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Spectator
17 hours ago
- Business
- Spectator
Has Ursula von der Leyen seen the light on China?
Coming from an American politician, the accusations would have been unsurprising. Beijing is unwilling to 'live within the constraints of the rules-based international system' and its trade policy is one of 'distortion with intent'. It splashes subsidies with abandon, undercuts intellectual property protections, and as for China's membership of the World Trade Organisation (WTO), that was probably a mistake too. It is bold of von der Leyen to raise the WTO, and it will be intriguing to see how she is greeted at the EU-China leaders' summit Yet this tirade came not from an acolyte of Donald Trump, but from Ursula von der Leyen, the president of the European Commission during this week's summit of G7 countries in Kananaskis, Alberta. 'Donald is right,' she said during a roundtable. Could there have been something in that Rocky Mountain water? Or was this all a devilish ploy to curry favour with Trump and thereby secure a favourable trade deal with the US? After all, it will not have gone unnoticed in Brussels that the US-UK trade pact contained security and other provisions clearly aimed at excluding China from sensitive supply chains and cutting edge tech. But it wasn't only her words. The EU has also scrapped a key economic meeting with Beijing, which was to have been held ahead of an EU-China leaders' summit in the Chinese capital next month, citing a lack of progress on numerous trade disputes. It recently restricted Chinese medical device manufacturers from access to the EU's vast public procurement market, launched an anti-dumping investigation into Chinese tires and wind turbines and refused Beijing's demands to remove tariffs on Chinese electric vehicles. The truth is that Brussels has lost patience with China, and the famous EU fudge is (at least for now) being jettisoned for a far more robust approach to what EU officials see as China's serial rule-breaking. Beijing's recent restrictions on the export of critical minerals, which threatened to bring the continent's motor industry to its knees, have been a painful reminder of the EU's dangerous dependencies and Beijing's willingness to weaponise its supply chains. The EU's trade investigations are being carried out under a new Foreign Subsidies Regulation, which unusually for the rather pedestrian EU bureaucracy is fast, focused and – so far – exceedingly effective. If a foreign-owned company bidding for a contract or involved in a takeover is suspected of unfair subsidies, the EU can demand detailed business information. Last year, the Dutch and Polish offices of Nuctech, a Chinese security equipment company, were raided by EU competition regulators, acting under the new powers. A Chinese railway equipment manufacturer pulled out of bidding for a large contract in Bulgaria, preferring not to hand over data that would almost certainly have revealed wads of subsidies. In spite of these growing tensions, Beijing believed it could use Trump's tariff war to prize away Brussels from Washington – a long-standing goal of Chinese policy. To this end, in late April it announced it was lifting sanctions it had imposed on members of the European Parliament in retaliation for EU sanctions on Chinese entities accused of human rights abuses in Xinjiang. President Xi Jinping also launched a charm offensive, calling for unity in the face of coercion and presenting himself as an upholder of free trade. This has backfired, being seen widely in Brussels as laughable hypocrisy. Looming large over EU relations with China is Beijing's support for Vladmir Putin, which is felt much more profoundly in European capitals than in Washington. But Brussels has also been willing to call out China on a range of security issues. These include the blacklisting of Huawei lobbyists earlier this year following allegations of bribery linked to the tech company's activities in Brussels. Germany has accused China of being behind a cyberattack on the federal cartography agency for espionage purposes, and the Belgian intelligence agencies have investigated Alibaba for 'possible spying and/or interference activities' at the cargo airport in Liège. It should not be forgotten that the term 'de-risking' in relation to China was first popularised by von der Leyen. She introduced it in a March 2023 speech to the Berlin-based Mercator Institute for China Studies. She said it meant being clear-eyed about China's growing economic and security ambitions. 'It also means taking a critical look at our own resilience and dependencies,' she said. 'De-risking' was soon adopted in other Western capitals, replacing the more clunky 'decoupling'. De-risking sounded more nuanced – a more orderly form of decoupling. It was vague, slightly murky, and open to interpretation. But therein lay its strength. It could be dialled up or down according to the circumstances, a flexible tool, with which few could disagree. It seemed like plain common-sense, which is probably why it so irked Beijing. 