Tag Archive | Trade

Trade sanctions on US good

Brazil has announced, and the World Trade Organization (WTO) has approved, new trade sanctions on US goods, in response to illegal subsidies paid by the US government to American cotton growers.

A list was published by Brazil of the items on which import tariffs would be placed, which includes more than 100 different American products, worth nearly $600 million. Cotton products would face the highest penalty, with the tariff increasing from 6% to 100%. Other American products will be included in the sanctions as well, although the tariff increase will not be as significant.

According to a Brazilian official, a wide range of products was chosen, in order to “maximize pressure.” The tariffs will go into effect in 30 days, unless the two countries can reach an agreement before then. Read More…

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China world’s biggest…

China has overtaken the US to become the biggest car market in the world as government policy initiatives spur demand.

Shanghai traffic

China sold more than 13.5m vehicles last year, the official Xinhua news agency said today, compared with 10.4m cars and light trucks sold in the US, the lowest level in 27 years.

China’s market grew by 45% year-on-year in 2009, providing a rare glimmer of hope for the world’s beleaguered car manufacturers, such as General Motors, Volkswagen and Toyota. Total industry sales fell 21% in the formerly dominant US market, and Volkswagen has said that China is now its biggest market. Read More…

Ecuador defends its commercial ties with Iran

Ecuadorian Foreign Minister Fander Falconi on Monday defended his country’s diplomatic and commercial ties with Iran.

Describing Ecuador-Iran diplomatic ties as open and flexible, he told reporters that Ecuador has ties with all the countries in the world, “except those which definitely violate human rights in a proved way.”

He said Ecuador will simply do not have a diplomatic representation with countries that are categorically proved of such violation. Read More…

China-EU trading relations growing

Chinese President Hu Jintao met with the European Union’s leaders Jose Manuel Barroso and Fredrik Reinfeldt in Nanjing, Jiangsu Province, China. The EU leaders were in China to attend Monday’s twelfth China-European Union (EU) summit. Barroso said China-EU relations are “more mature, deeper” then before.

China-EU trading relations have grown over the last 35 years. The volume of trade between the pair reached US$425.58 billion in 2008, an increase of 19.5% over the prior year. Bilateral relations are far closer now than in previous years. Read More…

U.S. and China in trade dispute

The United States (U.S.) and China this week initiated a trade dispute over tires, auto-parts, and poultry products just a week ahead of the 2009 G-20 trade summit in Pittsburgh, Pennsylvania.

The most recent trade policies enacted by the U.S. government includes a September 12 decision to impose a 35% trade tariff on Chinese tire imports as an anti-dumping measure. The trade policy came about as a result of a trade-complaint initiated by the United Steelworkers Union (USW) filed before the U.S. International Trade Commission.

The union documented a tripling of Chinese tire imports from 2004 to 2008. The Trade Commission initially recommended a 55% tariff however, President Obama agreed to only 35%. The trade tariff will be diminished by 5% per year for the next three years to 25%. The trade tariff will take effect on September 26, pegging rates at the new level from the current 4%. The dispute will now move to the WTO where it can take up to 18 months for adjudication. Read More…