTO and in bilateral negotiations with the US and other countries," Edward Alden, a trade expert at the Council on Foreign Relations, told AFP.
US President Donald Trump has repeatedly accused China of stealing from the United States by buying less from America than it sells.
But Trump also has demanded structural changes to the Chinese economy, including an end to forced transfer of American technology, theft of intellectual property and the massive role the Chinese government plays in markets and industry.
US Trade Representative Robert Lighthizer, who is leading the US delegation along with Treasury Secretary Steven Mnuchin, has insisted Washington will not accept empty promises and will demand verification Beijing is keeping its word.
Reaching trade agreements with China can be especially challenging, given that its regulations are not transparent, Alden said.
"China can change its laws in ways that please the United States, but then use regulatory tools to thwart implementation."
'THAT'S THE CORE'
To ensure strict compliance, US negotiators have proposed monthly, quarterly and semi-annual meetings, with the twice-yearly meetings to involving the most senior officials.
And should American businesses report violations of the agreement, Washington could begin a series of consultations with their Chinese counterparts, and then unilaterally impose new tariffs if no resolution is achieved, according to US media reports.
But China also would have recourse to the same tariff tool in case of a US violation.
"The enforcement mechanism is crucial to the agreement," Doug Barry, spokesman for the US-China Business Council, told AFP.
"Without a credible, time specific, verifiable means to hold parties accountable, we will miss an opportunity to put the trade relationship on a new and better footing."
Alden says the tool under discussion appears novel because bilateral free trade agreements typically resolve disputes through arbitration panels which oversee retaliatory tariffs, similar to the World Trade Organization dispute settlement process.
Businesses on both sides of the Pacific want the talks to wrap up as soon as possible to reduce uncertainty in international commerce at a time when the trade war has weighed on manufacturing sectors in both countries.
Among the top 15 US states exporting to China, many have been hit hard by China's retaliatory tariffs on soy, pork or in the aviation sector, including Alabama, Illinois and Washington State, according to the US-China Business Council.
Companies are calling for the tariffs imposed last year -- which cover more than $360 billion in two-way trade -- to be lifted.
But Washington hopes to retain the ability to resort to tariffs as a cudgel.
"We have to maintain the right to be able to -- whatever happens to the current tariffs -- to raise tariffs in situations where there's violations of the agreement," Lighthizer said in Senate testimony in March.
"That's the core. If we don't do that, then none of it makes any difference."
But, according to Alden, that could create "ongoing uncertainty" for businesses unaware of when either side could seek to impose unilateral tariffs.
source: news.abs-cbn.com
GENEVA -- The world's biggest economies slapped import restrictions on nearly half a trillion dollars' worth of trade over the past six months, the World Trade Organization said Thursday, voicing "serious concern".
Forty new import barriers were erected by G20 states between mid-May and mid-October this year -- 6 times more than during the preceding 6 months -- impacting $481 billion in trade, a fresh WTO report showed.
That was the highest figure recorded since the WTO started calculating the measure in 2012.
"The report's findings should be of serious concern for G20 governments and the whole international community," WTO chief Roberto Azevedo said in a statement.
"Further escalation remains a real threat," he warned, calling for an immediate reversal of the trend.
"If we continue along the current course, the economic risks will increase, with potential effects for growth, jobs and consumer prices around the world," Azevedo said.
An average of eight new restrictions on international trade, including tariff increases, import bans and export duties, were imposed by the big economies each month, the report showed.
The report appears to show the impact of US President Donald Trump's relentlessly confrontational trade policy, including launching a trade war with China and slapping stiff tariffs on steel and aluminum imports from many countries.
On Wednesday, the WTO's Dispute Settlement Body agreed to review complaints from a range of countries over the US tariffs, as well as Washington's complaints over retaliatory duties.
"The WTO is doing all it can to support efforts to de-escalate the situation, but finding solutions will require political will and it will require leadership from the G20," Azevedo said.
source: news.abs-cbn.com
BRUSSELS - EU ambassadors agreed on Wednesday draft tariff rates that the bloc will apply to quotas of imported goods after Britain leaves the European Union, the EU said in a statement.
The adjustment of the quotas entails dividing up existing quotas - set for the EU at the World Trade Organisation (WTO) - between Britain and EU member states after Brexit, "based on previous trade patterns", the statement said.
The existing EU tariff rate quotas for agricultural, fish and industrial products at the WTO were established while Britain was an EU member.
Tariff rate quotas are tariffs applied to a certain amount of quotas of imported goods.
The EU will have to engage in negotiations with WTO partners for each of the new tariff rate quotas.
However, "the EU needs to be able to proceed unilaterally to the dividing up of the tariff rate quotas for the period between the UK's withdrawal from the EU and the conclusion of a final agreement within the WTO," the statement said.
The agreement reached by EU states will need the approval of the EU Parliament before becoming law.
(Reporting by Francesco Guarascio Editing by Andrew Heavens and Susan Fenton)
source: news.abs-cbn.com
GENEVA - World Trade Organization (WTO) head Roberto Azevedo said on Friday U.S. President Donald Trump's comments about potentially leaving the WTO were consistent with what the United States has said previously and did not reflect new concerns.
Trump said on Thursday that he could pull out of the WTO, potentially undermining one of the foundations of the modern global economy, which the United States was instrumental in creating.