'It is just another word game. It will not change the 'ostrich mentality' of some countries to escape from the real world,' snarled the Global Times, a state-owned tabloid, at the time. When von der Leyen travelled to Beijing with French President Emmanuel Macron a week after her speech, Macron was given the red carpet treatment while the EC president was largely cold-shouldered in what was interpreted as a calculated snub. During this week's G7 meeting, von der Leyen said: 'We strongly feel that the biggest challenges are not the trade between G7 partners. Rather, the sources of the biggest collective problem we have has its origins in the accession of China to the WTO in 2001'. China's membership of the WTO is widely seen as a high point of western delusion about China. Beijing promised to improve the rule of law, to protect intellectual property rights, cut import tariffs, give greater access to its market, liberalise controls on its exchange rate, scrap trade barriers and much more. Few of these ever happened, or where one barrier was removed, another was erected. China has clung to the privileges of a 'developing' country. It has never provided a level playing field for foreign companies but was able to flood the world with its own cheap exports, while western companies flocked to outsource production and supply chains to Chinese factories, hollowing out manufacturing throughout the West. This led inextricably to the dependencies the West is decades later trying to unwind and has fuelled populist anger in developed economies. It is bold of von der Leyen to raise the WTO, and it will be intriguing to see how she is greeted at the EU-China leaders' summit, tentatively set for late next month to mark 50 years of bilateral relations. Few will be in celebratory mood, and Xi will probably concentrate on individual European leaders, believing he has greater influence with them than with the European Commission president. His main miscalculation has been to believe he can leverage the distrust of Trump to China's advantage, because while it is true that Trump is haemorrhaging trust, the grim truth for Xi is that Beijing never enjoyed much trust in the first place.
Mid East Info
a day ago
- Business
- Mid East Info
US$6.4 Trillion Shortfall Spurs Call for Deeper South-South Cooperation at Global South Economic Forum - Middle East Business News and Information
The UAE's Comprehensive Economic Partnership Agreements CEPAs are ideal examples of South-South cooperation that is helping UAE to increase its trade with its partners. Thanks to CEPAs, the UAE recorded a 49 percent jump in its total foreign trade reaching Dh5.23 trillion US$1.42 trillion in 2024, compared to Dh3.5 trillion US$949 billion in 2021, according to the World Trade Organisation WTO. The development financing gap for the Global South could surge to US$6.4 trillion by 2030, according to a recent report published by OECD, underscoring the urgent need for deeper cooperation among developing economies. This call to action was a key message from government leaders and experts convening at the inaugural edition of Global South Economic Forum GSEF, held at Anwar Gargash Diplomatic Academy (AGDA) in Abu Dhabi. As globalisation gives way to a new, multipolar world order, the forum emphasized the growing importance of South-South cooperation in accelerating trade, investment, and strategic partnerships across the developing world through its five thematic sessions. In his Key Note address, His Excellency Ahmed Al Sayegh, Minister of State, Economic and Trade Affairs, Ministry of Foreign Affairs, UAE, said, 'The nations of the Global South are no longer peripheral in global economic affairs. They are central to shaping the agenda, contributing to ideas and advancing frameworks for equitable cooperation. Collectively, these nations are helping recalibrate partnerships and offering pragmatic solutions rooted in shared ambition and mutual respect.' The UAE, he said, believes that the voices, values, and visions of the Global South are indispensable to shaping a more inclusive and balanced international system. 'The Global South today holds unmatched potential as engines of growth and innovation, as stewards of critical resources and cultural heritage and as advocates for a more just and resilient global economy,' he said. 'To realise this potential, we ought to work together to harness emerging technologies including artificial intelligence, clean energy and digital finance, for sustainable development; deepen economic integration through trade corridors, smart infrastructure and investment facilitation; reclaim global narratives toward inclusivity and strengthen South-South and equally important South-North partnerships based on mutual respect, shared opportunity and strategic autonomy,' the Minister said. He further stated, the UAE is proud to contribute to the Global South vision in various ways, including its outward-looking economic diplomacy. 'Whether through investments in clean energy, digital connectivity, food security or development financing, we remain committed to enabling pathways for shared prosperity,' he said, adding, 'As a nation at the crossroads of continent and cultures, the UAE sees its role not only as a bridge but also as a collaborator and catalyst for cooperation that transcends geography,' H.E. Ahmed Al Sayegh added. The UAE's Comprehensive Economic Partnership Agreements (CEPAs) are a leading example of South-South cooperation in action. As a result of these agreements, the UAE's total foreign trade surged by 49 percent, reaching Dh5.23 trillion (US$1.42 trillion) in 2024, up from Dh3.5 trillion (US$949 billion) in 2021, according to the World Trade Organization WTO. Nickolay E. Mladenov, Director General of AGDA, said: 'Through the CEPAs, the UAE is sought to build bridges at a time when others build walls. We hope that the Global South Economic Forum is part of that process of openness, building bridges and allowing countries and thought leaders to align together around ideas for the future ahead of us.' According to a recent Boston Consulting Group BCG report, Global South is becoming a powerhouse of economic growth. Excluding China, the bloc of 133 nations accounts for roughly 18 percent of global GDP. Including China, that share rises to 40 percent – and represents 65 percent of the global population. The combined GDP of these nations is projected to grow by 4.2 percent annually through 2029, more than double the 1.9 percent expected for advanced economies. Trade within the Global South is also rising, with South-South trade projected to grow at a CAGR of 3.8 percent through 2033, compared to 2.2 percent for North-North trade. By 2033, Global South trade could reach US$14 trillion annually. However, the OECD's Global Outlook on Financing Sustainable Development 2025 paints a stark picture. While external finance to developing nations reached US$5.24 trillion in 2022, it still falls short of the US$9.24 trillion required annually to meet the UN 2030 Agenda. The financing gap has widened due to climate change, geopolitical tensions, and slower-than-needed increases in available resources. 'Between 2015 and 2022, financing needs rose 36 percent, while actual resource flows increased by just 22 percent – leaving a 60 percent shortfall,' the OECD warned. Without structural reform, this gap could hit US$6.4 trillion by 2030. Global South Economic Forum GSEF 2025, convened by the Centre of Geoeconomics for the Global South (COGGS) in collaboration with AGDA, Emirates Centre for Strategic Studies and Research (ECSSR), and China's Academy of Contemporary China and World Studies (ACCWS), brought together over 100 delegates – several senior government officials and members of the diplomatic corps in UAE. The forum aims to shape dialogue on geoeconomic challenges, promote regional integration and technology adoption, and enhance collective frameworks for reshaping global economic governance. The Bureau of Research on Industries and Economic Fundamentals has facilitated the presence of the Indian delegation at the forum. Mohammed Saqib, an Economist and Convenor of COGGS, remarked: 'The world is on the cusp of a new economic order. Global South is emerging as a driving force in shaping global systems, and our collective voice is gaining strength in a multipolar world. We are committed to building equitable economic frameworks.' The forum also addressed investment trends. According to the World Investment Report 2024, FDI flows to developing countries declined by 7 percent to US$867 billion, driven largely by an 8 percent drop in developing Asia. Despite over 1,000 new greenfield project announcements in developing countries, most were concentrated in Southeast Asia and West Asia, with Africa and Latin America seeing limited activity. 'GSEF wasn't an echo chamber of ideas – the forum is a crucible of tested wisdom, where real-world experience met real-time challenges. Far from exclusive, GSEF thrives on inclusion, bringing diverse voices to the same table to shape a tomorrow that's moving in many directions,' Ayanangsha Maitra, co-ordinator of GSEF, remarked. About Global South Economic Forum GSEF: Global South Economic Forum (GSEF) is a forum convening ministers, former heads of state from Global South nations. Inaugurated by a ministerial session, the forum is hosted at the Anwar Gargash Diplomatic Academy (AGDA), Abu Dhabi, a globally recognized institution frequented by world leaders and diplomats. GSEF is positioned as a solution-offering platform for the Global South, addressing unfulfilled promises of traditional elite forums. The Forum emphasizes economic resilience, sustainable finance, technological innovation, and inclusive growth for Global South nations. The expert discussants will prescribe actionable solutions to real-world challenges facing the Global South. The Forum aims to secure the interests of Global South nations, with a narrative of empowerment and transformation of institutions and organisations in the age of multi-polarity. About Centre of Geoeconomics for the Global South COGGS: Centre of Geoeconomics for the Global South (COGGS) is bringing together Global South countries with a focus on economics, but its vision extends to broader development, resilience, and economic as well as social collaboration. COGGS is committed to publishing research papers in partnerships with prestigious partner organisations worldwide, including the UAE, Argentina, Egypt, India, and Indonesia.