"If they don't shape up, I would withdraw from the WTO," Trump said.
In a response on Friday, Azevedo, the WTO's director general, said there was no reason for "panic".
"The U.S. concerns about areas in the WTO that they would like to improve are not new. And I think what he said yesterday is consistent with what they have expressed before."
Trump has previously called the WTO a "disaster" and a "catastrophe".
During his election campaign he told NBC's Meet the Press programme that if the WTO rules blocked his policies, he would renegotiate U.S. membership or pull out.
Trump's ambassador has said the United States will not shy away from being disruptive to shake up what it sees as a complacent organisation, and has precipitated a crisis by blocking appointments of WTO appeals judges, forcing other countries to discuss potential reforms to assuage Trump.
Many diplomats say that although they dislike the U.S. tactics, they agree that the WTO needs reform, and hope that the situation can be used to make the 23-year-old trading club more efficient and effective.
The WTO is run on the basis of "consensus", meaning that every one of its 164 members has an effective veto and it is almost impossible to get agreement on any change to the rules.
Azevedo said many WTO members were now talking about improvements, which was a good development.
"Everyone that would like to see improvements in the WTO is very welcome to present their ideas and their suggestions to improve the organisation, sit down with the other members and get the job done," he said.
source: news.abs-cbn.com
GENEVA - The European Union on Monday followed China in complaining to the World Trade Organization (WTO) over US tariffs on steel and aluminium imports.
"Having a substantial interest as an exporter in this case, the European Union requests consultations with the United States," the EU said in a statement published on the world trade body's website.
US President Donald Trump sparked fears of a trade war in March when he decided to impose steep tariffs on steel and aluminium imports, primarily to target China, but also EU countries.
Brussels said in the document the aim of the discussions would be to "exchange views and seek clarification regarding the proposed measures" and to reach "an understanding on ways to achieve" protection, as set out in the WTO's Agreement on Safeguards.
The EU said it wanted to hold the consultations "as soon as possible".
A European Commission source told AFP: "The discussions between the EU and the US are currently ongoing. Contacts continue at several levels, notably on the issue of global overcapacity in the steel and aluminium sectors.
"In these discussions, the European Commission is insisting on getting a full and unconditional exemption from the announced steel and aluminium tariffs."
On April 5 China also filed a complaint with the WTO, but Beijing went through its Dispute Settlement Body.
source: news.abs-cbn.com
GENEVA - Beijing has requested dispute consultations with the United States at the World Trade Organization over US tariffs slapped on imports of Chinese steel and aluminum products, according to a WTO document published Tuesday.
China's representative to the world trade body has requested "consultations" with Washington over its decision to impose "additional ad valorem rate of duty on imports of certain steel and aluminum products," according to the document, which stated that the complaint was filed on April 5.
US President Donald Trump decided in March to impose steep tariffs on steel and aluminum imports, primarily to target China.
China claims the duties of 25 percent and 10 percent on imports of its steel and aluminium products violate international trade rules.
The Chinese "request for consultations", which marks the first step in a full-blown legal challenge at the WTO's Dispute Settlement Body, is part of an escalating trade confrontation between Washington and Beijing.
Early last week, Washington also published a list of $50 billion in Chinese goods to be hit by tariffs over what Washington says is widespread theft of intellectual property and technology.
China quickly launched a challenge against those proposed tariffs, also requesting that the WTO organize consultations.
Beijing also retaliated by unveiling planned levies on $50 billion worth of major US exports including soybeans, cars and small aircraft.
But Trump hit back again late Thursday, instructing trade officials to consider tariffs on an additional $100 billion in Chinese imports.
source: news.abs-cbn.com
The United States remains committed to free trade but wants to re-examine some trade deals and correct their excesses, US Treasury Secretary Steven Mnuchin said on Saturday after G20 finance chiefs backtracked on past commitments about trade.
Making only a token reference to trade in their communique, finance ministers and central bank chiefs from the world's top 20 economies broke with a decade-long tradition of endorsing open trade, a clear defeat for host nation Germany, which has fought to maintain the G20's past commitments.
"What was in the past communique is not necessarily relevant from my standpoint," Mnuchin told a news conference in Baden Baden after his first meeting with the finance chiefs of the world's 20 biggest economies.
"I understand what the president's desire is and his policies, and I negotiated them from here. I couldn’t be happier with the outcome," Mnuchin said.
In the new U.S. administration's biggest clash yet with the international community, G20 finance chiefs rowed back on a pledge to reject protectionism and maintain an open and inclusive global trade system.
"We believe in free trade, we are in one of the largest markets in the world, we are one of the largest trading partners in the world, trade has been good for us, it has been good for other people," Mnuchin said.
"Having said that, we want to re-examine certain agreements," Mnuchin said, adding that NAFTA would have to be reviewed, some WTO rules needed to be better enforced and older agreements may have to be renegotiated.
Although the government is also reviewing financial regulation, Mnuchin pledged support for the now stalled Basel III accord, a major global attempt to regulate lenders consistently.
"We’re hopeful there will be a resolution on the Basel III/IV changes," Mnuchin said. "We need to make sure we bring unity to the international market."
Man killed at Paris airport planned to 'die for Allah': prosecutor
(Reporting by Balazs Koranyi and David Lawder; editing by David Clarke/Ruth Pitchford)
source: news.abs-cbn.com