Time of India
3 days ago
- Business
- Time of India
India for addressing asymmetries in cotton sector between developing, developed nations at WTO
India has stated that cotton is a sensitive domestic issue and pitched for addressing the long-standing asymmetries in the sector between developing and developed members of the World Trade Organisation, according to a WTO note. According to the report of the chairperson of the WTO's committee on agriculture, India has reaffirmed the need to deliver on long-standing mandates, including finding a permanent solution to the issue of public stockholding of foodgrains, special safeguard mechanism and cotton, particularly in view of the forthcoming Ministerial Conference (MC) being hosted by Cameroon. MC is the highest decision-making body of the WTO. Its 14th meeting is scheduled for March 26-29 next year in Cameroon. "India emphasised that cotton was an important and sensitive matter domestically with a situation similar to that of some of the other cotton-producing countries in terms of farmers' vulnerabilities since cotton is grown in arid areas by small and marginal farmers," it said. The country has underscored the importance of addressing the long-standing asymmetries in the cotton sector between developing and developed members with regard to their respective entitlements to the aggregate measurement of support beyond the de minimis level.
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Business Standard
12-06-2025
- Automotive
- Business Standard
India has 'no basis' to seek WTO consultations on auto tariffs, says US
India had challenged the 25% US tariffs on automobiles at the WTO, claiming they were safeguard measures, but Washington insists they fall outside the Safeguards Agreement New Delhi The US has informed the World Trade Organisation (WTO) that its tariffs on automobiles and auto components do not fall under the category of safeguard measures, and therefore, there is "no basis" for India to seek consultations on the matter, PTI reported. Earlier this month, India had requested consultations with the US at the WTO, challenging the American tariffs on vehicles and related parts under the safeguard provisions of the General Agreement on Tariffs and Trade (GATT) 1994 and the Agreement on Safeguards. In a formal communication to the WTO, the US clarified: 'The United States is not maintaining these actions pursuant to the safeguards/emergency action provisions in Article XIX of GATT 1994 and the Agreement on Safeguards. These actions are not safeguard measures, and, therefore, there is no basis to conduct consultations under the Agreement on Safeguards.' While the US expressed willingness to engage in talks with India, it maintained that any such discussion would be outside the framework of the Safeguards Agreement and would not alter its position that the tariffs in question are not safeguard measures. India's consultation request follows its earlier decision to reserve the right to impose retaliatory tariffs on select American goods in response to US duties on steel and aluminium. India challenges 25% US auto tariffs at WTO Earlier this month, in its submission to the WTO, India argued that the 25 per cent tariffs imposed by the US on passenger vehicles, light trucks, and certain auto parts amount to a "safeguard measure" aimed at shielding domestic industries from a perceived spike in imports. India noted that the tariffs, which took effect on 3 May 2025, were implemented without advance notification to the WTO's Committee on Safeguards, an action that breaches Article 12.1(c) of the WTO Safeguards Agreement, which requires prior notice before such measures are introduced. India also formally reserved the right to take retaliatory measures if its consultations with the United States fail to produce a resolution within the 30-day period mandated under WTO rules. In its submission, India stated, 'India reserves all its rights under the Agreement Establishing the World Trade Organisation and its Annexes, including the Agreement on Safeguards.'
Hindustan Times
11-06-2025
- Business
- Hindustan Times
India, US trade talks hit a speed bump
The latest round of in-person trade negotiations between the India and US concluded in New Delhi on Tuesday with progress on multiple fronts but without significant breakthrough on tariff issues, people aware of the matter told HT, identifying recent 'protectionist' measures by Washington to slap 50% duties on steel and aluminium and its stance on the 10% baseline tariff on all imports as hurdles. The extended six-day negotiation round, which saw the American delegation stay longer than initially planned, highlighted the complex nature of the discussions as both countries race to reach an agreement before the July 9 deadline when additional US tariffs are set to take effect. An American negotiating team led by assistant US trade representative Brendan Lynch arrived in Delhi on June 4 to hold face-to-face negotiations with the Indian team led by special secretary Rajesh Agrawal. This was the fourth time the two sides met at one of the capitals and there was no announcement on Tuesday on whether they had set another in-person meeting. Washington wants duty-free access for American goods, while India is willing to slash duties on most American products to near zero, provided the US reciprocates unequivocally, the people said, requesting anonymity because of sensitivities involved. 'The negotiations held with the US side were productive and helped in making progress towards crafting a mutually beneficial and balanced agreement including through achievement of early wins,' one person said. India outlined three main tariff-related asks for forging an early harvest deal before July 9: the US withdraw its threat of imposing another 16% reciprocal tariff on Indian goods after July 8, repeal safeguard measures against Indian steel, aluminium, automobiles and auto components, and revoke the 10% reciprocal tariff on Indian goods imposed on imports from 57 countries from April 5. 'India is willing to substantially reduce its MFN rates for American goods through the proposed BTA to address its trade deficit concern. Ideally, the US should also reciprocate by reducing MFN rates. Least it could withdraw all additional tariff and non-tariff measures against Indian goods shipped to America,' a second person said. According to World Trade Organisation rules, the Most Favoured Nation tariff is applicable to all its 166 members alike. Two countries can, however, reduce MFN rates under bilateral preferential trade arrangements such as free trade agreements. While doubling safeguard duties on steel and aluminium to 50% over MFN rates under section 232 from June 4, the Trump administration spared the UK. For the UK, the levy remained at 25% because the two countries agreed to a US-UK Economic Prosperity Deal, the person said. 'Ideally, the US should also exempt India along with the UK because India was engaged with the United States for a bilateral deal much before President Trump's 'Liberation Day' tariff announcements on April 2,' this person added. On April 2, Trump announced Liberation Day tariffs—a 10% baseline tariff on all imports effective from April 5 and country-specific reciprocal duties of 16% for India, which is suspended until July 8. Indian exporters face practical difficulties under current US tariff structures. 'Indian goods, including handicraft items having parts made of steel or aluminium separately attract a 50% tariff. It is difficult to segregate metal components from any product and calculate two different tariff rates. This is an additional compliance burden, which also needs to be addressed through these talks,' one person said. Like Washington, New Delhi is keen to conclude an early deal and forge a BTA, but it must be 'mutually beneficial' as agreed by Prime Minister Narendra Modi and President Donald Trump on February 13. 'Besides, the US' tariff measures are already under legal scrutiny. Although a federal appeals court reinstated the tariff measure, it is temporary. Even under Section 122 of the US Trade Act of 1974, the President has the authority to impose temporary tariffs or quotas for up to 150 days only. Any extension beyond that would require legislative approval,' the second person said. Indian negotiators emphasised existing goodwill measures taken by New Delhi. 'Despite all these, India is not only willing to cut tariffs on the majority of American imports, but has also reduced duties on several items such as bourbon whiskey and motorcycles. It has already repealed the 6% Google Tax (equalisation levy) and recently approved entry of Elon Musk's satellite internet service Starlink. These are more than goodwill gestures and America must factor them while negotiating a trade deal with India,' the second person added.
